Core & Main Inc (NYSE:CNM) stock fell 2.91% (As on March 25, 11:27:41 AM UTC-4, Source: Google Finance) after the company gave weak guidance that came in below Wall Street expectations. Gross profit for the three months ended February 1, 2026 decreased $23 million, or 5.1%, to $428 million compared with $451 million for the three months ended February 2, 2025. Gross profit margin improved 50 basis points to 27.1% in the quarter, reflecting the company’s gross margin initiatives and disciplined pricing management. Net income increased 9.0% to $73 million, while diluted earnings per share rose 12.1% to $0.37. Operating income for the three months ended February 1, 2026 decreased $6 million, or 4.8%, to $118 million compared with $124 million for the three months ended February 2, 2025. The decrease in operating income was primarily attributable to lower gross profit partially offset by lower SG&A. Adjusted EBITDA for the three months ended February 1, 2026 decreased $12 million, or 6.7%, to $167 million compared with $179 million for the three months ended February 2, 2025. Net cash provided by operating activities increased by $29 million to $650 million for fiscal 2025 compared with $621 million for fiscal 2024.

CNM in the fourth quarter of FY 25 has reported the adjusted earnings per share of $0.52, beating the analysts’ estimates for the adjusted earnings per share of $0.33. The company had reported the adjusted revenue decline of 6.9 percent to $1.58 billion in the fourth quarter of FY 25, missing the analysts’ estimates for revenue of $1.59 billion. Net sales decreased primarily due to one less selling week compared to prior year while average daily net sales increased 0.9%. Average daily net sales decreased for pipes, valves & fittings and storm drainage primarily due to lower volumes. Average daily net sales for fire protection increased primarily due to higher volumes and higher average selling prices. Average daily net sales for meters increased due to higher volumes.

The company provided fiscal 2026 revenue guidance of $7.80 billion to $7.90 billion, with the midpoint of $7.85 billion falling below the analyst consensus of $7.93 billion.

For fiscal 2026, Core & Main expects adjusted EBITDA of $950 million to $980 million, representing an adjusted EBITDA margin of 12.2% to 12.4%. The company anticipates operating cash flow of 60% to 70% of adjusted EBITDA. The outlook assumes flat pricing and end-market performance, contributions from acquisitions, and benefits from fiscal 2025 cost reduction initiatives.