Core & Main Inc (NYSE:CNM), a distributor specializing in water, wastewater, and fire protection infrastructure products, stock rose 2.06% (As on December 9, 11:44:11 AM UTC-4, Source: Google Finance) after the company delivered third-quarter results that surpassed analyst forecasts, even as the company contended with weaker residential demand. Gross profit rose 3.3% to $561 million, and gross margin expanded to 27.2%, up from 26.6% a year earlier. Management attributed the improvement to private-label momentum and disciplined purchasing and pricing strategies. Core & Main also pointed to continued geographic expansion, with new branches opening in Houston, Texas, and Denver, Colorado. Additionally, the firm completed its acquisition of Canada Waterworks on September 30, 2025, broadening its North American footprint. Despite the earnings beat, adjusted EBITDA slipped 1.1% to $274 million, primarily reflecting higher selling, general, and administrative expenses. Net income for the three months ended November 2, 2025 increased $3 million, or 2.1%, to $143 million compared with $140 million for the three months ended October 27, 2024. The increase in net income was primarily attributable to a decrease in interest expense partially offset by a decrease in operating income. Net cash provided by operating activities was $382 million for the nine months ended November 2, 2025 compared with $386 million for the nine months ended October 27, 2024.
CNM in the third quarter of FY25 has reported the adjusted earnings per share of 89 cents, beating the analysts’ estimates for the adjusted earnings per share of 74 cents. The company had reported the adjusted revenue growth of 1.2 percent to $2.06 billion in the third quarter of FY25, which matches the analysts’ estimates for revenue of $2.06 billion. The company noted that revenue growth was achieved despite “soft residential demand and a tough comparison from last year.” He added that fusible high-density polyethylene, treatment-plant solutions, and geosynthetics all posted double-digit growth in the quarter. Operating income for the three months ended November 2, 2025 decreased $3 million, or 1.3%, to $220 million compared with $223 million during the three months ended October 27, 2024.
Additionally, after the quarter closed, Core & Main boosted its share-repurchase authorization by $500 million, a sign of management’s confidence in the balance sheet and future performance.
The company reaffirmed its full-year fiscal 2025 guidance, projecting net sales between $7.6 billion and $7.7 billion—representing 2% to 3% growth—and adjusted EBITDA of $920 million to $940 million.