CNM Stock Forecast & Price Target

Core & Main achieved a gross margin of 26.8%, reflecting a 40 basis point increase compared to the prior year, indicating continued operational improvements. The company reported a 6.6% year-over-year growth in net sales, driven by a 5% volume gain, which suggests robust demand supported by strategic acquisitions. Management anticipates a decline in selling, general, and administrative (SG&A) expenses as a percentage of revenue in the latter half of the fiscal year, further enhancing the company's financial efficiency.

Core & Main has experienced a disappointing adjustment in its financial outlook, as management has revised its 2025 Adjusted EBITDA guidance down to a range of $920 million to $940 million, significantly below the previously anticipated $980 million. This downward revision is primarily attributed to weaker residential demand and escalating operating expenses, reflecting broader challenges within the segment. Additionally, the company has reported consistent declines in residential volumes during August, aligning its performance with peers who have similarly lowered expectations.