Core & Main — Third Quarter Fiscal 2026 Earnings Summary

Financial Performance:

• Preliminary third-quarter net sales ranged from $2.12 billion to $2.13 billion, compared to $2.062 billion in the same period of the prior year, representing 3% year-over-year growth.
• Preliminary net income ranged from $128 million to $140 million, compared to $143 million in the prior year period.
• Preliminary Adjusted EBITDA (Non-GAAP) ranged from $267 million to $275 million, compared to $274 million in the prior year period.
• Adjusted EBITDA was impacted by higher transportation costs and investments in greenfield locations.
• Depreciation and amortization for the quarter was $46 million, compared to $47 million in the prior year.
• Interest expense for the quarter was $39 million, compared to $30 million in the prior year.
• Equity-based compensation was $3 million, compared to $4 million in the prior year.
• Other expenses (including acquisition transaction costs and severance) were $9 million, compared to $3 million in the prior year.

Guidance and Future Outlook:

• Maintains fiscal 2026 net sales outlook of $7.8 billion to $7.9 billion.
• Updates fiscal 2026 Adjusted EBITDA (Non-GAAP) outlook to $950 million to $960 million, revised down from the previous range of $950 million to $980 million.
• The updated outlook reflects stable municipal demand and contributions from completed acquisitions, partially offset by softer-than-anticipated residential lot development and light commercial activity.
• Full third-quarter fiscal 2026 results are expected to be reported on December 8, 2026.

Business Segments and Product Lines:

• Completed three acquisitions with over $250 million in combined annual revenue.
• Acquired Southwest Stormwater Solutions in September, a provider of proprietary underground stormwater vault systems in Phoenix, Arizona.
• Acquired Gajeske, LLC in October, a distributor of fusible HDPE pipe and fittings with operations in Texas and Oklahoma.
• Acquired KTI Limited and KTI Utility Services in November, a distributor of meter and AMI solutions in Ontario and Alberta, Canada.
• Opened a record eight greenfield locations year-to-date to drive organic growth.

Market and Competitive Landscape:

• Operates in a mixed demand environment with stable municipal demand but softer residential lot development and light commercial activity.
• The company competes in fragmented and highly competitive markets within the specialty distribution sector for water, wastewater, storm drainage, and fire protection products.
• The company serves municipalities, private water companies, and professional contractors across municipal, non-residential, and residential end markets in the U.S. and Canada.

Risks and Challenges:

• Preliminary financial results are subject to revision based on quarter-end closing procedures, final management review, and external audit.
• Actual results may differ materially from estimates due to adjustments and developments prior to finalization.
• Forward-looking statements are subject to risks including construction market volatility, municipal spending slowdowns, supply chain disruptions, acquisition integration risks, and interest rate fluctuations.
• Adjusted EBITDA excludes interest expense, income taxes, and capital replacement costs, and should not be considered a substitute for GAAP measures.

Management Commentary and Tone:

• CEO Mark Witkowski stated the company continues to execute its strategy through acquisitions and record share repurchases.
• Management expressed confidence in the strategy and focus on long-term growth and value creation.
• The company highlighted investments in storm drainage, fusible HDPE, and smart utility solutions as key growth avenues.

Other Key Points:

• Repurchased a record $171 million of shares in the open market during the third quarter.
• Year-to-date share repurchases totaled approximately $428 million.
• Approximately $240 million remains under the current share repurchase authorization.
• The company operates with more than 370 locations and 5,600 associates.
• PricewaterhouseCoopers LLP has not audited or reviewed the preliminary financial information included in this release.