CNM Stock Forecast & Price Target

Core & Main demonstrated a positive financial trajectory, with gross margins increasing to 26.8%, reflecting a 40 basis point improvement year-over-year. The company reported a 6.6% year-over-year net sales growth driven by a 5% volume increase, alongside contributions from recent acquisitions. Additionally, management anticipates an improvement in selling, general, and administrative expenses as a percentage of revenues in the latter half of the fiscal year, indicating potential for enhanced profitability.

Core & Main has experienced a downward adjustment in its financial outlook, aligning with peers that lowered expectations following the release of their calendar 2Q25 results. The company reported weak residential volumes in August, which are in line with their revised guidance, indicative of a challenging market environment. Additionally, management has revised their 2025 Adjusted EBITDA guidance down to a range of $920 million to $940 million, impacted by declining residential demand and increasing operating expenses, both of which contribute to a negative outlook for the stock.