CNM Stock Forecast & Price Target

Core & Main has demonstrated robust financial performance with a net sales growth of 6.6% year-over-year, driven by a 5% increase in volume and contributions from acquisitions. The company's gross margin improved to 26.8%, reflecting a 40 basis point gain compared to the prior year, indicating sustained operational efficiency. Furthermore, management anticipates a sequential improvement in SG&A expenses as a percentage of revenue for the latter half of the fiscal year, suggesting enhanced profitability potential.

Core & Main's outlook has been negatively affected by the alignment of its expectations with those of peer companies, all of which reported lower performance in calendar 2Q25. The company has experienced weak residential volumes in August, which is consistent with its revised guidance reflecting a downturn in demand. Additionally, management has decreased their 2025 Adjusted EBITDA guidance to a range of $920 million to $940 million, down from the previously anticipated $980 million, attributing this adjustment to a combination of softer residential demand and increased operating expenses.