CNM Stock Forecast & Price Target

Core & Main reported a gross margin of 26.8%, reflecting a 40 basis point improvement over the previous year, indicating ongoing operational efficiency. The company also experienced a 6.6% year-over-year increase in net sales, driven primarily by a 5% volume gain, suggesting strong demand across its specialized distribution segments. Furthermore, management anticipates an improvement in SG&A expenses as a percentage of revenue in the second half of the fiscal year, which could enhance profitability moving forward.

Core & Main's stock outlook is negatively impacted by lowered expectations aligned with peers, reflecting industry-wide challenges reported in the second quarter of calendar 2025. The company has recorded weak residential volumes throughout August, which corresponds with their revised guidance, indicating a persistent downturn in demand. Additionally, management has adjusted the 2025 adjusted EBITDA guidance range to $920 million-$940 million, down from the Street's expectation of $980 million, primarily due to softer residential demand and increased operating expenses.