CNM Stock Forecast & Price Target

Core & Main demonstrated a robust performance with net sales growing 6.6% year-over-year, driven by a volume gain of 5% and contributions from acquisitions. The company's gross margin improved by 40 basis points to reach 26.8%, highlighting its ability to enhance profitability amid stable pricing conditions. Additionally, management anticipates a sequential improvement in SG&A expenses as a percentage of revenues, suggesting potential for greater overall efficiency in the latter half of the fiscal year.

Core & Main has experienced a downward adjustment in its financial outlook, aligning with peer companies that disappointed in their calendar 2Q25 results. The company reported weak residential volumes in August, which are consistent with its revised guidance indicating challenges in the residential market. Additionally, management lowered the 2025 Adj. EBITDA guidance range to $920 million-$940 million, below analyst expectations of $980 million, primarily due to declining residential demand and increased operating expenses.