CNM Stock Forecast & Price Target

Core & Main demonstrated a robust financial performance with a gross margin of 26.8%, reflecting a 40 basis points improvement from the previous year. The company reported a year-over-year net sales growth of 6.6%, driven by a 5% increase in volume alongside contributions from acquisitions. Furthermore, management anticipates a sequential improvement in SG&A expenses as a percentage of revenues in the latter half of the fiscal year, indicating potential for enhanced profitability moving forward.

Core & Main's stock outlook has been negatively impacted by a lowered 2025 Adjusted EBITDA guidance range to $920 million to $940 million, which falls short of the market expectation of $980 million, primarily due to declining residential demand and increased operating expenses. The company experienced weak residential volumes in August, further reinforcing concerns about its performance amidst a backdrop of lowered expectations in the sector. This downward trend aligns Core & Main with peer companies that have similarly adjusted their forecasts following disappointing financial results for calendar 2Q25.