Core & Main's Q2 2026 Earnings Call: Driving Growth through Strategic Expansion and M&A Opportunities
Core & Main, a leading distributor of water and fire protection products, recently reported its quarterly earnings for the second quarter of 2026. During the call, company executives highlighted several key factors driving growth across the business, including large project opportunities, greenfield expansion, and an active merger and acquisition (M&A) pipeline.
Net sales in the second quarter reached approximately $2.1 billion, up 2.5% compared to the prior year. Adjusted EBITDA grew around 3% to $274 million, while adjusted diluted EPS was $0.94, an increase of 8% over the previous year.
The company's growth was largely driven by continued strength in treatment plant solutions and fire protection, as well as a growing contribution from data center projects, which have nearly doubled year-over-year. Core & Main's ability to execute reliably on multi-year project cycles is a key differentiator, drawing on deep local expertise, strong supplier relationships, and technical support capabilities.
As these large-scale infrastructure projects become more prominent in the company's growth profile, executives emphasized the importance of investing in the capabilities and product breadth needed to capture opportunities ahead. This includes expanding Core & Main's footprint with new greenfield locations and advancing strategic opportunities across its M&A pipeline.
The company's strong cash generation and balance sheet flexibility enabled it to execute its second consecutive quarter of record open market share buybacks, with nearly 25% of shares outstanding repurchased since the IPO. This reflects Core & Main's confidence in its long-term value and disciplined approach to allocating capital where returns are most attractive.
Executives highlighted municipal demand as a source of strength, citing the significant need to repair, replace, and expand critical water infrastructure. According to the EPA, the U.S. drinking water, wastewater, and stormwater systems require more than $1.2 trillion in investment over the next 20 years.
Core & Main's position at the forefront of this critical market, combined with its strategic expansion and M&A opportunities, positions it for long-term growth and value creation for shareholders.
