Core & Main, Inc.

Jun 10, 2026 at 11:47 AM UTC

Core & Main: Q1 2026 Earnings

Fiscal 2026 First Quarter Results

June 10, 2026

TODAY'S PRESENTERS

Mark Witkowski

Chief Executive Officer

Brad Cowles

President

Robyn Bradbury

Chief Financial Officer

Landon Althoff

Vice President, Investor Relations

Business Update

MARK WITKOWSKI

Q1 2026 BUSINESS UPDATE

Executing on Growth Initiatives, Expanding Gross Margins, and Returning Capital

Achieved Q1'26 net sales of $1.9B, Adjusted EBITDA(1) of $226M and Adjusted Diluted EPS(1) of
$0.72
End-market demand stability driven by strength in municipal activity and select non-residential project types, partially offset by softer residential demand
Sales initiatives delivered strong growth, with treatment plant and smart utility delivering double-digit and high single-digit growth, respectively
Expanded geographic footprint by opening five new greenfield locations in attractive markets; on track for a record eight to ten openings in FY26
M&A remains a core growth lever with active opportunities in a robust pipeline
Gross margin expanded +50 bps YoY to 27.2% driven by key initiatives, including private label growth, sourcing optimization, and disciplined purchasing and pricing execution
Generated strong operating cash flow of $82M supporting growth investments and shareholder returns - Deployed $88M in Q1'26 to repurchase 1.8M shares; highest open market share buyback in a

single quarter

- Additional $37M deployed to repurchase 0.8M shares subsequent to quarter-end

(1) Adjusted EBITDA and Adjusted Diluted EPS are non-GAAP financial measures. Refer to the appendix of the presentation for a reconciliation to the nearest GAAP measure.

SCALING HIGH-GROWTH MUNICIPAL SOLUTIONS IN SMART UTILITY & TREATMENT PLANT

From targeted investments to sustained above-market growth

+15%

5-yr Sales CAGR(1)

Smart Utility Treatment Plant Solutions

11.

Deliver turnkey, end-to-end solutions

Hardware, software, analytics, installation & service
22.
Reduces execution risk for complex AMI deployments
Win larger, long-term municipal programs
Multi-year contracts with major utilities
Expand capabilities to support complex projects

11.
Engineering, estimating & project management expertise
Ability to serve large, multi-year treatment plant builds

22.

Capture demand from infrastructure modernization

+25%

5-yr Sales CAGR(1)

33.

Increasing project size & complexity
Scale national capabilities with local execution
Dedicated metering & project management teams
44.
Strong OEM partnerships + local customer relationships

Broaden solutions portfolio across products, software and services

Aging facilities + increasing regulatory requirements
Supported by durable funding
31.

Leverage municipal relationships to drive share gains
Highly specified, less cyclical projects
Strengthening role as a trusted execution partner

Expand product and service offerings

Driving Durable, Above-Market Growth through Scalable, Repeatable Execution

(1) Represents the compound annual growth rate ("CAGR") of net sales between the twelve months ended May 2, 2021 and the twelve months ended May 3, 2026.

Financial Results

ROBYN BRADBURY

Q1 2026 FINANCIAL RESULTS

($ in Millions, Except Per Share Amounts)

Net Sales

Gross Profit

Net Income

$1,911

$1,910

$510 $520

$113

+2%

27.2%

26.7%

+8%

5.9%

5.5%

$105

% of Sales

+50 bps

% of Sales

+40 bps

Q1'25 Q1'26

Adjusted EBITDA(1)

Diluted EPS

Adjusted Diluted EPS(1)

11.8%

11.7%

+1%

$224 $226

$0.57

$0.68

+6%

$0.72

% of Sales(1)

+10 bps

$0.52

+10%

Q1'25 Q1'26

(1) Adjusted EBITDA, Adjusted EBITDA margin and Adjusted Diluted EPS are non-GAAP financial measures. Refer to the appendix of the presentation for a reconciliation to the nearest GAAP measure.

CASH FLOW & BALANCE SHEET

($ in Millions)

Facility Maturity Interest Rate As of 5/3/26

Operating Cash Flow Capital Structure

$226

($82)

($36)

($29)

$82

Q1'26

Adjusted EBITDA(1)

Working Capital

Interest Taxes(2)

Other Q1'26 Operating Cash Flow

Senior ABL Credit Facility	4/9/31	S + 125(3)	$ -
Senior Term Loan due 2028	7/27/28	S + 200	1,230
Senior Term Loan due 2031	2/9/31	S + 200	930
Total Debt			2,160
Less: Cash & Cash Equivalents			(150)
Net Debt(1)			$ 2,010

Capital Allocation Free Cash Flow Yield(1)(4)

3.4%

2.7%

Specialty Distributor Peers

(5)

S&P 500

$108M

6.4%

CNM

Share Repurchases ($88M) Capital Expenditures ($14M) Debt Service ($6M)

(1) Adjusted EBITDA, Net Debt and Free Cash Flow Yield are non-GAAP financial measures. Refer to the appendix of the presentation for a reconciliation to the nearest GAAP measure. (2) Represents operating cash taxes paid to the IRS and other state & local taxing authorities. Does not include the portion of our tax obligation distributed to non-controlling interest holders as a financing cash outflow. (3) Carries interest at term secured overnight financing rate ("Term SOFR") plus a margin ranging from 125 to 150 basis points, depending on borrowing capacity. (4) Defined as last twelve months free cash flow (net cash provided by operating activities minus capital expenditures) divided by market capitalization as of May 3, 2026. (5) Includes Ferguson, SiteOne Landscape Supply, Pool Corporation and Watsco.

FISCAL 2026 OUTLOOK

Guidance Reaffirmed

($ in Millions)	FY25	FY26 Outlook
Net Sales $7,647 $7,800 - $7,900
Adjusted EBITDA(1)	$931	$950 - $980
Adjusted EBITDA Margin(1)	12.2%	12.2% - 12.4%
Operating Cash Flow Conversion(2)	70%	60% - 70%

(1) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Refer to "Use of Non-GAAP Financial Measures" for a discussion regarding the lack of a reconciliation of these estimated ranges. (2) Defined as net cash provided by (used in) operating activities divided by Adjusted EBITDA for the period presented.

Appendix

CORE & MAIN SNAPSHOT

Key Stats(1)

Market Reach (3)

$9.5B	$7.6B	$470M	$933M	370+	~5,600	60K+	5,000+	225K+
Market Cap	LTM Net Sales	LTM Net Income	LTM Adjusted EBITDA(2)	Branches	Associates	Customers	Suppliers	Products

U.S. Market Share(3)

Total Market Share(3)

$39B

TAM(4)

$44B

TAM (4)(5)

Market Mix(3) New Construction vs. Repair & Replace (3)

Municipal

44% B Non-Residential

Residential

New Construction

509«

Repair & Replace

Leader in Advancing Reliable Infrastructure with Local Service, Nationwide

Headquarters Branch locations

(1) As of May 3, 2026. (2) Adjusted EBITDA is a non-GAAP financial measure. Refer to the appendix for a reconciliation to the nearest GAAP measure. (3) As of the fiscal year ended February 1, 2026. (4) Based on independent third-party research and management estimates. (5) Total addressable market is inclusive of the United States and Canada.

PRODUCT & SERVICE OFFERING

Fabricated Fire Protection Pipe and Sprinklers

Lab, Plant and Field Operations Products

Water and Wastewater Treatment Pipe, Valves and Fittings

Reclaimed Water Systems

Smart Utility Solutions

Geosynthetics

Ductile Iron and PVC

Pipe, Valves, Fittings Storm Water

and Hydrants Retention Systems

Sewer Lines and

Lift Station Equipment

Corrugated HDPE Pipe

Fusible HDPE Pipe,

Storm Drainage, Fittings and Fusion Rental Manholes &

Structures

SALES INITIATIVES DRIVING MARKET SHARE GAINS

Smart Utility Treatment Plant Solutions Fusible HDPE

Geosynthetics Strategic Accounts Geographic Expansion

Industry-Leading Capabilities Drive Consistent Above Market Growth

CONSISTENT TRACK RECORD OF M&A

2017

2018

2019 2020 2021 2022 2023 2024 2025

Acquired

Sales

3 Branches

4 Branches

27 Branches

15 Branches

18 Branches

14 Branches

20 Branches

40 Branches

5 Branches

~$50M

~$20M

~$200M

~$220M

~$150M

~$160M

~$330M

~$620M

~$95M

~145 Branches and ~$1.8B of Sales Acquired Since 2017

Expect future capital expenditures to average ~0.7% - 0.8% of net sales

Organic Growth & Operational Initiatives

CAPITAL ALLOCATION FRAMEWORK

Significant Cash Generation with a Focus on Fueling Growth & Shareholder Returns

Operating Cash Flow Target ~60% - 70% of Adjusted EBITDA

Priority Uses for Capital

Deploy surplus capital towards share repurchases and/or dividends, subject to board approval and market conditions

Share Repurchases or Dividends

Maintain Flexible Balance Sheet with Net Debt Leverage Target of 1.5x - 3.0x

Maintain a robust M&A pipeline and a disciplined approach to sourcing, acquiring and integrating businesses

M&A

RECONCILIATION OF NON-GAAP MEASURES

($ in Millions)

Adjusted EBITDA & Adjusted EBITDA Margin

Three Months Ended Twelve Months Ended

May 3, 2026		May 4, 2025				May 3, 2026
Net income attributable to Core & Main, Inc.	$	108	$	100	$	449
Plus: net income attributable to non-controlling interest		5		5		21
Net income		113		105		470
Depreciation and amortization (1)		46		47		185
Provision for income taxes		37		36		146
Interest expense		27		30		117
EBITDA	$	223	$	218	$	918
Equity-based compensation		3		5		15
Acquisition and other expenses (2)		-		1		5
Other income		-		-		(5)
Adjusted EBITDA	$	226	$	224	$	933


Adjusted EBITDA Margin:
Net Sales	$	1,910	$	1,911	$	7,646
Adjusted EBITDA / Net Sales		11.8%		11.7%		12.2%

Net Income Margin:
Net Sales	$	1,910	$	1,911	$	7,646
Net Income / Net Sales		5.9%		5.5%		6.1%

(1) Includes depreciation of certain assets which are reflected in "cost of sales" in our Statement of Operations. (2) Represents expenses associated with acquisition and other activities, including transaction costs, post-acquisition employee retention bonuses, severance payments and expense recognition of purchase accounting fair value adjustments (excluding amortization).

RECONCILIATION OF NON-GAAP MEASURES

Adjusted Diluted EPS

Three Months Ended Fiscal Years Ended

		May 3, 2026			May 4, 2025			February 1, 2026		February 2, 2025		January 28, 2024
Diluted earnings per share	$		0.57	$		0.52	$	2.31	$	2.13	$	2.15
Amortization of intangible assets			0.18			0.18		0.75		0.75		0.54
Equity-based compensation			0.02			0.03		0.09		0.07		0.04
Acquisition and other expenses (1)			-			0.01		0.03		0.05		0.03
Offering expenses (2)			-			-		-		-		0.02
Other income			-			-		(0.03)		-		-
Income tax impact of adjustments (3)			(0.05)			(0.06)		(0.18)		(0.22)		(0.16)
Adjusted Diluted Earnings Per Share	$		0.72	$		0.68	$	2.97	$	2.78	$	2.62

(1) Represents expenses associated with acquisition and other activities, including transaction costs, post-acquisition employee retention bonuses, severance payments and expense recognition of purchase accounting fair value adjustments (excluding amortization). (2) Represents costs related to our initial public offering and subsequent secondary offerings reflected in selling, general and administrative expenses in our Statement of Operations. (3) Represents the tax impact on the above non-GAAP adjustments.

RECONCILIATION OF NON-GAAP MEASURES

($ in Millions, Except Share and Per Share Amounts)

Free Cash Flow & Free Cash Flow Yield

Twelve Months Ended Three Months Ended

	May 3, 2026		May 3, 2026			February 1, 2026		November 2, 2025		August 3, 2025
Operating Cash Flow	$ 655	$		82	$	268	$	271	$		34
Less: Capital Expenditures	(47)			(14)		(15)		(8)			(10)
Free Cash Flow	$ 608	$		68	$	253	$	263	$		24

Class A Shares(1)	187,866,769
Class B Shares(1)	6,347,204
Total Shares Outstanding	194,213,973
Share Price(1)	$ 49.02
Market Capitalization	9,520
Free Cash Flow Yield	6.4%

(1) As of May 1, 2026.

RECONCILIATION OF NON-GAAP MEASURES

($ in Millions)

Net Debt

As of

	May 3, 2026		May 4, 2025
Senior ABL Credit Facility due April 2031	$	-	$	100
Senior Term Loan due July 2028		1,230		1,245
Senior Term Loan due February 2031		930		939
Total Debt	$	2,160	$	2,284
Less: Cash & Cash Equivalents		(150)		(8)
Net Debt	$	2,010	$	2,276

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