Reaffirmed Outlook And Bigger Buybacks Could Be A Game Changer For Core & Main (CNM)

• Core & Main, Inc. has reported past third-quarter 2025 results with net sales of US$2,062 million and net income of US$137 million, alongside reaffirmed full-year guidance for net sales of US$7.60 billion to US$7.70 billion.
• The company also expanded its share repurchase authorization to US$1.00 billion, highlighting an increased commitment to returning capital to shareholders.
• Next, we’ll examine how reaffirmed guidance and the larger share repurchase plan may influence Core & Main’s existing investment narrative.

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Core & Main Investment Narrative Recap

To own Core & Main, you need to believe in steady demand for water and fire protection infrastructure and the company’s ability to grow profitably through acquisitions and new locations. The latest quarter was broadly in line with expectations and reaffirmed guidance, so it does not materially change the near term focus on execution or the key risk of construction activity slowing if economic or interest rate conditions turn less supportive.

The expanded US$1.00 billion share repurchase authorization, with about US$684 million still available, is the most relevant update here, as it sits alongside reaffirmed sales guidance and recent earnings growth. For investors, that combination keeps attention on how Core & Main balances capital returns with its need to manage debt levels and fund potential growth opportunities.

Yet even with this support, investors should be aware that a sharp downturn in construction activity could...

Read the full narrative on Core & Main (it's free!)

Core & Main's narrative projects $8.7 billion revenue and $645.7 million earnings by 2028. This requires 4.4% yearly revenue growth and about a $229.7 million earnings increase from $416.0 million today.

Uncover how Core & Main's forecasts yield a $59.62 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for Core & Main span roughly US$49.76 to US$77 per share, underlining how widely opinions can differ. As you weigh those views against the company’s reaffirmed but modest sales growth outlook, it is worth considering how a potential slowdown in construction activity could influence Core & Main’s ability to hit its targets over time.

Explore 3 other fair value estimates on Core & Main - why the stock might be worth as much as 52% more than the current price!

Build Your Own Core & Main Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Core & Main research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Core & Main research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Core & Main's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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