Why It Matters to Distributors: Core & Main’s strategy shows how distributors are finding growth in a slow market by expanding locally and focusing on higher-value services such as metering and infrastructure projects.
Core & Main is expanding its footprint, investing in water infrastructure categories, and adding specialized project teams as it looks to grow despite weak construction demand.
The St. Louis-based distributor said fiscal 2025 sales rose to $7.647 billion from $7.441 billion, an increase of $206 million, or 2.8%. Net income increased to $462 million from $434 million, up $28 million, or 6.5%.
In the fourth quarter, sales fell to $1.581 billion from $1.698 billion, a decrease of $117 million, or 6.9%. Net income rose to $73 million from $67 million, an increase of $6 million, or 9.0%.
Company executives said the decline was partly due to one fewer selling week and severe winter weather that slowed construction activity late in the quarter.
Looking ahead, Core & Main expects fiscal 2026 sales of $7.8 billion to $7.9 billion. The company said it expects demand across its markets to remain flat.
“Our focus is straightforward: extend the advantages we’ve built, compound market share gains and continue expanding the structural earnings power of the business,” CEO Mark Witkowski said during the March 24 earnings call.
Core & Main is growing through acquisitions and new branch openings.
The company completed two acquisitions in fiscal 2025 — Canada Waterworks and Pioneer Supply — adding five branches.
“Canada Waterworks builds on the platform we established in Canada last year with the HM Pipe acquisition,” Witkowski said, adding that the company now operates “7 branches in Ontario.”
He said Pioneer Supply “expands our presence in Texas and Oklahoma, further extending our reach in attractive growth markets.”
Core & Main also opened 10 new locations during and after the year and plans to continue expanding.
President Brad Cowles said the company completed six new locations in fiscal 2025 and “expect[s] to open a record 7 to 10 locations in the coming year.”
The company is investing more in categories tied to long-term water infrastructure needs.
Witkowski said several product areas delivered robust growth, including fusible HDPE, treatment plant solutions and geosynthetics.
Smart metering remains a key focus.
“Average daily net sales for meter products grew 12% in the quarter and grew mid-single digits for the year on top of a strong prior year growth comparison of 32%,” he said.
Cowles said the company recently secured a major project.
“We were recently awarded what we believe is the largest metering contract in U.S. history,” he said.
He added that the metering business “has grown at an average annual rate of approximately 14% over the last 5 years.”
Core & Main is also expanding its work on large, complex projects such as treatment plants and water delivery systems.
Cowles said that business has grown “at an average annual rate of nearly 25% over the past 5 years.” The company plans to add staff to support that growth, including “another 30 people in that initiative this year.”
“They go where the work is,” Cowles said of those teams. “They follow these strategic national accounts.”
Core & Main is also working to improve margins through private-label products and cost controls.
Cowles said the company expanded its private-label offering “by more than 6,000 SKUs.” Private-label products accounted for about 5% of sales in fiscal 2025, with a goal to grow that share over time.
Chief financial officer Robyn Bradbury said the company implemented “approximately $30 million of annualized cost actions,” with most of the benefits expected in fiscal 2026.
“Our approach continues to be measured,” she said. “We are improving our cost structure without compromising customer service or long-term growth.”
Core & Main said municipal work continues to be its most stable business, representing 44% of sales.
Witkowski said the segment benefits from “steady demand from reliable funding sources,” with volumes increasing in fiscal 2025.
Other markets remain mixed. Nonresidential demand is supported by infrastructure and data center projects but offset by weakness in traditional commercial construction.
Residential construction remains the weakest segment.
Bradbury said demand is expected to start fiscal 2026 “down in the low double digits to mid-teens range” before improving later in the year.
“We’re not expecting at this point that residential gets much better,” she said.
Core & Main expects overall demand to remain flat in fiscal 2026 but plans to grow through market share gains, expansion, and acquisitions.
The company said it remains confident in its strategy despite economic uncertainty.
“Our initiatives are working, our actions to address cost pressures are in place, and our end markets remain attractive over the long term,” Witkowski said.
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