Why This Matters to Distributors: Core & Main’s expansion into project-based solutions illustrates how distributors can move beyond product fulfillment and build deeper customer relationships through technical expertise, project management, and recurring service offerings.
Core & Main is increasingly positioning itself as an infrastructure solutions provider rather than a traditional product distributor, as growth in smart utility, treatment plant and data center projects reshapes the company’s business mix.
The Peoria, Illinois-based distributor reported fiscal first-quarter net sales of $1.9 billion, but executives spent much of the quarter discussing growth initiatives designed to expand the company’s role in municipal and commercial infrastructure projects.
Smart utility solutions, which combine advanced metering infrastructure, software, analytics, installation, and ongoing support, posted high single-digit growth during the quarter. Treatment plant solutions, focused on water and wastewater facility modernization, delivered double-digit growth.
Brad Cowles, Core & Main’s president, said the company’s smart utility business differentiates itself through a turnkey approach that spans the entire project lifecycle.
“We provide an integrated turnkey offering that combines hardware, software, analytics, installation, project management and ongoing service through a single trusted partner,” Cowles said during the company’s earnings call.
Over the past five years, smart utility sales have grown at approximately 15% compound annual growth rate, while treatment plant solutions have expanded at a 25% annual rate.
Chief Executive Officer Mark Witkowski said the growth reflects increasing demand from municipal customers seeking long-term infrastructure partners rather than transactional product suppliers.
The company continues to win large utility projects, including what executives previously described as the largest smart utility contract awarded in the United States. Core & Main also secured several additional multiyear smart utility projects during the quarter.
“Our recent wins underscore the demand across municipalities of all sizes, from some of the largest utilities in the country to midsized and local communities,” Cowles said.
Data centers have emerged as another growth opportunity for the distributor. Witkowski said Core & Main is winning projects across multiple regions as developers invest in the water infrastructure needed to support large-scale cooling systems. The projects also create follow-on demand for water, sewer, and fire protection infrastructure in surrounding communities.
Fire protection sales increased 17% during the quarter, aided in part by data center and multifamily construction activity.
“Data centers continue to gain momentum, and we are securing a steady stream of new project wins across multiple regions of the country,” Witkowski said.
Cowles said the company’s existing waterworks expertise positions it well for data center projects without requiring significant expansion into new product categories.
“The work itself is very much aligned with our core business,” he said.
Core & Main is pursuing a similar strategy in treatment plant modernization, where projects can range from facility upgrades to complete plant reconstruction. The company has assembled dedicated national teams focused on engineering, estimating and project management to support the business.
Treatment plant solutions currently represent a mid-single-digit percentage of company revenue, but executives see significant room for expansion. Witkowski said acquisitions will play a role in accelerating growth and broadening technical capabilities.
“Our ambition is to follow the needs of the customer and evolve toward a more integrated solutions and services model similar to the capabilities we have built in smart utility,” Cowles said.
The company’s acquisition pipeline has also strengthened after a slower period for deal activity. Witkowski said Core & Main is evaluating opportunities ranging from small tuck-in acquisitions to larger transactions that could expand its treatment plant and technical services capabilities.
In addition to acquisitions, Core & Main opened five greenfield locations during the quarter and plans to open a record eight to 10 new branches in fiscal 2026. Executives said many of those investments are targeted at markets with significant infrastructure spending and accelerating data center development.
The strategy reflects a broader shift taking place across distribution. Rather than competing solely on product availability and price, distributors are increasingly building capabilities around engineering support, software integration, project management, and long-term service contracts.
For Core & Main, those investments are creating opportunities to participate in larger projects, strengthen customer relationships, and capture a greater share of infrastructure spending. For the broader distribution industry, they highlight how technical expertise and solution-based offerings are becoming increasingly important competitive differentiators.
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