Core & Main Inc. is rolling out a series of product, technology and market initiatives aimed at keeping growth on track as residential lot development cools and construction markets shift.
The distributor said municipal and large infrastructure projects continued to provide steady demand in the latest quarter, while new strategic pushes — from smart meters to Canadian expansion — are beginning to take hold.
Core & Main is leaning into products tied to water-system upgrades, including fusible HDPE pipe, treatment plant solutions and geosynthetics. All posted double-digit growth.
Advanced metering also picked up, growing at a high single-digit rate and bolstered by what the company described as the largest meter-contract award in its history. Those systems help cities shift from manual reading to digital, continuous-monitoring platforms.
The company sees rising opportunity in data center construction, which requires substantial water infrastructure for cooling. While still a small part of the business, these projects are expanding quickly and often generate follow-on upgrades in surrounding communities.
One example: a hyperscale development near South Bend, Indiana, which has driven Core & Main’s local branch to triple in size.
Core & Main’s acquisition of Canada Waterworks gives it a platform in a Canadian water-infrastructure market the company pegs at $5 billion. Integration is underway.
In the U.S., the distributor opened new branches near Houston and Denver and plans more greenfield sites in high-growth regions. The company says new locations typically break even within a year.
To streamline operations, Core & Main is eliminating about 4% of non-sales roles, part of a $30 million annual cost-reduction effort focused on back-office and overlapping functions. Most savings will materialize next year.
At the same time, the company is investing in modern software and automation to improve customer service, surface new sales opportunities and support the use of AI in pricing, inventory, and administrative tasks.
Municipal water work — now more than 40% of revenue — remains the company’s steadiest market, supported by state and local funding and long-term infrastructure needs. Non-residential projects such as data centers, schools, and road work account for another 40%.
With less than 20% of sales tied to residential development, Core & Main says it can continue growing faster than its markets as it builds out new product categories, expands into Canada, opens more branches, and modernizes its technology backbone.
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