Water, wastewater, drainage and fire protection products distributor Core & Main reported fiscal 2026 second-quarter net sales of $2.15 billion, up 2.5% year over year.

The quarter ended Aug. 2.

Sales growth accelerated from an essentially flat year-over-year result in Core & Main’s fiscal first quarter. Sequentially, sales increased 12.3% from $1.91 billion in 1Q.

Core & Main said 2Q sales benefited from volume, pricing and acquisitions. Pipes, valves and fittings sales increased due to acquisitions, while storm drainage sales were essentially flat. Fire protection sales grew on higher volumes and selling prices, while smart utility sales increased primarily due to pricing.

“We delivered growth across sales, adjusted EBITDA and earnings per share during the second quarter, while momentum continues to build across the business” said Mark Witkowski, CEO of Core & Main. “Municipal demand remained a source of strength. Fire protection and large capital projects, including treatment plants and data centers, delivered strong growth and we are encouraged by the opportunities emerging across our acquisition pipeline. These trends support our confidence in the second half and reaffirmed full-year outlook.

Gross profit increased 2.3% year over year to $573 million, while gross margin decreased 10 basis points to 26.7%. That margin was also down from 27.2% in 1Q, when it had expanded 50 basis points year over year.

Operating income increased 6.6% to $227 million, while net income climbed 6.4% to $150 million. First-quarter net income had increased 7.6% year over year.

Adjusted EBITDA increased 3% to $274 million, with adjusted EBITDA margin expanding 10 basis points to 12.8%. The margin also increased sequentially from 11.8% in 1Q.

Selling, general and administrative expenses decreased 0.3% to $301 million and fell to 14% of sales from 14.4% a year earlier. Core & Main attributed the improvement primarily to recent cost actions and lower variable compensation, partially offset by increased distribution costs and investments in greenfield expansion and sales initiatives.

Through the first half of fiscal 2026, net sales increased 1.3% to $4.06 billion. Adjusted EBITDA grew 2% to $500 million, while net income increased 6.9% to $263 million.

The company opened seven greenfield locations through the latest quarter and remains on track for a record eight to 10 openings during fiscal 2026.

Core & Main reaffirmed its full-year outlook for net sales of $7.8 billion to $7.9 billion (+2-3% sales growth), adjusted EBITDA of $950 million to $980 million and adjusted EBITDA margin of 12.2% to 12.4%.