Water, wastewater, drainage and fire protection products distributor Core & Main reported fiscal 2026 first-quarter net sales of $1.91 billion, essentially flat compared with the same period a year earlier.

The St. Louis-based company said end-market demand remained stable during the quarter ended May 3, supported by municipal activity and select nonresidential project types, while residential demand remained softer. Core & Main also noted continued growth from sales initiatives, with treatment plant solutions delivering double-digit growth and smart utility generating high-single-digit growth.

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“In the first quarter, we delivered solid results despite a dynamic macroeconomic environment and strong prior-year comparison,” CEO Mark Witkowski said in the company’s earnings release. “Municipal demand remained healthy, supported by ongoing repair-and-replace activity and infrastructure investment. Our performance was driven by strong execution across our sales initiatives, including double-digit and high-single-digit growth in our treatment plant solutions and smart utility categories, respectively, reflecting continued customer demand for integrated solutions to support aging water infrastructure.”

Gross margin expanded 50 basis points year-over-year to 27.2%, with Core & Main attributing the gain to initiatives including private label growth, sourcing optimization and disciplined purchasing and pricing execution.

Operating income of $177 million improved from the $171 million of a year earlier. Net income increased 7.6% to $113 million.

Adjusted EBITDA increased 0.9% year over year to $226 million, with adjusted EBITDA margin up 10 basis points to 11.8%.

Core & Main also opened five greenfield locations during the quarter and said it remains on track for a record eight to 10 openings in fiscal 2026.

Core & Main reaffirmed its full-year fiscal 2026 outlook. The company expects net sales of $7.8 billion to $7.9 billion, adjusted EBITDA of $950 million to $980 million and adjusted EBITDA margin of 12.2% to 12.4%.