Core & Main Shares Plunge 25% as Guidance Cut Overshadows Solid Q2 Performance

Core & Main's stock suffered its worst single-day decline on record, plummeting 24.9% to $50.00 after management slashed full-year targets despite posting respectable second-quarter results. The infrastructure products distributor now anticipates fiscal 2025 sales of $7.6-$7.7 billion and adjusted EBITDA of $920-$940 million, down from previous forecasts.

Market participants reacted swiftly to the revised outlook, which cited escalating operating costs and softening residential demand. The sell-off occurred despite Q2 revenue reaching $2.093 billion with $141 million net income, demonstrating how forward guidance often outweighs historical performance in equity valuation.

The company's municipal business segment showed particular resilience, with margin improvement initiatives partially offsetting rising SG&A expenses. Operating cash FLOW projections of $550 million suggest maintained liquidity, though investors clearly prioritized the dimmer growth prospects.