CNM

Core & Main is the leading specialty distributor of water, wastewater, storm-drainage and fire-protection products to municipalities and contractors — an essential, recurring-demand niche underpinned by aging U.S. water infrastructure and federal investment. FY2026 revenue rose 2.8% to $7.65B and net income grew 7.3% to $441M, extending a strong multi-year record (net income up from $166M in FY2022). The business earns a high 22.1% ROE on a 26.9% gross margin, and converts well to cash with $650M of operating cash flow against trivial $46M capex — distribution is asset-light, so most growth is organic share gains plus accretive acquisitions.

The model is a disciplined roll-up of a fragmented industry, and the 10-K shows a well-diversified, low-risk customer base — the 50 largest customers are only ~12% of sales and the largest is just 1%, limiting credit concentration. Management is reducing leverage (long-term debt down 5.1% to $2.12B), building cash, and returning capital via buybacks ($155M) rather than dividends. Equity rose 17.6% and retained earnings jumped 68.2%, reflecting the compounding.