Core & Main, Inc. (CNM) saw its stock plummet 7.30% in pre-market trading on Tuesday, despite announcing record fiscal 2025 first-quarter results. The significant drop suggests that investors may have been expecting even stronger performance or were concerned about certain aspects of the report.

The water, wastewater, storm drainage and fire protection products distributor reported Q1 earnings of $0.52 per diluted share, surpassing both the previous year's $0.49 and analysts' expectations of $0.50. Net sales for the quarter reached $1.91 billion, marking a 9.76% increase from the same period last year and beating the consensus estimate of $1.85 billion. However, the company's adjusted EBITDA of $224 million fell slightly short of the expected $225.2 million.

Despite the mixed results, Core & Main reaffirmed its full-year outlook for fiscal 2025, projecting net sales between $7.60 billion and $7.80 billion, in line with analysts' expectations of $7.73 billion. The company also maintained its adjusted EBITDA guidance of $950 million to $1 billion. CEO Steve LeClair expressed confidence in the company's position, stating, "With a broad range of products and services, Core & Main is uniquely positioned to capitalize on favorable end market trends." However, the market's negative reaction suggests that investors may be concerned about the company's ability to maintain its growth trajectory in the face of potential economic headwinds.