CSW
CSW Industrials, Inc.311.39
-5.18-1.64%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q4 '25)
No earnings call transcript available yet
Last Quarter (Q3 '25)
No earnings call transcript available
Key Stats
Market Cap
5.23BP/E (TTM)
36.63Basic EPS (TTM)
8.50Dividend Yield
0%Recent Filings
8-K
Record Q2 revenue, MARS acquisition
CSW Industrials posted record Q2 fiscal 2026 revenue of $277.0 million, up 21.5% year-over-year, fueled by acquisitions in HVAC/R and plumbing, though organic sales dipped 5.6% amid residential market headwinds. Net income rose 12.8% to $40.7 million, with adjusted EBITDA climbing 19.9% to $72.9 million; the company paid down $35.0 million in debt, hitting a net leverage of 0.12x. It announced a $650 million cash acquisition of MARS Parts, closing November 2025, plus up to $20 million contingent, marking its largest deal yet. Acquisitions drive growth, but tariffs squeezed margins.
10-Q
Q2 FY2026 results
CSW Industrials posted solid Q2 FY2026 results, with net revenues climbing 21.5% year-over-year to $277M, fueled by the Aspen Manufacturing acquisition closed May 1, 2025, for $327.6M in cash and adjustments, recognizing $100.1M goodwill and $165M customer lists amortized over 15 years. Gross margin dipped to 43.0% from 45.6%, pressured by tariffs and material costs, yet operating income rose 10.1% to $56.8M as pricing offset headwinds. Diluted EPS hit $2.41, up from $2.26, aligning with 16,842K shares. Acquisitions drove Contractor Solutions revenue up 31.2% to $208M, while Specialized Reliability and Engineered Building segments held steady but saw margin erosion from costs. Operating cash flow for the half-year reached $122.5M, yielding free cash flow of $116.5M after $6.0M capex, though cash dipped to $31.5M post-$325M Aspen spend; $60M debt at 5.41% leaves $639M revolver availability with covenants intact. Tariffs on Vietnam and China imports pose ongoing supply chain risks.
8-K
CSW acquires MARS Parts for $650M
CSW Industrials agreed to acquire Motors & Armatures Parts for $650 million in cash on October 1, 2025, plus a $20 million earn-out tied to post-closing sales targets. This deal expands CSW's HVAC/R portfolio with complementary repair-focused products, targeting immediate EPS and EBITDA accretion while hitting 30% margins within a year via synergies. Closing eyes Q3 2026 after HSR clearance. Deal keeps leverage at 2.0x EBITDA.
8-K
Leadership promotion and shareholder approvals
CSW Industrials promoted Fang Wang from Vice President, Corporate Controller to Vice President and Chief Accounting Officer on August 26, 2025, designating her as principal accounting officer while James Perry remains principal financial officer. At the August 28 annual meeting, shareholders elected eight directors with overwhelming support, approved executive compensation on an advisory basis by 96.3%, and ratified Grant Thornton as auditors with 99.7% approval. This internal shift bolsters accounting leadership amid strong governance endorsement.
10-Q
Q1 FY2026 results
CSW Industrials posted solid Q1 FY2026 results, with net revenues climbing 16.6% year-over-year to $263.6 million, fueled by the Aspen Manufacturing acquisition that added $30.8 million in its first two months, though organic volumes dipped 2.8%. Gross margin slipped to 43.8% from 47.5% amid acquisition mix and rising material costs, yet operating income held steady at $54.9 million, buoyed by leverage on higher sales. Diluted EPS edged down to $2.43 from $2.47, aligning with 16,863 thousand shares and no anti-dilution quirks. Acquisitions drove the show: Aspen closed May 1, 2025, for $325.9 million cash, recognizing $100.4 million goodwill and $165.0 million customer lists amortized over 15 years. Cash dropped to $38.0 million after the buy, offset by $95.0 million in revolver debt at 5.57% with $603.7 million availability under covenants. Free cash flow came in at $57.7 million (derived). Tariffs loom as a wildcard, potentially hiking costs on Vietnam and China sourcing.
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