DALLAS, July 30, 2026 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (NYSE: CSW or the "Company") today reported results for the fiscal 2027 first quarter period ended June 30, 2026.
Fiscal 2027 First Quarter Highlights (comparisons to fiscal 2026 first quarter)
- Total revenue increased 33% to a record of $351 million, driven by acquisitions as well as organic growth
- Contractor Solutions Segment delivered organic revenue growth of 6%
- Earnings per diluted share ("EPS") of $3.04 increased 25% compared to $2.43, driven primarily by increased revenue
- Adjusted EPS, which excludes the amortization of acquisition-related intangible assets and nonrecurring expenses, was a record $3.84 and increased 35% compared to $2.85
- Net income attributable to CSW of $50 million increased 22% compared to $41 million
- Adjusted EBITDA increased 48% to a record $102 million, capitalizing on increased revenue
- Cash flows from operations were a record $76 million, increasing 25%
- Net debt of $815 million at the end of the quarter, resulting in a net leverage ratio (net Debt to EBITDA), in accordance with our credit facility, of 2.37x, within our stated target range of 1-3x, and decreasing from our fiscal year-end
Comments from the Chairman, President, and Chief Executive Officer
Joseph B. Armes, CSW Industrials' Chairman, President, and Chief Executive Officer, commented, "I am very pleased to report all-time record revenue, adjusted EBITDA, adjusted EPS, and operating cash flows for the first quarter of fiscal 2027. Guided by our enduring capital allocation strategy, since May 1, 2025, we have invested $1.0 billion to consummate five highly accretive acquisitions, including the transformative additions of MARS Parts and Aspen Manufacturing. These investments have resulted in revenue growth outpacing the end markets we serve, expanding profitability, and increasing cash flows. We have continued to return capital to shareholders through meaningful share repurchases, in light of the compelling investment opportunity we have seen in our stock, and through dividends, while simultaneously de-levering our balance sheet through the reduction of net debt plus growth in our EBITDA."
Armes continued, "We remain confident in our ability to deliver continued growth in organic revenue, EBITDA, and operating cash flows through the remainder of fiscal 2027. This confidence is supported by our disciplined focus on serving our customers well, executing effectively, controlling costs, and opportunistically investing in attractive growth opportunities."
Fiscal 2027 First Quarter Consolidated Results
Fiscal first quarter revenue was $350.6 million, an $87.0 million or 33.0% increase over the prior year period. Total revenue growth included $73.0 million or 27.7% inorganic growth contributed by acquisitions completed over the last twelve months, which are reported within the Contractor Solutions and Specialized Reliability Solutions segments, as well as an increase in organic revenue of $14.0 million or 5.3%, comprised of 5.9% growth in Contractor Solutions and 16.5% growth in Specialized Reliability Solutions, offset by lower revenue in Engineered Building Solutions.
Gross margin improved 110 bps to 44.9%, or 130 bps to 45.1% as adjusted, compared to 43.8% in the prior year period. The adjusted gross margin increase was primarily a result of pricing actions, partially offset by increased material and freight costs. Gross profit in the fiscal first quarter was $157.4 million, or $158.0 million adjusted, representing 36.3%, or 36.9% adjusted, growth over $115.4 million in the prior year period. Adjustments made to gross profit and gross margin in the quarter include acquisition-related integration expenses and costs related to the previously announced planned exit and disposition of the Greco business within Engineered Building Solutions ("Greco Plans").
Operating expenses were $77.5 million, or $76.4 million adjusted. Adjustments in the quarter were comprised of $1.0 million in nonrecurring expenses related to integration of completed acquisitions. Operating expenses in the prior period were $60.6 million. Operating expenses were higher in the current period due to acquired companies' additional expenses, including amortization of intangible assets. Operating expenses as a percentage of revenue were 22.1%, or 21.8% adjusted, lower than the prior year period of 23.0%, leveraging increased revenue, as well as restructuring savings and synergy realization.
Operating income in the current period was $79.9 million, or $81.5 million adjusted, compared to $54.9 million, in the prior year period. Operating income as a percentage of revenue was 22.8%, or 23.3% adjusted, compared to 20.8% in the prior year period. The increase in operating margin was a result of the previously mentioned expansion in the gross margin and decreased operating expenses as a percentage of revenue.
Interest expense, net of interest income, was $12.7 million, as compared to interest expense of $1.0 million in the prior year period. Interest expense in the quarter resulted from the Term Loan A and increased borrowings outstanding under our revolving line of credit, due to our acquisitions and share repurchases in the last year.
In the current period, reported net income attributable to CSW improved 21.6% to $49.8 million, compared to $40.9 million in the prior year period. EPS was $3.04 per diluted share, an increase of 25.3% as compared to $2.43 per diluted share in the prior year period, driven by both contributions from recent acquisitions and organic growth, partially offset by higher interest expense and intangible amortization. Excluding the amortization of acquisition-related intangible assets and nonrecurring expenses, adjusted EPS increased 34.6% to a record $3.84 per diluted share, compared to $2.85 per diluted share in the prior year period.
Fiscal 2027 first quarter adjusted EBITDA increased 47.8% to a record $101.6 million, up from $68.7 million in the prior year period. Adjusted EBITDA margin expanded 290 bps to 29.0%, compared to 26.1% in the prior year period, due to the previously mentioned gross margin expansion and improved operating expense leverage.
The Company's effective tax rate for the fiscal first quarter was 25.6%, as compared to 24.3% in the prior year period.
The quarterly cash flows from operations were $75.6 million, as compared to $60.6 million in the prior year period. Free cash flows, defined as cash flows from operations minus capital expenditures, was $69.6 million, compared to $57.7 million in the prior year period, an increase of $11.9 million. The increases were primarily due to our record earnings.
Following quarter-end, the Company announced a regular quarterly cash dividend in the amount of $0.30 per share, to be paid on August 14, 2026, to shareholders of record on July 31, 2026. This represents the Company's thirtieth consecutive quarterly dividend.
Fiscal 2027 First Quarter Segment Results
Contractor Solutions segment revenue was $276.0 million, a $79.3 million or 40.3% increase over the prior year period, comprised of inorganic growth of 34.4% or $67.6 million from acquisitions in the last twelve months and a 5.9% or $11.6 million increase in organic revenue from pricing actions and volume growth. As compared to the prior year period, net revenue growth was driven by the HVAC/R, plumbing, and architecturally-specified building products end markets. Segment operating income was $75.0 million, or $75.9 million adjusted to exclude $0.9 million of nonrecurring expenses related to acquisition integration, compared to $52.8 million, in the prior year period. The increase in operating profit resulted from the inclusion of recently acquired businesses, organic volume growth, and pricing actions, partially offset by increased material costs and freight expense. Segment operating income margin for the fiscal first quarter was 27.2%, or 27.5% adjusted, as compared to 26.8%, primarily due to pricing actions and favorable product mix, offset somewhat by increased costs of materials and freight. Segment adjusted EBITDA in the fiscal first quarter increased 45.2% to $94.3 million, or 34.2% of revenue, compared to $65.0 million, or 33.0% of revenue, in the prior year period. The accretion in margin is primarily due to higher organic revenue and cost leverage.
Specialized Reliability Solutions segment revenue was $48.2 million, an $11.4 million or 30.9% increase over the prior year period. Revenue growth was comprised of organic growth of $6.1 million, or 16.5%, and inorganic growth of $5.3 million, or 14.5%. Revenue increased in the general industrial and mining end markets and declined in the rail transportation end market. Segment operating income was $8.1 million, or $8.5 million adjusted to exclude nonrecurring expenses related to acquisition integration, an increase of 62.8% compared to $5.2 million in the prior year period. Segment operating income margin for the fiscal first quarter was 16.7%, or 17.7% adjusted, as compared to the prior year period of 14.2% due to higher margins on recent acquisitions, pricing actions, and a favorable product mix, offset somewhat by increased freight and material costs. Segment adjusted EBITDA in the fiscal first quarter was $10.0 million, or 20.8% of revenue, compared to $6.5 million, or 17.7% of revenue in the prior year period, reaching our long-term margin target of greater than 20%.
Engineered Building Solutions segment revenue was $28.9 million, a 9.3% decrease compared to $31.9 million in the prior year period, due to softness in the residential market served by the Greco business, partially offset by pricing actions and volume growth in the continuing businesses. Segment operating income was $4.6 million, or 15.8% of revenue, as compared to the prior year period of $4.0 million, or 12.5% of revenue. The increase is primarily the result of favorable product mix. During the fiscal quarter, in connection with the Greco Plans, we recorded additional exit-related expenses of $0.3 million. Adjusted EBITDA and adjusted EBITDA margin in the fiscal first quarter were $5.0 million and 17.4%, respectively, compared to $4.4 million and 13.9%, respectively, in the prior year period.
Excluding the Greco businesses, Engineered Building Solutions segment revenue was $23.4 million, a 7.0% increase compared to $21.9 million in the prior year period. Segment adjusted EBITDA and adjusted EBITDA margin in the fiscal first quarter were $6.1 million and 26.2%, respectively, compared to $3.8 million and 17.5%, respectively, in the prior year period, supporting confidence in stronger margins over time.
All percentages are calculated based upon the attached financial statements. Share counts used in determining the diluted EPS are based on a weighted average of outstanding shares throughout the reporting period.
Conference Call Information
The Company will host a conference call today at 10:00 a.m. ET to discuss the results, followed by a question-and-answer session for the investment community. A live webcast of the call can be accessed at https://ir.csw.com. To access the call, participants may dial 1-877-407-0784, international callers may use 1-201-689-8560, and request to join the CSW Industrials earnings call.
A telephonic replay will be available shortly after the conclusion of the call and until Tuesday, August 13, 2026. Participants may access the replay at 1-844-512-2921; international callers may use 1-412-317-6671 and enter access code 13761540. The call will also be available for replay via webcast link on the Investors portion of the CSW website www.csw.com.
Safe Harbor Statement
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, effective tax rate, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations, and financial performance and condition.
The forward-looking statements included in this press release are based on our current expectations, projections, estimates, and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
All forward-looking statements included in this press release are based on information currently available to us, and we assume no obligation to update any forward-looking statement except as may be required by law.
Non-GAAP Financial Measures
This press release includes an analysis of adjusted diluted earnings per share attributable to CSW, adjusted net income attributable to CSW, adjusted effective tax rate, adjusted gross profit, adjusted operating expenses, adjusted operating income, free cash flows, adjusted EBS excluding Greco, adjusted CSW excluding Greco and Net Debt to Adjusted EBITDA Ratio per Revolving Credit Facility ("RCF"), which are non-GAAP financial measures of performance. Attributable to CSW is defined to exclude the income attributable to the non-controlling interest in the Whitmore JV.
CSW utilizes adjusted EBITDA (earnings before interest, tax, depreciation and amortization) as an additional consolidated, non-GAAP financial measure, which consists of consolidated net income including income attributable to the non-controlling interest in the Whitmore JV, adjusted to remove the impact of income taxes, interest expense, depreciation, amortization and impairment, and significant nonrecurring items.
For a reconciliation of these measures to the most directly comparable GAAP measures and for a discussion of why we consider these non-GAAP measures useful, see the "Reconciliation of Non-GAAP Measures" section of this release.
About CSW Industrials, Inc.
CSW Industrials is a diversified industrial growth company with industry-leading operations in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. CSW provides niche, value-added products with two essential commonalities: performance and reliability. The primary end markets we serve with our well-known brands include: HVAC/R, plumbing, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transportation. For more information, please visit www.csw.com.
Investor Relations
Alexa Huerta
Vice President, Investor Relations and Treasurer
214-489-7113
alexa.huerta@csw.com
| CSW INDUSTRIALS, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||
| Three Months Ended June 30, | ||||||||
| (Amounts in thousands, except per share amounts) | 2026 | 2025 | ||||||
| Revenues, net | - | 350,650 | - | 263,646 | ||||
| Cost of revenues | (193,289 | - | (148,204 | - | ||||
| Gross profit | 157,361 | 115,442 | ||||||
| Selling, general and administrative expenses | (77,507 | - | (60,566 | - | ||||
| Operating income | 79,854 | 54,876 | ||||||
| Interest expense, net | (12,731 | - | (1,022 | - | ||||
| Other income (loss), net | (220 | - | 528 | |||||
| Income before income taxes | 66,903 | 54,382 | ||||||
| Provision for income taxes | (17,123 | - | (13,211 | - | ||||
| Net income | 49,780 | 41,171 | ||||||
| Less: Income attributable to redeemable noncontrolling interest | (21 | - | (246 | - | ||||
| Net income attributable to CSW | - | 49,759 | - | 40,925 | ||||
| Net income per share attributable to CSW | ||||||||
| Basic | - | 3.05 | - | 2.43 | ||||
| Diluted | - | 3.04 | - | 2.43 | ||||
| Weighted average number of shares outstanding: | ||||||||
| Basic | 16,330 | 16,808 | ||||||
| Diluted | 16,365 | 16,863 | ||||||
| CSW INDUSTRIALS, INC. CONSOLIDATED BALANCE SHEETS | ||||||||
| (Amounts in thousands, except for per share amounts) | June 30, 2026 | March 31, 2026 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | - | 47,495 | - | 33,799 | ||||
| Accounts receivable, net of allowance for expected credit losses of $2,426 and $2,314, respectively | 233,311 | 210,264 | ||||||
| Inventories, net | 305,202 | 309,707 | ||||||
| Prepaid expenses and other current assets | 20,005 | 26,555 | ||||||
| Assets held for sale | 9,948 | 8,742 | ||||||
| Total current assets | 615,961 | 589,067 | ||||||
| Property, plant and equipment, net of accumulated depreciation of $130,163 and $125,552, respectively | 107,332 | 107,536 | ||||||
| Goodwill | 640,273 | 632,631 | ||||||
| Intangible assets, net | 884,841 | 900,051 | ||||||
| Other assets | 85,212 | 87,399 | ||||||
| Total assets | - | 2,333,619 | - | 2,316,684 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | - | 82,834 | - | 76,930 | ||||
| Accrued and other current liabilities | 112,003 | 116,055 | ||||||
| Current portion of long-term debt | 29,458 | 29,458 | ||||||
| Liabilities held for sale | 3,831 | 4,478 | ||||||
| Total current liabilities | 228,126 | 226,921 | ||||||
| Long-term debt | 825,993 | 839,836 | ||||||
| Retirement benefits payable | 1,029 | 1,040 | ||||||
| Other long-term liabilities | 185,849 | 179,489 | ||||||
| Total liabilities | 1,240,997 | 1,247,286 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable noncontrolling interest | 19,010 | 18,989 | ||||||
| Equity: | ||||||||
| Common shares | 179 | 178 | ||||||
| Additional paid-in capital | 528,168 | 520,076 | ||||||
| Treasury shares, at cost | (288,927 | - | (257,704 | - | ||||
| Retained earnings | 843,785 | 798,956 | ||||||
| Accumulated other comprehensive loss | (9,593 | - | (11,097 | - | ||||
| Total equity | 1,073,612 | 1,050,409 | ||||||
| Total liabilities, redeemable noncontrolling interest and equity | - | 2,333,619 | - | 2,316,684 | ||||
| CSW INDUSTRIALS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
| Three Months Ended June 30, | ||||||||
| (Amounts in thousands) | 2026 | 2025 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | - | 49,780 | - | 41,171 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 4,626 | 3,929 | ||||||
| Amortization of acquisition-related intangible assets & inventory step-up | 15,633 | 9,411 | ||||||
| Amortization of deferred financing fees | 307 | 322 | ||||||
| Provision for inventory reserves | 1,751 | 242 | ||||||
| Provision for credit losses | 188 | 72 | ||||||
| Share-based compensation | 4,091 | 4,037 | ||||||
| Net loss on disposals of property, plant and equipment | 357 | - | ||||||
| Net pension benefit | 20 | 17 | ||||||
| Net deferred taxes | 852 | 790 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (24,625 | - | (7,788 | - | ||||
| Inventories | 2,170 | 7,641 | ||||||
| Prepaid expenses and other current assets | 7,462 | 656 | ||||||
| Other assets | 8 | 43 | ||||||
| Accounts payable and other current liabilities | 12,521 | 6 | ||||||
| Retirement benefits payable and other liabilities | 479 | 92 | ||||||
| Net cash provided by operating activities | 75,620 | 60,641 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (6,004 | - | (2,904 | - | ||||
| Proceeds from sale of assets | 12 | - | ||||||
| Cash paid for acquisitions, net of cash received | - | (323,814 | - | |||||
| Net cash used in investing activities | (5,992 | - | (326,718 | - | ||||
| Cash flows from financing activities: | ||||||||
| Borrowings on line of credit | 59,859 | 135,000 | ||||||
| Repayments of line of credit | (66,337 | - | (40,000 | - | ||||
| Repayments on Term Loan A | (7,500 | - | - | |||||
| Payments of deferred loan costs | - | (2,835 | - | |||||
| Payments of contingent consideration | (113 | - | (113 | - | ||||
| Purchase of treasury shares | (36,341 | - | (9,091 | - | ||||
| Dividends | (4,909 | - | (4,537 | - | ||||
| Net cash (used in) provided by financing activities | (55,341 | - | 78,424 | |||||
| Effect of exchange rate changes on cash and equivalents | (591 | - | (202 | - | ||||
| Net change in cash and cash equivalents | 13,696 | (187,855 | - | |||||
| Cash and cash equivalents, beginning of period | 33,799 | 225,845 | ||||||
| Cash and cash equivalents, end of period | - | 47,495 | - | 37,990 | ||||
Reconciliation of Non-GAAP Measures
We use adjusted earnings per share attributable to CSW, adjusted net income attributable to CSW, adjusted gross profit, adjusted operating expenses, adjusted operating income, adjusted effective tax rate, adjusted EBITDA, free cash flows, adjusted EBS excluding Greco, adjusted CSW excluding Greco and Net Debt to Adjusted EBITDA Ratio per Revolving Credit Facility ("RCF"), together with financial measures prepared in accordance with GAAP, such as revenue, cost of revenue, operating expense, operating income, net income attributable to CSW and operating cash flows, to assess our historical and prospective operating performance and to enhance our understanding of our core operating performance. Free cash flows is a non-GAAP financial measure and is defined as cash flows from operations less capital expenditures. We believe these measures are useful for investors to assess the operating performance of our business without the effect of non-recurring items. In the following tables, there could be immaterial differences in amounts presented due to rounding.
| CSW INDUSTRIALS, INC. | ||||||||
| Reconciliation of Net Income Attributable to CSW to Adjusted Net Income Attributable to CSW | ||||||||
| (unaudited) | ||||||||
| (Amounts in thousands, except per share data) | Three Months Ended June 30, | |||||||
| 2026 | 2025 | |||||||
| Net income attributable to CSW | - | 49,759 | - | 40,925 | ||||
| Adjusting items: | ||||||||
| Amortization of acquisition-related intangible assets and inventory step-up | 15,633 | 9,412 | ||||||
| Amortization tax effect | (3,871 | - | (2,325 | - | ||||
| Acquisition-related integration expenses, net of tax effect | 1,022 | - | ||||||
| Greco exit related expenses, net of tax effect | 226 | - | ||||||
| Adjusted net income attributable to CSW | - | 62,769 | - | 48,012 | ||||
| Net Income Attributable to CSW per diluted common share | - | 3.04 | - | 2.43 | ||||
| Adjusting Items, per dilutive common share: | ||||||||
| Amortization of acquisition-related intangible assets and inventory step-up | 0.96 | 0.56 | ||||||
| Amortization tax effect | (0.24 | - | (0.14 | - | ||||
| Acquisition-related integration expenses, net of tax effect | 0.06 | - | ||||||
| Greco exit related expenses, net of tax effect | 0.01 | - | ||||||
| Adjusted net income attributable to CSW per dilutive common share | - | 3.84 | - | 2.85 | ||||
| CSW INDUSTRIALS, INC. | ||||||||
| Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate | ||||||||
| (unaudited) | ||||||||
| (Amounts in thousands) | Three Months Ended June 30, | |||||||
| 2026 | 2025 | |||||||
| GAAP income before tax | - | 66,903 | - | 54,382 | ||||
| Adjusting items: | ||||||||
| Acquisition-related integration expenses | 1,389 | - | ||||||
| Greco Exit related expenses | 307 | - | ||||||
| Adjusted income before tax | - | 68,598 | - | 54,382 | ||||
| GAAP provision for income tax | - | 17,122 | - | 13,212 | ||||
| Adjusting items: | ||||||||
| Tax effect of acquisition-related integration expenses | 367 | - | ||||||
| Tax effect of Greco Exit related expenses | 81 | - | ||||||
| Adjusted provision for income tax | - | 17,570 | - | 13,212 | ||||
| GAAP effective tax rate | 25.6 | - | 24.3 | - | ||||
| Adjusted effective tax rate | 25.6 | - | 24.3 | - | ||||
| CSW INDUSTRIALS, INC. | ||||||||
| Reconciliation of Net Income Attributable to CSW to Adjusted EBITDA | ||||||||
| (unaudited) | ||||||||
| (Amounts in thousands) | Three Months Ended June 30, | |||||||
| 2026 | 2025 | |||||||
| Net Income attributable to CSW | - | 49,759 | - | 40,925 | ||||
| Plus: Income attributable to redeemable noncontrolling interest | 21 | 246 | ||||||
| Net Income | - | 49,780 | - | 41,171 | ||||
| Adjusting Items: | ||||||||
| Interest expense, net | 12,731 | 1,022 | ||||||
| Income tax expense | 17,122 | 13,212 | ||||||
| Depreciation & amortization | 20,259 | 13,338 | ||||||
| EBITDA | - | 99,892 | - | 68,742 | ||||
| EBITDA Adjustments: | ||||||||
| Acquisition-related integration expenses | 1,389 | - | ||||||
| Greco exit related expenses | 307 | - | ||||||
| Adjusted EBITDA | - | 101,587 | - | 68,742 | ||||
| Adjusted EBITDA % Revenue | 29.0 | - | 26.1 | - | ||||
| CSW INDUSTRIALS, INC. | ||||||||
| Reconciliation of Gross Profit to Adjusted Gross Profit | ||||||||
| (unaudited) | ||||||||
| (Amounts in thousands) | Three Months Ended June 30, | |||||||
| 2026 | 2025 | |||||||
| Gross Profit | - | 157,361 | - | 115,442 | ||||
| Gross Profit % Revenue | 44.9 | - | 43.8 | - | ||||
| Adjusting Items: | ||||||||
| Acquisition-related integration expenses | 352 | - | ||||||
| Greco exit related expenses | 279 | - | ||||||
| Adjusted Gross Profit | - | 157,992 | - | 115,442 | ||||
| Adjusted Gross Profit % Revenue | 45.1 | - | 43.8 | - | ||||
| CSW INDUSTRIALS, INC. | ||||||||
| Reconciliation of Operating Expenses to Adjusted Operating Expenses | ||||||||
| (unaudited) | ||||||||
| (Amounts in thousands) | Three Months Ended June 30, | |||||||
| 2026 | 2025 | |||||||
| Operating expenses (a) | - | 77,507 | - | 60,566 | ||||
| Operating expenses % Revenue | 22.1 | - | 23.0 | - | ||||
| Adjusting Items: | ||||||||
| Acquisition-related integration expenses | (1,037 | - | - | |||||
| Greco exit related expenses | (28 | - | - | |||||
| Adjusted Operating expenses | - | 76,442 | - | 60,566 | ||||
| Adjusted Operating expenses % Revenue | 21.8 | - | 23.0 | - | ||||
| (a) Operating expenses include selling, general, and administrative expense and impairment expense. | ||||||||
| CSW INDUSTRIALS, INC. | ||||||||||||||||||||
| Reconciliation of Segment Operating Income to Segment Adjusted EBITDA | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| (Amounts in thousands) | Three Months Ended June 30, 2026 | |||||||||||||||||||
| Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Corporate and Other | Consolidated | ||||||||||||||||
| Revenue, net | - | 276,007 | - | 48,194 | - | 28,937 | - | (2,489 | - | - | 350,650 | |||||||||
| Operating Income | - | 75,016 | - | 8,054 | - | 4,573 | - | (7,789 | - | - | 79,854 | |||||||||
| % Revenue | 27.2 | - | 16.7 | - | 15.8 | - | 22.8 | - | ||||||||||||
| Adjusting Items: | ||||||||||||||||||||
| Acquisition-related integration expenses | 911 | 478 | - | - | 1,389 | |||||||||||||||
| Greco exit related expenses | - | - | 307 | - | 307 | |||||||||||||||
| Adjusted Operating Income | - | 75,927 | - | 8,533 | - | 4,880 | - | (7,789 | - | - | 81,550 | |||||||||
| % Revenue | 27.5 | - | 17.7 | - | 16.9 | - | 23.3 | - | ||||||||||||
| Adjusting Items: | ||||||||||||||||||||
| Other income (expense), net | (190 | - | - | 35 | (67 | - | (221 | - | ||||||||||||
| Depreciation & amortization | 18,612 | 1,504 | 117 | 25 | 20,259 | |||||||||||||||
| Adjusted EBITDA | - | 94,349 | - | 10,037 | - | 5,032 | - | (7,831 | - | - | 101,587 | |||||||||
| % Revenue | 34.2 | - | 20.8 | - | 17.4 | - | 29.0 | - | ||||||||||||
| (Amounts in thousands) | Three Months Ended June 30, 2025 | |||||||||||||||||||
| Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Corporate and Other | Consolidated | ||||||||||||||||
| Revenue, net | - | 196,740 | - | 36,806 | - | 31,896 | - | (1,796 | - | - | 263,646 | |||||||||
| Operating Income | - | 52,759 | - | 5,241 | - | 3,999 | - | (7,123 | - | - | 54,876 | |||||||||
| % Revenue | 26.8 | - | 14.2 | - | 12.5 | - | 20.8 | - | ||||||||||||
| Adjusting Items: | ||||||||||||||||||||
| Other income (expense), net | 698 | (76 | - | 8 | (102 | - | 528 | |||||||||||||
| Depreciation and amortization | 11,540 | 1,337 | 416 | 45 | 13,338 | |||||||||||||||
| Adjusted EBITDA | - | 64,996 | - | 6,503 | - | 4,423 | - | (7,180 | - | - | 68,742 | |||||||||
| % Revenue | 33.0 | - | 17.7 | - | 13.9 | - | 26.1 | - | ||||||||||||
| CSW INDUSTRIALS, INC. | ||||||||
| Reconciliation of Operating Cash Flows to Free Cash Flows | ||||||||
| (unaudited) | ||||||||
| (Amounts in thousands) | Three Months Ended June 30, | |||||||
| 2026 | 2025 | |||||||
| Net cash provided by operating activities | - | 75,620 | - | 60,641 | ||||
| Less: Capital expenditures | (6,004 | - | (2,904 | - | ||||
| Free cash flows | - | 69,616 | - | 57,737 | ||||
| Adjusted EBITDA | - | 101,587 | - | 68,742 | ||||
| Free cash flows % Adj. EBITDA | 68.5 | - | 84.0 | - | ||||
| CSW INDUSTRIALS, INC. | ||||||||||||||||||||||||
| Reconciliation of Adjusted CSW to Adjusted CSW excluding Greco | ||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| (Amounts in thousands) | Three Months Ended June 30, | |||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||
| CSW Consolidated | Greco Consolidated | CSW Consolidated excluding Greco | CSW Consolidated | Greco Consolidated | CSW Consolidated excluding Greco | |||||||||||||||||||
| Revenues, net | - | 350,650 | - | 5,508 | - | 345,142 | - | 263,646 | - | 10,004 | - | 253,642 | ||||||||||||
| Adjusted EBITDA | 101,587 | (1,117 | - | 102,704 | 68,742 | 597 | 68,146 | |||||||||||||||||
| Adjusted EBITDA Margin | 29.0 | - | (20.3 | - - | 29.8 | - | 26.1 | - | 6.0 | - | 26.9 | - | ||||||||||||
| Amortization Adjusted EPS | - | 3.84 | - | (0.05 | - | - | 3.89 | - | 2.85 | - | 0.02 | - | 2.83 | |||||||||||
| CSW INDUSTRIALS, INC. | ||||||||||||||||||||||||
| Reconciliation of Adjusted EBS to Adjusted EBS excluding Greco | ||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| (Amounts in thousands) | Three Months Ended June 30, | |||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||
| EBS | Greco Consolidated | EBS, excluding Greco | EBS | Greco Consolidated | EBS, excluding Greco | |||||||||||||||||||
| Revenues, net | - | 28,937 | - | 5,508 | - | 23,429 | - | 31,896 | - | 10,004 | - | 21,892 | ||||||||||||
| Adjusted EBITDA | 5,032 | (1,117 | - | 6,150 | 4,423 | 597 | 3,826 | |||||||||||||||||
| Adjusted EBITDA Margin | 17.4 | - | (20.3 | - - | 26.2 | - | 13.9 | - | 6.0 | - | 17.5 | - | ||||||||||||
| CSW INDUSTRIALS, INC. | ||||
| Net Debt to Adjusted EBITDA Ratio per Revolving Credit Facility ("RCF") | ||||
| (Unaudited) | ||||
| (in thousands, except net debt to adjusted EBITDA ratio) | Trailing Twelve Months Period Ended June 30, 2026 | |||
| GAAP debt | - | 857,522 | ||
| Minus: GAAP cash | (47,495 | - | ||
| Add: Restricted cash per RCF | 4,495 | |||
| Add: Capital lease liabilities | 314 | |||
| Net debt per RCF | - | 814,836 | ||
| GAAP Net Income | 121,456 | |||
| Interest expense, net | 33,954 | |||
| Income tax expense | 36,617 | |||
| Depreciation & amortization | 73,992 | |||
| Greco impairment expense | 15,627 | |||
| Proforma EBITDA for acquisitions | 23,600 | |||
| Stock compensation expenses | 14,984 | |||
| Acquisition transaction and integration expenses | 13,774 | |||
| Prior year ESOP contribution | 5,235 | |||
| Greco Exit related expenses | 2,438 | |||
| Non-cash tax indemnification expense | 1,497 | |||
| Nonrecurring restructuring expenses | 542 | |||
| Other misc. adjustments per RCF | 41 | |||
| Adjusted EBITDA per RCF | - | 343,757 | ||
| Net debt to adjusted EBITDA ratio per RCF | 2.37 | x | ||
