CSW Industrials Reports Robust Fiscal 2026 Fourth Quarter with Record Quarterly and Full Year Results; Contractor Solutions Segment Returns to Positive Organic Growth in Fourth Quarter
Rhea-AI Summary
CSW Industrials (NYSE:CSW) reported record fiscal 2026 fourth quarter and full year results, driven mainly by acquisitions and modest organic growth.
Q4 revenue rose 34.0% to $309.0 million and full year revenue increased 23.3% to $1.1 billion. Q4 adjusted EBITDA reached a record $82.9 million, while adjusted EPS grew 21.1% to $3.14 despite GAAP EPS declining 41.1% to $1.22 due to non-cash impairment and higher interest expense. Full year adjusted EBITDA rose 18.3% to a record $269.6 million and adjusted EPS increased 6.9% to $10.38. The Contractor Solutions segment returned to positive organic growth, and CSW invested $1.0 billion in acquisitions and returned $145.5 million to shareholders. Net leverage was 2.55x, within the stated 1–3x target range.
AI-generated analysis. Not financial advice.
Positive
- Q4 revenue up 34.0% to $309.0 million, a quarterly record
- Full year revenue up 23.3% to $1.1 billion, a record level
- Q4 adjusted EPS up 21.1% to $3.14 per diluted share
- Q4 adjusted EBITDA up 38.8% to a record $82.9 million
- Full year adjusted EBITDA up 18.3% to a record $269.6 million
- Contractor Solutions segment returned to 2.6% organic revenue growth in Q4
- Invested $1.0 billion in acquisitions over the fiscal year
- Returned $145.5 million to shareholders via $127.5 million buybacks and $18.0 million dividends
- Net leverage ratio at 2.55x, within 1–3x target range
Negative
- Q4 GAAP EPS down 41.1% to $1.22 per diluted share
- Q4 net income down 42.4% to $20.2 million
- Full year GAAP EPS down 20.0% to $6.70
- Full year net income down 18.0% to $112.0 million
- Q4 gross margin contracted 320 bps to 41.0% (70 bps to 43.5% adjusted)
- Q4 operating expenses rose to $87.1 million, 28.2% of revenue
- Interest expense of $11.8 million versus prior-year interest income of $1.6 million
- Q4 operating cash flow outflow of $1.7 million; free cash flow outflow of $6.8 million
- Engineered Building Solutions recorded a $15.6 million non-cash impairment and higher segment loss
News Market Reaction – CSW
On the day this news was published, CSW gained 0.57%, reflecting a mild positive market reaction. Argus tracked a peak move of +4.1% during that session. Argus tracked a trough of -10.2% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $28M to the company's valuation, bringing the market cap to $5.02B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
CSW gained 5.82%, while key peers like FELE (+1.51%) and SMR (+2.33%) showed only modest moves and the momentum scanner flagged no peers, pointing to a company-specific reaction to the earnings release rather than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 12 | Management promotion | Positive | -4.6% | Promotion of Jeff Underwood to EVP to support growth strategy. |
| May 11 | Earnings call date | Neutral | +0.9% | Announcement of Q4 and full-year 2026 earnings release timing. |
| Apr 02 | Dividend increase | Positive | +1.1% | Quarterly dividend raised 11% to $0.30 and buybacks detailed. |
| Mar 12 | Strategic acquisitions | Positive | -3.7% | Duckt-Strip acquisition and minority Flair investment in Contractor Solutions. |
| Jan 29 | Record Q3 results | Positive | -8.5% | Record Q3 revenue and adjusted EBITDA with higher net debt and leverage. |
Recent positive strategic and financial updates have often seen mixed or negative next-day price reactions, indicating a tendency for good news to be sold into, though dividend and scheduling news saw modest gains.
Over the last several months, CSW Industrials has consistently highlighted growth and capital deployment. On Jan 29, it reported record fiscal 2026 Q3 results but the stock fell. Subsequent news on acquisitions and investments, including the Duckt-Strip deal on Mar 12, also saw negative reactions. In contrast, the Apr 2 dividend increase to $0.30 and buybacks drew a mild gain. Management changes and the earnings-date announcement in May produced mixed trading, framing today’s strong move on record Q4 and full-year 2026 metrics as a notable positive response.
Market Pulse Summary
This announcement highlights record fiscal 2026 Q4 and full-year results, with revenue reaching $309.0 million in Q4 and $1.1 billion for the year and adjusted EPS improving to $3.14 in Q4 and $10.38 for the year. At the same time, GAAP EPS fell due to a $15.6 million non-cash impairment and higher interest from net debt of $842.7 million and a 2.55x leverage ratio. Investors may focus on the balance between acquisition-driven growth, cash flow, and integration-related margin impacts in upcoming periods.
Key Terms
adjusted ebitda financial
non-cash impairment financial
net leverage ratio financial
term loan a financial
revolving line of credit financial
free cash flow financial
effective tax rate financial
adjusted gross margin financial
AI-generated analysis. Not financial advice.
DALLAS, May 26, 2026 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (NYSE: CSW or the "Company") today reported results for the fiscal 2026 fourth quarter period ended March 31, 2026.
Fiscal 2026 Fourth Quarter Highlights (comparisons to fiscal 2025 fourth quarter)
- Total revenue increased
34.0% to a record of$309.0 million , driven by acquisitions during the last twelve months as well as organic growth - Contractor Solutions delivered organic revenue growth of
2.6% in the fourth quarter - Earnings per diluted share ("EPS") of
$1.22 decreased41.1% when compared to$2.08 , driven primarily by a non-cash impairment and higher interest expense - Adjusted EPS of
$3.14 , excluding the amortization of acquisition-related intangible assets, non-cash impairment and nonrecurring expenses, increased21.1% when compared to$2.59 - Net income attributable to CSW of
$20.2 million decreased42.4% when compared to$35.1 million - Adjusted EBITDA of
$82.9 million increased38.8% , setting a quarterly record - Net debt of
$842.7 million at the end of the quarter, resulting in a net leverage ratio (net Debt to EBITDA), in accordance with our credit facility, of 2.55x, within our stated target range of 1-3x
Fiscal 2026 Full Year Highlights (comparisons to fiscal 2025 full year)
- Total revenue increased
23.3% to a record of$1.1 billion , driven by acquisitions during the last twelve months - EPS of
$6.70 , decreased20.0% when compared to$8.38 , driven primarily by higher interest expense, non-cash impairment, and non-recurring expenses - Adjusted EPS of
$10.38 , increased6.9% when compared to$9.71 - Net income attributable to CSW of
$112.0 million decreased18.0% when compared to$136.7 million - Adjusted EBITDA increased
18.3% to a record$269.6 million - Invested
$1.0 billion in acquisitions and$17.3 million in organic capital expenditures, while returning total cash of$145.5 million to shareholders through share repurchases of$127.5 million and dividends of$18.0 million
Comments from the Chairman, President, and Chief Executive Officer
Joseph B. Armes, CSW Industrials’ Chairman, President, and Chief Executive Officer, commented, "I am pleased to report all-time record revenue and adjusted EBITDA for the fiscal fourth quarter and full fiscal year 2026, while also delivering record adjusted EPS. Reaching one billion dollars in annual revenue in just ten years is a milestone worth celebrating. These record setting results are attributable to CSW's successful growth strategy, which was accelerated by the recent acquisition and integration of businesses in two of our three reporting segments. Our Contractor Solutions segment strengthened its HVAC/R and electrical product offerings while our SRS segment further diversified its end market exposures. In addition, during the fiscal fourth quarter, our Contractor Solutions segment completed the strategic acquisition of Duckt-Strip, creating an immediate opportunity to accelerate sales growth on a differentiated electrical cable in the fast-growing HVAC mini-split market."
Armes continued, "Disciplined investments in immediately accretive acquisitions have added fast growing products to our portfolio, opened new end markets, and allowed CSW to leverage our broad distribution network. We enter fiscal year 2027 with a cautiously optimistic outlook for our primary end markets, and with conviction that we can continue to deliver growth that outpaces the markets we serve. We anticipate delivering meaningful growth in revenue, adjusted EBITDA, adjusted EPS, and cash flows in fiscal 2027."
Fiscal 2026 Fourth Quarter Consolidated Results
Fiscal fourth quarter revenue was
Gross profit in the fiscal fourth quarter was
Operating expenses were
Operating income in the current period was
Interest expense, net of interest income, was
In the current period, reported net income attributable to CSW decreased
Fiscal 2026 fourth quarter adjusted EBITDA increased
The quarterly cash flows from operations were an outflow of
Following quarter-end, the Company announced its twenty-ninth consecutive regular quarterly cash dividend in the amount of
The Company’s effective tax rate for the fiscal fourth quarter was
Fiscal 2026 Fourth Quarter Segment Results
Contractor Solutions segment revenue was
Specialized Reliability Solutions segment revenue was
Engineered Building Solutions segment revenue was
During the fiscal quarter, in connection with the Greco Plans, we recorded a non-cash impairment charge of
Excluding the Greco businesses, Engineered Building Solutions segment revenue was
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.
Fiscal 2026 Full Year Consolidated Results
Consolidated revenue was
Gross profit in the current year was
Operating expenses as a percentage of revenue were
Operating income was
Interest expense, net was
Net income attributable to CSW decreased to
Fiscal 2026 adjusted EBITDA increased
Net cash provided by operating activities for fiscal 2026 was
Including cash on hand, our net debt according to our credit facility covenant calculation was
In fiscal 2026, the Company deployed
The Company’s effective tax rate for the fiscal year was
Fiscal 2026 Full Year Segment Results
Contractor Solutions segment revenue was
Specialized Reliability Solutions segment revenue grew to
Engineered Building Solutions segment revenue was
Excluding the Greco business, Engineered Building Solutions segment revenue was
All percentages are calculated based upon the attached financial statements. Share count used in determining the diluted EPS is based on a weighted average of outstanding shares throughout the measurement 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, June 9, 2026. Participants may access the replay at 1-844-512-2921, international callers may use 1-412-317-6671 and enter access code 13760322. 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, adjusted operating cash flows, adjusted free cash flows, revenue calculated to include pre-acquisition revenue effect for recent acquisitions, adjusted EBS excluding Greco and adjusted CSW excluding Greco, 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 | ||||||||||||||||
| Three Months Ended March 31, | Year Ended March 31, | |||||||||||||||
| (Amounts in thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenues, net | $ | 308,960 | $ | 230,549 | $ | 1,082,549 | $ | 878,301 | ||||||||
| Cost of revenues | (182,348 | ) | (128,664 | ) | (628,867 | ) | (484,989 | ) | ||||||||
| Gross profit | 126,612 | 101,885 | 453,682 | 393,312 | ||||||||||||
| Selling, general and administrative expenses | (71,445 | ) | (56,841 | ) | (269,520 | ) | (212,064 | ) | ||||||||
| Impairment expense | (15,627 | ) | — | (15,627 | ) | — | ||||||||||
| Operating income | 39,541 | 45,044 | 168,535 | 181,248 | ||||||||||||
| Interest expense, net | (11,785 | ) | 1,616 | (22,245 | ) | (269 | ) | |||||||||
| Other expense, net | 48 | (147 | ) | (737 | ) | (862 | ) | |||||||||
| Income before income taxes | 27,805 | 46,514 | 145,553 | 180,117 | ||||||||||||
| Provision for income taxes | (7,539 | ) | (11,458 | ) | (32,706 | ) | (42,633 | ) | ||||||||
| Net income | 20,264 | 35,053 | 112,847 | 137,484 | ||||||||||||
| Income attributable to redeemable noncontrolling interest | (63 | ) | 7 | (802 | ) | (832 | ) | |||||||||
| Net income attributable to CSW | $ | 20,201 | $ | 35,060 | $ | 112,045 | $ | 136,652 | ||||||||
| Net income per share attributable to CSW | ||||||||||||||||
| Basic | $ | 1.23 | $ | 2.09 | $ | 6.73 | $ | 8.41 | ||||||||
| Diluted | $ | 1.22 | $ | 2.08 | $ | 6.70 | $ | 8.38 | ||||||||
| Weighted average number of shares outstanding: | ||||||||||||||||
| Basic | 16,434 | 16,779 | 16,653 | 16,242 | ||||||||||||
| Diluted | 16,500 | 16,859 | 16,712 | 16,314 | ||||||||||||
| CSW INDUSTRIALS, INC. CONSOLIDATED BALANCE SHEETS | ||||||||
| (Amounts in thousands, except per share amounts) | March 31, 2026 | March 31, 2025 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 33,799 | $ | 225,845 | ||||
| Accounts receivable, net | 210,264 | 155,651 | ||||||
| Inventories, net | 309,707 | 194,876 | ||||||
| Prepaid expenses and other current assets | 26,555 | 16,489 | ||||||
| Assets held for sale | 8,742 | — | ||||||
| Total current assets | 589,067 | 592,861 | ||||||
| Property, plant and equipment, net | 107,536 | 93,415 | ||||||
| Goodwill | 632,631 | 264,092 | ||||||
| Intangible assets, net | 900,051 | 357,910 | ||||||
| Other assets | 87,399 | 70,787 | ||||||
| Total assets | $ | 2,316,684 | $ | 1,379,065 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 76,930 | $ | 54,767 | ||||
| Accrued and other current liabilities | 116,055 | 92,435 | ||||||
| Current portion of long-term debt | 29,458 | — | ||||||
| Liabilities held for sale | 4,478 | — | ||||||
| Total current liabilities | 226,921 | 147,202 | ||||||
| Long-term debt | 839,836 | — | ||||||
| Retirement benefits payable | 1,040 | 1,083 | ||||||
| Other long-term liabilities | 179,489 | 138,347 | ||||||
| Noncurrent liabilities, discontinued operations | — | — | ||||||
| Total liabilities | 1,247,286 | 286,632 | ||||||
| Commitments and contingencies (Note 18) | ||||||||
| Redeemable noncontrolling interest | 18,989 | 20,187 | ||||||
| Equity: | ||||||||
| Common shares, | 178 | 177 | ||||||
| Additional paid-in capital | 520,076 | 501,286 | ||||||
| Treasury shares, at cost (1,544 and 1,027 shares, respectively) | (257,704 | ) | (122,125 | ) | ||||
| Retained earnings | 798,956 | 705,035 | ||||||
| Accumulated other comprehensive loss | (11,097 | ) | (12,127 | ) | ||||
| Total equity | 1,050,409 | 1,072,246 | ||||||
| Total liabilities and equity | $ | 2,316,684 | $ | 1,379,065 | ||||
| CSW INDUSTRIALS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| Year Ended March 31, | ||||||||
| (Amounts in thousands) | 2026 | 2025 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 112,847 | $ | 137,484 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 15,907 | 14,210 | ||||||
| Amortization of acquisition-related intangible assets & inventory step- | 51,174 | 28,029 | ||||||
| Amortization of deferred financing fees | 1,071 | 766 | ||||||
| Provision for inventory reserves | 4,254 | 2,686 | ||||||
| Provision for credit losses | 2,279 | 1,408 | ||||||
| Share-based and other executive compensation | 14,930 | 13,587 | ||||||
| Fair value change in contingent consideration | — | 2100 | ||||||
| Net loss (gain) on disposals of property, plant and equipment | 756 | 35 | ||||||
| Net pension benefit | 67 | 66 | ||||||
| Impairment expenses | 15,634 | — | ||||||
| Net deferred taxes | (6,035 | ) | (6,915 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (27,076 | ) | (9,116 | ) | ||||
| Inventories | (36,751 | ) | (35,699 | ) | ||||
| Prepaid expenses and other current assets | (5,204 | ) | (1,369 | ) | ||||
| Other assets | 782 | 1,424 | ||||||
| Accounts payable and other current liabilities | 10,702 | 21,664 | ||||||
| Retirement benefits payable and other liabilities | (5,684 | ) | (1,998 | ) | ||||
| Net cash provided by operating activities | 149,653 | 168,362 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (17,257 | ) | (16,266 | ) | ||||
| Proceeds from sale of assets | 217 | 1,229 | ||||||
| Cash paid for investments | (4,800 | ) | (2,500 | ) | ||||
| Cash paid for acquisitions (net of cash received) | (1,021,233 | ) | (84,684 | ) | ||||
| Net cash used in investing activities | (1,043,073 | ) | (102,221 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Borrowings on lines of credit | 505,724 | 32,723 | ||||||
| Repayments of lines of credit | (226,724 | ) | (198,723 | ) | ||||
| Borrowings on Term Loan A | 600,000 | — | ||||||
| Repayments on Term Loan A | (7,500 | ) | — | |||||
| Payments of deferred loan costs | (5,271 | ) | — | |||||
| Payments of contingent consideration | (11,988 | ) | (1,085 | ) | ||||
| Purchase of treasury shares | (132,746 | ) | (27,693 | ) | ||||
| Proceeds from issuance of equity | — | 347,407 | ||||||
| Distributions to redeemable noncontrolling interest shareholder | (2,000 | ) | — | |||||
| Dividends paid to shareholders | (18,021 | ) | (14,582 | ) | ||||
| Net cash provided by (used in) provided by financing activities | 701,474 | 138,047 | ||||||
| Effect of exchange rate changes on cash and equivalents | (100 | ) | (499 | ) | ||||
| Net change in cash and cash equivalents | (192,046 | ) | 203,689 | |||||
| Cash and cash equivalents, beginning of period | 225,845 | 22,156 | ||||||
| Cash and cash equivalents, end of period | $ | 33,799 | $ | 225,845 | ||||
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, adjusted operating cash flows, free cash flows, revenue calculated to include pre-acquisition revenue effect for recent acquisitions, adjusted EBS excluding Greco and adjusted CSW excluding Greco, 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 flow is a non-GAAP financial measure and is defined as cash flow 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) | Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income attributable to CSW | $ | 20,202 | $ | 35,061 | $ | 112,045 | $ | 136,652 | ||||||||
| Adjusting items: | ||||||||||||||||
| Amortization of acquisition-related intangible assets and inventory step-up | 16,198 | 7,833 | 51,173 | 28,014 | ||||||||||||
| Amortization tax effect | (4,075 | ) | (1,874 | ) | (12,727 | ) | (6,866 | ) | ||||||||
| Acquisition-related integration expenses, net of tax effect | 2,679 | — | 5,773 | — | ||||||||||||
| Nonrecurring inventory write down, net of tax effect | 865 | — | 2,361 | — | ||||||||||||
| Acquisition-related transaction expenses, net of tax effect | 283 | 1,074 | 3,829 | 1,716 | ||||||||||||
| Greco Canada exit related expenses, net of tax effect | 1,575 | — | 1,575 | — | ||||||||||||
| Nonrecurring restructuring expenses, net of tax effect | 408 | — | 408 | — | ||||||||||||
| Greco impairment expenses, net of tax effect | 13,617 | — | 13,617 | — | ||||||||||||
| Uncertain tax position accrual release | — | — | (4,544 | ) | (2,691 | ) | ||||||||||
| Fair value change in contingent consideration, net of tax effect | — | 1,573 | — | 1,573 | ||||||||||||
| Adjusted net income attributable to CSW | $ | 51,752 | $ | 43,666 | $ | 173,510 | $ | 158,398 | ||||||||
| Net Income Attributable to CSW per diluted common share | $ | 1.22 | $ | 2.08 | $ | 6.70 | $ | 8.38 | ||||||||
| Adjusting Items, per dilutive common share: | ||||||||||||||||
| Amortization of acquisition-related intangible assets and inventory step-up | 0.98 | 0.46 | 3.06 | 1.72 | ||||||||||||
| Amortization tax effect | (0.25 | ) | (0.11 | ) | (0.76 | ) | (0.42 | ) | ||||||||
| Acquisition-related integration expenses, net of tax effect | 0.16 | — | 0.35 | — | ||||||||||||
| Nonrecurring inventory write down, net of tax effect | 0.05 | — | 0.14 | — | ||||||||||||
| Acquisition-related transaction expenses, net of tax effect | 0.02 | 0.06 | 0.23 | 0.11 | ||||||||||||
| Greco Canada exit related expenses, net of tax effect | 0.10 | — | 0.09 | — | ||||||||||||
| Nonrecurring restructuring expenses, net of tax effect | 0.02 | — | 0.02 | — | ||||||||||||
| Greco impairment expenses, net of tax effect | 0.83 | — | 0.81 | — | ||||||||||||
| Uncertain tax position accrual release | — | — | (0.27 | ) | (0.16 | ) | ||||||||||
| Fair value change in contingent consideration, net of tax effect | — | 0.09 | — | 0.10 | ||||||||||||
| Adjusted net income attributable to CSW per dilutive common share | $ | 3.14 | $ | 2.59 | $ | 10.38 | $ | 9.71 | ||||||||
| CSW Industrials, Inc. | ||||||||||||||||
| Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| (Amounts in thousands) | Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| GAAP income before tax | $ | 27,804 | $ | 46,513 | $ | 145,553 | $ | 180,117 | ||||||||
| Adjusting items: | ||||||||||||||||
| Acquisition-related integration expenses | 3,501 | — | 7,664 | — | ||||||||||||
| Nonrecurring inventory write down | 1,083 | — | 3,135 | — | ||||||||||||
| Acquisition-related transaction expenses | 170 | 1,434 | 4,265 | 2,294 | ||||||||||||
| Nonrecurring restructuring expenses | 542 | — | 542 | — | ||||||||||||
| Greco Canada Exit related expenses | 2,130 | — | 2,130 | — | ||||||||||||
| Greco impairment expenses | 15,627 | — | 15,627 | — | ||||||||||||
| Fair value change in contingent consideration liability | — | 2,100 | — | 2,100 | ||||||||||||
| Reversal of tax indemnification receivable | — | — | 1,406 | 858 | ||||||||||||
| Adjusted income before tax | $ | 50,857 | $ | 50,046 | $ | 180,322 | $ | 185,369 | ||||||||
| GAAP provision for income tax | $ | 7,539 | $ | 11,458 | $ | 32,706 | $ | 42,633 | ||||||||
| Adjusting items: | ||||||||||||||||
| Tax effect of acquisition-related integration expenses | 822 | — | 1,891 | — | ||||||||||||
| Tax effect of nonrecurring inventory write down | 218 | — | 774 | — | ||||||||||||
| Tax effect of acquisition-related transaction expenses | (113 | ) | 360 | 436 | 578 | |||||||||||
| Tax effect of nonrecurring restructuring expenses | 134 | — | 134 | — | ||||||||||||
| Tax effect of Greco Canada Exit related expenses | 555 | — | 555 | — | ||||||||||||
| Tax effect of Greco impairment expenses | 2,010 | — | 2,010 | — | ||||||||||||
| Tax effect of fair value change in contingent consideration liability | — | 527 | — | 527 | ||||||||||||
| Tax effect of reversal of tax indemnification receivable | — | — | 1,406 | 858 | ||||||||||||
| Uncertain tax position accrual release | — | — | 4,544 | 2,691 | ||||||||||||
| Adjusted provision for income tax | $ | 11,165 | $ | 12,345 | $ | 44,456 | $ | 47,287 | ||||||||
| GAAP effective tax rate | 27.1 | % | 24.6 | % | 22.5 | % | 23.7 | % | ||||||||
| Adjusted effective tax rate | 22.0 | % | 24.7 | % | 24.7 | % | 25.5 | % | ||||||||
| CSW Industrials, Inc. | |||||||
| Reconciliation of Contractor Solutions Segment Reported Revenue to Revenue Calculated to Include Pre-Acquisition Revenue Effect | |||||||
| (unaudited) | |||||||
| (Amounts in thousands) | Three Months Ended March 31, | ||||||
| 2026 | 2025 | ||||||
| Contractor Solutions Segment Reported Revenue, Net | $ | 237,110 | $ | 165,929 | |||
| Adjusting Items: | |||||||
| Pre-acquisition revenue effect for recent acquisitions (a) | — | 58,797 | |||||
| $ | 237,110 | $ | 224,726 | ||||
| (a) Revenue effect from MARS Parts and Aspen Manufacturing acquisitions as if the acquisitions had been owned by CSW during the same months in the quarter ended March 31, 2025. This calculation is provided to allow investors to understand our organic growth, including pre-acquisition revenue effect from recent acquisitions, on a comparable basis. | |||||||
| CSW INDUSTRIALS, INC. | ||||||||||||||||
| Reconciliation of Net Income Attributable to CSW to Adjusted EBITDA | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| (Amounts in thousands) | Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net Income attributable to CSW | $ | 20,202 | $ | 35,061 | $ | 112,045 | $ | 136,652 | ||||||||
| Plus: Income attributable to redeemable noncontrolling interest | 63 | (7 | ) | 802 | 832 | |||||||||||
| Net Income | $ | 20,265 | $ | 35,054 | $ | 112,846 | $ | 137,484 | ||||||||
| Adjusting Items: | ||||||||||||||||
| Interest expense, net | 11,785 | (1,616 | ) | 22,245 | 269 | |||||||||||
| Income tax expense | 7,539 | 11,458 | 32,706 | 42,633 | ||||||||||||
| Depreciation & amortization | 20,284 | 11,327 | 67,071 | 42,223 | ||||||||||||
| Greco impairment expense | 15,627 | — | 15,627 | — | ||||||||||||
| EBITDA | $ | 75,500 | $ | 56,224 | $ | 250,496 | $ | 222,608 | ||||||||
| EBITDA Adjustments: | ||||||||||||||||
| Acquisition-related integration expenses | 3,501 | — | 7,664 | — | ||||||||||||
| Nonrecurring inventory write down | 1,083 | — | 3,135 | — | ||||||||||||
| Acquisition-related transaction expenses | 170 | 1,434 | 4,265 | 2,294 | ||||||||||||
| Nonrecurring restructuring expenses | 542 | — | 542 | — | ||||||||||||
| Greco Canada exit related expenses | 2,130 | — | 2,130 | — | ||||||||||||
| Fair value change in contingent consideration | — | 2,100 | 2,100 | |||||||||||||
| Reversal of tax indemnification receivable | — | — | 1,406 | 858 | ||||||||||||
| Adjusted EBITDA | $ | 82,926 | $ | 59,758 | $ | 269,638 | $ | 227,860 | ||||||||
| Adjusted EBITDA % Revenue | 26.8 | % | 25.9 | % | 24.9 | % | 25.9 | % | ||||||||
| CSW Industrials, Inc. | ||||||||||||||||
| Reconciliation of Gross Profit to Adjusted Gross Profit | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| (Amounts in thousands) | Three months ended March 31, | Year Ended March 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Gross Profit | $ | 126,612 | $ | 101,885 | $ | 453,682 | $ | 393,312 | ||||||||
| Gross Profit % Revenue | 41.0 | % | 44.2 | % | 41.9 | % | 44.8 | % | ||||||||
| Adjusting Items: | ||||||||||||||||
| Acquisition-related integration expenses | 1,572 | — | 4,017 | — | ||||||||||||
| Nonrecurring inventory write down | 1,083 | — | 3,135 | — | ||||||||||||
| Greco Canada exit related expenses | 739 | — | 739 | — | ||||||||||||
| Nonrecurring COGS reclass | 4,497 | — | — | — | ||||||||||||
| Adjusted Gross Profit | $ | 134,503 | $ | 101,885 | $ | 461,573 | $ | 393,312 | ||||||||
| Adjusted Gross Profit % Revenue | 43.5 | % | 44.2 | % | 42.6 | % | 44.8 | % | ||||||||
| CSW Industrials, Inc. | ||||||||||||||||
| Reconciliation of Operating Expenses to Adjusted Operating Expenses | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| (Amounts in thousands) | Three months ended March 31, | Year Ended March 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Operating expenses (a) | $ | 87,072 | $ | 56,841 | $ | 285,147 | $ | 212,065 | ||||||||
| Operating expenses % Revenue | 28.2 | % | 24.7 | % | 26.3 | % | 24.1 | % | ||||||||
| Adjusting Items: | ||||||||||||||||
| Acquisition-related integration expenses | (1,929 | ) | — | (3,650 | ) | — | ||||||||||
| Acquisition-related transaction expenses | (170 | ) | (1,434 | ) | (4,265 | ) | (2,294 | ) | ||||||||
| Greco Canada exit related expenses | (1,391 | ) | — | (1,391 | ) | — | ||||||||||
| Nonrecurring restructuring expenses | (542 | ) | — | (542 | ) | — | ||||||||||
| Greco impairment expenses | (15,627 | ) | — | (15,627 | ) | — | ||||||||||
| Fair value change in contingent consideration | — | (2,100 | ) | — | (2,100 | ) | ||||||||||
| Nonrecurring COGS reclass | 4,497 | — | — | — | ||||||||||||
| Adjusted Operating expenses | $ | 71,909 | $ | 53,307 | $ | 259,673 | $ | 207,671 | ||||||||
| Adjusted Operating expenses % Revenue | 23.3 | % | 23.1 | % | 24.0 | % | 23.6 | % | ||||||||
(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 March 31, 2026 | ||||||||||||||
| Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Corporate and Other | Consolidated | |||||||||||
| Revenue, net | $ | 237,110 | $ | 46,216 | $ | 27,650 | $ | (2,015 | ) | $ | 308,960 | ||||
| Operating Income | $ | 52,753 | $ | 7,228 | $ | (13,373 | ) | $ | (7,068 | ) | $ | 39,541 | |||
| % Revenue | 22.2 | % | 15.6 | % | (48.4) % | 12.8 | % | ||||||||
| Adjusting Items: | |||||||||||||||
| Acquisition-related integration expenses | 2,842 | 660 | — | — | 3,502 | ||||||||||
| Nonrecurring inventory write down | 1,083 | — | — | — | 1,083 | ||||||||||
| Acquisition-related transaction expenses | 170 | — | — | — | 170 | ||||||||||
| Nonrecurring restructuring expenses | — | 542 | — | — | 542 | ||||||||||
| Greco Canada exit related expenses | — | — | 2,130 | — | 2,130 | ||||||||||
| Greco impairment expenses | — | — | 15,627 | — | 15,627 | ||||||||||
| Adjusted Operating Income | $ | 56,848 | $ | 8,430 | $ | 4,385 | $ | (7,068 | ) | $ | 62,595 | ||||
| % Revenue | 24.0 | % | 18.2 | % | 15.9 | % | 20.3 | % | |||||||
| Adjusting Items: | |||||||||||||||
| Other income (expense), net | 109 | (2 | ) | (7 | ) | (52 | ) | 48 | |||||||
| Depreciation & amortization | 18,145 | 1,625 | 487 | 26 | 20,284 | ||||||||||
| Adjusted EBITDA | $ | 75,103 | $ | 10,052 | $ | 4,865 | $ | (7,093 | ) | $ | 82,927 | ||||
| % Revenue | 31.7 | % | 21.8 | % | 17.6 | % | 26.8 | % | |||||||
| (Amounts in thousands) | Three Months Ended March 31, 2025 | ||||||||||||||
| Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Corporate and Other | Consolidated | |||||||||||
| Revenue, net | $ | 165,929 | $ | 37,750 | $ | 28,732 | $ | (1,861 | ) | $ | 230,549 | ||||
| Operating Income | $ | 42,999 | $ | 4,465 | $ | 3,736 | $ | (6,156 | ) | $ | 45,044 | ||||
| % Revenue | 25.9 | % | 11.8 | % | 13.0 | % | 19.5 | % | |||||||
| Adjusting Items: | |||||||||||||||
| Fair value change in contingent consideration liability | 2,100 | — | — | — | 2,100 | ||||||||||
| Acquisition-related transaction expenses | 1,434 | — | — | — | 1,434 | ||||||||||
| Adjusted Operating Income | $ | 46,533 | $ | 4,465 | $ | 3,736 | $ | (6,156 | ) | $ | 48,577 | ||||
| % Revenue | 28.0 | % | 11.8 | % | 13.0 | % | 21.1 | % | |||||||
| Adjusting Items: | |||||||||||||||
| Other income (expense), net | (36 | ) | (34 | ) | (12 | ) | (65 | ) | (147 | ) | |||||
| Depreciation and amortization | 9,502 | 1,356 | 427 | 42 | 11,327 | ||||||||||
| Adjusted EBITDA | $ | 55,998 | $ | 5,787 | $ | 4,152 | $ | (6,179 | ) | $ | 59,758 | ||||
| % Revenue | 33.7 | % | 15.3 | % | 14.5 | % | 25.9 | % | |||||||
| CSW INDUSTRIALS, INC. | |||||||||||||||
| Reconciliation of Segment Operating Income to Segment Adjusted EBITDA | |||||||||||||||
| (unaudited) | |||||||||||||||
| (Amounts in thousands) | Year Ended March 31, 2026 | ||||||||||||||
| Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Corporate and Other | Consolidated | |||||||||||
| Revenue, net | $ | 810,317 | $ | 160,111 | $ | 119,911 | $ | (7,789 | ) | $ | 1,082,549 | ||||
| Operating Income | $ | 175,677 | $ | 22,079 | $ | (1,180 | ) | $ | (28,042 | ) | $ | 168,535 | |||
| % Revenue | 21.7 | % | 13.8 | % | (1.0)% | 15.6 | % | ||||||||
| Adjusting Items: | |||||||||||||||
| Acquisition-related integration expenses | 6,617 | 1,047 | — | — | 7,664 | ||||||||||
| Nonrecurring inventory write down | 3,135 | — | — | — | 3,135 | ||||||||||
| Acquisition-related transaction expenses | 2,862 | 423 | — | 979 | 4,265 | ||||||||||
| Nonrecurring restructuring expenses | — | 542 | — | — | 542 | ||||||||||
| Greco Canada exit related expenses | — | — | 2,130 | — | 2,130 | ||||||||||
| Greco impairment expenses | — | — | 15,627 | — | 15,627 | ||||||||||
| Adjusted Operating Income | $ | 188,291 | $ | 24,092 | $ | 16,578 | $ | (27,063 | ) | $ | 201,898 | ||||
| % Revenue | 23.2 | % | 15.0 | % | 13.8 | % | 18.7 | % | |||||||
| Adjusting Items: | |||||||||||||||
| Other income (expense), net | (343 | ) | (136 | ) | 8 | (266 | ) | (737 | ) | ||||||
| Depreciation & amortization | 59,408 | 5,725 | 1,827 | 112 | 67,071 | ||||||||||
| Reversal of tax indemnification receivable | 1,406 | — | — | — | 1,406 | ||||||||||
| Adjusted EBITDA | $ | 248,762 | $ | 29,681 | $ | 18,412 | $ | (27,217 | ) | $ | 269,639 | ||||
| % Revenue | 30.7 | % | 18.5 | % | 15.4 | % | 24.9 | % | |||||||
| (Amounts in thousands) | Year Ended March 31, 2025 | ||||||||||||||
| Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Corporate and Other | Consolidated | |||||||||||
| Revenue, net | $ | 617,331 | $ | 147,641 | $ | 121,119 | $ | (7,791 | ) | $ | 878,301 | ||||
| Operating Income | $ | 165,893 | $ | 22,673 | $ | 19,187 | $ | (26,505 | ) | $ | 181,248 | ||||
| % Revenue | 26.9 | % | 15.4 | % | 15.8 | % | 20.6 | % | |||||||
| Adjusting Items: | |||||||||||||||
| Fair value change in contingent consideration liability | 2,100 | — | — | — | 2,100 | ||||||||||
| Acquisition-related transaction expenses | 2,294 | — | — | — | 2,294 | ||||||||||
| Adjusted Operating Income | $ | 170,287 | $ | 22,673 | $ | 19,187 | $ | (26,505 | ) | $ | 185,641 | ||||
| % Revenue | 27.6 | % | 15.4 | % | 15.8 | % | 21.1 | % | |||||||
| Adjusting Items: | |||||||||||||||
| Other income (expense), net | (371 | ) | (233 | ) | 7 | (265 | ) | (862 | ) | ||||||
| Depreciation & amortization | 34,666 | 5,553 | 1,826 | 177 | 42,223 | ||||||||||
| Reversal of tax indemnification receivable | 858 | — | — | — | 858 | ||||||||||
| Adjusted EBITDA | $ | 205,440 | $ | 27,993 | $ | 21,020 | $ | (26,593 | ) | $ | 227,860 | ||||
| % Revenue | 33.3 | % | 19.0 | % | 17.4 | % | 25.9 | % | |||||||
| CSW INDUSTRIALS, INC. | ||||||||||||||||
| Reconciliation of Operating Cash Flow to Free Cash Flow | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (Amounts in thousands) | Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net cash (used in) provided by operating activities | $ | (1,682 | ) | $ | 27,293 | $ | 149,653 | $ | 168,362 | |||||||
| Less: Capital expenditures | (5,127 | ) | (4,531 | ) | (17,257 | ) | (16,266 | ) | ||||||||
| Free cash flow | $ | (6,809 | ) | $ | 22,762 | $ | 132,396 | $ | 152,096 | |||||||
| Adjusted EBITDA | $ | 82,927 | $ | 59,758 | $ | 269,639 | $ | 227,860 | ||||||||
| Free cash flow % Adj. EBITDA | (8.2)% | 38.1 | % | 49.1 | % | 66.7 | % | |||||||||
| CSW INDUSTRIALS, INC. | |||||||||||||||||||
| Reconciliation of Adjusted CSW to Adjusted CSW excluding Greco | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Amounts in thousands) | Three months ended March 31, | ||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| CSW Consolidated | Greco Consolidated | CSW Consolidated excluding Greco | CSW Consolidated | Greco Consolidated | CSW Consolidated excluding Greco | ||||||||||||||
| Revenues, net | $ | 308,960 | $ | 5,903 | $ | 303,057 | $ | 230,549 | $ | 9,058 | $ | 221,491 | |||||||
| Adjusted EBITDA | 82,927 | (751 | ) | 83,678 | 59,758 | (25 | ) | 59,783 | |||||||||||
| Adjusted EBITDA Margin | 26.8 | % | (12.7)% | 27.6 | % | 25.9 | % | (0.3)% | 27.0 | % | |||||||||
| Amortization Adjusted EPS | $ | 3.14 | $ | (0.05 | ) | $ | 3.19 | $ | 2.59 | $ | (0.01 | ) | $ | 2.61 | |||||
| Year Ended March 31, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| CSW Consolidated | Greco Consolidated | CSW Consolidated excluding Greco | CSW Consolidated | Greco Consolidated | CSW Consolidated excluding Greco | ||||||||||||||
| Revenues, net | $ | 1,082,549 | $ | 33,450 | $ | 1,049,100 | $ | 878,301 | $ | 39,529 | $ | 838,771 | |||||||
| Adjusted EBITDA | 269,638 | (407 | ) | 270,045 | 227,860 | 3,950 | 223,910 | ||||||||||||
| Adjusted EBITDA Margin | 24.9 | % | (1.2)% | 25.7 | % | 25.9 | % | 10.0 | % | 26.7 | % | ||||||||
| Amortization Adjusted EPS | $ | 10.38 | $ | (0.08 | ) | $ | 10.46 | $ | 9.71 | $ | 0.12 | $ | 9.59 | ||||||
| CSW INDUSTRIALS, INC. | |||||||||||||||||||
| Reconciliation of Adjusted EBS to Adjusted EBS excluding Greco | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Amounts in thousands) | Three months ended March 31, | ||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| EBS | Greco Consolidated | EBS, excluding Greco | EBS | Greco Consolidated | EBS, excluding Greco | ||||||||||||||
| Revenues, net | $ | 27,650 | $ | 5,903 | $ | 21,746 | $ | 28,732 | $ | 9,058 | $ | 19,674 | |||||||
| Adjusted EBITDA | 4,865 | (751 | ) | 5,616 | 4,152 | (25 | ) | 4,177 | |||||||||||
| Adjusted EBITDA Margin | 17.6 | % | (12.7)% | 25.8 | % | 14.5 | % | (0.3)% | 21.2 | % | |||||||||
| Year Ended March 31, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| EBS | Greco Consolidated | EBS, excluding Greco | EBS | Greco Consolidated | EBS, excluding Greco | ||||||||||||||
| Revenues, net | $ | 119,911 | $ | 33,450 | $ | 86,462 | $ | 121,119 | $ | 39,529 | $ | 81,590 | |||||||
| Adjusted EBITDA | 18,412 | (407 | ) | 18,819 | 21,020 | 3,950 | 17,070 | ||||||||||||
| Adjusted EBITDA Margin | 15.4 | % | (1.2)% | 21.8 | % | 17.4 | % | 10.0 | % | 20.9 | % | ||||||||
| CSW INDUSTRIALS, INC. | ||||
| Net Debt to Adjusted EBITDA Ratio per Revolving Credit Facility ("RCF") | ||||
| (Unaudited) | ||||
| (in thousands, except net debt to adjusted EBITDA ratio) | March 31, 2026 | |||
| GAAP debt | $ | 871,500 | ||
| Minus: GAAP cash | (33,799 | ) | ||
| Add: Restricted cash per RCF | 4,628 | |||
| Add: Capital lease liabilities | 330 | |||
| Net debt per RCF | $ | 842,659 | ||
| GAAP Net Income | $ | 112,846 | ||
| Interest expense, net | 22,245 | |||
| Income tax expense | 32,706 | |||
| Depreciation & amortization | 67,071 | |||
| Greco impairment expense | 15,627 | |||
| Proforma EBITDA for acquisitions | 44,675 | |||
| Stock compensation expenses | 14,930 | |||
| Acquisition transaction and integration expenses | 12,675 | |||
| Prior year ESOP contribution | 4,859 | |||
| Greco Canada Exit related expenses | 2,130 | |||
| Non-cash tax indemnification expense | 1,406 | |||
| Nonrecurring restructuring expenses | 542 | |||
| Other misc. adjustments per RCF | (850 | ) | ||
| Adjusted EBITDA per RCF | $ | 330,863 | ||
| Net debt to adjusted EBITDA ratio per RCF | 2.55x | |||
