Capital Southwest Announces Preliminary Estimate of Third Quarter 2025 Operating Results and Earnings Release and Conference Call Schedule

Rhea-AI Summary

Capital Southwest (Nasdaq: CSWC) has released preliminary operating results for Q3 FY2025 (ended December 31, 2024). The business development company estimates pre-tax net investment income of $0.63-$0.64 per share and net investment income of $0.62-$0.63 per share. The company's preliminary net asset value per share is estimated between $16.57-$16.62, with investment assets at fair value approximately $1.7 billion as of December 31, 2024.

The company will announce final Q3 2025 results on February 3, 2025, after market close, followed by a live webcast on February 4, 2025, at 11:00 a.m. Eastern time. Investors can participate through the company's website or register for the live call.

Positive

• Estimated investment assets at fair value reach approximately $1.7 billion
• Positive net investment income projected at $0.62-$0.63 per share
• Strong pre-tax net investment income estimated at $0.63-$0.64 per share

Negative

• None.

Insights

Financial Analyst

The preliminary Q3 FY2025 results from Capital Southwest demonstrate solid performance metrics. The estimated pre-tax net investment income of $0.63-0.64 per share and net investment income of $0.62-0.63 per share suggest stable earnings generation. The company's investment portfolio has reached approximately $1.7 billion in fair value, while maintaining a NAV per share range of $16.57-16.62.

Breaking this down for retail investors: BDCs like Capital Southwest make money by lending to middle-market businesses at higher interest rates than their own borrowing costs. The preliminary results indicate the company is effectively managing this spread, generating consistent returns for shareholders. The estimated NAV range shows minimal volatility, suggesting stable portfolio performance and prudent risk management.

The $1.7 billion investment portfolio represents significant scale in the middle-market lending space, providing diversification benefits and stronger negotiating power with potential borrowers. This scale, combined with the company's internally managed structure, typically results in better cost efficiency compared to externally managed BDCs.

Market Research Analyst

Looking at the broader context, these preliminary results position Capital Southwest favorably within the BDC sector. The stable NAV and consistent investment income generation are particularly noteworthy given the current interest rate environment and market conditions. The internally managed structure means management interests are more closely aligned with shareholders, as there's no external management fee structure to potentially create conflicts of interest.

For context to everyday investors: Think of Capital Southwest like a specialized bank that lends to medium-sized businesses. Their preliminary numbers suggest they're making good loans and managing risks well. The $1.7 billion portfolio size means they're not putting all their eggs in one basket, which helps protect against potential losses.

The timing of this preliminary release, well ahead of the official earnings announcement, demonstrates transparency and confidence in their results. This proactive communication approach typically resonates well with institutional investors and could support positive market sentiment heading into the detailed earnings release in February.

DALLAS, Jan. 15, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, is pleased to announce its preliminary operating results for the third quarter of its 2025 fiscal year (quarter ended December 31, 2024) and its third quarter 2025 earnings release and conference call schedule.

Capital Southwest’s preliminary estimate of its third quarter 2025 pre-tax net investment income is in the range of $0.63 to $0.64 per share. The preliminary estimate of its net investment income for the same period is in the range of $0.62 to $0.63 per share. Additionally, Capital Southwest’s preliminary estimate of its net asset value per share as of December 31, 2024 is in the range of $16.57 to $16.62. Finally, Capital Southwest’s preliminary estimate of its investment assets at fair value as of December 31, 2024 is approximately $1.7 billion.

Capital Southwest will release its finalized third quarter 2025 results on Monday, February 3, 2025 after the market closes. In conjunction with the release, Capital Southwest has scheduled a live webcast on Tuesday, February 4, 2025, at 11:00 a.m. Eastern time. Investors may participate in the webcast.⁽¹⁾

By Webcast:
Connect to the webcast using the Investor Relations section of Capital Southwest's website at www.capitalsouthwest.com, or by going to the following website: https://edge.media-server.com/mmc/p/viedrjap. Please log in at least 10 minutes in advance to register and download any necessary software. A replay of the webcast will be available on Capital Southwest's website shortly after the call.

Live Call Participation:
Participants who want to join the call and ask a question must register using the following URL: https://register.vevent.com/register/BI7e8e6b7a4de64ef5ba1349de1ef59834. Once registered, participants will receive the dial-in numbers and a unique PIN number. When participants dial in, they will input their PIN and be placed into the call. Registration is still possible even after the event has started.

About Capital Southwest
Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.5 billion in investments at fair value as of September 30, 2024. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien, and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.

Forward-Looking Statements
This press release contains forward-looking statements and provides historical information with respect to the business and investments of Capital Southwest, including, but not limited to, the preliminary estimates of its third quarter 2025 fiscal year financial information and results, which are based on current information available to Capital Southwest as of the date hereof. The preliminary estimates of the third quarter 2025 fiscal year financial information and estimated results furnished above are based on Capital Southwest management’s preliminary determinations and current expectations, and such information is inherently uncertain. The preliminary estimates may not align with Capital Southwest’s actual results of operations for the period, which will not be known until Capital Southwest completes its customary quarter-end closing, including the determination of the fair value of Capital Southwest’s portfolio investments. As a result, actual results could differ materially from the current preliminary estimates based on adjustments made during Capital Southwest’s quarter-end closing and review procedures, and Capital Southwest’s reported information in its Quarterly Report on Form 10-Q for the quarter ended December 31, 2024 may differ from this information, and any such differences may be material. In addition, the information furnished above does not include all of the information regarding Capital Southwest’s financial condition and results of operations for the quarter ended December 31, 2024 that may be important to readers. As a result, readers are cautioned not to place undue reliance on the information furnished in this press release and should view this information in the context of Capital Southwest’s full third quarter 2025 results when such results are disclosed by Capital Southwest in its Quarterly Report on Form 10-Q for the quarter ended December 31, 2024. The information furnished in this press release is based on current expectations of Capital Southwest’s management that involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, such information.

Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; changes in the interest rate environment and its impact on Capital Southwest’s business and its portfolio companies; regulatory changes; tax treatment; Capital Southwest’s ability to operate its wholly owned subsidiary Capital Southwest SBIC I, LP, as a small business investment company; an economic downturn and its impact on the ability of Capital Southwest’s portfolio companies to operate and the investment opportunities available to it; the impact of supply chain constraints and labor shortages on Capital Southwest’s portfolio companies; and the elevated levels of inflation and its impact on Capital Southwest’s portfolio companies and the industries in which it invests.

Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2024 and any subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

Investor Relations Contact:
Michael S. Sarner, Chief Financial Officer
214-884-3829

(1) No information contained on our website or disclosed on the February 4, 2025 conference call, including the webcast, is incorporated by reference into this press release or any of our filings with the SEC, and you should not consider that information to be part of this press release or any other such filing.

FAQ

What is Capital Southwest's (CSWC) estimated net investment income for Q3 2025?

Capital Southwest's estimated net investment income for Q3 2025 is between $0.62 and $0.63 per share.

What is CSWC's projected net asset value per share as of December 31, 2024?

CSWC's preliminary net asset value per share as of December 31, 2024, is estimated between $16.57 and $16.62.

When will Capital Southwest (CSWC) release its Q3 2025 earnings?

Capital Southwest will release its Q3 2025 earnings on Monday, February 3, 2025, after the market closes.

What is the total value of CSWC's investment assets as of December 31, 2024?

Capital Southwest's investment assets at fair value are approximately $1.7 billion as of December 31, 2024.

When is Capital Southwest's (CSWC) Q3 2025 earnings webcast scheduled?

Capital Southwest's Q3 2025 earnings webcast is scheduled for Tuesday, February 4, 2025, at 11:00 a.m. Eastern time.