{"success":true,"data":{"pressRelease":{"id":"103299","rtpr_id":"nGNX1rFGt0","ticker":"CSW","exchange":"NYSE","all_tickers":["CSW"],"title":"CSW Industrials Reports Impressive Fiscal 2027 First Quarter with All-Time Record Results; Contractor Solutions Segment Delivers Second Consecutive Quarter of Positive Organic Growth","author":"Globe Newswire","published_at":"2026-07-30T10:45:00.687Z","article_body":"DALLAS, July 30, 2026 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (NYSE: CSW or\nthe \"Company\") today reported results for the fiscal 2027 first quarter period\nended June 30, 2026.\n\nFiscal 2027 First Quarter Highlights (comparisons to fiscal 2026 first\nquarter)\n* Total revenue increased 33% to a record of $351 million, driven by\nacquisitions as well as organic growth\n* Contractor Solutions Segment delivered organic revenue growth of 6%\n* Earnings per diluted share (\"EPS\") of $3.04 increased 25% compared to $2.43,\ndriven primarily by increased revenue\n* Adjusted EPS, which excludes the amortization of acquisition-related\nintangible assets and nonrecurring expenses, was a record $3.84 and increased\n35% compared to $2.85\n* Net income attributable to CSW of $50 million increased 22% compared to\n$41 million\n* Adjusted EBITDA increased 48% to a record $102 million, capitalizing on\nincreased revenue\n* Cash flows from operations were a record $76 million, increasing 25%\n* Net debt of $815 million at the end of the quarter, resulting in a net\nleverage ratio (net Debt to EBITDA), in accordance with our credit facility,\nof 2.37x, within our stated target range of 1-3x, and decreasing from our\nfiscal year-end\nComments from the Chairman, President, and Chief Executive Officer\n\nJoseph B. Armes, CSW Industrials’ Chairman, President, and Chief Executive\nOfficer, commented, \"I am very pleased to report all-time record revenue,\nadjusted EBITDA, adjusted EPS, and operating cash flows for the first quarter\nof fiscal 2027. Guided by our enduring capital allocation strategy, since May\n1, 2025, we have invested $1.0 billion to consummate five highly accretive\nacquisitions, including the transformative additions of MARS Parts and Aspen\nManufacturing. These investments have resulted in revenue growth outpacing the\nend markets we serve, expanding profitability, and increasing cash flows. We\nhave continued to return capital to shareholders through meaningful share\nrepurchases, in light of the compelling investment opportunity we have seen in\nour stock, and through dividends, while simultaneously de-levering our balance\nsheet through the reduction of net debt plus growth in our EBITDA.\"\n\nArmes continued, \"We remain confident in our ability to deliver continued\ngrowth in organic revenue, EBITDA, and operating cash flows through the\nremainder of fiscal 2027. This confidence is supported by our disciplined\nfocus on serving our customers well, executing effectively, controlling costs,\nand opportunistically investing in attractive growth opportunities.\"\n\nFiscal 2027 First Quarter Consolidated Results\n\nFiscal first quarter revenue was $350.6 million, an $87.0 million or 33.0%\nincrease over the prior year period. Total revenue growth included $73.0\nmillion or 27.7% inorganic growth contributed by acquisitions completed over\nthe last twelve months, which are reported within the Contractor Solutions and\nSpecialized Reliability Solutions segments, as well as an increase in organic\nrevenue of $14.0 million or 5.3%, comprised of 5.9% growth in Contractor\nSolutions and 16.5% growth in Specialized Reliability Solutions, offset by\nlower revenue in Engineered Building Solutions.\n\nGross margin improved 110 bps to 44.9%, or 130 bps to 45.1% as adjusted,\ncompared to 43.8% in the prior year period. The adjusted gross margin increase\nwas primarily a result of pricing actions, partially offset by increased\nmaterial and freight costs. Gross profit in the fiscal first quarter was\n$157.4 million, or $158.0 million adjusted, representing 36.3%, or 36.9%\nadjusted, growth over $115.4 million in the prior year period. Adjustments\nmade to gross profit and gross margin in the quarter include\nacquisition-related integration expenses and costs related to the previously\nannounced planned exit and disposition of the Greco business within Engineered\nBuilding Solutions (\"Greco Plans\").\n\nOperating expenses were $77.5 million, or $76.4 million adjusted.\nAdjustments in the quarter were comprised of $1.0 million in nonrecurring\nexpenses related to integration of completed acquisitions. Operating expenses\nin the prior period were $60.6 million. Operating expenses were higher in the\ncurrent period due to acquired companies' additional expenses, including\namortization of intangible assets. Operating expenses as a percentage of\nrevenue were 22.1%, or 21.8% adjusted, lower than the prior year period of\n23.0%, leveraging increased revenue, as well as restructuring savings and\nsynergy realization.\n\nOperating income in the current period was $79.9 million, or $81.5 million\nadjusted, compared to $54.9 million, in the prior year period. Operating\nincome as a percentage of revenue was 22.8%, or 23.3% adjusted, compared to\n20.8% in the prior year period. The increase in operating margin was a result\nof the previously mentioned expansion in the gross margin and decreased\noperating expenses as a percentage of revenue.\n\nInterest expense, net of interest income, was $12.7 million, as compared to\ninterest expense of $1.0 million in the prior year period. Interest expense in\nthe quarter resulted from the Term Loan A and increased borrowings outstanding\nunder our revolving line of credit, due to our acquisitions and share\nrepurchases in the last year.\n\nIn the current period, reported net income attributable to CSW improved 21.6%\nto $49.8 million, compared to $40.9 million in the prior year period. EPS was\n$3.04 per diluted share, an increase of 25.3% as compared to $2.43 per diluted\nshare in the prior year period, driven by both contributions from recent\nacquisitions and organic growth, partially offset by higher interest expense\nand intangible amortization. Excluding the amortization of acquisition-related\nintangible assets and nonrecurring expenses, adjusted EPS increased 34.6% to a\nrecord $3.84 per diluted share, compared to $2.85 per diluted share in the\nprior year period.\n\nFiscal 2027 first quarter adjusted EBITDA increased 47.8% to a record\n$101.6 million, up from $68.7 million in the prior year period. Adjusted\nEBITDA margin expanded 290 bps to 29.0%, compared to 26.1% in the prior year\nperiod, due to the previously mentioned gross margin expansion and improved\noperating expense leverage.\n\nThe Company’s effective tax rate for the fiscal first quarter was 25.6%, as\ncompared to 24.3% in the prior year period.\n\nThe quarterly cash flows from operations were $75.6 million, as compared to\n$60.6 million in the prior year period. Free cash flows, defined as cash flows\nfrom operations minus capital expenditures, was $69.6 million, compared to\n$57.7 million in the prior year period, an increase of $11.9 million. The\nincreases were primarily due to our record earnings.\n\nFollowing quarter-end, the Company announced a regular quarterly cash dividend\nin the amount of $0.30 per share, to be paid on August 14, 2026, to\nshareholders of record on July 31, 2026. This represents the Company's\nthirtieth consecutive quarterly dividend.\n\nFiscal 2027 First Quarter Segment Results\n\nContractor Solutions segment revenue was $276.0 million, a $79.3 million or\n40.3% increase over the prior year period, comprised of inorganic growth of\n34.4% or $67.6 million from acquisitions in the last twelve months and a 5.9%\nor $11.6 million increase in organic revenue from pricing actions and volume\ngrowth. As compared to the prior year period, net revenue growth was driven by\nthe HVAC/R, plumbing, and architecturally-specified building products end\nmarkets. Segment operating income was $75.0 million, or $75.9 million\nadjusted to exclude $0.9 million of nonrecurring expenses related to\nacquisition integration, compared to $52.8 million, in the prior year period.\nThe increase in operating profit resulted from the inclusion of recently\nacquired businesses, organic volume growth, and pricing actions, partially\noffset by increased material costs and freight expense. Segment operating\nincome margin for the fiscal first quarter was 27.2%, or 27.5% adjusted, as\ncompared to 26.8%, primarily due to pricing actions and favorable product mix,\noffset somewhat by increased costs of materials and freight. Segment adjusted\nEBITDA in the fiscal first quarter increased 45.2% to $94.3 million, or 34.2%\nof revenue, compared to $65.0 million, or 33.0% of revenue, in the prior year\nperiod. The accretion in margin is primarily due to higher organic revenue and\ncost leverage.\n\nSpecialized Reliability Solutions segment revenue was $48.2 million, an\n$11.4 million or 30.9% increase over the prior year period. Revenue growth\nwas comprised of organic growth of $6.1 million, or 16.5%, and inorganic\ngrowth of $5.3 million, or 14.5%. Revenue increased in the general industrial\nand mining end markets and declined in the rail transportation end market.\nSegment operating income was $8.1 million, or $8.5 million adjusted to\nexclude nonrecurring expenses related to acquisition integration, an increase\nof 62.8% compared to $5.2 million in the prior year period. Segment operating\nincome margin for the fiscal first quarter was 16.7%, or 17.7% adjusted, as\ncompared to the prior year period of 14.2% due to higher margins on recent\nacquisitions, pricing actions, and a favorable product mix, offset somewhat by\nincreased freight and material costs. Segment adjusted EBITDA in the fiscal\nfirst quarter was $10.0 million, or 20.8% of revenue, compared to\n$6.5 million, or 17.7% of revenue in the prior year period, reaching our\nlong-term margin target of greater than 20%.\n\nEngineered Building Solutions segment revenue was $28.9 million, a 9.3%\ndecrease compared to $31.9 million in the prior year period, due to softness\nin the residential market served by the Greco business, partially offset by\npricing actions and volume growth in the continuing businesses. Segment\noperating income was $4.6 million, or 15.8% of revenue, as compared to the\nprior year period of $4.0 million, or 12.5% of revenue. The increase is\nprimarily the result of favorable product mix. During the fiscal quarter, in\nconnection with the Greco Plans, we recorded additional exit-related expenses\nof $0.3 million. Adjusted EBITDA and adjusted EBITDA margin in the fiscal\nfirst quarter were $5.0 million and 17.4%, respectively, compared to\n$4.4 million and 13.9%, respectively, in the prior year period.\n\nExcluding the Greco businesses, Engineered Building Solutions segment revenue\nwas $23.4 million, a 7.0% increase compared to $21.9 million in the prior\nyear period. Segment adjusted EBITDA and adjusted EBITDA margin in the fiscal\nfirst quarter were $6.1 million and 26.2%, respectively, compared to\n$3.8 million and 17.5%, respectively, in the prior year period, supporting\nconfidence in stronger margins over time.\n\nAll percentages are calculated based upon the attached financial statements.\nShare counts used in determining the diluted EPS are based on a weighted\naverage of outstanding shares throughout the reporting period.\n\nConference Call Information\n\nThe Company will host a conference call today at 10:00 a.m. ET to discuss the\nresults, followed by a question-and-answer session for the investment\ncommunity. A live webcast of the call can be accessed at https://ir.csw.com.\nTo access the call, participants may dial 1-877-407-0784, international\ncallers may use 1-201-689-8560, and request to join the CSW Industrials\nearnings call.\n\nA telephonic replay will be available shortly after the conclusion of the call\nand until Tuesday, August 13, 2026. Participants may access the replay at\n1-844-512-2921; international callers may use 1-412-317-6671 and enter access\ncode 13761540. The call will also be available for replay via webcast link on\nthe Investors portion of the CSW website www.csw.com.\n\nSafe Harbor Statement\n\nThis press release includes forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933 and Section 21E of the Securities\nExchange Act of 1934, which are made pursuant to the safe harbor provisions of\nthe Private Securities Litigation Reform Act of 1995, as amended. Words or\nphrases such as \"may,\" \"should,\" \"expects,\" \"could,\" \"intends,\" \"plans,\"\n\"anticipates,\" \"estimates,\" \"believes,\" \"forecasts,\" \"predicts\" or other\nsimilar expressions are intended to identify forward-looking statements, which\ninclude, without limitation, earnings forecasts, effective tax rate,\nstatements relating to our business strategy and statements of expectations,\nbeliefs, future plans and strategies and anticipated developments concerning\nour industry, business, operations, and financial performance and condition.\n\nThe forward-looking statements included in this press release are based on our\ncurrent expectations, projections, estimates, and assumptions. These\nstatements are only predictions, not guarantees. Such forward-looking\nstatements are subject to numerous risks and uncertainties that are difficult\nto predict. These risks and uncertainties may cause actual results to differ\nmaterially from what is forecast in such forward-looking statements, and\ninclude, without limitation, the risk factors described from time to time in\nour filings with the Securities and Exchange Commission, including our Annual\nReport on Form 10-K.\n\nAll forward-looking statements included in this press release are based on\ninformation currently available to us, and we assume no obligation to update\nany forward-looking statement except as may be required by law.\n\nNon-GAAP Financial Measures\n\nThis press release includes an analysis of adjusted diluted earnings per share\nattributable to CSW, adjusted net income attributable to CSW, adjusted\neffective tax rate, adjusted gross profit, adjusted operating expenses,\nadjusted operating income, free cash flows, adjusted EBS excluding Greco,\nadjusted CSW excluding Greco and Net Debt to Adjusted EBITDA Ratio per\nRevolving Credit Facility (\"RCF\"), which are non-GAAP financial measures of\nperformance. Attributable to CSW is defined to exclude the income attributable\nto the non-controlling interest in the Whitmore JV.\n\nCSW utilizes adjusted EBITDA (earnings before interest, tax, depreciation and\namortization) as an additional consolidated, non-GAAP financial measure, which\nconsists of consolidated net income including income attributable to the\nnon-controlling interest in the Whitmore JV, adjusted to remove the impact of\nincome taxes, interest expense, depreciation, amortization and impairment, and\nsignificant nonrecurring items.\n\nFor a reconciliation of these measures to the most directly comparable GAAP\nmeasures and for a discussion of why we consider these non-GAAP measures\nuseful, see the “Reconciliation of Non-GAAP Measures” section of this\nrelease.\n\nAbout CSW Industrials, Inc.\n\nCSW Industrials is a diversified industrial growth company with\nindustry-leading operations in three segments: Contractor Solutions,\nSpecialized Reliability Solutions, and Engineered Building Solutions. CSW\nprovides niche, value-added products with two essential commonalities:\nperformance and reliability. The primary end markets we serve with our\nwell-known brands include: HVAC/R, plumbing, electrical, general industrial,\narchitecturally-specified building products, energy, mining, and rail\ntransportation. For more information, please visit www.csw.com.\n\nInvestor Relations\n\nAlexa Huerta\nVice President, Investor Relations and Treasurer\n214-489-7113\nalexa.huerta@csw.com\n\n CSW INDUSTRIALS, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) \n Three Months Ended June 30, \n (Amounts in thousands, except per share amounts) 2026 2025 \n Revenues, net $ 350,650 $ 263,646 \n Cost of revenues (193,289 ) (148,204 ) \n Gross profit 157,361 115,442 \n Selling, general and administrative expenses (77,507 ) (60,566 ) \n Operating income 79,854 54,876 \n Interest expense, net (12,731 ) (1,022 ) \n Other income (loss), net (220 ) 528 \n Income before income taxes 66,903 54,382 \n Provision for income taxes (17,123 ) (13,211 ) \n Net income 49,780 41,171 \n Less: Income attributable to redeemable noncontrolling interest (21 ) (246 ) \n Net income attributable to CSW $ 49,759 $ 40,925 \n \n Net income per share attributable to CSW \n Basic $ 3.05 $ 2.43 \n Diluted $ 3.04 $ 2.43 \n \n Weighted average number of shares outstanding: \n Basic 16,330 16,808 \n Diluted 16,365 16,863 \n\n\n\n CSW INDUSTRIALS, INC. CONSOLIDATED BALANCE SHEETS \n (Amounts in thousands, except for per share amounts) June 30, 2026 March 31, 2026 \n ASSETS \n Current assets: \n Cash and cash equivalents $ 47,495 $ 33,799 \n Accounts receivable, net of allowance for expected credit losses of $2,426 and $2,314, respectively 233,311 210,264 \n Inventories, net 305,202 309,707 \n Prepaid expenses and other current assets 20,005 26,555 \n Assets held for sale 9,948 8,742 \n Total current assets 615,961 589,067 \n Property, plant and equipment, net of accumulated depreciation of $130,163 and $125,552, respectively 107,332 107,536 \n Goodwill 640,273 632,631 \n Intangible assets, net 884,841 900,051 \n Other assets 85,212 87,399 \n Total assets $ 2,333,619 $ 2,316,684 \n \n LIABILITIES AND EQUITY \n Current liabilities: \n Accounts payable $ 82,834 $ 76,930 \n Accrued and other current liabilities 112,003 116,055 \n Current portion of long-term debt 29,458 29,458 \n Liabilities held for sale 3,831 4,478 \n Total current liabilities 228,126 226,921 \n Long-term debt 825,993 839,836 \n Retirement benefits payable 1,029 1,040 \n Other long-term liabilities 185,849 179,489 \n Total liabilities 1,240,997 1,247,286 \n Commitments and contingencies \n Redeemable noncontrolling interest 19,010 18,989 \n Equity: \n Common shares 179 178 \n Additional paid-in capital 528,168 520,076 \n Treasury shares, at cost (288,927 ) (257,704 ) \n Retained earnings 843,785 798,956 \n Accumulated other comprehensive loss (9,593 ) (11,097 ) \n Total equity 1,073,612 1,050,409 \n Total liabilities, redeemable noncontrolling interest and equity $ 2,333,619 $ 2,316,684 \n\n\n\n CSW INDUSTRIALS, INC. \n CONSOLIDATED STATEMENTS OF CASH FLOWS \n (unaudited) \n Three Months Ended June 30, \n (Amounts in thousands) 2026 2025 \n Cash flows from operating activities: \n Net income $ 49,780 $ 41,171 \n \n Adjustments to reconcile net income to net cash provided by operating activities: \n Depreciation 4,626 3,929 \n Amortization of acquisition-related intangible assets & inventory step-up 15,633 9,411 \n Amortization of deferred financing fees 307 322 \n Provision for inventory reserves 1,751 242 \n Provision for credit losses 188 72 \n Share-based compensation 4,091 4,037 \n Net loss on disposals of property, plant and equipment 357 — \n Net pension benefit 20 17 \n Net deferred taxes 852 790 \n Changes in operating assets and liabilities: \n Accounts receivable (24,625 ) (7,788 ) \n Inventories 2,170 7,641 \n Prepaid expenses and other current assets 7,462 656 \n Other assets 8 43 \n Accounts payable and other current liabilities 12,521 6 \n Retirement benefits payable and other liabilities 479 92 \n Net cash provided by operating activities 75,620 60,641 \n Cash flows from investing activities: \n Capital expenditures (6,004 ) (2,904 ) \n Proceeds from sale of assets 12 — \n Cash paid for acquisitions, net of cash received — (323,814 ) \n Net cash used in investing activities (5,992 ) (326,718 ) \n Cash flows from financing activities: \n Borrowings on line of credit 59,859 135,000 \n Repayments of line of credit (66,337 ) (40,000 ) \n Repayments on Term Loan A (7,500 ) — \n Payments of deferred loan costs — (2,835 ) \n Payments of contingent consideration (113 ) (113 ) \n Purchase of treasury shares (36,341 ) (9,091 ) \n Dividends (4,909 ) (4,537 ) \n Net cash (used in) provided by financing activities (55,341 ) 78,424 \n Effect of exchange rate changes on cash and equivalents (591 ) (202 ) \n Net change in cash and cash equivalents 13,696 (187,855 ) \n Cash and cash equivalents, beginning of period 33,799 225,845 \n Cash and cash equivalents, end of period $ 47,495 $ 37,990 \n\nReconciliation of Non-GAAP Measures\n\nWe use adjusted earnings per share attributable to CSW, adjusted net income\nattributable to CSW, adjusted gross profit, adjusted operating expenses,\nadjusted operating income, adjusted effective tax rate, adjusted EBITDA, free\ncash flows, adjusted EBS excluding Greco, adjusted CSW excluding Greco and Net\nDebt to Adjusted EBITDA Ratio per Revolving Credit Facility (\"RCF\"), together\nwith financial measures prepared in accordance with GAAP, such as revenue,\ncost of revenue, operating expense, operating income, net income attributable\nto CSW and operating cash flows, to assess our historical and prospective\noperating performance and to enhance our understanding of our core operating\nperformance. Free cash flows is a non-GAAP financial measure and is defined as\ncash flows from operations less capital expenditures. We believe these\nmeasures are useful for investors to assess the operating performance of our\nbusiness without the effect of non-recurring items. In the following tables,\nthere could be immaterial differences in amounts presented due to rounding.\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Net Income Attributable to CSW to Adjusted Net Income Attributable to CSW \n (unaudited) \n \n (Amounts in thousands, except per share data) Three Months Ended June 30, \n 2026 2025 \n Net income attributable to CSW $ 49,759 $ 40,925 \n \n Adjusting items: \n Amortization of acquisition-related intangible assets and inventory step-up 15,633 9,412 \n Amortization tax effect (3,871 ) (2,325 ) \n Acquisition-related integration expenses, net of tax effect 1,022 — \n Greco exit related expenses, net of tax effect 226 — \n Adjusted net income attributable to CSW $ 62,769 $ 48,012 \n \n Net Income Attributable to CSW per diluted common share $ 3.04 $ 2.43 \n \n Adjusting Items, per dilutive common share: \n Amortization of acquisition-related intangible assets and inventory step-up 0.96 0.56 \n Amortization tax effect (0.24 ) (0.14 ) \n Acquisition-related integration expenses, net of tax effect 0.06 — \n Greco exit related expenses, net of tax effect 0.01 — \n Adjusted net income attributable to CSW per dilutive common share $ 3.84 $ 2.85 \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n GAAP income before tax $ 66,903 $ 54,382 \n Adjusting items: \n Acquisition-related integration expenses 1,389 — \n Greco Exit related expenses 307 — \n Adjusted income before tax $ 68,598 $ 54,382 \n \n GAAP provision for income tax $ 17,122 $ 13,212 \n Adjusting items: \n Tax effect of acquisition-related integration expenses 367 — \n Tax effect of Greco Exit related expenses 81 — \n Adjusted provision for income tax $ 17,570 $ 13,212 \n \n GAAP effective tax rate 25.6 % 24.3 % \n Adjusted effective tax rate 25.6 % 24.3 % \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Net Income Attributable to CSW to Adjusted EBITDA \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n Net Income attributable to CSW $ 49,759 $ 40,925 \n Plus: Income attributable to redeemable noncontrolling interest 21 246 \n Net Income $ 49,780 $ 41,171 \n \n Adjusting Items: \n Interest expense, net 12,731 1,022 \n Income tax expense 17,122 13,212 \n Depreciation & amortization 20,259 13,338 \n EBITDA $ 99,892 $ 68,742 \n \n EBITDA Adjustments: \n Acquisition-related integration expenses 1,389 — \n Greco exit related expenses 307 — \n Adjusted EBITDA $ 101,587 $ 68,742 \n Adjusted EBITDA % Revenue 29.0 % 26.1 % \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Gross Profit to Adjusted Gross Profit \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n Gross Profit $ 157,361 $ 115,442 \n Gross Profit % Revenue 44.9 % 43.8 % \n \n Adjusting Items: \n Acquisition-related integration expenses 352 — \n Greco exit related expenses 279 — \n Adjusted Gross Profit $ 157,992 $ 115,442 \n Adjusted Gross Profit % Revenue 45.1 % 43.8 % \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Operating Expenses to Adjusted Operating Expenses \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n Operating expenses (a) $ 77,507 $ 60,566 \n Operating expenses % Revenue 22.1 % 23.0 % \n \n Adjusting Items: \n Acquisition-related integration expenses (1,037 ) — \n Greco exit related expenses (28 ) — \n Adjusted Operating expenses $ 76,442 $ 60,566 \n Adjusted Operating expenses % Revenue 21.8 % 23.0 % \n ((a) Operating expenses include selling, general, and administrative expense and impairment expense.) \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Segment Operating Income to Segment Adjusted EBITDA \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, 2026 \n Contractor Solutions Specialized Reliability Solutions Engineered Building Solutions Corporate and Other Consolidated \n Revenue, net $ 276,007 $ 48,194 $ 28,937 $ (2,489 ) $ 350,650 \n \n Operating Income $ 75,016 $ 8,054 $ 4,573 $ (7,789 ) $ 79,854 \n % Revenue 27.2 % 16.7 % 15.8 % 22.8 % \n \n Adjusting Items: \n Acquisition-related integration expenses 911 478 — — 1,389 \n Greco exit related expenses — — 307 — 307 \n Adjusted Operating Income $ 75,927 $ 8,533 $ 4,880 $ (7,789 ) $ 81,550 \n % Revenue 27.5 % 17.7 % 16.9 % 23.3 % \n \n Adjusting Items: \n Other income (expense), net (190 ) — 35 (67 ) (221 ) \n Depreciation & amortization 18,612 1,504 117 25 20,259 \n Adjusted EBITDA $ 94,349 $ 10,037 $ 5,032 $ (7,831 ) $ 101,587 \n % Revenue 34.2 % 20.8 % 17.4 % 29.0 % \n\n\n\n (Amounts in thousands) Three Months Ended June 30, 2025 \n Contractor Solutions Specialized Reliability Solutions Engineered Building Solutions Corporate and Other Consolidated \n Revenue, net $ 196,740 $ 36,806 $ 31,896 $ (1,796 ) $ 263,646 \n \n Operating Income $ 52,759 $ 5,241 $ 3,999 $ (7,123 ) $ 54,876 \n % Revenue 26.8 % 14.2 % 12.5 % 20.8 % \n \n Adjusting Items: \n Other income (expense), net 698 (76 ) 8 (102 ) 528 \n Depreciation and amortization 11,540 1,337 416 45 13,338 \n Adjusted EBITDA $ 64,996 $ 6,503 $ 4,423 $ (7,180 ) $ 68,742 \n % Revenue 33.0 % 17.7 % 13.9 % 26.1 % \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Operating Cash Flows to Free Cash Flows \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n Net cash provided by operating activities $ 75,620 $ 60,641 \n \n Less: Capital expenditures (6,004 ) (2,904 ) \n Free cash flows $ 69,616 $ 57,737 \n Adjusted EBITDA $ 101,587 $ 68,742 \n Free cash flows % Adj. EBITDA 68.5 % 84.0 % \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Adjusted CSW to Adjusted CSW excluding Greco \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n CSW Consolidated Greco Consolidated CSW Consolidated excluding Greco CSW Consolidated Greco Consolidated CSW Consolidated excluding Greco \n Revenues, net $ 350,650 $ 5,508 $ 345,142 $ 263,646 $ 10,004 $ 253,642 \n Adjusted EBITDA 101,587 (1,117 ) 102,704 68,742 597 68,146 \n Adjusted EBITDA Margin 29.0 % (20.3 ) % 29.8 % 26.1 % 6.0 % 26.9 % \n Amortization Adjusted EPS $ 3.84 $ (0.05 ) $ 3.89 $ 2.85 $ 0.02 $ 2.83 \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Adjusted EBS to Adjusted EBS excluding Greco \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n EBS Greco Consolidated EBS, excluding Greco EBS Greco Consolidated EBS, excluding Greco \n Revenues, net $ 28,937 $ 5,508 $ 23,429 $ 31,896 $ 10,004 $ 21,892 \n Adjusted EBITDA 5,032 (1,117 ) 6,150 4,423 597 3,826 \n Adjusted EBITDA Margin 17.4 % (20.3 ) % 26.2 % 13.9 % 6.0 % 17.5 % \n\n\n\n CSW INDUSTRIALS, INC. \n Net Debt to Adjusted EBITDA Ratio per Revolving Credit Facility (\"RCF\") \n (Unaudited) \n \n (in thousands, except net debt to adjusted EBITDA ratio) Trailing Twelve Months Period Ended June 30, 2026 \n GAAP debt $ 857,522 \n Minus: GAAP cash (47,495 ) \n Add: Restricted cash per RCF 4,495 \n Add: Capital lease liabilities 314 \n Net debt per RCF $ 814,836 \n \n GAAP Net Income 121,456 \n Interest expense, net 33,954 \n Income tax expense 36,617 \n Depreciation & amortization 73,992 \n Greco impairment expense 15,627 \n Proforma EBITDA for acquisitions 23,600 \n Stock compensation expenses 14,984 \n Acquisition transaction and integration expenses 13,774 \n Prior year ESOP contribution 5,235 \n Greco Exit related expenses 2,438 \n Non-cash tax indemnification expense 1,497 \n Nonrecurring restructuring expenses 542 \n Other misc. adjustments per RCF 41 \n Adjusted EBITDA per RCF $ 343,757 \n \n Net debt to adjusted EBITDA ratio per RCF 2.37 x \n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/af2a340d-df41-434e-8151-ff5c8b27db35)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX1rFGt0","title":"CSW Industrials Reports Impressive Fiscal 2027 First Quarter with All-Time Record Results; Contractor Solutions Segment Delivers Second Consecutive Quarter of Positive Organic Growth","author":"Globe Newswire","ticker":"CSW","created":"2026-07-30T10:45:00.687Z","tickers":["CSW"],"exchange":"NYSE","article_body":"DALLAS, July 30, 2026 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (NYSE: CSW or\nthe \"Company\") today reported results for the fiscal 2027 first quarter period\nended June 30, 2026.\n\nFiscal 2027 First Quarter Highlights (comparisons to fiscal 2026 first\nquarter)\n* Total revenue increased 33% to a record of $351 million, driven by\nacquisitions as well as organic growth\n* Contractor Solutions Segment delivered organic revenue growth of 6%\n* Earnings per diluted share (\"EPS\") of $3.04 increased 25% compared to $2.43,\ndriven primarily by increased revenue\n* Adjusted EPS, which excludes the amortization of acquisition-related\nintangible assets and nonrecurring expenses, was a record $3.84 and increased\n35% compared to $2.85\n* Net income attributable to CSW of $50 million increased 22% compared to\n$41 million\n* Adjusted EBITDA increased 48% to a record $102 million, capitalizing on\nincreased revenue\n* Cash flows from operations were a record $76 million, increasing 25%\n* Net debt of $815 million at the end of the quarter, resulting in a net\nleverage ratio (net Debt to EBITDA), in accordance with our credit facility,\nof 2.37x, within our stated target range of 1-3x, and decreasing from our\nfiscal year-end\nComments from the Chairman, President, and Chief Executive Officer\n\nJoseph B. Armes, CSW Industrials’ Chairman, President, and Chief Executive\nOfficer, commented, \"I am very pleased to report all-time record revenue,\nadjusted EBITDA, adjusted EPS, and operating cash flows for the first quarter\nof fiscal 2027. Guided by our enduring capital allocation strategy, since May\n1, 2025, we have invested $1.0 billion to consummate five highly accretive\nacquisitions, including the transformative additions of MARS Parts and Aspen\nManufacturing. These investments have resulted in revenue growth outpacing the\nend markets we serve, expanding profitability, and increasing cash flows. We\nhave continued to return capital to shareholders through meaningful share\nrepurchases, in light of the compelling investment opportunity we have seen in\nour stock, and through dividends, while simultaneously de-levering our balance\nsheet through the reduction of net debt plus growth in our EBITDA.\"\n\nArmes continued, \"We remain confident in our ability to deliver continued\ngrowth in organic revenue, EBITDA, and operating cash flows through the\nremainder of fiscal 2027. This confidence is supported by our disciplined\nfocus on serving our customers well, executing effectively, controlling costs,\nand opportunistically investing in attractive growth opportunities.\"\n\nFiscal 2027 First Quarter Consolidated Results\n\nFiscal first quarter revenue was $350.6 million, an $87.0 million or 33.0%\nincrease over the prior year period. Total revenue growth included $73.0\nmillion or 27.7% inorganic growth contributed by acquisitions completed over\nthe last twelve months, which are reported within the Contractor Solutions and\nSpecialized Reliability Solutions segments, as well as an increase in organic\nrevenue of $14.0 million or 5.3%, comprised of 5.9% growth in Contractor\nSolutions and 16.5% growth in Specialized Reliability Solutions, offset by\nlower revenue in Engineered Building Solutions.\n\nGross margin improved 110 bps to 44.9%, or 130 bps to 45.1% as adjusted,\ncompared to 43.8% in the prior year period. The adjusted gross margin increase\nwas primarily a result of pricing actions, partially offset by increased\nmaterial and freight costs. Gross profit in the fiscal first quarter was\n$157.4 million, or $158.0 million adjusted, representing 36.3%, or 36.9%\nadjusted, growth over $115.4 million in the prior year period. Adjustments\nmade to gross profit and gross margin in the quarter include\nacquisition-related integration expenses and costs related to the previously\nannounced planned exit and disposition of the Greco business within Engineered\nBuilding Solutions (\"Greco Plans\").\n\nOperating expenses were $77.5 million, or $76.4 million adjusted.\nAdjustments in the quarter were comprised of $1.0 million in nonrecurring\nexpenses related to integration of completed acquisitions. Operating expenses\nin the prior period were $60.6 million. Operating expenses were higher in the\ncurrent period due to acquired companies' additional expenses, including\namortization of intangible assets. Operating expenses as a percentage of\nrevenue were 22.1%, or 21.8% adjusted, lower than the prior year period of\n23.0%, leveraging increased revenue, as well as restructuring savings and\nsynergy realization.\n\nOperating income in the current period was $79.9 million, or $81.5 million\nadjusted, compared to $54.9 million, in the prior year period. Operating\nincome as a percentage of revenue was 22.8%, or 23.3% adjusted, compared to\n20.8% in the prior year period. The increase in operating margin was a result\nof the previously mentioned expansion in the gross margin and decreased\noperating expenses as a percentage of revenue.\n\nInterest expense, net of interest income, was $12.7 million, as compared to\ninterest expense of $1.0 million in the prior year period. Interest expense in\nthe quarter resulted from the Term Loan A and increased borrowings outstanding\nunder our revolving line of credit, due to our acquisitions and share\nrepurchases in the last year.\n\nIn the current period, reported net income attributable to CSW improved 21.6%\nto $49.8 million, compared to $40.9 million in the prior year period. EPS was\n$3.04 per diluted share, an increase of 25.3% as compared to $2.43 per diluted\nshare in the prior year period, driven by both contributions from recent\nacquisitions and organic growth, partially offset by higher interest expense\nand intangible amortization. Excluding the amortization of acquisition-related\nintangible assets and nonrecurring expenses, adjusted EPS increased 34.6% to a\nrecord $3.84 per diluted share, compared to $2.85 per diluted share in the\nprior year period.\n\nFiscal 2027 first quarter adjusted EBITDA increased 47.8% to a record\n$101.6 million, up from $68.7 million in the prior year period. Adjusted\nEBITDA margin expanded 290 bps to 29.0%, compared to 26.1% in the prior year\nperiod, due to the previously mentioned gross margin expansion and improved\noperating expense leverage.\n\nThe Company’s effective tax rate for the fiscal first quarter was 25.6%, as\ncompared to 24.3% in the prior year period.\n\nThe quarterly cash flows from operations were $75.6 million, as compared to\n$60.6 million in the prior year period. Free cash flows, defined as cash flows\nfrom operations minus capital expenditures, was $69.6 million, compared to\n$57.7 million in the prior year period, an increase of $11.9 million. The\nincreases were primarily due to our record earnings.\n\nFollowing quarter-end, the Company announced a regular quarterly cash dividend\nin the amount of $0.30 per share, to be paid on August 14, 2026, to\nshareholders of record on July 31, 2026. This represents the Company's\nthirtieth consecutive quarterly dividend.\n\nFiscal 2027 First Quarter Segment Results\n\nContractor Solutions segment revenue was $276.0 million, a $79.3 million or\n40.3% increase over the prior year period, comprised of inorganic growth of\n34.4% or $67.6 million from acquisitions in the last twelve months and a 5.9%\nor $11.6 million increase in organic revenue from pricing actions and volume\ngrowth. As compared to the prior year period, net revenue growth was driven by\nthe HVAC/R, plumbing, and architecturally-specified building products end\nmarkets. Segment operating income was $75.0 million, or $75.9 million\nadjusted to exclude $0.9 million of nonrecurring expenses related to\nacquisition integration, compared to $52.8 million, in the prior year period.\nThe increase in operating profit resulted from the inclusion of recently\nacquired businesses, organic volume growth, and pricing actions, partially\noffset by increased material costs and freight expense. Segment operating\nincome margin for the fiscal first quarter was 27.2%, or 27.5% adjusted, as\ncompared to 26.8%, primarily due to pricing actions and favorable product mix,\noffset somewhat by increased costs of materials and freight. Segment adjusted\nEBITDA in the fiscal first quarter increased 45.2% to $94.3 million, or 34.2%\nof revenue, compared to $65.0 million, or 33.0% of revenue, in the prior year\nperiod. The accretion in margin is primarily due to higher organic revenue and\ncost leverage.\n\nSpecialized Reliability Solutions segment revenue was $48.2 million, an\n$11.4 million or 30.9% increase over the prior year period. Revenue growth\nwas comprised of organic growth of $6.1 million, or 16.5%, and inorganic\ngrowth of $5.3 million, or 14.5%. Revenue increased in the general industrial\nand mining end markets and declined in the rail transportation end market.\nSegment operating income was $8.1 million, or $8.5 million adjusted to\nexclude nonrecurring expenses related to acquisition integration, an increase\nof 62.8% compared to $5.2 million in the prior year period. Segment operating\nincome margin for the fiscal first quarter was 16.7%, or 17.7% adjusted, as\ncompared to the prior year period of 14.2% due to higher margins on recent\nacquisitions, pricing actions, and a favorable product mix, offset somewhat by\nincreased freight and material costs. Segment adjusted EBITDA in the fiscal\nfirst quarter was $10.0 million, or 20.8% of revenue, compared to\n$6.5 million, or 17.7% of revenue in the prior year period, reaching our\nlong-term margin target of greater than 20%.\n\nEngineered Building Solutions segment revenue was $28.9 million, a 9.3%\ndecrease compared to $31.9 million in the prior year period, due to softness\nin the residential market served by the Greco business, partially offset by\npricing actions and volume growth in the continuing businesses. Segment\noperating income was $4.6 million, or 15.8% of revenue, as compared to the\nprior year period of $4.0 million, or 12.5% of revenue. The increase is\nprimarily the result of favorable product mix. During the fiscal quarter, in\nconnection with the Greco Plans, we recorded additional exit-related expenses\nof $0.3 million. Adjusted EBITDA and adjusted EBITDA margin in the fiscal\nfirst quarter were $5.0 million and 17.4%, respectively, compared to\n$4.4 million and 13.9%, respectively, in the prior year period.\n\nExcluding the Greco businesses, Engineered Building Solutions segment revenue\nwas $23.4 million, a 7.0% increase compared to $21.9 million in the prior\nyear period. Segment adjusted EBITDA and adjusted EBITDA margin in the fiscal\nfirst quarter were $6.1 million and 26.2%, respectively, compared to\n$3.8 million and 17.5%, respectively, in the prior year period, supporting\nconfidence in stronger margins over time.\n\nAll percentages are calculated based upon the attached financial statements.\nShare counts used in determining the diluted EPS are based on a weighted\naverage of outstanding shares throughout the reporting period.\n\nConference Call Information\n\nThe Company will host a conference call today at 10:00 a.m. ET to discuss the\nresults, followed by a question-and-answer session for the investment\ncommunity. A live webcast of the call can be accessed at https://ir.csw.com.\nTo access the call, participants may dial 1-877-407-0784, international\ncallers may use 1-201-689-8560, and request to join the CSW Industrials\nearnings call.\n\nA telephonic replay will be available shortly after the conclusion of the call\nand until Tuesday, August 13, 2026. Participants may access the replay at\n1-844-512-2921; international callers may use 1-412-317-6671 and enter access\ncode 13761540. The call will also be available for replay via webcast link on\nthe Investors portion of the CSW website www.csw.com.\n\nSafe Harbor Statement\n\nThis press release includes forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933 and Section 21E of the Securities\nExchange Act of 1934, which are made pursuant to the safe harbor provisions of\nthe Private Securities Litigation Reform Act of 1995, as amended. Words or\nphrases such as \"may,\" \"should,\" \"expects,\" \"could,\" \"intends,\" \"plans,\"\n\"anticipates,\" \"estimates,\" \"believes,\" \"forecasts,\" \"predicts\" or other\nsimilar expressions are intended to identify forward-looking statements, which\ninclude, without limitation, earnings forecasts, effective tax rate,\nstatements relating to our business strategy and statements of expectations,\nbeliefs, future plans and strategies and anticipated developments concerning\nour industry, business, operations, and financial performance and condition.\n\nThe forward-looking statements included in this press release are based on our\ncurrent expectations, projections, estimates, and assumptions. These\nstatements are only predictions, not guarantees. Such forward-looking\nstatements are subject to numerous risks and uncertainties that are difficult\nto predict. These risks and uncertainties may cause actual results to differ\nmaterially from what is forecast in such forward-looking statements, and\ninclude, without limitation, the risk factors described from time to time in\nour filings with the Securities and Exchange Commission, including our Annual\nReport on Form 10-K.\n\nAll forward-looking statements included in this press release are based on\ninformation currently available to us, and we assume no obligation to update\nany forward-looking statement except as may be required by law.\n\nNon-GAAP Financial Measures\n\nThis press release includes an analysis of adjusted diluted earnings per share\nattributable to CSW, adjusted net income attributable to CSW, adjusted\neffective tax rate, adjusted gross profit, adjusted operating expenses,\nadjusted operating income, free cash flows, adjusted EBS excluding Greco,\nadjusted CSW excluding Greco and Net Debt to Adjusted EBITDA Ratio per\nRevolving Credit Facility (\"RCF\"), which are non-GAAP financial measures of\nperformance. Attributable to CSW is defined to exclude the income attributable\nto the non-controlling interest in the Whitmore JV.\n\nCSW utilizes adjusted EBITDA (earnings before interest, tax, depreciation and\namortization) as an additional consolidated, non-GAAP financial measure, which\nconsists of consolidated net income including income attributable to the\nnon-controlling interest in the Whitmore JV, adjusted to remove the impact of\nincome taxes, interest expense, depreciation, amortization and impairment, and\nsignificant nonrecurring items.\n\nFor a reconciliation of these measures to the most directly comparable GAAP\nmeasures and for a discussion of why we consider these non-GAAP measures\nuseful, see the “Reconciliation of Non-GAAP Measures” section of this\nrelease.\n\nAbout CSW Industrials, Inc.\n\nCSW Industrials is a diversified industrial growth company with\nindustry-leading operations in three segments: Contractor Solutions,\nSpecialized Reliability Solutions, and Engineered Building Solutions. CSW\nprovides niche, value-added products with two essential commonalities:\nperformance and reliability. The primary end markets we serve with our\nwell-known brands include: HVAC/R, plumbing, electrical, general industrial,\narchitecturally-specified building products, energy, mining, and rail\ntransportation. For more information, please visit www.csw.com.\n\nInvestor Relations\n\nAlexa Huerta\nVice President, Investor Relations and Treasurer\n214-489-7113\nalexa.huerta@csw.com\n\n CSW INDUSTRIALS, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) \n Three Months Ended June 30, \n (Amounts in thousands, except per share amounts) 2026 2025 \n Revenues, net $ 350,650 $ 263,646 \n Cost of revenues (193,289 ) (148,204 ) \n Gross profit 157,361 115,442 \n Selling, general and administrative expenses (77,507 ) (60,566 ) \n Operating income 79,854 54,876 \n Interest expense, net (12,731 ) (1,022 ) \n Other income (loss), net (220 ) 528 \n Income before income taxes 66,903 54,382 \n Provision for income taxes (17,123 ) (13,211 ) \n Net income 49,780 41,171 \n Less: Income attributable to redeemable noncontrolling interest (21 ) (246 ) \n Net income attributable to CSW $ 49,759 $ 40,925 \n \n Net income per share attributable to CSW \n Basic $ 3.05 $ 2.43 \n Diluted $ 3.04 $ 2.43 \n \n Weighted average number of shares outstanding: \n Basic 16,330 16,808 \n Diluted 16,365 16,863 \n\n\n\n CSW INDUSTRIALS, INC. CONSOLIDATED BALANCE SHEETS \n (Amounts in thousands, except for per share amounts) June 30, 2026 March 31, 2026 \n ASSETS \n Current assets: \n Cash and cash equivalents $ 47,495 $ 33,799 \n Accounts receivable, net of allowance for expected credit losses of $2,426 and $2,314, respectively 233,311 210,264 \n Inventories, net 305,202 309,707 \n Prepaid expenses and other current assets 20,005 26,555 \n Assets held for sale 9,948 8,742 \n Total current assets 615,961 589,067 \n Property, plant and equipment, net of accumulated depreciation of $130,163 and $125,552, respectively 107,332 107,536 \n Goodwill 640,273 632,631 \n Intangible assets, net 884,841 900,051 \n Other assets 85,212 87,399 \n Total assets $ 2,333,619 $ 2,316,684 \n \n LIABILITIES AND EQUITY \n Current liabilities: \n Accounts payable $ 82,834 $ 76,930 \n Accrued and other current liabilities 112,003 116,055 \n Current portion of long-term debt 29,458 29,458 \n Liabilities held for sale 3,831 4,478 \n Total current liabilities 228,126 226,921 \n Long-term debt 825,993 839,836 \n Retirement benefits payable 1,029 1,040 \n Other long-term liabilities 185,849 179,489 \n Total liabilities 1,240,997 1,247,286 \n Commitments and contingencies \n Redeemable noncontrolling interest 19,010 18,989 \n Equity: \n Common shares 179 178 \n Additional paid-in capital 528,168 520,076 \n Treasury shares, at cost (288,927 ) (257,704 ) \n Retained earnings 843,785 798,956 \n Accumulated other comprehensive loss (9,593 ) (11,097 ) \n Total equity 1,073,612 1,050,409 \n Total liabilities, redeemable noncontrolling interest and equity $ 2,333,619 $ 2,316,684 \n\n\n\n CSW INDUSTRIALS, INC. \n CONSOLIDATED STATEMENTS OF CASH FLOWS \n (unaudited) \n Three Months Ended June 30, \n (Amounts in thousands) 2026 2025 \n Cash flows from operating activities: \n Net income $ 49,780 $ 41,171 \n \n Adjustments to reconcile net income to net cash provided by operating activities: \n Depreciation 4,626 3,929 \n Amortization of acquisition-related intangible assets & inventory step-up 15,633 9,411 \n Amortization of deferred financing fees 307 322 \n Provision for inventory reserves 1,751 242 \n Provision for credit losses 188 72 \n Share-based compensation 4,091 4,037 \n Net loss on disposals of property, plant and equipment 357 — \n Net pension benefit 20 17 \n Net deferred taxes 852 790 \n Changes in operating assets and liabilities: \n Accounts receivable (24,625 ) (7,788 ) \n Inventories 2,170 7,641 \n Prepaid expenses and other current assets 7,462 656 \n Other assets 8 43 \n Accounts payable and other current liabilities 12,521 6 \n Retirement benefits payable and other liabilities 479 92 \n Net cash provided by operating activities 75,620 60,641 \n Cash flows from investing activities: \n Capital expenditures (6,004 ) (2,904 ) \n Proceeds from sale of assets 12 — \n Cash paid for acquisitions, net of cash received — (323,814 ) \n Net cash used in investing activities (5,992 ) (326,718 ) \n Cash flows from financing activities: \n Borrowings on line of credit 59,859 135,000 \n Repayments of line of credit (66,337 ) (40,000 ) \n Repayments on Term Loan A (7,500 ) — \n Payments of deferred loan costs — (2,835 ) \n Payments of contingent consideration (113 ) (113 ) \n Purchase of treasury shares (36,341 ) (9,091 ) \n Dividends (4,909 ) (4,537 ) \n Net cash (used in) provided by financing activities (55,341 ) 78,424 \n Effect of exchange rate changes on cash and equivalents (591 ) (202 ) \n Net change in cash and cash equivalents 13,696 (187,855 ) \n Cash and cash equivalents, beginning of period 33,799 225,845 \n Cash and cash equivalents, end of period $ 47,495 $ 37,990 \n\nReconciliation of Non-GAAP Measures\n\nWe use adjusted earnings per share attributable to CSW, adjusted net income\nattributable to CSW, adjusted gross profit, adjusted operating expenses,\nadjusted operating income, adjusted effective tax rate, adjusted EBITDA, free\ncash flows, adjusted EBS excluding Greco, adjusted CSW excluding Greco and Net\nDebt to Adjusted EBITDA Ratio per Revolving Credit Facility (\"RCF\"), together\nwith financial measures prepared in accordance with GAAP, such as revenue,\ncost of revenue, operating expense, operating income, net income attributable\nto CSW and operating cash flows, to assess our historical and prospective\noperating performance and to enhance our understanding of our core operating\nperformance. Free cash flows is a non-GAAP financial measure and is defined as\ncash flows from operations less capital expenditures. We believe these\nmeasures are useful for investors to assess the operating performance of our\nbusiness without the effect of non-recurring items. In the following tables,\nthere could be immaterial differences in amounts presented due to rounding.\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Net Income Attributable to CSW to Adjusted Net Income Attributable to CSW \n (unaudited) \n \n (Amounts in thousands, except per share data) Three Months Ended June 30, \n 2026 2025 \n Net income attributable to CSW $ 49,759 $ 40,925 \n \n Adjusting items: \n Amortization of acquisition-related intangible assets and inventory step-up 15,633 9,412 \n Amortization tax effect (3,871 ) (2,325 ) \n Acquisition-related integration expenses, net of tax effect 1,022 — \n Greco exit related expenses, net of tax effect 226 — \n Adjusted net income attributable to CSW $ 62,769 $ 48,012 \n \n Net Income Attributable to CSW per diluted common share $ 3.04 $ 2.43 \n \n Adjusting Items, per dilutive common share: \n Amortization of acquisition-related intangible assets and inventory step-up 0.96 0.56 \n Amortization tax effect (0.24 ) (0.14 ) \n Acquisition-related integration expenses, net of tax effect 0.06 — \n Greco exit related expenses, net of tax effect 0.01 — \n Adjusted net income attributable to CSW per dilutive common share $ 3.84 $ 2.85 \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Effective Tax Rate to Adjusted Effective Tax Rate \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n GAAP income before tax $ 66,903 $ 54,382 \n Adjusting items: \n Acquisition-related integration expenses 1,389 — \n Greco Exit related expenses 307 — \n Adjusted income before tax $ 68,598 $ 54,382 \n \n GAAP provision for income tax $ 17,122 $ 13,212 \n Adjusting items: \n Tax effect of acquisition-related integration expenses 367 — \n Tax effect of Greco Exit related expenses 81 — \n Adjusted provision for income tax $ 17,570 $ 13,212 \n \n GAAP effective tax rate 25.6 % 24.3 % \n Adjusted effective tax rate 25.6 % 24.3 % \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Net Income Attributable to CSW to Adjusted EBITDA \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n Net Income attributable to CSW $ 49,759 $ 40,925 \n Plus: Income attributable to redeemable noncontrolling interest 21 246 \n Net Income $ 49,780 $ 41,171 \n \n Adjusting Items: \n Interest expense, net 12,731 1,022 \n Income tax expense 17,122 13,212 \n Depreciation & amortization 20,259 13,338 \n EBITDA $ 99,892 $ 68,742 \n \n EBITDA Adjustments: \n Acquisition-related integration expenses 1,389 — \n Greco exit related expenses 307 — \n Adjusted EBITDA $ 101,587 $ 68,742 \n Adjusted EBITDA % Revenue 29.0 % 26.1 % \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Gross Profit to Adjusted Gross Profit \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n Gross Profit $ 157,361 $ 115,442 \n Gross Profit % Revenue 44.9 % 43.8 % \n \n Adjusting Items: \n Acquisition-related integration expenses 352 — \n Greco exit related expenses 279 — \n Adjusted Gross Profit $ 157,992 $ 115,442 \n Adjusted Gross Profit % Revenue 45.1 % 43.8 % \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Operating Expenses to Adjusted Operating Expenses \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n Operating expenses (a) $ 77,507 $ 60,566 \n Operating expenses % Revenue 22.1 % 23.0 % \n \n Adjusting Items: \n Acquisition-related integration expenses (1,037 ) — \n Greco exit related expenses (28 ) — \n Adjusted Operating expenses $ 76,442 $ 60,566 \n Adjusted Operating expenses % Revenue 21.8 % 23.0 % \n ((a) Operating expenses include selling, general, and administrative expense and impairment expense.) \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Segment Operating Income to Segment Adjusted EBITDA \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, 2026 \n Contractor Solutions Specialized Reliability Solutions Engineered Building Solutions Corporate and Other Consolidated \n Revenue, net $ 276,007 $ 48,194 $ 28,937 $ (2,489 ) $ 350,650 \n \n Operating Income $ 75,016 $ 8,054 $ 4,573 $ (7,789 ) $ 79,854 \n % Revenue 27.2 % 16.7 % 15.8 % 22.8 % \n \n Adjusting Items: \n Acquisition-related integration expenses 911 478 — — 1,389 \n Greco exit related expenses — — 307 — 307 \n Adjusted Operating Income $ 75,927 $ 8,533 $ 4,880 $ (7,789 ) $ 81,550 \n % Revenue 27.5 % 17.7 % 16.9 % 23.3 % \n \n Adjusting Items: \n Other income (expense), net (190 ) — 35 (67 ) (221 ) \n Depreciation & amortization 18,612 1,504 117 25 20,259 \n Adjusted EBITDA $ 94,349 $ 10,037 $ 5,032 $ (7,831 ) $ 101,587 \n % Revenue 34.2 % 20.8 % 17.4 % 29.0 % \n\n\n\n (Amounts in thousands) Three Months Ended June 30, 2025 \n Contractor Solutions Specialized Reliability Solutions Engineered Building Solutions Corporate and Other Consolidated \n Revenue, net $ 196,740 $ 36,806 $ 31,896 $ (1,796 ) $ 263,646 \n \n Operating Income $ 52,759 $ 5,241 $ 3,999 $ (7,123 ) $ 54,876 \n % Revenue 26.8 % 14.2 % 12.5 % 20.8 % \n \n Adjusting Items: \n Other income (expense), net 698 (76 ) 8 (102 ) 528 \n Depreciation and amortization 11,540 1,337 416 45 13,338 \n Adjusted EBITDA $ 64,996 $ 6,503 $ 4,423 $ (7,180 ) $ 68,742 \n % Revenue 33.0 % 17.7 % 13.9 % 26.1 % \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Operating Cash Flows to Free Cash Flows \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n Net cash provided by operating activities $ 75,620 $ 60,641 \n \n Less: Capital expenditures (6,004 ) (2,904 ) \n Free cash flows $ 69,616 $ 57,737 \n Adjusted EBITDA $ 101,587 $ 68,742 \n Free cash flows % Adj. EBITDA 68.5 % 84.0 % \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Adjusted CSW to Adjusted CSW excluding Greco \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n CSW Consolidated Greco Consolidated CSW Consolidated excluding Greco CSW Consolidated Greco Consolidated CSW Consolidated excluding Greco \n Revenues, net $ 350,650 $ 5,508 $ 345,142 $ 263,646 $ 10,004 $ 253,642 \n Adjusted EBITDA 101,587 (1,117 ) 102,704 68,742 597 68,146 \n Adjusted EBITDA Margin 29.0 % (20.3 ) % 29.8 % 26.1 % 6.0 % 26.9 % \n Amortization Adjusted EPS $ 3.84 $ (0.05 ) $ 3.89 $ 2.85 $ 0.02 $ 2.83 \n\n\n\n CSW INDUSTRIALS, INC. \n Reconciliation of Adjusted EBS to Adjusted EBS excluding Greco \n (unaudited) \n \n (Amounts in thousands) Three Months Ended June 30, \n 2026 2025 \n EBS Greco Consolidated EBS, excluding Greco EBS Greco Consolidated EBS, excluding Greco \n Revenues, net $ 28,937 $ 5,508 $ 23,429 $ 31,896 $ 10,004 $ 21,892 \n Adjusted EBITDA 5,032 (1,117 ) 6,150 4,423 597 3,826 \n Adjusted EBITDA Margin 17.4 % (20.3 ) % 26.2 % 13.9 % 6.0 % 17.5 % \n\n\n\n CSW INDUSTRIALS, INC. \n Net Debt to Adjusted EBITDA Ratio per Revolving Credit Facility (\"RCF\") \n (Unaudited) \n \n (in thousands, except net debt to adjusted EBITDA ratio) Trailing Twelve Months Period Ended June 30, 2026 \n GAAP debt $ 857,522 \n Minus: GAAP cash (47,495 ) \n Add: Restricted cash per RCF 4,495 \n Add: Capital lease liabilities 314 \n Net debt per RCF $ 814,836 \n \n GAAP Net Income 121,456 \n Interest expense, net 33,954 \n Income tax expense 36,617 \n Depreciation & amortization 73,992 \n Greco impairment expense 15,627 \n Proforma EBITDA for acquisitions 23,600 \n Stock compensation expenses 14,984 \n Acquisition transaction and integration expenses 13,774 \n Prior year ESOP contribution 5,235 \n Greco Exit related expenses 2,438 \n Non-cash tax indemnification expense 1,497 \n Nonrecurring restructuring expenses 542 \n Other misc. adjustments per RCF 41 \n Adjusted EBITDA per RCF $ 343,757 \n \n Net debt to adjusted EBITDA ratio per RCF 2.37 x \n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/af2a340d-df41-434e-8151-ff5c8b27db35)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-07-30T10:45:00.756928247Z","server_sent_at_ms":1785408300756},"received_at":"2026-07-30T10:45:00.809Z","source_url":"https://www.globenewswire.com/news-release/2026/07/30/3335879/37075/en/csw-industrials-reports-impressive-fiscal-2027-first-quarter-with-all-time-record-results-contractor-solutions-segment-delivers-second-consecutive-quarter-of-positive-organic-growt.html"},"analysis":{"id":"92310","press_release_id":"103299","analysis_json":{"industry":{"label":"Industrial Conglomerates","sector":"Industrials"},"redFlags":["Interest expense increased significantly to $12.7 million from $1.0 million in the prior year period due to acquisition and share repurchase financing"],"eventType":"earnings","narrative":"CSW Industrials reported fiscal Q1 revenue of $350.6 million, up 33% year-over-year, driven by acquisitions and 5.3% organic growth. Diluted EPS rose 25% to $3.04, while adjusted EPS increased 35% to a record $3.84, supported by gross margin expansion of 110 basis points.\n\nAdjusted EBITDA surged 48% to a record $101.6 million with margins expanding to 29.0%. The Contractor Solutions segment delivered 6% organic revenue growth, though the Engineered Building Solutions segment faced headwinds from the planned exit of the Greco business.\n\nOperating cash flow reached a record $75.6 million, resulting in a net leverage ratio of 2.37x. The company declared a quarterly dividend of $0.30 per share, marking its 30th consecutive dividend payment.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"CSW Industrials posts record quarter with 35% adjusted EPS growth and expanding margins, offset by higher interest costs."},"keyFigures":{"eps":3.04,"revenue":350650000,"revenueYoy":"33%","customDimensions":{"adj_eps":3.84,"net_debt":815000000,"adj_ebitda":101600000,"free_cash_flow":69600000,"organic_growth":"5.3%","operating_cash_flow":75620000}},"quotedText":"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.","namedEntities":{"people":[{"name":"Joseph B. Armes","role":"Chairman, President and Chief Executive Officer"}],"products":[],"companies":[{"name":"CSW Industrials, Inc.","ticker":"CSW"},{"name":"MARS Parts","relationship":"acquired business"},{"name":"Aspen Manufacturing","relationship":"acquired business"}],"dollarAmounts":[{"amount":"$351 million","context":"total revenue"},{"amount":"$50 million","context":"net income attributable to CSW"},{"amount":"$102 million","context":"Adjusted EBITDA"},{"amount":"$76 million","context":"Cash flows from operations"},{"amount":"$1.0 billion","context":"invested in acquisitions since May 1, 2025"},{"amount":"$0.30 per share","context":"quarterly cash dividend"}]},"materialImpact":{"score":4,"reasoning":"Record quarterly results across revenue, adjusted EBITDA, and operating cash flow. Adjusted EPS grew 35% year-over-year and organic revenue increased 5.3%, demonstrating strong operational execution alongside acquisition contributions."},"tickerRelevance":{"others":[],"primary":"CSW"},"globalImportance":30,"audienceRelevance":25,"eventTypeSecondary":["dividend"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"strong_earnings_beat","sectorWeight":"Industrials"}},"event_type":"earnings","event_type_secondary":["dividend"],"sentiment":"bullish","material_impact_score":4,"narrative":"CSW Industrials reported fiscal Q1 revenue of $350.6 million, up 33% year-over-year, driven by acquisitions and 5.3% organic growth. Diluted EPS rose 25% to $3.04, while adjusted EPS increased 35% to a record $3.84, supported by gross margin expansion of 110 basis points.\n\nAdjusted EBITDA surged 48% to a record $101.6 million with margins expanding to 29.0%. The Contractor Solutions segment delivered 6% organic revenue growth, though the Engineered Building Solutions segment faced headwinds from the planned exit of the Greco business.\n\nOperating cash flow reached a record $75.6 million, resulting in a net leverage ratio of 2.37x. The company declared a quarterly dividend of $0.30 per share, marking its 30th consecutive dividend payment.","key_figures":{"eps":3.04,"revenue":350650000,"revenueYoy":"33%","customDimensions":{"adj_eps":3.84,"net_debt":815000000,"adj_ebitda":101600000,"free_cash_flow":69600000,"organic_growth":"5.3%","operating_cash_flow":75620000}},"named_entities":{"people":[{"name":"Joseph B. Armes","role":"Chairman, President and Chief Executive Officer"}],"products":[],"companies":[{"name":"CSW Industrials, Inc.","ticker":"CSW"},{"name":"MARS Parts","relationship":"acquired business"},{"name":"Aspen Manufacturing","relationship":"acquired business"}],"dollarAmounts":[{"amount":"$351 million","context":"total revenue"},{"amount":"$50 million","context":"net income attributable to CSW"},{"amount":"$102 million","context":"Adjusted EBITDA"},{"amount":"$76 million","context":"Cash flows from operations"},{"amount":"$1.0 billion","context":"invested in acquisitions since May 1, 2025"},{"amount":"$0.30 per share","context":"quarterly cash dividend"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-07-30T12:11:09.208Z","global_importance":30,"audience_relevance":25,"importance_components":{"tickerTier":"mid-cap","eventGravity":"strong_earnings_beat","sectorWeight":"Industrials"}},"durationMs":134733,"modelName":"glm-4.7"}}