CSW Industrials Reports Q4 Earnings Decline Despite Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Earnings Decline: CSW Industrials reported a fourth-quarter net income of $20.20 million, or $1.22 per share, which is a significant drop from last year's $35.06 million and $2.08 per share, indicating pressure on profitability.
- Adjusted Earnings: Excluding items, CSW's adjusted earnings stood at $51.75 million, with an EPS of $1.22, reflecting the company's efforts in cost control, although it could not offset the overall decline in earnings.
- Revenue Growth: The company experienced a 34% year-over-year revenue increase, reaching $308.96 million compared to $230.54 million last year, demonstrating strong market demand and solid sales performance.
- Market Outlook: Despite the earnings decline, the revenue growth indicates CSW's competitiveness in the industry, suggesting potential for improving profitability through operational optimization and product portfolio enhancement in the future.
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Analyst Views on CSW
Wall Street analysts forecast CSW stock price to rise
5 Analyst Rating
1 Buy
4 Hold
0 Sell
Hold
Current: 279.590
Low
271.00
Averages
311.20
High
350.00
Current: 279.590
Low
271.00
Averages
311.20
High
350.00
About CSW
CSW Industrials, Inc. is a diversified industrial growth company. The Company operates in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. The Contractor Solutions segment manufactures efficiency and performance-enhancing products predominantly for residential and commercial heating, ventilation, air conditioning and refrigeration (HVAC/R) and plumbing applications, which are designed primarily for the professional trades. The Specialized Reliability Solutions segment manufactures and supplies specialized consumables that impart or enhance properties such as lubricity, anti-seize qualities, friction, sealing and heat control. The Engineered Building Solutions segment provides primarily code-driven, life-safety products that are engineered to provide solutions for the construction, refurbishment and modernization of commercial, institutional and multifamily residential buildings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CSW Industrials Projects Growth for Fiscal 2027 Amid Debt Management
- Financial Performance Beat: CSW Industrials reported an adjusted EPS of $3.14 for Q4 FY2026, exceeding the Zacks consensus estimate of $2.43 by 29.22%, while revenues reached $308.96 million, surpassing expectations by 6.88%, indicating improved profitability.
- Acquisition Synergies: Management anticipates that synergies from MARS Parts will exceed $12 million, with expectations for the business to achieve over a 30% EBITDA margin by the first anniversary in November, providing robust support for future earnings growth.
- Stable Market Demand: Despite fluctuating market conditions, residential HVAC/R demand stabilized heading into summer, with order trends picking up in March and April, demonstrating the company's flexibility in responding to repair versus replacement demand.
- Debt Management and Investment Strategy: CSW ended FY2026 with $843 million in net debt and a net debt-to-EBITDA ratio of 2.55, remaining within the management's target range of 1 to 3 times, showcasing the company's ability to maintain financial flexibility post-acquisition spending.
See More
CSW Industrials Reports Record Q4 Revenue and EBITDA Growth
- Significant Revenue Growth: CSW Industrials achieved $309 million in revenue for Q4 FY2026, marking a 34% year-over-year increase, with Contractor Solutions and Specialized Reliability Solutions significantly contributing to this growth, indicating strong market performance and sustained demand.
- Record Adjusted EBITDA: The adjusted EBITDA reached $83 million, up 39% year-over-year, reflecting the company's success in cost control and operational efficiency, which further enhances its profitability and investment appeal.
- Robust Shareholder Returns: The company returned $146 million to shareholders through share repurchases and dividends, demonstrating strong cash flow and commitment to shareholder value while also providing funding for future investments and growth.
- Active Acquisition Strategy: CSW completed five acquisitions, including MARS Parts and Aspen Manufacturing, with a total investment of $1 billion over the past year, which not only strengthens the company's market position but also lays the groundwork for future synergies and revenue growth.
See More
CSW Industrials Reports Record Q4 2026 Earnings Driven by Growth
- Record Revenue: CSW Industrials achieved a record revenue of $309 million in Q4 2026, representing a 34% year-over-year increase, which underscores the company's success in both organic and acquisition-driven growth, further solidifying its leadership position in the industry.
- Adjusted EPS: The company reported an adjusted earnings per share of $3.14, exceeding market expectations by $0.80, reflecting strong profitability and effective cost management, which is expected to positively impact future stock performance.
- Acquisition Strategy: Over the past year, CSW completed five cash flow accretive acquisitions and plans to divest the Greco business, indicating the company's commitment to optimizing its asset portfolio and enhancing overall profitability.
- Future Outlook: Management anticipates revenue growth across all segments in fiscal 2027, with significant adjusted EPS growth expected, demonstrating confidence in future performance and the ability to capitalize on market potential.
See More
CSW (CSW) Q4 2026 Earnings Call Transcript
See More
CSW Industrials Reports Q4 Earnings Decline Despite Revenue Growth
- Earnings Decline: CSW Industrials reported a fourth-quarter net income of $20.20 million, or $1.22 per share, which is a significant drop from last year's $35.06 million and $2.08 per share, indicating pressure on profitability.
- Adjusted Earnings: Excluding items, CSW's adjusted earnings stood at $51.75 million, with an EPS of $1.22, reflecting the company's efforts in cost control, although it could not offset the overall decline in earnings.
- Revenue Growth: The company experienced a 34% year-over-year revenue increase, reaching $308.96 million compared to $230.54 million last year, demonstrating strong market demand and solid sales performance.
- Market Outlook: Despite the earnings decline, the revenue growth indicates CSW's competitiveness in the industry, suggesting potential for improving profitability through operational optimization and product portfolio enhancement in the future.
See More
CSW Industrials Q4 Earnings Exceed Expectations
- Strong Performance: CSW Industrials reported a Q4 non-GAAP EPS of $3.14, beating expectations by $0.80, which reflects the company's robust profitability and boosts investor confidence.
- Significant Revenue Growth: The total revenue reached $309 million, marking a 34.0% year-over-year increase and exceeding market expectations by $10 million, primarily driven by acquisitions and organic growth, indicating the company's sustained competitiveness in the market.
- Acquisition-Driven Growth: Of the total revenue, $72 million came from acquisitions completed over the past year, contributing 31.2% inorganic growth, showcasing the effectiveness of the acquisition strategy and enhancing the company's market share.
- Stable Organic Growth: Despite a decline in the Engineered Building Solutions segment, the Contractor Solutions and Specialized Reliability Solutions segments achieved organic growth rates of 2.6% and 8.8%, respectively, demonstrating the company's successful diversification efforts.
See More
CSW Industrials Projects Growth for Fiscal 2027 Amid Debt Management
- Financial Performance Beat: CSW Industrials reported an adjusted EPS of $3.14 for Q4 FY2026, exceeding the Zacks consensus estimate of $2.43 by 29.22%, while revenues reached $308.96 million, surpassing expectations by 6.88%, indicating improved profitability.
- Acquisition Synergies: Management anticipates that synergies from MARS Parts will exceed $12 million, with expectations for the business to achieve over a 30% EBITDA margin by the first anniversary in November, providing robust support for future earnings growth.
- Stable Market Demand: Despite fluctuating market conditions, residential HVAC/R demand stabilized heading into summer, with order trends picking up in March and April, demonstrating the company's flexibility in responding to repair versus replacement demand.
- Debt Management and Investment Strategy: CSW ended FY2026 with $843 million in net debt and a net debt-to-EBITDA ratio of 2.55, remaining within the management's target range of 1 to 3 times, showcasing the company's ability to maintain financial flexibility post-acquisition spending.
See More
CSW Industrials Reports Record Q4 Revenue and EBITDA Growth
- Significant Revenue Growth: CSW Industrials achieved $309 million in revenue for Q4 FY2026, marking a 34% year-over-year increase, with Contractor Solutions and Specialized Reliability Solutions significantly contributing to this growth, indicating strong market performance and sustained demand.
- Record Adjusted EBITDA: The adjusted EBITDA reached $83 million, up 39% year-over-year, reflecting the company's success in cost control and operational efficiency, which further enhances its profitability and investment appeal.
- Robust Shareholder Returns: The company returned $146 million to shareholders through share repurchases and dividends, demonstrating strong cash flow and commitment to shareholder value while also providing funding for future investments and growth.
- Active Acquisition Strategy: CSW completed five acquisitions, including MARS Parts and Aspen Manufacturing, with a total investment of $1 billion over the past year, which not only strengthens the company's market position but also lays the groundwork for future synergies and revenue growth.
See More
CSW Industrials Reports Record Q4 2026 Earnings Driven by Growth
- Record Revenue: CSW Industrials achieved a record revenue of $309 million in Q4 2026, representing a 34% year-over-year increase, which underscores the company's success in both organic and acquisition-driven growth, further solidifying its leadership position in the industry.
- Adjusted EPS: The company reported an adjusted earnings per share of $3.14, exceeding market expectations by $0.80, reflecting strong profitability and effective cost management, which is expected to positively impact future stock performance.
- Acquisition Strategy: Over the past year, CSW completed five cash flow accretive acquisitions and plans to divest the Greco business, indicating the company's commitment to optimizing its asset portfolio and enhancing overall profitability.
- Future Outlook: Management anticipates revenue growth across all segments in fiscal 2027, with significant adjusted EPS growth expected, demonstrating confidence in future performance and the ability to capitalize on market potential.
See More
CSW (CSW) Q4 2026 Earnings Call Transcript
See More
CSW Industrials Reports Q4 Earnings Decline Despite Revenue Growth
- Earnings Decline: CSW Industrials reported a fourth-quarter net income of $20.20 million, or $1.22 per share, which is a significant drop from last year's $35.06 million and $2.08 per share, indicating pressure on profitability.
- Adjusted Earnings: Excluding items, CSW's adjusted earnings stood at $51.75 million, with an EPS of $1.22, reflecting the company's efforts in cost control, although it could not offset the overall decline in earnings.
- Revenue Growth: The company experienced a 34% year-over-year revenue increase, reaching $308.96 million compared to $230.54 million last year, demonstrating strong market demand and solid sales performance.
- Market Outlook: Despite the earnings decline, the revenue growth indicates CSW's competitiveness in the industry, suggesting potential for improving profitability through operational optimization and product portfolio enhancement in the future.
See More
CSW Industrials Q4 Earnings Exceed Expectations
- Strong Performance: CSW Industrials reported a Q4 non-GAAP EPS of $3.14, beating expectations by $0.80, which reflects the company's robust profitability and boosts investor confidence.
- Significant Revenue Growth: The total revenue reached $309 million, marking a 34.0% year-over-year increase and exceeding market expectations by $10 million, primarily driven by acquisitions and organic growth, indicating the company's sustained competitiveness in the market.
- Acquisition-Driven Growth: Of the total revenue, $72 million came from acquisitions completed over the past year, contributing 31.2% inorganic growth, showcasing the effectiveness of the acquisition strategy and enhancing the company's market share.
- Stable Organic Growth: Despite a decline in the Engineered Building Solutions segment, the Contractor Solutions and Specialized Reliability Solutions segments achieved organic growth rates of 2.6% and 8.8%, respectively, demonstrating the company's successful diversification efforts.
See More
