CSW Industrials Reports Record Fiscal 2025 Third Quarter Results
Rhea-AI Summary
CSW Industrials (CSWI) reported record results for fiscal Q3 2025, with total revenue increasing 10.7% to $193.6 million. The growth was driven by 8.7% inorganic growth from recent acquisitions (Dust Free, PSP Products, and PF WaterWorks) and 1.9% organic growth.
Net income reached $26.9 million ($24.9 million adjusted), up 48.9% from $16.7 million in the prior year. Earnings per diluted share increased 38.2% to $1.60 ($1.48 adjusted). Adjusted EBITDA grew 14.2% to $42.0 million, with margin expansion of 70 bps to 21.7%.
Year-to-date, the company invested $84.5 million in acquisitions and $11.7 million in organic capital expenditures, while returning $24.3 million to shareholders through share repurchases ($13.7 million) and dividends ($10.6 million). The company maintains a strong financial position with no debt outstanding.
Positive
- Record Q3 revenue of $193.6 million, up 10.7% YoY
- Net income increased 48.9% to $26.9 million
- Adjusted EBITDA grew 14.2% with margin expansion to 21.7%
- Complete debt elimination during fiscal 2025
- Strong shareholder returns with $24.3 million in dividends and buybacks
Negative
- Gross margin contracted 90 bps to 41.4% due to increased freight expenses
- Quarterly cash flows from operations decreased to $11.6 million from $47.0 million YoY
- Operating income margin slightly decreased to 15.3% from 15.8%
News Market Reaction – CSWI
In the trading session that priced this news, CSWI declined 5.00%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
DALLAS, Jan. 30, 2025 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (Nasdaq: CSWI or the "Company") today reported record results for the fiscal 2025 third quarter period ended December 31, 2024.
Fiscal 2025 Third Quarter Highlights (comparisons to fiscal 2024 third quarter)
- Total revenue increased
10.7% to a third quarter record of$193.6 million , driven by inorganic growth of8.7% from the recent acquisitions of Dust Free, PSP Products, and PF WaterWorks, and organic growth of1.9% - Net income attributable to CSWI of
$26.9 million , or$24.9 million adjusted, increased48.9% to a third quarter record, compared to$16.7 million - Earnings per diluted share ("EPS") of
$1.60 , or$1.48 adjusted, increased38.2% to a third quarter record, compared to$1.07 - Adjusted EBITDA grew
14.2% to a third quarter record of$42.0 million , including margin expansion for the third quarter of 70 bps to21.7%
Fiscal 2025 Year-to-Date Highlights (comparisons to fiscal 2024 year-to-date period)
- Total revenue increased
11.3% to$647.8 million , of which$34.1 million , or5.9% , was inorganic growth from recent acquisitions, and5.5% , or$31.7 million was organic growth - Net income attributable to CSWI of
$101.6 million , or$99.5 million adjusted, increased28.6% as compared to$77.4 million - EPS of
$6.30 , or$6.17 adjusted, improved24.2% compared to$4.97 - Adjusted EBITDA increased
16.6% to$168.1 million , including margin expansion of 120 bps to26.0% - Invested
$84.5 million in acquisitions and$11.7 million in organic capital expenditures, while returning total cash of$24.3 million to shareholders through share repurchases of$13.7 million and dividends of$10.6 million
Comments from the Chairman, President, and Chief Executive Officer
Joseph B. Armes, CSW Industrials’ Chairman, President, and Chief Executive Officer, commented, "I am very pleased to announce record revenue for the fiscal third quarter driven by the strategic acquisitions of Dust Free, PSP Products, and PF WaterWorks during the last twelve months as well as organic volume growth. Impressively, the team also achieved record net income, adjusted earnings per diluted share, and adjusted EBITDA for the fiscal third quarter."
Armes continued, "During the quarter, our disciplined allocation of capital continued with the acquisition of PF WaterWorks, bringing innovative, eco-friendly drain management solutions within the profitable plumbing end market to the CSWI family. The addition of these new products to our current portfolio fuels inorganic growth, additional organic growth over time, and increased market share."
Fiscal 2025 Third Quarter Consolidated Results
Fiscal third quarter revenue was
Gross profit in the fiscal third quarter was
Operating expenses as a percentage of revenue were
Operating income in the current period was
Interest income was
Other expense was
Net income attributable to CSWI (net of non-controlling interest in the joint venture) increased to
Fiscal 2025 third quarter adjusted EBITDA increased
The quarterly cash flows from operations of
Following quarter-end, the Company announced its twenty-fourth consecutive regular quarterly cash dividend in the amount of
The Company’s effective tax rate for the fiscal third quarter was
Fiscal 2025 Third Quarter Segment Results
Contractor Solutions segment revenue was
Specialized Reliability Solutions segment revenue was
Engineered Building Solutions segment revenue was
Fiscal 2025 Year-to-Date Consolidated Results
Fiscal year-to-date revenue was
Gross profit in the fiscal year-to-date period was
Operating expenses as a percentage of revenue were
In the current period, operating income was
Interest expense was
Other expense was
In the current period, reported net income attributable to CSWI improved
Fiscal 2025 year-to-date adjusted EBITDA increased
Net cash provided by operating activities for the fiscal 2025 year-to-date period was
The Company’s effective tax rate for the fiscal year-to-date period was
Fiscal 2025 Year-to-Date Segment Results
Contractor Solutions segment revenue was
Contractor Solutions segment operating income margin was
Specialized Reliability Solutions segment revenue grew to
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 reporting period.
Conference Call Information
The Company will host a conference call today at 10:00 a.m. ET to discuss the results, followed by a question-and-answer session for the investment community. A live webcast of the call can be accessed at https://cswindustrials.gcs-web.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 Thursday, February 13, 2025. Participants may access the replay at 1-844-512-2921, international callers may use 1-412-317-6671 and enter access code 13750887. The call will also be available for replay via webcast link on the Investors portion of the CSWI website www.cswindustrials.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 CSWI, adjusted net income attributable to CSWI, adjusted effective tax rate, adjusted operating income and free cash flows, which are non-GAAP financial measures of performance. Attributable to CSWI is defined to exclude the income attributable to the non-controlling interest in the Whitmore JV.
CSWI 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. CSWI 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.cswindustrials.com.
Investor Relations
Alexa Huerta
Vice President, Investor Relations and Treasurer
214-489-7113
alexa.huerta@cswindustrials.com
| CSW INDUSTRIALS, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
| (Amounts in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues, net | $ | 193,649 | $ | 174,967 | $ | 647,752 | $ | 581,980 | ||||||||
| Cost of revenues | (113,543 | ) | (100,986 | ) | (356,324 | ) | (324,873 | ) | ||||||||
| Gross profit | 80,106 | 73,981 | 291,428 | 257,107 | ||||||||||||
| Selling, general and administrative expenses | (50,511 | ) | (46,400 | ) | (155,224 | ) | (142,327 | ) | ||||||||
| Operating income | 29,595 | 27,581 | 136,204 | 114,780 | ||||||||||||
| Interest income (expense), net | 1,976 | (2,765 | ) | (1,884 | ) | (10,080 | ) | |||||||||
| Other expense, net | (298 | ) | (8,428 | ) | (716 | ) | (6,188 | ) | ||||||||
| Income before income taxes | 31,273 | 16,388 | 133,604 | 98,512 | ||||||||||||
| Provision for income taxes | (4,315 | ) | (7,083 | ) | (31,175 | ) | (27,968 | ) | ||||||||
| Net income | 26,958 | 9,305 | 102,429 | 70,544 | ||||||||||||
| Less: Income attributable to redeemable noncontrolling interest | (10 | ) | (83 | ) | (839 | ) | (655 | ) | ||||||||
| Net income attributable to CSW Industrials, Inc. | $ | 26,948 | $ | 9,222 | $ | 101,590 | $ | 69,889 | ||||||||
| Net income per share attributable to CSW Industrials, Inc. | ||||||||||||||||
| Basic | $ | 1.60 | $ | 0.59 | $ | 6.32 | $ | 4.50 | ||||||||
| Diluted | 1.60 | 0.59 | 6.30 | 4.49 | ||||||||||||
| Weighted average number of shares outstanding: | ||||||||||||||||
| Basic | 16,792 | 15,546 | 16,066 | 15,537 | ||||||||||||
| Diluted | 16,872 | 15,596 | 16,136 | 15,578 | ||||||||||||
| CSW INDUSTRIALS, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (unaudited) | ||||||||
| (Amounts in thousands, except for per share amounts) | December 31, 2024 | March 31, 2024 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 213,754 | $ | 22,156 | ||||
| Accounts receivable, net of allowance for expected credit losses of | 114,825 | 142,665 | ||||||
| Inventories, net | 202,764 | 150,749 | ||||||
| Prepaid expenses and other current assets | 32,120 | 15,840 | ||||||
| Total current assets | 563,463 | 331,410 | ||||||
| Property, plant and equipment, net of accumulated depreciation of | 94,208 | 92,811 | ||||||
| Goodwill | 266,941 | 247,191 | ||||||
| Intangible assets, net | 355,256 | 318,819 | ||||||
| Other assets | 70,327 | 53,095 | ||||||
| Total assets | $ | 1,350,195 | $ | 1,043,326 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 52,842 | $ | 48,387 | ||||
| Accrued and other current liabilities | 81,873 | 67,449 | ||||||
| Total current liabilities | 134,715 | 115,836 | ||||||
| Long-term debt | — | 166,000 | ||||||
| Retirement benefits payable | 1,082 | 1,114 | ||||||
| Other long-term liabilities | 150,181 | 125,298 | ||||||
| Total liabilities | 285,978 | 408,248 | ||||||
| Commitments and contingencies (See Note 13) | ||||||||
| Redeemable noncontrolling interest | 20,194 | 19,355 | ||||||
| Equity: | ||||||||
| Common shares, | 177 | 164 | ||||||
| Additional paid-in capital | 497,906 | 137,253 | ||||||
| Treasury shares, at cost (1,005 and 952 shares, respectively) | (115,367 | ) | (95,643 | ) | ||||
| Retained earnings | 674,036 | 583,075 | ||||||
| Accumulated other comprehensive loss | (12,729 | ) | (9,126 | ) | ||||
| Total equity | 1,044,023 | 615,723 | ||||||
| Total liabilities, redeemable noncontrolling interest and equity | $ | 1,350,195 | $ | 1,043,326 | ||||
| CSW INDUSTRIALS, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (unaudited) | ||||||||
| Nine Months Ended December 31, | ||||||||
| (Amounts in thousands) | 2024 | 2023 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 102,429 | $ | 70,544 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 10,714 | 10,077 | ||||||
| Amortization of intangible and other assets | 20,792 | 17,584 | ||||||
| Provision for inventory reserves | 1,779 | 2,541 | ||||||
| Provision for doubtful accounts | 946 | 544 | ||||||
| Share-based compensation | 10,237 | 8,555 | ||||||
| Net gain on disposals of property, plant and equipment | (89 | ) | (1,336 | ) | ||||
| Net pension benefit | 49 | 50 | ||||||
| Impairment of assets | — | 90 | ||||||
| Net deferred taxes | 1,244 | 2,732 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 32,316 | 17,846 | ||||||
| Inventories | (42,536 | ) | 7,796 | |||||
| Prepaid expenses and other current assets | (17,174 | ) | (6,720 | ) | ||||
| Other assets | 1,565 | 1,066 | ||||||
| Accounts payable and other current liabilities | 21,372 | 9,601 | ||||||
| Retirement benefits payable and other liabilities | (2,575 | ) | 944 | |||||
| Net cash provided by operating activities | 141,069 | 141,914 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (11,735 | ) | (11,668 | ) | ||||
| Proceeds from sale of assets held for investment | — | 1,665 | ||||||
| Proceeds from sale of assets | 153 | 157 | ||||||
| Cash paid for investments | (2,500 | ) | — | |||||
| Cash paid for acquisitions | (84,491 | ) | (5,284 | ) | ||||
| Net cash used in investing activities | (98,573 | ) | (15,130 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Borrowings on line of credit | 32,723 | 72,308 | ||||||
| Repayments of line of credit and term loan | (198,723 | ) | (172,308 | ) | ||||
| Purchase of treasury shares | (20,935 | ) | (10,640 | ) | ||||
| Proceeds from equity issuance | 347,407 | — | ||||||
| Dividends | (10,554 | ) | (8,855 | ) | ||||
| Net cash provided by (used in) financing activities | 149,918 | (119,495 | ) | |||||
| Effect of exchange rate changes on cash and equivalents | (816 | ) | (756 | ) | ||||
| Net change in cash and cash equivalents | 191,598 | 6,533 | ||||||
| Cash and cash equivalents, beginning of period | 22,156 | 18,455 | ||||||
| Cash and cash equivalents, end of period | $ | 213,754 | $ | 24,988 | ||||
Reconciliation of Non-GAAP Measures
We use adjusted earnings per share attributable to CSWI, adjusted net income attributable to CSWI, adjusted operating income, adjusted effective tax rate, and adjusted EBITDA, together with financial measures prepared in accordance with GAAP, such as revenue, cost of revenue, operating expense, operating income and net income attributable to CSWI, 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 also 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 CSWI TO ADJUSTED NET INCOME ATTRIBUTABLE TO CSWI | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (Amounts in thousands) | Three months ended December 31, | Nine Months ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| GAAP net income attributable to CSWI | $ | 26,948 | $ | 9,222 | $ | 101,591 | $ | 69,889 | ||||||||
| Adjusting items, net of tax: | ||||||||||||||||
| Reversal of tax indemnification receivable | 858 | 8,519 | 858 | 8,519 | ||||||||||||
| Acquisition broker fee | 642 | — | 642 | — | ||||||||||||
| Uncertain tax position accrual release | (3,549 | ) | (1,019 | ) | (3,549 | ) | (1,019 | ) | ||||||||
| Adjusted net income attributable to CSWI | $ | 24,899 | $ | 16,722 | $ | 99,542 | $ | 77,389 | ||||||||
| Net Income Attributable to CSW Industrials, Inc. per diluted common share | $ | 1.60 | $ | 0.59 | $ | 6.30 | $ | 4.49 | ||||||||
| Adjusting Items, per dilutive common share: | ||||||||||||||||
| Reversal of tax indemnification receivable | 0.05 | 0.55 | 0.05 | 0.55 | ||||||||||||
| Acquisition broker fee | 0.04 | — | 0.04 | — | ||||||||||||
| Uncertain tax position accrual release | (0.21 | ) | (0.07 | ) | (0.22 | ) | (0.07 | ) | ||||||||
| Adjusted net income attributable to CSW Industrials, Inc. per dilutive common share | $ | 1.48 | $ | 1.07 | $ | 6.17 | $ | 4.97 | ||||||||
| CSW INDUSTRIALS, INC. | ||||||||||||||||
| RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (Amounts in thousands) | Three months ended December 31, | Nine Months ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| GAAP income before tax | $ | 31,273 | $ | 16,388 | $ | 133,604 | $ | 98,512 | ||||||||
| Adjusting items: | ||||||||||||||||
| Reversal of tax indemnification receivable | 858 | 8,519 | 858 | 8,519 | ||||||||||||
| Acquisition broker fee | 860 | — | 860 | — | ||||||||||||
| Adjusted income before tax | $ | 32,991 | $ | 24,907 | $ | 135,322 | $ | 107,031 | ||||||||
| GAAP provision for income tax | $ | 4,315 | $ | 7,083 | $ | 31,174 | $ | 27,968 | ||||||||
| Adjusting items: | ||||||||||||||||
| Uncertain tax position accrual release | 3,549 | 1,019 | 3,549 | 1,019 | ||||||||||||
| Tax impact of acquisition broker fee | 218 | — | 218 | — | ||||||||||||
| Adjusted provision for income tax | $ | 8,082 | $ | 8,102 | $ | 34,941 | $ | 28,987 | ||||||||
| GAAP effective tax rate | 13.8 | % | 43.2 | % | 23.3 | % | 28.4 | % | ||||||||
| Adjusted effective tax rate | 24.5 | % | 32.5 | % | 25.8 | % | 27.1 | % | ||||||||
| CSW INDUSTRIALS, INC. | ||||||||||||||||
| Reconciliation of Net Income Attributable to CSWI to Adjusted EBITDA | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| (Amounts in thousands) | Three months ended December 31, | Nine Months ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net Income attributable to CSWI | $ | 26,948 | $ | 9,222 | $ | 101,590 | $ | 69,889 | ||||||||
| Plus: Income attributable to redeemable noncontrolling interest | 10 | 83 | 838 | 655 | ||||||||||||
| Net Income | $ | 26,958 | $ | 9,305 | $ | 102,429 | $ | 70,544 | ||||||||
| Adjusting Items: | ||||||||||||||||
| Interest expense (income), net | (1,976 | ) | 2,764 | 1,884 | 10,080 | |||||||||||
| Income tax expense | 4,315 | 7,083 | 31,174 | 27,968 | ||||||||||||
| Depreciation & amortization | 11,012 | 9,134 | 30,896 | 27,094 | ||||||||||||
| EBITDA | $ | 40,309 | $ | 28,286 | $ | 166,384 | $ | 135,686 | ||||||||
| EBITDA Adjustments: | ||||||||||||||||
| Reversal of tax indemnification receivable | 858 | 8,519 | 858 | 8,519 | ||||||||||||
| Acquisition broker fee | 860 | — | 860 | — | ||||||||||||
| Adjusted EBITDA | $ | 42,027 | $ | 36,805 | $ | 168,102 | $ | 144,205 | ||||||||
| Adjusted EBITDA % Revenue | 21.7 | % | 21.0 | % | 26.0 | % | 24.8 | % | ||||||||
| CSW INDUSTRIALS, INC. | ||||||||||||||||
| Reconciliation of Segment Operating Income to Segment Adjusted EBITDA | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| (Amounts in thousands) | Three months ended December 31, 2024 | |||||||||||||||
| Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Corporate and Other | Consolidated | ||||||||||||
| Revenue, net | $ | 132,150 | $ | 34,566 | $ | 28,821 | $ | (1,889 | ) | $ | 193,649 | |||||
| Operating Income | $ | 26,756 | $ | 5,238 | $ | 3,645 | $ | (6,045 | ) | $ | 29,595 | |||||
| Adjusting Items: | ||||||||||||||||
| Acquisition broker fee | 860 | — | — | — | 860 | |||||||||||
| Adjusted Operating Income | $ | 27,616 | $ | 5,238 | $ | 3,645 | $ | (6,045 | ) | $ | 30,455 | |||||
| % Revenue | 20.9 | % | 15.2 | % | 12.6 | % | 15.7 | % | ||||||||
| Adjusting Items: | ||||||||||||||||
| Other income (expense), net | (188 | ) | (17 | ) | 38 | (131 | ) | (298 | ) | |||||||
| Depreciation & amortization | 9,179 | 1,366 | 420 | 48 | 11,012 | |||||||||||
| Reversal of tax indemnification receivable | 858 | — | — | — | 858 | |||||||||||
| Adjusted EBITDA | $ | 37,466 | $ | 6,587 | $ | 4,102 | $ | (6,128 | ) | $ | 42,027 | |||||
| % Revenue | 28.4 | % | 19.1 | % | 14.2 | % | 21.7 | % | ||||||||
| (Amounts in thousands) | Three months ended December 31, 2023 | |||||||||||||||
| Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Corporate and Other | Consolidated | ||||||||||||
| Revenue, net | $ | 115,412 | $ | 33,711 | $ | 27,861 | $ | (2,017 | ) | $ | 174,967 | |||||
| Operating Income | $ | 25,751 | $ | 3,740 | $ | 3,537 | $ | (5,447 | ) | $ | 27,581 | |||||
| % Revenue | 22.3 | % | 11.1 | % | 12.7 | % | 15.8 | % | ||||||||
| Adjusting Items: | ||||||||||||||||
| Other income (expense), net | (8,433 | ) | (9 | ) | (8 | ) | 21 | (8,428 | ) | |||||||
| Depreciation & amortization | 7,178 | 1,477 | 437 | 42 | 9,134 | |||||||||||
| Reversal of tax indemnification receivable | 8,519 | — | — | — | 8,519 | |||||||||||
| Adjusted EBITDA | $ | 33,015 | $ | 5,208 | $ | 3,966 | $ | (5,383 | ) | $ | 36,805 | |||||
| % Revenue | 28.6 | % | 15.4 | % | 14.2 | % | 21.0 | % | ||||||||
| CSW INDUSTRIALS, INC. | ||||||||||||||||
| Reconciliation of Segment Operating Income to Segment Adjusted EBITDA | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| (Amounts in thousands) | Nine Months ended December 31, 2024 | |||||||||||||||
| Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Corporate and Other | Consolidated | ||||||||||||
| Revenue, net | $ | 451,403 | $ | 109,893 | $ | 92,387 | $ | (5,930 | ) | $ | 647,754 | |||||
| Operating Income | $ | 122,894 | $ | 18,208 | $ | 15,451 | $ | (20,348 | ) | $ | 136,204 | |||||
| Adjusting Items: | ||||||||||||||||
| Acquisition broker fee | 860 | — | — | — | 860 | |||||||||||
| Adjusted Operating Income | $ | 123,754 | $ | 18,208 | $ | 15,451 | $ | (20,348 | ) | $ | 137,064 | |||||
| % Revenue | 27.4 | % | 16.6 | % | 16.7 | % | 21.2 | % | ||||||||
| Adjusting Items: | ||||||||||||||||
| Other income (expense), net | (335 | ) | (200 | ) | 18 | (200 | ) | (716 | ) | |||||||
| Depreciation & amortization | 25,164 | 4,198 | 1,399 | 135 | 30,896 | |||||||||||
| Reversal of tax indemnification receivable | 858 | — | — | — | 858 | |||||||||||
| Adjusted EBITDA | $ | 149,442 | $ | 22,206 | $ | 16,868 | $ | (20,413 | ) | $ | 168,102 | |||||
| % Revenue | 33.1 | % | 20.2 | % | 18.3 | % | 26.0 | % | ||||||||
| (Amounts in thousands) | Nine Months ended December 31, 2023 | |||||||||||||||
| Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Corporate and Other | Consolidated | ||||||||||||
| Revenue, net | $ | 395,268 | $ | 108,037 | $ | 84,660 | $ | (5,984 | ) | $ | 581,980 | |||||
| Operating Income | $ | 104,443 | $ | 15,534 | $ | 13,029 | $ | (18,227 | ) | $ | 114,780 | |||||
| % Revenue | 26.4 | % | 14.4 | % | 15.4 | % | 19.7 | % | ||||||||
| Adjusting Items: | ||||||||||||||||
| Other income (expense), net | (7,686 | ) | (100 | ) | 2 | 1,595 | (6,188 | ) | ||||||||
| Depreciation & amortization | 21,118 | 4,512 | 1,332 | 132 | 27,094 | |||||||||||
| Reversal of tax indemnification receivable | 8,519 | — | — | — | 8,519 | |||||||||||
| Adjusted EBITDA | $ | 126,394 | $ | 19,947 | $ | 14,363 | $ | (16,500 | ) | $ | 144,205 | |||||
| % Revenue | 32.0 | % | 18.5 | % | 17.0 | % | 24.8 | % | ||||||||
| CSW INDUSTRIALS, INC. | ||||||||||||||||
| Reconciliation of Operating Cash Flow to Free Cash Flow | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (Amounts in thousands) | Three Months Ended December 31, | Nine Months ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net cash provided by operating activities | $ | 11,600 | $ | 46,978 | $ | 141,069 | $ | 141,914 | ||||||||
| Less: Capital expenditures | (3,148 | ) | (3,883 | ) | (11,735 | ) | (11,668 | ) | ||||||||
| Free cash flow | $ | 8,452 | $ | 43,095 | $ | 129,334 | $ | 130,246 | ||||||||
| Free cash flow % Adjusted EBITDA | 20.1 | % | 117.1 | % | 76.9 | % | 90.3 | % | ||||||||
