Latest news with #CSWIndustrials
Globe and Mail
01-08-2025
- Business
- Globe and Mail
CSW Industrials (CSWI) Q1 Revenue Up 17%
Key Points Revenue rose 16.6% in Q1 fiscal 2026, but missed analyst expectations by 17.5% (GAAP). Adjusted earnings per share (Non-GAAP) grew 2.5%, but were 10.1% below estimates. Organic growth declined 2.8%, and gross margin (GAAP) shrank to 43.8% due to cost inflation and product mix. These 10 stocks could mint the next wave of millionaires › CSW Industrials (NYSE:CSW), an industrials company specializing in heating, ventilation, air conditioning, and refrigeration (HVAC/R), plumbing, and building products, reported its earnings for the quarter ended June 30, 2025, on July 31, 2025. The most notable news was that revenue reached a record $263.6 million in the fiscal first quarter, up 16.6% from the prior year, but still fell well below analyst estimates. Adjusted earnings per share (EPS) came in at $2.85, also missing consensus. Despite record headline numbers driven by acquisitions, underlying organic sales fell 2.8%, and profit margins narrowed. The quarter showed mixed results amid ongoing integration costs, tariff headwinds, and softness in key sectors. Metric Q1 fiscal 2026(Quarter Ended June 30, 2025) Q1 fiscal 2026 Estimate Q1 fiscal 2025(Quarter Ended June 30, 2024) Y/Y Change EPS (Non-GAAP) $2.85 $3.17 $2.78 2.5% Revenue $263.6 million $319.35 million $226.2 million 16.6% Operating Income $54.9 million $55.1 million -0.4% EBITDA $68.7 million $65.3 million 5.2% Free Cash Flow $57.7 million $59.6 million -3.2% Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q4 2025 earnings report. Business overview and recent focus CSW Industrials operates across three main segments: Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. Its products include HVAC/R components, specialty lubricants, and safety solutions, targeting end markets such as HVAC/R, plumbing, general industrial, architectural building products, energy, mining, and rail. The company has recently focused on expanding its reach in value-added HVAC/R and plumbing products through acquisitions. The ability to balance organic growth, effective acquisition integration, and margin management remains a key success factor for the business. Quarter highlights: Results, drivers, and segment details The quarter saw reported revenue up 16.6% from the prior year, with growth from the acquisition of Aspen Manufacturing, PSP Products, and PF WaterWorks more than offsetting a decline in organic revenue. However, organic revenue actually declined by 2.8%, with softness in major end markets dampening underlying performance even as acquired businesses contributed top-line growth. Gross profit grew by 7.5%, but gross margin fell sharply compared to last year. The margin drop, from 47.5% to 43.8%, resulted from lower-margin contributions from acquired businesses and ongoing tariff and input cost pressures. Operating expenses increased due to the broader company scope and integration efforts, but represented a slightly lower share of revenue, reflecting attention to cost control. Operating income came in essentially flat with last year, while EBITDA rose 5.3%. Despite these records, the margin contraction is noteworthy. Free cash flow, which measures cash left after capital expenditures and is an important indicator of financial flexibility, fell 3.2% from the prior year. The company borrowed $135 million to help fund acquisitions but paid back $40 million, leaving net leverage at a low 0.2 times EBITDA. Performance varied across business segments. In Contractor Solutions, revenue rose 22.6%, with growth from acquisitions more than offsetting a decline in organic revenue; organic revenue dropped 4.6%. Operating profit in the segment grew, but gross margin shrank to 43.8% due to acquisition mix and sales mix/volume leverage. Specialized Reliability Solutions revenue was flat, but operating income tumbled 26.7% as commodity costs and one-time consolidation expenses weighed on profitability. The Engineered Building Solutions division posted a modest revenue increase, but its operating income fell, reflecting tariff impacts and ongoing investment in sales and research and development. The quarterly dividend remained steady at $0.27 per share. Products and acquisitions: Expanding capabilities This period saw the continued integration of Aspen Manufacturing, a producer of air handlers and evaporator coils for HVAC/R systems. These components are used chiefly for repair and replacement in building climate control systems. The acquisition emphasizes US-based manufacturing, which can help limit the effect of international tariffs on imported goods. CSW Industrials' acquisition strategy in the HVAC/R and plumbing categories is designed to strengthen its portfolio of niche, value-added products. The company has further raised research and development spending in Engineered Building Solutions, working on new fire and smoke protection solutions and related architectural products, though these investments contributed to near-term margin pressure. Financial outlook and investor considerations Management reaffirmed its outlook for fiscal 2026, expecting full-year organic revenue growth and adjusted EBITDA growth for each segment. For fiscal 2026, consolidated earnings per share are also expected to rise, though growth will trail EBITDA gains due to a higher share count, interest costs from acquisition funding, and increased amortization. Leaders cited ongoing risks tied to tariffs, input inflation, and the challenge of restoring profitability in newly acquired units with thinner margins. No specific quarterly guidance was provided. The quarterly dividend was held steady at $0.27 per share. Looking ahead, investors may want to watch for improvement in organic sales growth, gross and EBITDA margin recovery, and successful integration of recently acquired operations -- all of which are likely to shape the company's performance in the coming quarters. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,049%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of July 29, 2025
Yahoo
20-07-2025
- Business
- Yahoo
With EPS Growth And More, CSW Industrials (NYSE:CSW) Makes An Interesting Case
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. In contrast to all that, many investors prefer to focus on companies like CSW Industrials (NYSE:CSW), which has not only revenues, but also profits. Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. CSW Industrials' Earnings Per Share Are Growing If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Shareholders will be happy to know that CSW Industrials' EPS has grown 24% each year, compound, over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. CSW Industrials maintained stable EBIT margins over the last year, all while growing revenue 11% to US$878m. That's a real positive. You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image. View our latest analysis for CSW Industrials You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for CSW Industrials' future profits. Are CSW Industrials Insiders Aligned With All Shareholders? It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. So it is good to see that CSW Industrials insiders have a significant amount of capital invested in the stock. Given insiders own a significant chunk of shares, currently valued at US$62m, they have plenty of motivation to push the business to succeed. This should keep them focused on creating long term value for shareholders. It's good to see that insiders are invested in the company, but are remuneration levels reasonable? A brief analysis of the CEO compensation suggests they are. For companies with market capitalisations between US$4.0b and US$12b, like CSW Industrials, the median CEO pay is around US$8.8m. The CSW Industrials CEO received US$6.3m in compensation for the year ending March 2025. That is actually below the median for CEO's of similarly sized companies. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. Generally, arguments can be made that reasonable pay levels attest to good decision-making. Should You Add CSW Industrials To Your Watchlist? You can't deny that CSW Industrials has grown its earnings per share at a very impressive rate. That's attractive. If you need more convincing beyond that EPS growth rate, don't forget about the reasonable remuneration and the high insider ownership. Everyone has their own preferences when it comes to investing but it definitely makes CSW Industrials look rather interesting indeed. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want to check if CSW Industrials is trading on a high P/E or a low P/E, relative to its industry. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
20-07-2025
- Business
- Yahoo
CSW Industrials (CSW) Stock Jumps 3.6%: Will It Continue to Soar?
CSW Industrials (CSW) shares soared 3.6% in the last trading session to close at $304.67. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.6% loss over the past four weeks. Optimism over strong growth in the Contractor Solutions segment and inorganic growth from recent strategic acquisitions is driving the stock higher. Dust Free, PSP Products and PF WaterWorks acquisitions are driving revenue growth in Contractor Solutions. HVAC/R and electrical end markets are also supporting the growth. This industrial products and coatings maker is expected to post quarterly earnings of $2.74 per share in its upcoming report, which represents a year-over-year change of +10.9%. Revenues are expected to be $276.99 million, up 22.5% from the year-ago quarter. While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For CSW Industrials, the consensus EPS estimate for the quarter has been revised 1.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CSW going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> CSW Industrials is a member of the Zacks Chemical - Specialty industry. One other stock in the same industry, Blachem (BCPC), finished the last trading session 0.4% lower at $161.93. BCPC has returned -1.5% over the past month. For Blachem, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.25. This represents a change of +27.6% from what the company reported a year ago. Blachem currently has a Zacks Rank of #3 (Hold). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CSW Industrials, Inc. (CSW) : Free Stock Analysis Report Balchem Corporation (BCPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
Will CSW Industrials (CSW) Beat Estimates Again in Its Next Earnings Report?
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider CSW Industrials (CSW). This company, which is in the Zacks Chemical - Specialty industry, shows potential for another earnings beat. This industrial products and coatings maker has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 7.59%. For the most recent quarter, CSW Industrials was expected to post earnings of $2.24 per share, but it reported $2.23 per share instead, representing a surprise of 0.45%. For the previous quarter, the consensus estimate was $1.29 per share, while it actually produced $1.48 per share, a surprise of 14.73%. With this earnings history in mind, recent estimates have been moving higher for CSW Industrials. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. CSW Industrials has an Earnings ESP of +4.38% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CSW Industrials, Inc. (CSW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
09-06-2025
- Business
- Associated Press
CSW Industrials Announces the Commencement of Trading on the New York Stock Exchange and Ticker Symbol Change
Published [hour]:[minute] [AMPM] [timezone], [monthFull] [day], [year] DALLAS, June 09, 2025 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (NYSE: CSW) (the 'Company') today announced the commencement of trading of the Company's common stock on the New York Stock Exchange ('NYSE') under the new ticker symbol, 'CSW'. Trading on the NYSE will begin at market open today, June 9, 2025. CSW's Executive Management Team and Board of Directors will be in New York City this afternoon to ring the closing bell at the NYSE in celebration of joining the world's largest stock exchange. About CSW Industrials CSW Industrials is a diversified industrial growth company with industry-leading operations in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. The Company 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 . Investor Relations Alexa Huerta Vice President Investor Relations, & Treasurer 214-489-7113 [email protected]
