Core Viewpoint - CSW Industrials, Inc. has successfully completed the acquisition of Aspen Manufacturing for approximately $313.5 million in cash, enhancing its HVAC/R product offerings and expected to drive market share gains [1][2][4] Group 1: Acquisition Details - The acquisition price of $313.5 million represents about 11 times Aspen Manufacturing's estimated 2024 adjusted EBITDA of $28.5 million [1] - The funding for the acquisition was sourced from cash on hand and borrowings under an existing $500 million revolving credit facility, while maintaining sufficient liquidity and a strong balance sheet [1] Group 2: Strategic Implications - This acquisition is expected to expand CSW Industrials' HVAC/R product offerings by incorporating Aspen Manufacturing's leading evaporator coils and air handlers [2] - The integration of Aspen Manufacturing is anticipated to enhance CSW's service offerings and maximize market channels, leveraging its established distribution channels and manufacturing expertise [2] Group 3: Product Overview - Aspen Manufacturing's product suite includes a wide range of high-quality residential and light commercial evaporator coils, blowers, and air handling units, all designed and assembled in the United States [3]

Core Viewpoint - CSW Industrials, Inc. is transferring its common stock listing from Nasdaq to the New York Stock Exchange (NYSE), marking a significant milestone as the company approaches its ten-year anniversary as an independent public entity [1][3]. Company Announcement - The common stock is expected to begin trading on the NYSE on June 9, 2025, under the new ticker symbol "CSW" [2]. - Trading on Nasdaq will continue until the market closes on June 6, 2025 [2]. Executive Commentary - Joseph B. Armes, the Company's Chairman, CEO, and President, expressed enthusiasm about the move to the NYSE, highlighting the anticipated benefits of increased liquidity and visibility for shareholders, including employees participating in the employee stock ownership plan [3]. - Chris Taylor, NYSE Chief Development Officer, welcomed CSW Industrials, emphasizing its role as a key player in the industrial solutions sector [3]. Company Overview - CSW Industrials is a diversified industrial growth company operating in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions [4]. - The company provides niche, value-added products known for performance and reliability, serving markets such as HVAC/R, plumbing, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transportation [4].

Core Viewpoint - CSW Industrials, Inc. has declared a quarterly cash dividend of $0.27 per share, marking a 12.5% increase from the previous quarter's dividend [1][2]. Dividend Details - The declared dividend amount is $0.27 per share [3]. - The record date for shareholders is April 25, 2025 [3]. - The dividend will be payable on May 9, 2025 [3]. Financial Performance - Since October 2017, CSW Industrials has returned $222.4 million in cash to shareholders through share repurchases and dividends [2]. - The company has demonstrated strong balance sheet, cash flows, and profitability, leading to the sixth increase in its quarterly dividend [2]. Company Overview - CSW Industrials operates in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions [3]. - The company provides niche, value-added products known for performance and reliability, serving markets such as HVAC/R, plumbing, electrical, general industrial, and more [3].

Core Viewpoint - CSW Industrials, Inc. has entered into a definitive agreement to acquire Aspen Manufacturing for approximately $313.5 million in cash, which is expected to enhance CSWI's HVAC/R product portfolio and market position [2][5]. Group 1: Acquisition Details - The acquisition price of $313.5 million represents approximately 11 times Aspen Manufacturing's estimated 2024 adjusted EBITDA of $28.5 million [2][6]. - CSWI plans to fund the acquisition using a combination of cash on hand and debt from its existing $500 million credit facility, with the closing expected in the first quarter of CSWI's 2026 fiscal year [2][3]. Group 2: Aspen Manufacturing Overview - Aspen Manufacturing, based in Humble, Texas, is a leading independent manufacturer of evaporator coils and air handlers for the HVAC/R industry, with estimated 2024 revenues of $122.4 million [3][4]. - The company is recognized for its high-quality products, all of which are designed, engineered, and assembled in the United States [3][4]. Group 3: Strategic Fit and Market Position - Aspen Manufacturing is well-positioned to address the current refrigerant transition, manufacturing products compatible with both legacy and new refrigerants [4]. - The acquisition aligns with CSWI's strategy to expand its HVAC/R product offerings and leverage existing distribution channels to increase market share [6][11].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - CSW Industrials (CSWI) is highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 25.2%, with projected EPS growth of 21.2% this year, significantly outperforming the industry average of 11.3% [4] Group 2: Financial Metrics - CSW Industrials exhibits year-over-year cash flow growth of 11.2%, surpassing the industry average of -1.2% [5] - The company's annualized cash flow growth rate over the past 3-5 years stands at 20.9%, compared to the industry average of 2.8% [6] Group 3: Earnings Estimates - The current-year earnings estimates for CSW Industrials have been revised upward, with the Zacks Consensus Estimate increasing by 3.3% over the past month [8] - The combination of a Growth Score of B and a Zacks Rank 2 indicates CSW Industrials is a solid choice for growth investors [9][10]

Core Viewpoint - CSW Industrials (CSWI) has experienced a significant decline of 17.6% over the past four weeks, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a minor difference between opening and closing prices, with a long lower wick suggesting that the stock found support after hitting a new low during a downtrend [3][4]. - This pattern signals that bears may have lost control, and the success of bulls in preventing further price declines indicates a potential trend reversal [4]. Fundamental Analysis - Recent upward revisions in earnings estimates for CSWI serve as a bullish indicator, as trends in earnings estimate revisions are strongly correlated with near-term stock price movements [6]. - The consensus EPS estimate for the current year has increased by 4.5% over the last 30 days, indicating that analysts are optimistic about the company's ability to report better earnings than previously predicted [7]. - CSWI holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [8].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates is challenging due to inherent risks and volatility [1] Group 1: Company Overview - CSW Industrials (CSWI) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 25.2% and is projected to achieve an EPS growth of 22.5% this year, significantly surpassing the industry average of 11.9% [5] Group 2: Financial Metrics - CSW Industrials exhibits a year-over-year cash flow growth of 11.2%, outperforming the industry average of -1.7% [6] - The company's annualized cash flow growth rate over the past 3-5 years stands at 20.9%, compared to the industry average of 2.4% [7] Group 3: Earnings Estimates - The current-year earnings estimates for CSW Industrials have been revised upward, with the Zacks Consensus Estimate increasing by 4.5% over the past month [9] - CSW Industrials holds a Zacks Rank of 2 and a Growth Score of B, indicating its potential as a solid choice for growth investors [11]

Core Viewpoint - CSW Industrials (CSWI) is experiencing significant selling pressure, with a 10.5% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analysts predicting better earnings than previously estimated [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 indicating oversold conditions [2] - CSWI's current RSI reading is 26.89, suggesting that heavy selling may be exhausting, indicating a potential bounce back towards equilibrium in supply and demand [5] Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts to raise earnings estimates for CSWI, with a 4.5% increase in the consensus EPS estimate over the last 30 days, typically leading to price appreciation [6] - CSWI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [7]

Financial Data and Key Metrics Changes - The company reported record fiscal third quarter revenue of $194 million, an increase of $19 million or 11% compared to the prior year [6][12] - Adjusted EBITDA for the quarter was $42 million, representing a 14% increase year-over-year [13] - Adjusted earnings per diluted share reached $1.48, a 49% increase from $1.07 in the prior year [14] Business Segment Performance - The Contractor Solutions segment generated $132 million in revenue, accounting for 67% of total revenue, with a total growth of 14.5% year-over-year [15] - The Specialized Reliability segment saw a 3% increase in revenue to $34.6 million, with EBITDA growing 26% to $6.6 million [17][18] - The Engineered Building Solutions segment's revenue increased by 3% to $28.8 million, with a stable EBITDA margin of 14.2% [19][21] Market Data and Key Metrics Changes - Growth was reported in HVACR, electrical, and plumbing end markets, while a decline was noted in architecturally specified building products [16] - The company maintained a book-to-bill ratio of 1:1 over the trailing eight quarters, indicating stable demand [20] Company Strategy and Development Direction - The company is focused on sustainable growth and plans to pursue accretive acquisitions to enhance its product offerings and market share [28][57] - The acquisition of PF WaterWorks is expected to expand the company's distribution network and product offerings in the professional trade [29][72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macro environment, expecting normal growth despite higher interest rates and geopolitical uncertainties [88] - The company anticipates mid-to-high single-digit organic growth over the cycle, supported by recent acquisitions [50][86] Other Important Information - The company ended the quarter with $214 million in cash and reported cash flow from operations of $12 million, down from $47 million in the same quarter last year [22][23] - The effective tax rate for the quarter was 13.8% on a GAAP basis [25] Q&A Session Summary Question: Impact of freight on margins and gross profit - Management acknowledged freight as a headwind, with a significant impact on margins due to peak freight rates from previous months [34][36] Question: Organic growth components - Organic growth was reported at 1.8%, with management indicating that both volume and pricing contributed to this figure [49][50] Question: Acquisition pipeline and opportunities - Management expressed optimism about the acquisition pipeline, indicating opportunities for both small and larger acquisitions [56][58] Question: Market share gains and opportunities - Management highlighted market share gains as a key part of their organic growth strategy, particularly in over-indexed markets [67][68] Question: Overall macro environment and its impact - Management remains favorably inclined towards the macro environment, expecting normal growth despite challenges [81][88]

Investor Presentation January 2025 Fiscal 2025 Third Quarter Results This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 relating to, among other things, the business, financial condition and results of operations of CSW Industrials, Inc. ("CSWI" or the "Company"). Any statements preceded or followed by or that include the words "believe," "expect," "intend," "plan," "should" or words, phrases or similar expressions or the negative ...