Revenue Growth - Net revenues for the three months ended December 31, 2024 increased by $18.7 million, or 10.7%, compared to the same period in 2023, primarily due to acquisitions[109]. - Net revenues for the nine months ended December 31, 2024 increased by $65.8 million, or 11.3%, with $34.1 million attributed to acquisitions[110]. - For the three months ended December 31, 2024, the company reported net revenues of $132.2 million, an increase of $16.7 million or 14.5% compared to the same period in 2023[130]. - The Contractor Solutions segment reported net revenues of $451.4 million for the nine months ended December 31, 2024, an increase of $56.1 million or 14.2% compared to the same period in 2023[132]. - The Engineered Building Solutions segment achieved a 9.1% increase in net revenues for the nine months ended December 31, 2024, totaling $92.4 million[143]. Profitability - Gross profit for the three months ended December 31, 2024 increased by $6.1 million, or 8.3%, while the gross profit margin decreased to 41.4% from 42.3%[111]. - Gross profit for the nine months ended December 31, 2024 increased by $34.3 million, or 13.3%, with the gross profit margin improving to 45.0% from 44.2%[113]. - Operating income for the three months ended December 31, 2024 increased by $2.0 million, or 7.3%, with an operating margin of 15.3%[116]. - Operating income for the nine months ended December 31, 2024 increased by $21.4 million, or 18.7%, with an operating margin of 21.0%[117]. - The Specialized Reliability Solutions segment's operating income for the three months ended December 31, 2024 increased by 40.1% to $5.2 million compared to the same period in 2023[138]. Cash Flow and Capital Management - Cash provided by operating activities for the nine months ended December 31, 2024 was $141.1 million, slightly down from $141.9 million in the same period of 2023[148]. - The company’s cash balance at December 31, 2024 was $213.8 million, significantly up from $22.2 million at March 31, 2024[147]. - Capital expenditures during the nine months ended December 31, 2024, were $11.7 million, focused on capacity expansion and new product introductions[150]. - Cash flows provided by financing activities during the nine months ended December 31, 2024, were $149.9 million, compared to $(119.5) million in 2023[151]. - Net repayments on the Revolving Credit Facility were $166.0 million during the nine months ended December 31, 2024[156]. Tax and Interest - The effective tax rate for the three months ended December 31, 2024 was 13.8%, with a provision for income taxes of $4.3 million on earnings of $31.3 million[121]. - The effective tax rate for the three months ended December 31, 2023 was 43.2%, while for the nine months ended December 31, 2023, it was 28.4%[125]. - The company expects $6.2 million of reserves for unrecognized tax positions (UTPs) to either be settled or expire within the next 12 months[126]. - Net interest income for the three months ended December 31, 2024 improved by $4.7 million compared to the same period in 2023, resulting in net interest income of $2.0 million[118]. Acquisitions - The company remains focused on identifying additional acquisition opportunities in core end markets to drive organic and inorganic growth[104]. - Acquired PF WaterWorks for an estimated purchase price of $43.2 million, including $40.0 million in cash consideration[150]. - Acquired PSP for an estimated purchase price of $47.1 million, including $32.5 million in cash consideration at closing[150]. Shareholder Returns - The capital allocation strategy prioritizes investments in organic growth, strategic acquisitions, and returning cash to shareholders through share repurchase and dividend programs[106]. - Share repurchases amounted to $13.7 million during the nine months ended December 31, 2024, compared to $5.8 million in 2023[156]. - Received proceeds of $347.4 million from a follow-on equity offering in September 2024[156]. Working Capital - Working capital used cash for the nine months ended December 31, 2024, due to higher inventories of $42.5 million and higher prepaid expenses of $17.2 million[150]. Foreign Currency Impact - Foreign currency transaction net gain (loss) was $0.1 million for the nine months ended December 31, 2024[163]. - A 10% change in foreign currency exchange rates would have impacted net earnings by approximately 3%[164].

Core Points - CSW Industrials, Inc. will release its earnings results for the fiscal third quarter ended December 31, 2024 on January 30, 2025, before market opens [1] - A conference call to discuss the results will be held on the same day at 10:00 am Eastern Time [1] - The company operates in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions [4] Earnings Call Details - Participants can access the call at 1-877-407-0784, with international callers using 1-201-689-8560 [2] - A live webcast will be available at the company's website [2] - A telephone replay will be available until February 13, 2025, with access codes provided for participants [3] Company Overview - CSW Industrials is a diversified industrial growth company providing niche, value-added products known for performance and reliability [4] - The primary end markets served include 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 $0.24 per share, reflecting the company's commitment to returning value to shareholders [1][2]. Dividend Details - The declared dividend amount is $0.24 per share [2]. - The record date for shareholders is January 31, 2025 [2]. - The dividend will be payable on February 14, 2025 [2]. Company Overview - CSW Industrials is a diversified industrial growth company operating in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions [2]. - The company provides niche, value-added products characterized by performance and reliability [2]. - Key end markets served include HVAC/R, plumbing, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transportation [2].

Core Insights - Flair has received a strategic investment from RectorSeal, aimed at accelerating growth and expanding its hvacOS™ smart heating and cooling platform [1][2][5] - The investment will enhance Flair's position in the home HVAC control market and support its mission of energy reduction while improving comfort [2][4] Company Overview - Flair, founded in 2014, specializes in smart home technology that allows homeowners to manage indoor climate and energy consumption effectively [5] - RectorSeal, a subsidiary of CSW Industrials, Inc., provides solutions for HVAC/R, plumbing, electrical, and construction markets [6] Strategic Collaboration - The partnership with RectorSeal will provide Flair access to a vast distribution network and resources, facilitating the delivery of innovative solutions to HVAC challenges [4][5] - Both companies share a commitment to enhancing the HVAC/R industry and expanding the smart home HVAC control market [5]

Core Points - CSW Industrials, Inc. has authorized a new $200 million share repurchase program, replacing the previous $100 million program [1][2] - Since the initiation of the share repurchase program in 2017, the company has repurchased approximately 2.0 million shares for a total of $152 million [1] - The new program reflects the Board's confidence in the company's strong business model, future growth, and cash generation [2] - The company has returned over $200 million to shareholders through share repurchases and dividends since its spin-off in 2015 [2] Company Overview - CSW Industrials is a diversified industrial growth company operating in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions [3] - The company provides niche, value-added products characterized by performance and reliability [3] - Key end markets served include HVAC/R, plumbing, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transportation [3]

Investment Highlights Capital investment of $40 million for acquisition of PF Waterworks, LP, which offers innovative, eco-friendly drain management solutionsValuation represents approximately 9.5x PF Waterworks’ trailing twelve-months’ EBITDAExpected to be accretive to earnings per share in the first full year of ownership$695 million of cumulative acquisition capital investment since going public in October 2015 DALLAS, Nov. 07, 2024 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (Nasdaq: CSWI) today announced ...

Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $228 million, a 12% increase compared to the prior year period [6][15] - Cash flow from operations reached $67 million, representing a 49.5% growth over the prior year [9][24] - EBITDA for the quarter increased by 15% to a record $61 million, with an EBITDA margin improvement of 70 basis points to 26.7% [17][18] - Net income was $36 million or $2.26 per diluted share, a 20% increase from the prior year [18] Business Segment Data and Key Metrics Changes - The Contractor Solutions segment generated $159 million in revenue, accounting for 70% of consolidated revenue, with total growth of 13.5% [19] - The Specialized Reliability Solutions segment revenue increased by 5% to $38.5 million, with an EBITDA margin improvement to 18.4% [21] - The Engineered Building Solutions segment revenue rose by 12% to $32.7 million, with an EBITDA margin of 20% [22][23] Market Data and Key Metrics Changes - Growth was reported in HVAC/R, electrical, and plumbing end markets, driven by increased unit volumes and slight pricing increases [20] - The company was added to the S&P 600 Small Cap Index, reflecting its long-term growth and strength [9] Company Strategy and Development Direction - The company aims to continue pursuing strategic acquisitions that complement organic growth, with a focus on innovative companies and products [34] - The acquisition of PSP Products is expected to enhance the Contractor Solutions segment's offerings in the electrical end market [35][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong margins and pricing power, with no unusual factors affecting the first half of the year [40][41] - The company anticipates continued growth in revenue, EBITDA, and EPS for the full year, alongside strong cash flow [31] Other Important Information - The company ended the quarter with $273 million in cash and no outstanding debt, enhancing its ability to act on business opportunities [11][29] - Free cash flow was reported at $61.3 million, a 43% increase from the previous year [26] Q&A Session Summary Question: Sustainability of strength seen in the first half of the year - Management indicated that there are no unusual factors affecting performance and that demand remains strong across the board [38][40] Question: Expectations for cash and M&A pipeline - The company raised capital as a war chest for future opportunities, with a robust pipeline of potential acquisitions [43][45] Question: Details on PSP acquisition - The PSP acquisition is expected to enhance the company's presence in the electrical market, with smooth integration due to prior distribution relationships [46][56] Question: Impact of higher shipping rates on COGS - Higher ocean freight costs are expected to impact COGS in the second half, but the company has pricing power to offset these costs [59][61] Question: Change in sentiment among Contractor Solutions customers - Management noted no significant concerns regarding the HVAC/R market, with a positive outlook for the future [64]

CSW Industrials (CSWI) came out with quarterly earnings of $2.26 per share, beating the Zacks Consensus Estimate of $2.19 per share. This compares to earnings of $1.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.20%. A quarter ago, it was expected that this industrial products and coatings maker would post earnings of $2.19 per share when it actually produced earnings of $2.47, delivering a surprise of 12.79%.Over the la ...

CSW Industrials Reports Record Fiscal 2025 Second Quarter Results DALLAS, October 30, 2024 (GLOBE NEWSWIRE) - CSW Industrials, Inc. (Nasdaq: CSWI or the "Company") today reported record results for the fiscal 2025 second quarter period ended September 30, 2024. Fiscal 2025 Second Quarter Highlights (comparisons to fiscal 2024 second quarter) • Total revenue increased 11.9% to an all-time quarterly high of $227.9 million, driven by organic growth of 6.2% and inorganic growth of 5.7% from the recent acquisiti ...

DALLAS, Oct. 30, 2024 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (Nasdaq: CSWI or the "Company") today reported record results for the fiscal 2025 second quarter period ended September 30, 2024. Fiscal 2025 Second Quarter Highlights (comparisons to fiscal 2024 second quarter) Total revenue increased 11.9% to an all-time quarterly high of $227.9 million, driven by organic growth of 6.2% and inorganic growth of 5.7% from the recent acquisitions of Dust Free and PSP Products Net income attributable to CSWI incr ...