CSW Industrials Reports Record Fiscal 2025 Third Quarter Results

Core Insights - CSW Industrials, Inc. reported record results for the fiscal 2025 third quarter, driven by strategic acquisitions and organic growth [1][3]. Fiscal 2025 Third Quarter Highlights - Revenue for the fiscal third quarter was $193.6 million, a 10.7% increase from the prior year, with $15.3 million (8.7%) from inorganic growth and $3.4 million (1.9%) from organic growth [4][7]. - Gross profit increased to $80.1 million, an 8.3% growth, while gross margin contracted to 41.4% due to increased freight expenses [5]. - Operating income was $29.6 million, with a margin of 15.3%, slightly down from 15.8% in the prior year [7][8]. - Net income attributable to CSWI reached $26.9 million, a 48.9% increase compared to $16.7 million in the prior year [7][11]. - Adjusted EBITDA grew 14.2% to $42.0 million, with a margin expansion to 21.7% [12]. Fiscal 2025 Year-to-Date Highlights - Year-to-date revenue was $647.8 million, an 11.3% increase, with $34.1 million (5.9%) from inorganic growth and $31.7 million (5.5%) from organic growth [20]. - Gross profit for the year-to-date period was $291.4 million, a 13.3% increase, with a gross margin of 45.0% [21]. - Operating income improved to $136.2 million, with an operating margin of 21.0% [23]. - Net income attributable to CSWI for the year-to-date period was $101.6 million, a 28.6% increase from $77.4 million [26]. Segment Results - Contractor Solutions segment revenue was $132.2 million, a 14.5% increase, primarily from recent acquisitions [16]. - Specialized Reliability Solutions segment revenue grew to $34.6 million, a 2.5% increase, with operating income improving to $5.2 million [17]. - Engineered Building Solutions segment revenue was $28.8 million, a 3.4% increase, with operating income slightly improving to $3.6 million [19]. Cash Flow and Shareholder Returns - The company invested $84.5 million in acquisitions and returned $24.3 million to shareholders through dividends and share repurchases [7][28]. - Cash flows from operations for the year-to-date period were $141.1 million, slightly down from $141.9 million in the prior year [27]. Tax and Interest - The effective tax rate for the fiscal third quarter was 13.8%, down from 43.2% in the prior year [15]. - Interest income was $2.0 million, compared to interest expense of $2.8 million in the prior year, due to no outstanding debt during the quarter [9].