Creating a Premier Energy and Industrial Solutions Provider June 26th, 2025 Disclaimers Forward-Looking Statements This presentation includes "forward-looking statements" as defined under the federal securities laws. All statements other than statements of historical fact included or incorporated by reference in this presentation, including, among other things, statements regarding the proposed business combination transaction between DNOW Inc. ("DNOW") and MRC Global Inc. ("MRC"), future events, plans and ...

Financial Data and Key Metrics Changes - The company's first quarter consolidated revenues were $36.8 million, a 2% decrease year-over-year, but a nearly 10% increase sequentially due to stronger demand for wind repowering [10] - Adjusted EBITDA margin was 6.4%, primarily affected by low capacity utilization and a lower margin product mix across all segments [10] - First quarter orders totaled $30.5 million, a 5% increase compared to the same period last year [11] Business Line Data and Key Metrics Changes - Heavy Fabrication segment revenue was $25 million, up 15% year-over-year, driven by increased demand for wind tower adapters [8] - Gearing revenue was $6 million, down 28% year-over-year due to softness in the oil and gas gearing market, partially offset by strength in wind and industrial sectors [8] - Industrial Solutions revenue was $5.6 million, down 29% year-over-year, primarily due to timing issues with aftermarket shipments in the natural gas turbine market [9] Market Data and Key Metrics Changes - Orders in the Heavy Fabrication business increased 10% year-over-year, reflecting strong demand for wind repowering adapters [5] - Industrial Solutions segment orders surpassed $10 million, setting a new record, with a backlog of nearly $23 million at the end of the first quarter [14] - Gearing orders were down approximately $2.5 million year-over-year but showed sequential growth, indicating a potential recovery in the market [12] Company Strategy and Development Direction - The company is focusing on expanding its product mix within higher margin adjacent markets and investing in equipment technology to improve process capabilities and profitability [6][7] - There is a strategic shift towards stable recurring project revenue streams across diverse end markets, particularly in power generation and natural gas turbines [18] - The company is also evaluating export opportunities and expanding its service and commercial teams for its Clean Fuels PRS line [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the domestic onshore wind tower activity continuing at its current rate through 2026, supported by sustained demand for repowering adapters [17] - The company anticipates full-year revenue to be in the range of $140 million to $160 million, with adjusted EBITDA between $13 million and $15 million [16] - Management noted that supply chain issues experienced in Q1 are expected to be temporary, with improvements anticipated in subsequent quarters [14] Other Important Information - The company ended the first quarter with approximately $23 million in cash and availability on its credit facility, reflecting a return to normal operating levels [15] - A significant inventory build occurred in Q1 as the company prepared for a new tower run-in and transitioned to a new tower design [15] Q&A Session Summary Question: Can you discuss the heavy fabrications segment and the repowering opportunity? - Management noted strong demand for repowering adapters and expects revenue to increase in the heavy fabrications segment through 2025, particularly in Manitowoc [25][27] Question: How are tariffs affecting your cost structure? - Management indicated that while some components are sourced overseas, the impact of tariffs is minor due to proactive supply chain adjustments [29][30] Question: What is the outlook for the gearing market given the drop in oil prices? - Management acknowledged a lull in oil and gas gearing but noted stronger orders in power generation, indicating potential growth opportunities despite low oil prices [32][33] Question: Is the drop in Industrial Solutions revenue solely due to supply chain issues? - Management confirmed that the revenue drop was primarily due to supply chain delays, which are expected to be resolved [39][40] Question: What are the revenue expectations for the PRS product line in 2026? - Management anticipates that the PRS product line could contribute between $15 million and $20 million, representing about 10% of total revenue [46][48]

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].