Earnings Releases·Oct 29, 2026, 6:48 AM ET

CSW Industrials — Fiscal 2027 Second Quarter Earnings Summary

Total revenue surged 31% to a record $361.4 million, driven by $56.3 million in inorganic growth from acquisitions and $28.2 million in organic growth, while net income rose 16% to $47.3 million and adjusted EPS increased 24% to a record $3.66.
Adjusted EBITDA reached a record $96.7 million (up 33%), and free cash flow grew 56.5% to $91.9 million, though gross margin contracted 100 basis points to 42.0% due to freight and raw material cost headwinds.
Management maintains an optimistic outlook for fiscal 2027, expecting sustained organic revenue growth and long-term adjusted EBITDA growth exceeding revenue growth despite anticipated short-term margin pressures.
The company returned $39 million to shareholders in the first half of fiscal 2027 via $29 million in share repurchases and $10 million in dividends, while net debt decreased by $91 million during the quarter to a leverage ratio of 2.10x.
Strategic portfolio adjustments included the $50.5 million MARS Parts acquisition boosting Contractor Solutions revenue by 37.1%, and the Greco Plan exit which reduced Engineered Building Solutions revenue by 11.1% but improved non-Greco margins to 19.3%.