CSW Industrials reported record results for its fiscal 2027 second quarter, with revenue growth driven by acquisitions and organic gains. The company also generated higher earnings and cash flow, used strong cash generation to pay down debt, and maintained its outlook for the rest of the fiscal year.
- Second-quarter revenue rose 31% to a record $361 million from a year earlier. The Contractor Solutions segment delivered 13% organic revenue growth; acquisitions also contributed to the increase.
- Net income attributable to CSW increased 16% to $47 million. Earnings per diluted share rose 20% to $2.90.
- Adjusted earnings per share reached a second-quarter record of $3.66, up 24% from $2.96. The adjusted figure excludes amortization of acquisition-related intangible assets and nonrecurring expenses.
- Adjusted EBITDA rose 33% to a second-quarter record $97 million. Cash flow from operations increased 54% to a record $95 million.
- CSW repaid $91 million of debt during the quarter, ending the period with net debt of $734 million. Its net leverage ratio was 2.10 times EBITDA, within the company’s stated target range of 1 to 3 times and lower than at the end of the first quarter.
- For the first half of fiscal 2027, revenue increased 32% to a record $712 million, reflecting acquisitions made over the prior 12 months as well as organic growth. Contractor Solutions’ organic revenue growth was 9%.
- First-half diluted earnings per share rose 23% to a record $5.94, while adjusted earnings per share increased 29% to $7.50. Net income attributable to CSW was up 19% to $97 million, and adjusted EBITDA increased 40% to a record $198 million.
- First-half operating cash flow reached a record $171 million, up 40%. CSW repaid $105 million of debt since fiscal year-end and returned $39 million to shareholders: $29 million through share repurchases and $10 million in dividends.
- Chief Executive Joseph B. Armes said the outlook for the remainder of fiscal 2027 was unchanged. The company expects organic revenue growth to remain above the markets it serves, while acknowledging potential short-term margin headwinds. He also said recent acquisitions have broadened the product portfolio and strengthened the company’s growth trajectory.
What changes for investors: CSW’s strong operating cash flow is supporting both debt reduction and shareholder returns. The quarter-end leverage ratio remained within the company’s target range, while acquisitions and organic growth both contributed to higher revenue.