CSW Industrials reported record revenue and adjusted earnings for the second quarter of fiscal 2027, with growth coming from acquisitions and higher organic sales. The Dallas-based industrial products company also generated record operating cash flow and used a portion of it to reduce debt.
For the six months ended Sept. 30, revenue and adjusted EBITDA reached records. CSW said its outlook for the rest of fiscal 2027 is unchanged, with expectations for organic revenue growth to outpace the markets it serves.
Second-quarter results
Compared with the same quarter a year earlier:
- Revenue rose 31% to a record $361 million, driven by acquisitions and organic growth.
- Contractor Solutions, one of the company’s business segments, posted 13% organic revenue growth.
- Net income attributable to CSW increased 16% to $47 million.
- Diluted earnings per share climbed 20% to $2.90. Adjusted EPS, which excludes acquisition-related intangible-asset amortization and nonrecurring expenses, rose 24% to a second-quarter record of $3.66.
- Adjusted EBITDA increased 33% to a quarterly record of $97 million.
- Cash from operations reached a record $95 million, up 54%.
- Net debt was $734 million at quarter-end after a $91 million debt repayment during the quarter. Net debt to EBITDA was 2.10 times, within the company’s stated target range of 1 to 3 times and improved from the end of the first quarter.
First-half results
Compared with the first half of fiscal 2026:
- Revenue increased 32% to a record $712 million, reflecting acquisitions made over the previous 12 months as well as organic growth. Contractor Solutions’ organic revenue grew 9%.
- Net income attributable to CSW rose 19% to $97 million.
- Diluted EPS increased 23% to a record $5.94. Adjusted EPS rose 29% to $7.50.
- Adjusted EBITDA grew 40% to a record $198 million, while operating cash flow increased 40% to a record $171 million.
- CSW repaid $105 million of debt from fiscal year-end through the first half, citing strong operating cash flow.
- The company returned $39 million to shareholders during the half: $29 million through share repurchases and $10 million in dividends.
What it means: CSW’s results show strong reported growth alongside double-digit organic growth in Contractor Solutions. Robust cash generation supported both debt reduction and shareholder returns; the company said its leverage remains within its target range. Its stated outlook calls for continued organic growth above the markets it serves, though it also indicated there may be short-term margin headwinds.