The strong beat and record cash flows validate the acquisition-led growth strategy. Watch for continued organic momentum in Contractor Solutions and further deleveraging. The stock may gap up on the beat, but given the low historical win rate on CSW calls, consider taking profits on any sharp rally above $270.
Price Chart
Executive Summary
CSW Industrials reported a strong beat for fiscal Q1 2027, with record revenue of $350.6M (+33% YoY) and adjusted EPS of $3.84 (+35% YoY), exceeding consensus estimates by 10.9%. Adjusted EBITDA hit a record $101.6M (+48% YoY) with margin expansion of 290 bps to 29.0%, while operating cash flow also reached a record $75.6M. The results confirm that the company's acquisition strategy is driving profitable growth and deleveraging (net leverage down to 2.37x).
Key Financial Metrics
Key Facts
- Revenue $350.6M vs consensus $342.8M (+2.3% beat)
- Adjusted EPS $3.84 vs consensus $3.46 (+10.9% beat)
- Adjusted EBITDA record $101.6M, +47.8% YoY
- Operating cash flow record $75.6M, +25% YoY
- Gross margin expanded 110 bps to 44.9%
- Net leverage improved to 2.37x from 2.55x at year-end
- Contractor Solutions organic growth +5.9%, SRS organic +16.5%
- Share repurchases of $36.3M in the quarter
Financial Impact
Revenue beat by $7.8M, EPS beat by $0.38, adjusted EBITDA up $32.9M YoY
Risk Factors
- Net debt of $815M remains elevated at 2.37x EBITDA, limiting financial flexibility
- Integration risks from recent large acquisitions (MARS Parts, Aspen Manufacturing)
- Tariff and material cost headwinds could pressure margins in coming quarters
- Engineered Building Solutions segment revenue declined 9.3% YoY
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001624794-26-000048 |
| Document: cswi-20260730.htm | 0001624794-26-000048 |
| Document: 0001624794-26-000048-index-headers.html | 0001624794-26-000048 |
| Document: 0001624794-26-000048-index.html | 0001624794-26-000048 |
| Document: 0001624794-26-000048.txt | 0001624794-26-000048 |
| 8-K Data (Synthetic) | 0001624794-26-000048 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 16d ago | 144 | $289.52 $287.68 | ▼ −0.64% | ▼ −1.45% | $304.59 (+5.21%) |
Aug 17, 2026 6w ago | Insider Cluster | $342.71 $327.56 | ▼ −4.42% | ▼ −3.23% | $304.59 (−11.12%) |
Aug 14, 2026 6w ago | 144 | $342.71 $327.56 | ▼ −4.42% | ▼ −3.23% | $304.59 (−11.12%) |
Aug 11, 2026 7w ago | Insider Cluster | $347.01 $328.21 | ▼ −5.42% | ▼ −4.97% | $304.59 (−12.22%) |
Jul 30, 2026 9w ago | 8-K | $313.40 $347.72 | ▲ +10.95% | ▲ +7.33% | $304.59 (−2.81%) |
Jul 30, 2026 9w ago | Press Release | $313.40 $347.72 | ▲ +10.95% | ▲ +7.33% | $304.59 (−2.81%) |
Jul 17, 2026 11w ago | Press Release | $279.27 $290.29 | ▲ +3.95% | ▲ +4.63% | $304.59 (+9.07%) |
Jul 15, 2026 11w ago | 144 | $294.10 $282.29 | ▼ −4.02% | ▼ −3.04% | $304.59 (+3.57%) |
Jun 15, 2026 15w ago | 144 | $275.26 $268.76 | ▼ −2.36% | ▼ −0.13% | $304.59 (+10.66%) |
Jun 12, 2026 16w ago | Institutional Cluster | $272.07 $279.94 | ▲ +2.89% | ▲ +2.22% | $304.59 (+11.95%) |
US Market Status
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