The strong beat on revenue and cash flow, combined with debt paydown and maintained guidance for organic growth above market, suggests continued momentum. Monitor the next quarter for margin trends given management's mention of short-term freight and raw material cost headwinds.
Price Chart
Executive Summary
CSW Industrials reported fiscal Q2 2027 adjusted EPS of $3.66, beating the $3.63 consensus, and revenue of $361M, above the $351M consensus. Revenue grew 31% YoY, driven by acquisitions and 10.2% organic growth, while adjusted EBITDA margin expanded 50bps to 26.8%. The company generated record operating cash flow of $95M and paid down $91M in debt, with net leverage improving to 2.10x.
Key Financial Metrics
Key Facts
- Adjusted EPS of $3.66 beat consensus of $3.63 by 0.8%
- Revenue of $361M exceeded consensus of $351M by 2.8%
- Total revenue grew 30.5% YoY, with 10.2% organic growth and 20.3% from acquisitions
- Adjusted EBITDA rose 32.6% to a record $96.7M, with margin expanding 50bps to 26.8%
- Operating cash flow was a record $95.4M, up 54.4% YoY
- Net debt reduced by $91M during the quarter, leverage ratio at 2.10x within target 1-3x range
- Contractor Solutions segment organic revenue grew 12.9%; Specialized Reliability Solutions organic revenue grew 12.7%
- Engineered Building Solutions revenue declined 11.1% due to Greco exit plan
Financial Impact
Revenue beat consensus by $10M; adjusted EPS beat by $0.03; record operating cash flow of $95.4M
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Contractor Solutions | $285.8M | +37.1% |
| Specialized Reliability Solutions | $49.5M | +27.6% |
| Engineered Building Solutions | $28.4M | -11.1% |
Risk Factors
- Gross margin contracted 100bps to 42.0% due to higher ocean freight and raw material costs
- Interest expense rose to $12.5M from $1.3M due to acquisition-related debt
- Engineered Building Solutions segment revenue declined 11.1% due to Greco exit plan
- Forward-looking statements about sustained organic growth and margin expansion are not guaranteed
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3391062 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | No price | awaiting T+5 | awaiting T+5 | No price |
Oct 29, 2026 3d ago | Press Release | $291.42 | awaiting T+5 | awaiting T+5 | $286.16 (−1.80%) |
Oct 19, 2026 13d ago | Press Release | $287.30 | awaiting T+5 | awaiting T+5 | $286.16 (−0.40%) |
Oct 15, 2026 17d ago | 144 | $291.14 $294.69 | ▲ +1.22% | ▲ +2.23% | $286.16 (−1.71%) |
Sep 15, 2026 6w ago | 144 | $289.52 $287.68 | ▼ −0.64% | ▼ −1.45% | $286.16 (−1.16%) |
Aug 17, 2026 10w ago | Insider Cluster | $331.99 $322.70 | ▼ −2.80% | ▼ −2.60% | $286.16 (−13.80%) |
Aug 14, 2026 11w ago | 144 | $342.71 $327.56 | ▼ −4.42% | ▼ −3.23% | $286.16 (−16.50%) |
Aug 11, 2026 11w ago | Insider Cluster | $347.01 $328.21 | ▼ −5.42% | ▼ −4.97% | $286.16 (−17.54%) |
Jul 30, 2026 13w ago | 8-K | No price | awaiting T+5 | awaiting T+5 | No price |
Jul 30, 2026 13w ago | Press Release | $313.40 $347.72 | ▲ +10.95% | ▲ +7.33% | $286.16 (−8.69%) |
US Market Status
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