CSW Industrials, Inc. reported record results for the fiscal 2026 second quarter, with total revenue increasing by 21.5% to $277.0 million. Net income was $40.7 million, up by 12.8%, and adjusted EPS grew by 15.2% to $2.96. The company paid down $35.0 million of debt, announced a $650 million acquisition, and expects to deliver record results for the full fiscal year.
In the first half of fiscal 2026, total revenue increased by 19.0% to $540.6 million. Net income attributable to CSW grew by 9.3% to $81.6 million, with adjusted EPS increasing by 8.6% to $5.81. The company invested $325.5 million in acquisitions and returned $32.1 million to shareholders through share repurchases and dividends.
CSW’s Chairman, President, and CEO, Joseph B. Armes, highlighted the record revenue, net income, and adjusted EPS for the fiscal second quarter and first half. He praised the outstanding performance of recent acquisitions, driving growth in the HVAC/R and plumbing markets. The company expects record results for the full fiscal year in revenue, adjusted EBITDA, adjusted EPS, and operating cash flow.
In the fiscal second quarter, CSW’s revenue was $277.0 million, a 21.5% increase over the prior year period. Gross profit grew by 14.7%, while operating income increased to $56.8 million. Adjusted EBITDA reached a record $72.9 million, up by 19.9%. The company reported net income of $40.7 million, with adjusted EPS of $2.96 per diluted share.
CSW Industrials announced a definitive agreement to acquire Motors & Armatures Parts for $650 million, expected to close in November 2025. The acquisition, funded by a new Term Loan A and borrowings, will be the company’s largest to date. CSW has deployed over $1.0 billion in capital toward acquisitions during fiscal 2026.
The Contractor Solutions segment led revenue growth, with a 31.2% increase in the fiscal second quarter. Specialized Reliability Solutions had flat revenue, and Engineered Building Solutions saw a 2.3% decrease. Adjusted EBITDA margins for the segments ranged from 16.5% to 32.4%.
CSW utilizes adjusted EBITDA as a key financial measure, which grew to a record $72.9 million in the fiscal second quarter. Adjusted EBITDA margins contracted slightly to 26.3%, reflecting growth and operational efficiencies. The company’s adjusted free cash flow increased to $58.7 million, showing strong cash generation capabilities.
CSW’s effective tax rate for the fiscal second quarter was 26.4%, in line with the prior year period. The company’s GAAP effective tax rate for the fiscal third quarter may be lower due to a potential $6.3 million release of uncertain tax position reserves. Adjusted financial measures are used to assess core operating performance and enhance understanding of the business’s performance.
Read more at GlobeNewswire: CSW Industrials Reports Record Results for Fiscal 2026