CSW Industrials Q2 revenue beats on acquisitions boost
CSW•CSW Industrials’ fiscal second-quarter revenue rose 31% to $361.44 million, beating the $350.97 million analyst consensus. Adjusted EPS rose 24% to a record $3.66, while the company cited acquisitions and organic growth as drivers and higher material and freight costs as headwinds.
1. Revenue and earnings
CSW Industrials reported fiscal second-quarter revenue of $361.44 million, up 31% and above the $350.97 million analyst consensus. Adjusted EPS increased 24% to a record $3.66; reported EPS was $2.90, and net income was $47.89 million.
2. Growth drivers and costs
Recent acquisitions contributed $56.3 million to revenue growth, while organic revenue rose $28.2 million, led by Contractor Solutions and Specialized Reliability Solutions. Higher ocean and domestic freight expenses and rising raw-material costs reduced gross margin.
3. Outlook
The company expects organic revenue growth above market levels for the remainder of fiscal 2027, with short-term margin headwinds from recent cost increases. It expects long-term adjusted EBITDA growth to outpace revenue growth.
