Overview

• US industrial products maker's fiscal Q4 revenue rose 34%, beating analyst expectations

• Adjusted EPS for fiscal Q4 increased 21% after excluding non-cash impairment and nonrecurring expenses

• Net income and GAAP EPS declined due to higher interest and impairment charges

Outlook

• CSW Industrials expects meaningful growth in revenue, adjusted EBITDA, adjusted EPS and cash flows in fiscal 2027

• Company says it enters fiscal 2027 with a cautiously optimistic outlook for its primary end markets

• CSW Industrials expects growth to outpace the markets it serves in fiscal 2027

Result Drivers

• ACQUISITIONS - Revenue growth was driven mainly by acquisitions in Contractor Solutions and Specialized Reliability Solutions segments

• PRICING ACTIONS & FREIGHT - Pricing actions and lower freight costs partially offset margin pressures from acquisition-related dilution and higher material costs

• IMPAIRMENT & INTEREST EXPENSE - GAAP net income and EPS declined due to a non-cash impairment and higher interest expense

Company press release: ID:nGNX59KQ82

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for CSW Industrials Inc is $307.00, about 10.4% above its May 22 closing price of $278.00

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 23 three months ago

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