CSW Industrials Reports 10.7% Revenue Growth to $193.6 Million in Latest Quarter

CSW Industrials, Inc. reported significant financial growth in its latest quarterly results, with net revenues for the three months ended December 31, 2024, reaching $193.6 million, a 10.7% increase from $175.0 million in the same period last year. For the nine-month period, revenues rose to $647.8 million, up 11.3% from $582.0 million. The company's net income for the quarter was $26.9 million, compared to $9.3 million in the prior year, while net income for the nine months increased to $102.4 million from $70.5 million. This resulted in earnings per share of $1.60 for the quarter and $6.32 for the nine months, reflecting substantial year-over-year growth.

The increase in revenue was largely attributed to recent acquisitions, including Dust Free, PSP Products, and PF WaterWorks, which collectively contributed approximately $15.3 million to quarterly revenues. Organic sales also saw a modest increase of 1.9% due to higher unit volumes across various end markets, particularly HVAC/R, plumbing, and electrical sectors. However, the company noted a decline in revenues from architecturally-specified building products, energy, and mining markets. Gross profit for the quarter was $80.1 million, with a gross profit margin of 41.4%, slightly down from 42.3% a year earlier, primarily due to increased freight costs.

In terms of strategic developments, CSW Industrials completed three significant acquisitions in the past year, enhancing its product offerings in the plumbing and HVAC/R markets. The acquisition of PF WaterWorks for $43.2 million, PSP Products for $47.1 million, and Dust Free for $34.2 million were all aimed at expanding the company's capabilities and market reach. The company has indicated that it remains focused on identifying additional acquisition opportunities to support its growth strategy.

Operationally, CSW Industrials reported a total employee headcount of 1,200 as of December 31, 2024, reflecting an increase in staffing to support its expanded operations. The company also reported a decrease in accounts receivable, which fell to $114.8 million from $142.7 million, indicating improved cash flow management. The company’s cash and cash equivalents surged to $213.8 million, up from $22.2 million at the end of the previous fiscal year, bolstered by a successful equity offering that raised $347.4 million.

Looking ahead, CSW Industrials expressed confidence in maintaining a strong balance sheet and continued access to capital for future growth initiatives. The company plans to prioritize investments in organic growth, strategic acquisitions, and shareholder returns through dividends and share repurchase programs. Management remains committed to driving long-term profitable growth while navigating market conditions and potential economic challenges.