CSW Industrials Q1 revenue beats on acquisitions, pricing gains

Overview

• US industrial products maker's fiscal Q1 revenue rose 33%, beating analyst expectations

• Adjusted EPS for fiscal Q1 rose 35% to a record $3.84

• Company cites acquisitions and pricing actions as key drivers of growth

Outlook

• CSW Industrials expects continued organic revenue, EBITDA, and cash flow growth in fiscal 2027

• Company says disciplined execution and cost control support its outlook for growth

• CSW Industrials notes softness in residential markets but sees stronger margins in continuing businesses

Result Drivers

• ACQUISITIONS - Co said revenue growth was primarily driven by acquisitions completed over the last twelve months

• PRICING ACTIONS - Co attributed gross margin and segment margin improvements to pricing actions, partially offset by higher material and freight costs

• VOLUME GROWTH - Organic revenue growth in Contractor Solutions and Specialized Reliability Solutions segments was supported by increased sales volumes

Company press release: ID:nGNX1rFGt0

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 $315.00, about 15.5% above its July 29 closing price of $272.61

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads

• July 28 - Illinois Tool Works raises annual profit forecast on strong industrial demand

• July 29 - UFP Industries Q2 sales beat estimates on acquisitions, new products sales

• July 29 - Home improvement firm Masco misses quarterly sales estimates as demand remains weak

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)