CSW CSW INDUSTRIALS, INC.

MIXED Impact: 6/10 8-K
Horizon days Filed May 26, 2026 Processed 1d 8h ago SEC 0001624794-26-000030
8-K Item 2.02: Earnings release

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Executive Summary

CSW Industrials reported fiscal Q4 2026 revenue of $309.0M (+34.0% YoY), a record, driven by acquisitions and a return to organic growth in Contractor Solutions (+2.6%). However, GAAP EPS fell 41.1% to $1.22 due to a $15.6M non-cash impairment and higher interest expense. Adjusted EPS of $3.14 missed the $3.46 consensus by 9.3%, and operating cash flow turned negative (-$1.7M) in the quarter, signaling integration and working capital pressure despite record adjusted EBITDA.

Key Financial Metrics

Free Cash Flow
-$6.8M
Gross Margin
41%

Actionable Insight

The adjusted EPS miss and negative free cash flow in a record-revenue quarter raise concerns about acquisition integration costs and working capital absorption. Watch for commentary on the conference call regarding fiscal 2027 guidance, organic growth sustainability, and deleveraging plans. The return to organic growth in Contractor Solutions is a positive signal, but the Greco impairment and cash burn warrant caution.

Key Facts

  • Q4 revenue $309.0M (+34.0% YoY), a quarterly record, with $72.0M inorganic growth from acquisitions and $6.4M organic growth (+2.8%)
  • GAAP diluted EPS $1.22, down 41.1% from $2.08, driven by a $15.6M non-cash impairment in Engineered Building Solutions and higher interest expense
  • Adjusted EPS $3.14, up 21.1% YoY from $2.59, but missed consensus estimate of $3.46 by 9.3%
  • Adjusted EBITDA $82.9M (+38.8% YoY), a quarterly record, with margin expanding 90 bps to 26.8%
  • Contractor Solutions segment returned to positive organic growth (+2.6%) for the first time in fiscal 2026
  • Operating cash flow was -$1.7M in Q4 vs +$27.3M a year ago; free cash flow -$6.8M vs +$22.8M, due to working capital deployment
  • Net debt $842.7M, leverage ratio 2.55x, within the 1-3x target range
  • Full-year revenue crossed $1.1B (+23.3% YoY); adjusted EPS $10.38 (+6.9% YoY); adjusted EBITDA $269.6M (+18.3% YoY)
  • Company announced a $0.30/share quarterly dividend, the 29th consecutive regular dividend
  • Completed acquisition of Duckt-Strip in Q4; $1.0B deployed to acquisitions in fiscal 2026

Financial Impact

Revenue beat consensus by ~$309.0M vs $342.8M est (actual $33.8M below consensus); adjusted EPS miss of $0.32 (-9.3%) vs $3.46 consensus

revenueepsadjustedEpsadjustedEbitdaoperatingCashFlowfreeCashFlow

Risk Factors

  • Adjusted EPS missed consensus by 9.3%, which may pressure the stock near-term
  • Negative operating cash flow (-$1.7M) and free cash flow (-$6.8M) in Q4 signal working capital strain from rapid growth
  • GAAP EPS decline of 41.1% driven by impairment and interest expense; leverage at 2.55x limits financial flexibility
  • Organic revenue declined 2.1% for the full year; recovery in Contractor Solutions (+2.6% in Q4) is nascent
  • Engineered Building Solutions segment took a $15.6M impairment and is exiting the Greco business

Market Snapshot

Exchange
NYSE
Sector
Adhesives & Sealants
Analyst Consensus
55% bullish (11 analysts)

Documents Analyzed

This report is based on 6 SEC documents filed with EDGAR.

DocumentAccession Number
8-K Filing (Primary)0001624794-26-000030
Document: cswi-20260526.htm0001624794-26-000030
Document: 0001624794-26-000030-index-headers.html0001624794-26-000030
Document: 0001624794-26-000030-index.html0001624794-26-000030
Document: 0001624794-26-000030.txt0001624794-26-000030
8-K Data (Synthetic)0001624794-26-000030
5 reports for CSW
Performance horizon

Track record builds as more directional reports settle.

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Reports for CSW — sortable, filterable
Type Now
May 27, 2026
10d ago
144
NEUTRAL ★ 2/10
$289.18 $271.63▼ −6.07%▼ −7.28%$266.37 (−7.89%)
May 26, 2026
11d ago
8-K
MIXED ★ 6/10
awaiting T+5
May 26, 2026
11d ago
Press Release
BEARISH ★ 6/10
$279.59 $268.29▲ +4.04%▲ +5.13%$266.37 (+4.73%)
Apr 15, 2026
7w ago
144
NEUTRAL ★ 2/10
$274.27 $295.40▲ +7.70%▲ +6.72%$266.37 (−2.88%)
Apr 2, 2026
9w ago
Press Release
NEUTRAL ★ 3/10
$262.94 $290.25▲ +10.38%▲ +6.76%$266.37 (+1.30%)
Showing 5 of 5

US Market Status

Market Closed — Opens Mon (14h 48m)

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