CSW CSW Industrials, Inc.
Price Chart
Executive Summary
CSW Industrials reported fiscal Q4 2026 GAAP EPS of $1.22, a 41.1% decline YoY and a 47.9% miss vs the $2.34 consensus, driven by a $15.6M non-cash impairment, higher interest expense, and acquisition-related costs. Revenue rose 34.0% to a record $309.0M, beating the $299.0M consensus, but organic growth was just 2.8% and GAAP operating income fell 12.2%. Adjusted EPS of $3.14 (+21.1% YoY) and record adjusted EBITDA of $82.9M (+38.8%) highlight underlying operational strength, but the GAAP miss and elevated leverage (2.55x net debt/EBITDA) will weigh on sentiment.
Key Financial Metrics
Actionable Insight
The GAAP EPS miss and negative free cash flow will pressure the stock near-term, but the record adjusted EBITDA and revenue beat provide a floor. Watch for the conference call for any fiscal 2027 guidance — if management signals margin recovery and deleveraging, the selloff may be shallow. The 2.55x leverage leaves limited room for further large M&A without equity issuance.
Key Facts
- GAAP EPS of $1.22 missed consensus of $2.34 by 47.9% and declined 41.1% YoY from $2.08
- Revenue of $309.0M beat consensus of $299.0M and grew 34.0% YoY, driven by $72.0M in inorganic growth
- Organic revenue growth was just 2.8%, with Contractor Solutions organic growth of 2.6%
- GAAP net income fell 42.4% to $20.2M due to a $15.6M impairment in Engineered Building Solutions and higher interest expense
- Adjusted EPS of $3.14 rose 21.1% YoY, and adjusted EBITDA hit a record $82.9M (+38.8%)
- Net debt stood at $842.7M with a leverage ratio of 2.55x, within the 1-3x target range
- Operating cash flow was negative $1.7M in Q4 vs positive $27.3M a year ago, driven by working capital deployment
- The company repurchased $127.5M in shares and paid $18.0M in dividends during fiscal 2026
- Management provided a cautiously optimistic outlook for fiscal 2027 but did not issue specific quantitative guidance
Financial Impact
GAAP EPS miss of $1.12 per share vs consensus; revenue beat of $10M; adjusted EBITDA record of $82.9M
Risk Factors
- GAAP EPS miss of 47.9% vs consensus may trigger a sharp selloff
- Negative free cash flow of -$6.8M in Q4 vs +$22.8M a year ago signals working capital strain
- Elevated leverage at 2.55x limits financial flexibility for additional acquisitions
- Organic revenue growth of just 2.8% suggests end-market headwinds despite acquisition-driven top-line growth
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3300913 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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May 27, 2026
10d ago
|
144
| $289.18 $271.63 | ▼ −6.07% | ▼ −7.28% | $266.37 (−7.89%) |
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May 26, 2026
11d ago
|
8-K
| — | awaiting T+5 | — | — |
|
May 26, 2026
11d ago
|
Press Release
| $279.59 $268.29 | ▲ +4.04% | ▲ +5.13% | $266.37 (+4.73%) |
|
Apr 15, 2026
7w ago
|
144
| $274.27 $295.40 | ▲ +7.70% | ▲ +6.72% | $266.37 (−2.88%) |
|
Apr 2, 2026
9w ago
|
Press Release
| $262.94 $290.25 | ▲ +10.38% | ▲ +6.76% | $266.37 (+1.30%) |
US Market Status
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