Csw Industrials, Inc. · NYSE:CSW
Csw Industrials — Q1 2025 Earnings Presentation
34 slides from Csw Industrials's earnings presentation, Jul 31, 2024
Slide 1: Investor Presentation First Quarter Results
July 2024 Fiscal 2025 Investor Presentation First Quarter Results
Slide 2: Forward Looking Statement; Non-GAAP Financial Information
Forward Looking Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 relating to, among other things, the business, financial condition and results of operations of CSW Industrials, Inc. (“CSWI” or the “Company”).
Slide 3: Index
Index 4 Overview and Investment Thesis Driving Sustainable Growth 11 Fiscal 2025 First Quarter Results 16 Corporate Sustainability Update 19 Business Segment Overview 29 Appendix
Slide 4: CSW Industrials, Inc. Key Highlights
CSW Industrials, Inc. (Nasdaq: CSWI) Key Highlights 2015 Publicly Listed on Nasdaq2 ~$4.7B A diversified industrial growth company with a strategic focus on providing niche, Market Capitalization3 value-added products in the end markets we serve. ~$607M Three Segments (Segment percentages reflect TT
Slide 5: Compelling Investment Thesis
Compelling Investment Thesis Growth exceeding end • Total revenue CAGR of 17.8% from FY19 through FY241 markets served • Organic revenue CAGR of 10.1% from FY19 through FY241, 2 Robust margin • 43.6% adjusted Gross Profit Margin annual average FY19 – FY241 profile • 22.7% adjusted EBITDA Margin annu
Slide 6: Sustainable Growth in Shareholder Value
Sustainable Growth in Shareholder Value Our demonstrated track record of growth and enhancing long-term shareholder value. Since Inception Maintain Our Strong Balance Sheet • 898% market cap growth1 • 206% Revenue growth2 Allocate Capital Efficiently • 249% adjusted EBITDA growth3 Invest in Organic
Slide 7: Allocating Capital Efficiently
Allocating Capital Efficiently Capital allocation decisions are prioritized on a risk-adjusted returns basis, TTM Capital Allocation1 with the ultimate goal of driving long-term shareholder value. ($ in millions) $169.3M Organic Growth Inorganic Growth Capital Expenditures $14.7 • Invest in enhancin
Slide 8: Strategic, Disciplined Approach to M&A
Strategic, Disciplined Approach to M&A As a diversified industrial growth company, our goal is to increase free cash flow through sustainable organic growth, accretive inorganic growth, and operational efficiencies. CSW Industrials Criteria: • Long-term growth well in excess of GDP • Strong margin c
Slide 9: Our Distribution Channels Accelerate Growth
Our Distribution Channels Accelerate Growth We have focused Without CSWI: Limited Distribution With CSWI: Broad Distribution on expanding our distribution network in recent years, enhancing revenue growth from new product introductions and acquisitions. Newly designed products, while innovative & he
Slide 10: Our Guiding Objectives
Our Guiding Objectives At CSWI, how we succeed matters, and accordingly we will: Position CSWI for Treat Our Team Serve Our Manage Our Supply Sustainable, Long-Term Members Well Customers Well Chains Effectively Growth and Profitability • Focus on Safety: • Emphasize consistent • Continuous improvem
Slide 11: Fiscal 2025 First Quarter Summary of Financial Results
Fiscal 2025 First Quarter Summary of Financial Results
Slide 12: Consolidated Results: 1Q25 Summary
Consolidated Results: 1Q25 Summary Consolidated Financial Highlights (1Q25 vs 1Q24): Summary Quarterly Consolidated Results • All time record quarterly revenue of $226.2M, an 11% increase ($ in millions) ◦ $15.7M increase from organic revenue as a result of increased volumes and pricing actions ◦ $7
Slide 13: Contractor Solutions: 1Q25 Segment Summary
Contractor Solutions: 1Q25 Segment Summary Summary Quarterly Segment Financials (1Q25 vs 1Q24): Segment Results ($ in millions) • Segment Revenue of $160.4M, a 15% increase ◦ Organic increase of $13.3M, due to an increase in unit volumes 33.4% 36.3% and pricing actions 31.2% Margin Margin ◦ Inorgani
Slide 14: Specialized Reliability Solutions: 1Q25 Segment Summary
Specialized Reliability Solutions: 1Q25 Segment Summary Summary Quarterly Segment Results Segment Financials (1Q25 vs 1Q24): ($ in millions) • Segment Revenue of $36.8M, a $0.9M, or 2% decrease ◦ Primarily driven by a slight decrease in volume ◦ Revenue growth in the general industrials and rail tra
Slide 15: Engineered Building Solutions: 1Q25 Segment Summary
Engineered Building Solutions: 1Q25 Segment Summary Segment Financials (1Q25 vs 1Q24): Summary Quarterly Segment Results • Segment Revenue of $30.9M, a 12% increase ($ in millions) ◦ Growth driven by commercial initiatives ◦ Bill to book ratio for the trailing eight quarters was 1.1 to 1 • Segment E
Slide 16: Corporate Sustainability
Corporate Sustainability
Slide 17: Corporate Culture and Values
Corporate Culture and Values The Goal of Our Corporate Culture is to Maximize Performance CSWI is committed to recruiting great talent, offering rewarding career destinations, and recognizing team members. Our employee-centric culture features a diverse and inclusive environment where every team mem
Slide 18: Corporate Culture and Values
Corporate Culture and Values Our Commitment to Diversity, Inclusion, and Respect: We seek to create, nurture, and sustain an inclusive and diverse environment that attracts and retains the highest caliber team members, leveraging their skills and expertise to serve our customers. We are dedicated to
Slide 19: Business Segment Overview
Business Segment Overview
Slide 20: Segments Summary
Segments Summary Contractor Solutions Specialized Reliability Solutions Engineered Building Solutions • $557.0M TTM Revenue, • $148.7M TTM Revenue, • $118.0M TTM Revenue, $185.2M adjusted EBITDA, and $28.2M EBITDA, and $22.0M EBITDA, and 33.3% adjusted EBITDA margin 19.0% EBITDA margin 18.6% EBITDA
Slide 21: Contractor Solutions Segment: Markets & Brands
Contractor Solutions Segment: Markets & Brands Summary: End Markets Served: ◦ Highly diversified product portfolio providing ◦ Future growth focus on new product industry leading products in both direct-to- introductions through organic innovation and customer and distributor models inorganic additi
Slide 22: Contractor Solutions: Products
Contractor Solutions: Products Water & Gas Pipe Thread Sealant Connectors Indoor Air Quality (IAQ) Products Surge Protective Devices Grilles, Registers, and Diffusers Condensate overflow switches and clean out devices Secondary Condensate Drain Pans Investor Presentation 22 July 2024
Slide 23: HVAC/R Mini-Split Niche Market: Products
HVAC/R Mini-Split Niche Market: Products Slimduct & Fortress Novent Lineset duct and fitting systems, Code compliant, locking caps protect against refrigerant 5 sizes, 4 colors theft and inhalation. A2L refrigerant compatible AC Leak Freeze with UV Leak stop sealant, Nokink non clogging, non reactiv
Slide 24: Specialized Reliability Solutions Segment: Markets & Brands
Specialized Reliability Solutions Segment: Markets & Brands Summary: End Markets Served: ◦ Our product portfolio allows us to compete and ◦ Innovating new and existing products to capture enhanced margins relative to larger peers accelerate organic growth ◦ Focus on end markets with sustainable grow
Slide 25: Specialized Reliability Solutions: Products
Specialized Reliability Solutions: Products Investor Presentation 25 July 2024
Slide 26: Specialized Reliability Solutions: Shell Whitmore JV Products
Specialized Reliability Solutions: Shell Whitmore JV Products Investor Presentation 26 July 2024
Slide 27: Engineered Building Solutions Segment: Markets & Brands
Engineered Building Solutions Segment: Markets & Brands Summary: End Markets Served: ◦ Market leader in providing unique solutions to ◦ Multiple manufacturing locations provide architects and contractors that meet code efficiency to meet the needs of general requirements, while adding functionality,
Slide 28: Engineered Building Solutions: Products
Engineered Building Solutions: Products Investor Presentation 28 July 2024
Slide 29: Appendix
Appendix
Slide 30: CSWI Executive Team
CSWI Executive Team Veteran leadership with broad industry experience, dedicated to enhancing shareholder value. Joseph B. Armes James E. Perry Donal J. Sullivan Luke E. Alverson Danielle R. Garde Jeff A. Underwood Chairman, CEO Executive VP and CFO Executive VP and Senior VP, General Senior VP and
Slide 31: M&A Execution Timeline
M&A Execution Timeline Demonstrated track record of acquisitions aligned with our stated strategy Contractor Solutions Specialized Reliability Solutions Engineered Building Solutions Investor Presentation 31 July 2024
Slide 32: Reconciliation of Fiscal First Quarter Segment Operating Income to Segment EBITDA
Reconciliation of Fiscal First Quarter Segment Operating Income to Segment EBITDA (unaudited) (unaudited) (unaudited) (Amounts in thousands) Three months ended June 30, 2024 Three months ended June 30, 2023 Three months ended June 30, 2022 CS SRS EBS Other CSWI CS SRS EBS Other CSWI CS SRS EBS Other
Slide 33: Reconciliation of TTM Segment Operating Income to Adjusted Segment EBITDA
Reconciliation of TTM Segment Operating Income to Adjusted Segment EBITDA (unaudited) (Amounts in thousands) Trailing Twelve Months Ended June 30, 2024 CS SRS EBS Other CSWI Revenue, net $ 556,958 $ 148,693 $ 118,047 $ (8,042) $ 815,656 Operating Income $ 152,254 $ 22,451 $ 20,168 $ (25,902) $ 168,9
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