Csw Industrials, Inc. · NYSE:CSW
Csw Industrials — Q3 2025 Earnings Presentation
47 slides from Csw Industrials's earnings presentation, Jan 30, 2025
Slide 1: Investor Presentation Fiscal 2025 Third Quarter Results
Fiscal 2025 Investor Presentation Third Quarter Results January 2025
Slide 2: Forward Looking Statement and 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, Culture, Values, and Investment Thesis 18 Business Segment Overview 28 Fiscal 2025 Third Quarter Results 33 Fiscal 2025 Year-to-Date Results 38 Appendix
Slide 4: CSW Industrials, Inc. Key Highlights
CSW Industrials, Inc. (Nasdaq: CSWI) Key Highlights 2015 Publicly Listed on Nasdaq2 ~$6.7B A diversified industrial growth company with a strategic focus on providing niche, Market Capitalization3 value-added products in the end markets we serve. ~$701M Three Segments (Segment percentages reflect TT
Slide 5: Continuously Evolving Our Portfolio
Continuously Evolving Our Portfolio CSW Industrials has consistently evolved through strategic acquisitions and initiatives, resulting in a proven track record of sustained growth and margin expansion. 2015 Portfolio TTM 3Q25 portfolio1 Revenue by segment Revenue by segment $262M $859M FY15 Sales TT
Slide 6: 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 7: 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 8: 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 9: 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 • 1325% market cap growth1 • 222% Revenue growth2 Allocate Capital Efficiently • 271% adjusted EBITDA growth3 Invest in Organic
Slide 10: Strong Long-Term Free Cash Flow and EPS Growth
Strong Long-Term Free Cash Flow and EPS Growth Free Cash Flow1/ Share and Adjusted EPS (FY20 - FY24) Legend ■ Free Cash Flow1/Share FCF / Share FY20 - TTM FY24 CAGR: 24.5% ■ Adjusted EPS Adjusted EPS FY20 - TTM FY24 CAGR: 21.8% Investor Presentation 10 January 2025 1 Defined as Cash from Operations
Slide 11: Stated Capital Allocation Principles
Stated Capital Allocation Principles CSW Industrials is committed to maintaining a strong balance sheet with ample liquidity through both cash and available credit to capitalize on growth opportunities, both organically and inorganically. Capital Allocation Policy issued in November 2018 and reaffir
Slide 12: 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) $313.4M Capital Expenditures $16.6 Organic Growth Inorganic Growth • Invest in enhancin
Slide 13: Successful Follow-On Equity Offering
Successful Follow-On Equity Offering • Announced follow-on equity offering on September 4, 2024, with pricing and upsize on September 5, 2024 • Offered a total of 1,265,000 shares of common stock, an 8% increase to our existing share count • Priced at $285 per share, a 10% discount to the September
Slide 14: 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 15: Long Standing Track Record of Successful Acquisitions
Long Standing Track Record of Successful Acquisitions We have a successful record of making attractive and synergistic acquisitions that support expansion of our broad portfolio of solutions. Acquisition Metrics Key Highlights • Identify and execute accretive acquisitions that will broaden and compl
Slide 16: 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 17: 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 18: Business Segment Overview
Business Segment Overview
Slide 19: Segments Summary
Segments Summary Contractor Solutions Specialized Reliability Solutions Engineered Building Solutions • $592.7M TTM Revenue, • $151.5M TTM Revenue, • $122.5M TTM Revenue, $196.7M adjusted EBITDA, and $30.5M EBITDA, and $23.0M EBITDA, and 33.2% adjusted EBITDA margin 20.1% EBITDA margin 18.8% EBITDA
Slide 20: 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 21: Contractor Solutions: Products
Contractor Solutions: Products Pipe Thread Sealant Indoor Air Quality (IAQ) Products Surge Protective Devices Secondary Plumbing Products Condensate (Retail & Distribution Channels) Drain Pans Grilles, Registers, and Diffusers (GRD) Condensate overflow switches Water & Gas and clean out devices Conn
Slide 22: HVAC/R Mini-Split Niche Market: Products
HVAC/R Mini-Split Niche Market: Products Dust Free Duality Novent Germicidal UV light Code compliant, locking caps protect against refrigerant and VOC filter theft and inhalation. A2L refrigerant compatible for improved IAQ AC Leak Freeze with UV Leak stop sealant, Nokink non clogging, non reactive
Slide 23: 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 24: Specialized Reliability Solutions: Products
Specialized Reliability Solutions: Products Investor Presentation 24 January 2025
Slide 25: Specialized Reliability Solutions: Shell Whitmore JV Products
Specialized Reliability Solutions: Shell Whitmore JV Products Investor Presentation 25 January 2025
Slide 26: 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 27: Engineered Building Solutions: Products
Engineered Building Solutions: Products Investor Presentation 27 January 2025
Slide 28: Fiscal 2025 Third Quarter Summary of Financial Results
Fiscal 2025 Third Quarter Summary of Financial Results
Slide 29: Consolidated Results: 3Q25 Summary
Consolidated Results: 3Q25 Summary Consolidated Financial Highlights (3Q25 vs 3Q24): Summary Quarterly Consolidated Results ($ in millions) • Record third quarter revenue of $193.6M, a 11% increase ◦ $15.3M increase from inorganic revenue from the Dust Free, PSP Products, and PF WaterWorks acquisiti
Slide 30: Contractor Solutions: 3Q25 Segment Summary
Contractor Solutions: 3Q25 Segment Summary Summary Quarterly Segment Financials (3Q25 vs 3Q24): Segment Results ($ in millions) • Segment Revenue of $132.2M, a 15% increase ◦ Inorganic revenue of $15.3M, due recent acquisitions ◦ Organic increase of $1.4M, due to an increase in unit volumes 28.6% 28
Slide 31: Specialized Reliability Solutions: 3Q25 Segment Summary
Specialized Reliability Solutions: 3Q25 Segment Summary Summary Quarterly Segment Results Segment Financials (3Q25 vs 3Q24): ($ in millions) • Segment Revenue of $34.6M, a $0.9M, or 3% increase ◦ Primarily driven by an increase in volume 19.1% ◦ Revenue growth in the general industrial and rail tran
Slide 32: Engineered Building Solutions: 3Q25 Segment Summary
Engineered Building Solutions: 3Q25 Segment Summary Segment Financials (3Q25 vs 3Q24): Summary Quarterly Segment Results ($ in millions) • Segment Revenue of $28.8M, a 3% increase ◦ Growth driven by backlog conversion into revenue • Segment EBITDA increased 3%, and EBITDA margin remained at 14.2% 14
Slide 33: Fiscal Year-to-Date 2025 Summary of Financial Results
Fiscal Year-to-Date 2025 Summary of Financial Results
Slide 34: Consolidated Results: 3Q25 YTD Summary
Consolidated Results: 3Q25 YTD Summary Consolidated Financial Highlights (3Q25 YTD vs 3Q24 YTD): Summary 3Q25 YTD Consolidated Results1 • Record 3Q YTD Revenue of $647.8M, a 11% increase ($ in millions) ◦ Inorganic revenue of $34.1M from the recent acquisitions ◦ $31.7M organic increase due to unit
Slide 35: Contractor Solutions: 3Q25 YTD Segment Summary
Contractor Solutions: 3Q25 YTD Segment Summary Summary 3Q25 YTD Segment Results Segment Financials (3Q25 YTD vs 3Q24 YTD): ($ in millions) • Segment Revenue increased 14% to $451.4M, primarily driven by: 32.0% 33.1% ◦ Inorganic growth of $34.1M from the Dust Free, PSP Products, 29.1% Margin and PF W
Slide 36: Specialized Reliability Solutions: 3Q25 YTD Segment Summary
Specialized Reliability Solutions: 3Q25 YTD Segment Summary Summary 3Q25 YTD Segment Financials (3Q25 YTD vs 3Q24 YTD): Segment Results ($ in millions) • Segment Revenue increased 2%, to $109.9M, primarily driven by: ◦ Increased unit volumes ◦ Growth coming from the rail transportation and general 2
Slide 37: Engineered Building Solutions: 3Q25 YTD Segment Summary
Engineered Building Solutions: 3Q25 YTD Segment Summary Segment Financials (3Q25 YTD vs 3Q24 YTD): Summary 3Q25 YTD Segment Results ($ in millions) • Segment Revenue increased 9% to $92.4M, primarily driven by: ◦ Conversion of backlog into revenue, market expansion through code required products, an
Slide 38: Appendix
Appendix
Slide 39: 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 40: Reconciliation of Fiscal Third Quarter Segment Operating Income to Segment Adjusted EBITDA
Reconciliation of Fiscal Third Quarter Segment Operating Income to Segment Adjusted EBITDA (unaudited) (unaudited) (unaudited) (Amounts in thousands) Three months ended December 31, 2024 Three months ended December 31, 2023 Three months ended December 31, 2022 CS SRS EBS Other CSWI CS SRS EBS Other
Slide 41: Reconciliation of 3Q YTD Segment Operating Income to Segment EBITDA
Reconciliation of 3Q YTD Segment Operating Income to Segment EBITDA (unaudited) (unaudited) (unaudited) (Amounts in thousands) Nine Months ended December 31, 2024 Nine Months ended December 31, 2023 Nine Months ended December 31, 2022 CS SRS EBS Other CSWI CS SRS EBS Other CSWI CS SRS EBS Other CSWI
Slide 42: 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 December 31, 2024 CS SRS EBS Other CSWI Revenue, net $ 592,747 $ 151,478 $ 122,468 $ (8,082) $ 858,611 Operating Income $ 160,488 $ 24,940 $ 21,126 $ (26,011) $ 1
Slide 43: Reconciliation of Fiscal Year Company Net Income to Adjusted EBITDA
Reconciliation of Fiscal Year Company Net Income to Adjusted EBITDA Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended (Amounts in thousands) 3/31/2024 3/31/2023 3/31/2022 3/31/2021 3/31/2020 3/31/2019 3/31/2015 Net Income attributable to CSWI 101,648 96,435 66,385 40,099 4
Slide 44: Reconciliation of Fiscal Year Company Gross Profit to Adjusted Gross Profit
Reconciliation of Fiscal Year Company Gross Profit to Adjusted Gross Profit Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended (Amounts in thousands) 3/31/2024 3/31/2023 3/31/2022 3/31/2021 3/31/2020 3/31/2019 Revenue, net 792,840 757,904 626,435 419,205 385,871 350,155 Cost of Revenu
Slide 45: Reconciliation of Fiscal Year Company Operating Cash Flow to Free Cash Flow/Share
Reconciliation of Fiscal Year Company Operating Cash Flow to Free Cash Flow/Share Year Ended Year Ended Year Ended Year Ended Year Ended (Amounts in thousands) 3/31/2024 3/31/2023 3/31/2022 3/31/2021 3/31/2020 Net Cash Provided by Operating Activities 164,332 121,453 69,089 66,254 71,397 Less: Capit
Slide 46: Reconciliation of Fiscal Year Company EPS to Adjusted EPS
Reconciliation of Fiscal Year Company EPS to Adjusted EPS Year Ended Year Ended Year Ended Year Ended Year Ended (Amounts in thousands) 3/31/2024 3/31/2023 3/31/2022 3/31/2021 3/31/2020 Net Income attributable to CSWI 101,648 96,435 66,385 40,099 44,656 Diluted Shares 15,581 15,546 15,807 15,126 15,
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