Csw Industrials, Inc. · NYSE:CSW
Csw Industrials — Q4 2025 Earnings Presentation
49 slides from Csw Industrials's earnings presentation, May 22, 2025
Slide 1: Fiscal 2025 Investor Presentation Fourth Quarter Results
Fiscal 2025 Investor Presentation Fourth Quarter Results May 22, 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 16 Aspen Manufacturing Overview 21 Business Segment Overview 31 Fiscal 2025 Fourth Quarter Results 36 Fiscal 2025 Full Year Results 41 Appendix
Slide 4: CSW Industrials, Inc. Key Highlights
CSW Industrials, Inc. (Nasdaq: CSWI) Key Highlights 2015 Publicly Listed on Nasdaq2 ~$5.4B A diversified industrial growth company with a strategic focus on providing niche, Market Capitalization3 value-added products in the end markets we serve. ~$1.0B 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 FY25 portfolio1 Revenue by segment Revenue by segment $262M $878M FY15 Sales FY25 S
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 an environment where every team member belongs, is encou
Slide 7: Corporate Culture and Values
Corporate Culture and Values Our Commitment to Our Core Values: We seek to create, nurture, and sustain an inclusive and diverse environment that attracts and retains the highest caliber team members, respects the intrinsic value of each individual, and leverages their skills and expertise to serve
Slide 8: Compelling Investment Thesis
Compelling Investment Thesis • Total revenue CAGR of 14.1% from FY16 through FY251 Growth exceeding end • Organic revenue CAGR of 8.7% from FY16 through FY251 markets served • Total adjusted EBITDA CAGR of 16.5% from FY16 through FY251 • 44.1% adjusted Gross Profit Margin annual average FY16 – FY251
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 • 1056% market cap growth1 • 229% Revenue growth2 Allocate Capital Efficiently • 295% 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 (FY21 - FY25) There were 15.5M shares outstanding at year-end FY24 Legend FCF / Share FY21 - FY25 CAGR: 25.2% and 16.8M shares outstanding ■ Free Cash Flow1/Share at year-end FY25 ■ Adjusted EPS Adjusted EPS FY21
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) $629.8M Capital Expenditures $16.3 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: Aspen Manufacturing Overview
Aspen Manufacturing Overview Investor Presentation 16 May 2025
Slide 17: Aspen Manufacturing Customer Value Proposition
Aspen Manufacturing Customer Value Proposition Investor Presentation 17 May 2025
Slide 18: Aspen Manufacturing: Fiscal Year 2026 Impact and Outlook
Aspen Manufacturing: Fiscal Year 2026 Impact and Outlook • Fiscal 2025 Full Year Revenue of $125MM ◦ Fiscal 2026 full year revenue expected to grow high-single to low-double digits off of fiscal 2025 full year revenue Revenue ◦ Quarterly revenue sequencing heavily weighted to our first and second fi
Slide 19: 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 20: 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 21: Business Segment Overview
Business Segment Overview
Slide 22: Segments Summary
Segments Summary Contractor Solutions Specialized Reliability Solutions Engineered Building Solutions • $617.3M TTM Revenue, • $147.6M TTM Revenue, • $121.1M TTM Revenue, $205.4M adjusted EBITDA, and $28.0M EBITDA, and $21.0M EBITDA, and 33.3% adjusted EBITDA margin 19.0% EBITDA margin 17.4% EBITDA
Slide 23: 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 24: Contractor Solutions: Products
Contractor Solutions: Products Pipe Thread Sealant Indoor Air Quality (IAQ) Products Surge Protective Devices Plumbing Products (Retail & Distribution Channels) Air Handlers and Evaporator Coils Grilles, Registers, and Diffusers (GRD) Condensate overflow switches Water & Gas and clean out devices Co
Slide 25: 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 26: 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 27: Specialized Reliability Solutions: Products
Specialized Reliability Solutions: Products Investor Presentation 27 May 2025
Slide 28: Specialized Reliability Solutions: Shell Whitmore JV Products
Specialized Reliability Solutions: Shell Whitmore JV Products Investor Presentation 28 May 2025
Slide 29: 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 30: Engineered Building Solutions: Products
Engineered Building Solutions: Products Investor Presentation 30 May 2025
Slide 31: Fiscal 2025 Fourth Quarter Summary of Financial Results
Fiscal 2025 Fourth Quarter Summary of Financial Results
Slide 32: Consolidated Results: 4Q25 Summary
Consolidated Results: 4Q25 Summary Consolidated Financial Highlights (4Q25 vs 4Q24): Summary Quarterly Consolidated Results • Record fourth quarter revenue of $230.5M, a 9% increase ($ in millions) ◦ $13.5M increase from inorganic revenue from recent acquisitions ◦ $6.2M increase from organic revenu
Slide 33: Contractor Solutions: 4Q25 Segment Summary
Contractor Solutions: 4Q25 Segment Summary Summary Quarterly Segment Financials (4Q25 vs 4Q24): Segment Results ($ in millions) • Segment Revenue of $165.9M, a 17% increase ◦ Inorganic revenue of $13.5M, due to recent acquisitions ◦ Organic increase of $11.2M or 8.0%, due to an increase in unit 33.5
Slide 34: Specialized Reliability Solutions: 4Q25 Segment Summary
Specialized Reliability Solutions: 4Q25 Segment Summary Summary Quarterly Segment Results Segment Financials (4Q25 vs 4Q24): ($ in millions) • Segment Revenue of $37.7M, a $3.8M, or 9% decrease ◦ Revenue growth in the general industrial end market, offset by a contraction in the energy, mining, and
Slide 35: Engineered Building Solutions: 4Q25 Segment Summary
Engineered Building Solutions: 4Q25 Segment Summary Segment Financials (4Q25 vs 4Q24): Summary Quarterly Segment Results ($ in millions) • Segment Revenue of $28.7M, a 4% decrease ◦ Decrease due to the timing of projects converting to revenue from backlog • Segment EBITDA decreased 33%, and EBITDA m
Slide 36: Fiscal Full Year 2025 Summary of Financial Results
Fiscal Full Year 2025 Summary of Financial Results
Slide 37: Consolidated Results: Fiscal Year 2025 YTD Summary
Consolidated Results: Fiscal Year 2025 YTD Summary Consolidated Financial Highlights (4Q25 YTD vs 4Q24 YTD): Summary 4Q25 YTD Consolidated Results1 • Record 4Q YTD Revenue of $878.3M, a 11% increase ($ in millions) ◦ Inorganic revenue of $47.5M from the recent acquisitions ◦ $37.9M organic increase
Slide 38: Contractor Solutions: Fiscal Year 2025 YTD Segment Summary
Contractor Solutions: Fiscal Year 2025 YTD Segment Summary Summary 4Q25 YTD Segment Results Segment Financials (4Q25 YTD vs 4Q24 YTD): ($ in millions) • Segment Revenue increased 15% to $617.3M, primarily driven by: 32.4% 33.3% ◦ Inorganic growth of $47.5M from the Dust Free, PSP Products, 29.8% Mar
Slide 39: Specialized Reliability Solutions: Fiscal Year 2025 YTD Segment Summary
Specialized Reliability Solutions: Fiscal Year 2025 YTD Segment Summary Summary 4Q25 YTD Segment Financials (4Q25 YTD vs 4Q24 YTD): Segment Results ($ in millions) • Segment Revenue decreased 1%, to $147.6M, primarily driven by: ◦ Decreased unit volumes ◦ Growth coming from the general industrial en
Slide 40: Engineered Building Solutions: Fiscal Year 2025 YTD Segment Summary
Engineered Building Solutions: Fiscal Year 2025 YTD Segment Summary Segment Financials (4Q25 YTD vs 4Q24 YTD): Summary 4Q25 YTD Segment Results ($ in millions) • Segment Revenue increased 6% to $121.1M, primarily driven by: ◦ Conversion of backlog into revenue ◦ Market expansion through code require
Slide 41: Appendix
Appendix
Slide 42: 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 43: Reconciliation of Fiscal Fourth Quarter Segment Operating Income to Segment Adjusted EBITDA
Reconciliation of Fiscal Fourth Quarter Segment Operating Income to Segment Adjusted EBITDA (unaudited) (unaudited) (unaudited) (Amounts in thousands) Three Months ended March 31, 2025 Three Months ended March 31, 2024 Three months ended March 31, 2023 CS SRS EBS Other CSWI CS SRS EBS Other CSWI CS
Slide 44: Reconciliation of Fiscal Year 2025 YTD Segment Operating Income to Segment EBITDA
Reconciliation of Fiscal Year 2025 YTD Segment Operating Income to Segment EBITDA (unaudited) (unaudited) (unaudited) (Amounts in thousands) Twelve Months ended March 31, 2025 Twelve Months ended March 31, 2024 Twelve Months ended March 31, 2023 CS SRS EBS Other CSWI CS SRS EBS Other CSWI CS SRS EBS
Slide 45: 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) 3/31/2025 3/31/2024 3/31/2023 3/31/2022 3/31/2021 3/31/2020 3/31/2015 Net Income attributable to CSWI 136,652 101,648 96,435 66,385
Slide 46: 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 Year Ended (Amounts in thousands) 3/31/2025 3/31/2024 3/31/2023 3/31/2022 3/31/2021 3/31/2020 3/31/2019 Revenue, net 878,301 792,840 757,904 626,435 419,205 3
Slide 47: 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 Year Ended (Amounts in thousands) 3/31/2025 3/31/2024 3/31/2023 3/31/2022 3/31/2021 3/31/2020 Net Cash Provided by Operating Activities 168,362 164,332 121,453 69,
Slide 48: 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 Year Ended (Amounts in thousands) 3/31/2025 3/31/2024 3/31/2023 3/31/2022 3/31/2021 3/31/2020 Net Income attributable to CSWI 136,652 101,648 96,435 66,385 40,099 44,656 Diluted Shares 16
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