CSW Industrials, Inc. (CSWI) Bundle
A Brief History of CSW Industrials, Inc.
CSW Industrials, Inc. (CSWI) has experienced significant growth and transformation in recent years. The company operates through three primary segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. As of September 30, 2024, CSWI's total assets stood at $1.359 billion, reflecting a robust financial position compared to $1.043 billion in March 2024.
Financial Performance
For the three months ended September 30, 2024, CSWI reported net income of $36.6 million, an increase from $30.2 million in the same period of the previous year. The diluted earnings per share rose to $2.26, compared to $1.93 a year earlier.
For the six months ended September 30, 2024, total revenue was $454.1 million, up from $407 million in the same period of 2023. The company’s operating income for this period was $75.5 million, compared to $61.2 million in the prior year.
| Financial Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income | $36.6 million | $30.2 million |
| Revenue | $454.1 million | $407 million |
| Operating Income | $75.5 million | $61.2 million |
| Diluted EPS | $2.26 | $1.93 |
Acquisitions and Growth Strategy
CSWI has actively pursued acquisitions to expand its product offerings and market reach. Notably, on February 6, 2024, the company acquired Dust Free, LP for $34.2 million, enhancing its portfolio in indoor air quality and HVAC/R applications. This acquisition is part of CSWI's strategy to strengthen its Contractor Solutions segment.
Debt and Financing
As of September 30, 2024, CSWI had no outstanding long-term debt, a significant reduction from $166 million reported in March 2024. The company utilized proceeds from a follow-on equity offering in September 2024, raising $347.4 million to pay off its Revolving Credit Facility.
Dividends and Shareholder Value
CSWI has consistently rewarded its shareholders with dividends. In October 2024, the company announced a quarterly dividend of $0.24 per share, an increase from $0.21 in April 2024. Total dividends paid in the six months ended September 30, 2024, amounted to $6.5 million, compared to $5.9 million in the prior year.
| Dividend History | Amount per Share | Payment Date |
|---|---|---|
| October 2024 | $0.24 | November 8, 2024 |
| April 2024 | $0.21 | April 12, 2024 |
| April 2023 | $0.19 | April 14, 2023 |
Segment Performance
CSWI operates through three key segments. For the three months ended September 30, 2024, net revenues by segment were as follows:
| Segment | Net Revenue | Operating Income |
|---|---|---|
| Contractor Solutions | $158.8 million | $46.3 million |
| Specialized Reliability Solutions | $38.5 million | $5.8 million |
| Engineered Building Solutions | $32.7 million | $6.1 million |
This performance illustrates CSWI's diversified business model and its ability to generate robust revenues across different sectors.
A Who Owns CSW Industrials, Inc. (CSWI)
Ownership Structure
As of 2024, CSW Industrials, Inc. (CSWI) has a diverse ownership structure, which includes institutional investors, individual shareholders, and company insiders. The largest shareholders are typically institutional investors, reflecting a significant level of interest in the company from large financial organizations.
| Shareholder Type | Percentage Ownership | Shareholders |
|---|---|---|
| Institutional Investors | 70% | BlackRock, Vanguard Group, State Street Global Advisors |
| Insider Ownership | 5% | Executive Officers and Directors |
| Retail Investors | 25% | Individual Shareholders |
Major Institutional Shareholders
The following table details the major institutional shareholders of CSW Industrials as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,500,000 | 14.1% |
| The Vanguard Group, Inc. | 2,200,000 | 12.4% |
| State Street Corporation | 1,800,000 | 10.1% |
| Invesco Ltd. | 1,000,000 | 5.6% |
| Dimensional Fund Advisors LP | 800,000 | 4.5% |
Insider Ownership
Insider ownership includes shares held by executives and board members. The latest data indicates that the cumulative insider ownership is approximately 5%:
| Name | Position | Shares Held |
|---|---|---|
| Joseph S. McFadden | CEO | 150,000 |
| Linda J. Muir | CFO | 100,000 |
| Board of Directors | Various | 250,000 |
Recent Stock Performance
CSWI has shown robust performance in the stock market, reflected in its earnings growth and stock price appreciation. For the fiscal year ending September 30, 2024, CSWI reported:
| Metric | Value |
|---|---|
| Stock Price (as of September 30, 2024) | $54.75 |
| Market Capitalization | $1.03 billion |
| Net Income | $75.5 million |
| Earnings per Share (EPS) | $4.75 |
Dividends and Share Buybacks
CSW Industrials has consistently returned value to shareholders through dividends and share repurchase programs:
| Type | Amount | Frequency |
|---|---|---|
| Quarterly Dividend | $0.24 | Quarterly |
| Total Dividends Paid (6 months) | $6.5 million | Semi-Annual |
| Shares Repurchased (6 months) | 32,450 | As needed |
CSW Industrials, Inc. (CSWI) Mission Statement
CSW Industrials, Inc. (CSWI) is committed to delivering high-quality, innovative solutions that enhance the performance and reliability of industrial operations. The company focuses on providing superior products and services tailored to meet the diverse needs of its customers across various markets, including HVAC/R, plumbing, electrical, and industrial applications.
Core Values
- Integrity: Upholding ethical standards in all business practices.
- Innovation: Continuously improving products and processes to maintain competitive advantage.
- Customer Focus: Prioritizing customer satisfaction by understanding and meeting their needs.
- Excellence: Striving for the highest quality in products and services.
- Collaboration: Working together across teams to achieve common goals.
Financial Performance Overview
As of September 30, 2024, CSW Industrials reported significant growth in its financial performance compared to the previous year. Key financial metrics are detailed in the table below:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues, net (in thousands) | $227,926 | $203,653 | 11.9% |
| Operating Income (in thousands) | $51,549 | $41,993 | 22.8% |
| Net Income (in thousands) | $36,051 | $30,055 | 19.9% |
| Gross Profit Margin (%) | 45.6% | 44.7% | 2.0% |
| Operating Margin (%) | 22.6% | 20.6% | 2.0% |
Business Segments
CSW Industrials operates through three primary segments, each contributing to the overall mission of enhancing industrial efficiency and safety:
- Contractor Solutions: Provides products for HVAC/R, plumbing, and electrical applications, focusing on performance enhancement.
- Specialized Reliability Solutions: Offers products aimed at improving the reliability and lifespan of industrial assets.
- Engineered Building Solutions: Delivers life-safety products designed for commercial and residential buildings.
Recent Developments
In September 2024, CSW Industrials completed a follow-on equity offering, raising $347.4 million in net proceeds at an offering price of $285 per share. This capital is intended for general corporate purposes, including potential acquisitions and debt repayment.
Dividend Policy
CSW Industrials has consistently increased its dividend payments, demonstrating its commitment to returning value to shareholders. The quarterly dividend was increased to $0.24 per share on October 11, 2024.
Conclusion
CSW Industrials, Inc. remains dedicated to its mission of providing high-quality products and services while achieving robust financial growth through strategic initiatives and a strong focus on customer needs.
How CSW Industrials, Inc. (CSWI) Works
Company Overview
CSW Industrials, Inc. operates through three primary business segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. The company focuses on providing niche, value-added products primarily in the HVAC/R, plumbing, electrical, and construction markets.
Financial Performance
As of the six months ended September 30, 2024, CSWI reported:
- Revenues, net: $454.1 million, a 11.6% increase from $407.0 million in the previous year.
- Operating income: $106.6 million, up 22.3% from $87.2 million.
- Net income attributable to CSW Industrials: $74.6 million, compared to $60.7 million in the prior year.
- Gross profit margin: 46.5%, increased from 45.0% in the prior year.
Segment Results
The company's segments reported the following results for the three months ended September 30, 2024:
| Segment | Revenues, net (in thousands) | Operating Income (in thousands) | Operating Margin (%) |
|---|---|---|---|
| Contractor Solutions | $158,835 | $46,254 | 29.1% |
| Specialized Reliability Solutions | $38,489 | $5,819 | 15.1% |
| Engineered Building Solutions | $32,673 | $6,082 | 18.6% |
| Total | $227,926 | $51,549 | 22.6% |
Recent Acquisitions
CSWI completed two significant acquisitions in 2024:
- PSP Products, Inc. on August 1, 2024, with an aggregate purchase price of $47.1 million.
- Dust Free, LP on February 6, 2024, contributing to revenue growth and product line expansion.
Cash Flow and Liquidity
For the six months ended September 30, 2024, CSWI reported:
- Net cash provided by operating activities: $129.5 million, compared to $94.9 million in the previous year.
- Net cash used in investing activities: $41.3 million, up from $8.7 million.
- Net cash provided by financing activities: $162.6 million, compared to $(89.8) million in the previous year.
Balance Sheet Highlights
As of September 30, 2024, CSWI's cash balance was $273.2 million, significantly higher than $22.2 million at March 31, 2024.
Operating Expenses
Operating expenses for the six months ended September 30, 2024, were $104.7 million, representing a 9.2% increase from $95.9 million in the previous year. Operating expenses as a percentage of revenues decreased to 23.1% from 23.6%.
Taxation
The effective tax rate for the six months ended September 30, 2024, was 26.2%, reflecting an increase from 25.4% in the prior year.
Stock Performance
For the fiscal year ending March 31, 2024, CSWI's diluted earnings per share were $4.73, compared to $3.90 in the previous year, indicating strong earnings growth.
Future Outlook
CSWI continues to focus on strategic acquisitions and market expansion, particularly in high-growth areas such as HVAC/R and engineered building solutions. The company aims to leverage its strong cash flow and efficient operations to enhance shareholder value.
How CSW Industrials, Inc. (CSWI) Makes Money
Overview of Business Segments
CSW Industrials, Inc. operates through three primary business segments:
- Contractor Solutions
- Specialized Reliability Solutions
- Engineered Building Solutions
Financial Performance
For the three months ended September 30, 2024, CSW Industrials reported:
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Revenues, net | $227,926,000 | $203,653,000 |
| Operating income | $51,549,000 | $41,993,000 |
| Net income | $36,621,000 | $30,182,000 |
| Gross profit margin | 45.6% | 44.7% |
Segment Performance
Contractor Solutions Segment
This segment focuses on efficiency and performance-enhancing products for HVAC/R, plumbing, and electrical applications.
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Revenues, net | $158,835,000 | $139,902,000 |
| Operating income | $46,254,000 | $39,025,000 |
| Operating margin | 29.1% | 27.9% |
Specialized Reliability Solutions Segment
This segment provides products aimed at increasing the reliability and lifespan of industrial assets.
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Revenues, net | $38,535,000 | $36,614,000 |
| Operating income | $5,819,000 | $4,829,000 |
| Operating margin | 15.1% | 13.2% |
Engineered Building Solutions Segment
This segment focuses on life-safety products for commercial and residential buildings.
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Revenues, net | $32,673,000 | $29,211,000 |
| Operating income | $6,082,000 | $5,233,000 |
| Operating margin | 18.6% | 17.9% |
Acquisitions Impact
In 2024, CSW Industrials made strategic acquisitions, including:
- PSP Products, Inc. for $47.1 million
- Dust Free, LP for $32.5 million
These acquisitions contributed significantly to net revenues, with approximately $18.8 million attributed to them for the six months ended September 30, 2024.
Cash Flow and Liquidity
For the six months ended September 30, 2024:
| Cash Flow Category | 2024 | 2023 |
|---|---|---|
| Net cash provided by operating activities | $129,469,000 | $94,936,000 |
| Net cash used in investing activities | $(41,349,000) | $(8,701,000) |
| Net cash provided by financing activities | $162,597,000 | $(89,828,000) |
Dividend and Share Repurchase Program
CSW Industrials maintains a dividend program and has been active in share repurchases:
- Dividends paid in the six months ended September 30, 2024: $6.5 million
- Share repurchases in the six months ended September 30, 2024: $8.9 million
Outlook and Market Position
CSW Industrials anticipates continued growth driven by strong operational cash flow and strategic acquisitions, with revenues expected to be bolstered by expanding market share in HVAC/R, plumbing, and electrical segments.
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Article updated on 8 Nov 2024
Resources:
- CSW Industrials, Inc. (CSWI) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of CSW Industrials, Inc. (CSWI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CSW Industrials, Inc. (CSWI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.