CSW Industrials Reports Strong Financial Performance with Revenue and Profit Growth

CSW Industrials, Inc. (CSWI) reported strong financial performance for the three and six months ended September 30, 2024, with significant increases in revenue, gross profit, and net income compared to the same periods in 2023.

For the three months ended September 30, 2024, revenues reached $227.9 million, an increase of $24.3 million or 11.9% from $203.7 million in the prior year. The six-month revenue also rose to $454.1 million, up $47.1 million or 11.6% from $407.0 million. The growth was driven by contributions from recent acquisitions, including PSP Products, Inc. and Dust Free, LP, which added $11.6 million and $18.8 million to the respective quarterly and half-year revenues. Organic sales also increased, attributed to higher unit volumes and slight pricing adjustments.

Gross profit for the three months ended September 30, 2024, was $103.9 million, reflecting a 14.2% increase from $91.0 million in 2023. The gross profit margin improved to 45.6%, up from 44.7%. For the six months, gross profit rose to $211.3 million, a 15.4% increase from $183.1 million, with a margin of 46.5%, compared to 45.0% in the previous year.

Operating income for the third quarter was $51.5 million, up 22.8% from $42.0 million, while for the six months, it increased to $106.6 million, a 22.3% rise from $87.2 million. The operating margins also improved, reaching 22.6% for the quarter and 23.5% for the half-year.

Net income for the three months ended September 30, 2024, was $36.6 million, compared to $30.2 million in 2023, while for the six months, it increased to $75.5 million from $61.2 million. Basic earnings per share rose to $2.27 for the quarter and $4.75 for the six months, compared to $1.93 and $3.91, respectively, in the prior year.

The company’s cash and cash equivalents surged to $273.2 million as of September 30, 2024, up from $22.2 million at the end of March 2024, bolstered by a successful equity offering that generated $347.4 million in net proceeds. This capital was utilized to pay down the Revolving Credit Facility, which had an outstanding balance of $0.0 million as of September 30, 2024.

Strategically, CSWI completed the acquisition of PSP Products, Inc. for $47.1 million on August 1, 2024, and Dust Free, LP for $34.2 million earlier in the year. These acquisitions are expected to enhance the company's Contractor Solutions segment. The company also announced a quarterly dividend increase to $0.24 per share, payable on November 8, 2024.

Overall, CSW Industrials demonstrated robust growth across its business segments, with a focus on strategic acquisitions and strong operational performance.