CSW Industrials(CSWI) - 2025 Q3 - Quarterly Results

Revenue Growth - Total revenue for fiscal Q3 2025 reached $193.6 million, a 10.7% increase from the prior year, with inorganic growth contributing 8.7% and organic growth 1.9%[4]. - Year-to-date revenue for fiscal 2025 was$ 647.8 million, representing an 11.3% growth over the prior year, with organic growth contributing 5.5% and inorganic growth 5.9%[19]. - Revenue for the three months ended December 31, 2024, was $193,649,000, compared to$ 174,967,000 in 2023, representing an increase of 10.6%[64]. - Revenue for the nine months ended December 31, 2024, was $647,754,000, an increase from$ 581,980,000 for the same period in 2023, representing a growth of 11.3%[67]. - Revenue from the Specialized Contractor Solutions segment for the nine months ended December 31, 2024, was $451,403,000, up from$ 395,268,000 in 2023, representing a growth of 14.2%[67]. Profitability - Net income attributable to CSWI was $26.9 million, a 48.9% increase compared to$ 16.7 million in the prior year, with adjusted earnings per diluted share rising to $1.48, up 38.2% from$ 1.07[4][11]. - Adjusted EBITDA for fiscal Q3 2025 grew 14.2% to $42.0 million, with an adjusted EBITDA margin expansion of 70 basis points to 21.7%[12]. - Segment operating income for Contractor Solutions was$ 122.9 million, compared to $104.4 million in the prior year, reflecting increased unit volumes and favorable product mix[30]. - Operating income for the nine months ended December 31, 2024, was$ 136,204,000, up from $114,780,000 in 2023, showing an increase of 18.6%[67]. - Adjusted EBITDA for the nine months ended December 31, 2024, reached$ 168,102,000, a 16.6% increase from $144,205,000 in 2023[60]. Segment Performance - The Contractor Solutions segment revenue increased 14.5% to$ 132.2 million, driven primarily by recent acquisitions, with segment operating income improving to $26.8 million[16]. - Contractor Solutions segment revenue reached$ 451.4 million, a $56.1 million or 14.2% increase year-over-year, driven by$ 34.1 million from acquisitions and $22.1 million from organic growth[30]. - Specialized Reliability Solutions segment revenue grew to$ 109.9 million, a $1.9 million or 1.7% increase, with operating income improving by 17.2% to$ 18.2 million[32]. - Engineered Building Solutions segment revenue increased by $7.7 million or 9.1% to$ 92.4 million, primarily due to backlog conversion and market expansion[33]. - Adjusted EBITDA for Contractor Solutions was $149.4 million, or 33.1% of revenue, compared to$ 126.4 million, or 32.0% of revenue in the prior year[31]. Cash Flow and Investments - Net cash provided by operating activities for the fiscal year-to-date period was $141.1 million, a slight decrease of 0.6% compared to the prior year[28]. - The company reported a net cash used in investing activities of$ 98,573,000 for the nine months ended December 31, 2024, compared to $15,130,000 in 2023[52]. - Free cash flow for the nine months ended December 31, 2024, was$ 129,334,000, slightly down from $130,246,000 in 2023, indicating a decrease of 0.7%[69]. - The free cash flow as a percentage of adjusted EBITDA for the nine months ended December 31, 2024, was 76.9%, down from 90.3% in 2023, indicating a decline of 13.4 percentage points[69]. - The Company invested$ 84.5 million in acquisitions and $11.7 million in organic capital expenditures during the fiscal year-to-date period[4]. Tax and Equity - The effective tax rate for fiscal Q3 2025 was 13.8%, significantly lower than the prior year period's 43.2%[15]. - The adjusted effective tax rate for the nine months ended December 31, 2024, was 25.8%, compared to 27.1% in 2023[58]. - Total assets increased to$ 1.35 billion as of December 31, 2024, from $1.04 billion in the prior year[48]. - Total equity rose to$ 1.04 billion as of December 31, 2024, compared to $615.7 million in the prior year[48].