CSW Industrials Q2 revenue beats on acquisitions boost
Overview
US industrial products maker's fiscal Q2 revenue rose 31%, beating analyst expectations
Adjusted EPS for fiscal Q2 rose 24% to a record $3.66
Company attributes growth to acquisitions and organic gains, offset by higher material and freight costs
Outlook
Company expects sustained organic revenue growth above market levels for remainder of fiscal 2027
CSW Industrials anticipates short-term margin headwinds due to recent cost increases
Company expects long-term adjusted EBITDA growth to outpace revenue growth
Result Drivers
ACQUISITIONS - Co said recent acquisitions contributed $56.3 mln to Q2 revenue growth
ORGANIC GROWTH - Co said organic revenue rose $28.2 mln, led by Contractor Solutions and Specialized Reliability Solutions segments
HIGHER COSTS - Co said increased ocean and domestic freight expense and rising raw materials costs reduced gross margin
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $361.44 mln | $350.97 mln (7 Analysts) |
Q2 EPS | $2.90 | ||
Q2 Net Income | $47.89 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for CSW Industrials, Inc. is $340.50, about 16.4% above its October 28 closing price of $292.47
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 23 three months ago
Reuters Recommended Reads
Oct 27 - Illinois Tool Works Inc beats Q3 EPS estimates, raises 2026 outlook
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Oct 29 - Caterpillar third-quarter profit rises on power equipment demand
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)