Capital Southwest (CSWC) Q4 2026 earnings summary

Executive summary

• Investment portfolio grew 17% year-over-year to $2.1 billion, with $762.3 million in new committed originations and a credit portfolio of $1.9 billion and equity portfolio of $181 million.

• Investment income increased by 14% to $232.1 million for the year, with pre-tax net investment income of $136.6 million and Q4 pre-tax NII of $35.2 million ($0.59/share).

• NAV per share ended at $16.69, nearly flat from prior year, reflecting portfolio resilience.

• Paid total dividends of $2.56 per share for FY 2026, including $2.32 in regular and $0.24 in supplemental dividends.

• Raised $160.1 million in equity and issued $350 million in notes due 2030, strengthening the balance sheet.

Financial highlights

• Pre-tax net investment income for the quarter was $35.2 million ($0.59 per share).

• Total investment income for the year was $232.1 million, up 13.5% from the prior year.

• Non-accruals at 1.1% of portfolio fair value at year end.

• Equity portfolio net unrealized appreciation of $37.8 million ($0.62 per share) at year-end.

• UTI balance at $1.07 per share, up from $0.79 per share a year ago.

Outlook and guidance

• Expectation to harvest a portion of unrealized equity appreciation as realized gains in fiscal 2027.

• Management expects continued improvements in operating leverage and asset growth, supported by the CapTrin joint venture and expanded credit facilities.

• Confident in continued strong distributions from high-performing companies in the near term.

• Anticipate continued origination of low-leverage, high-quality investments through the JV.

• Affirmed investment grade ratings from Moody’s (Baa3) and Fitch (BBB-).