CSW Industrials (CSWI) Q4 2025 earnings summary

Executive summary

• Achieved record revenue, adjusted EBITDA, adjusted EPS, and adjusted net income for Q4 and full fiscal year 2025, driven by organic growth and acquisitions, especially in Contractor Solutions.

• Completed the Aspen Manufacturing acquisition for $313.5 million, expanding the HVACR product portfolio and distribution network.

• Announced transition to the New York Stock Exchange effective June 9, 2025, and celebrated a 10-year public milestone.

• Successfully executed a follow-on equity offering, raising $347 million to pay down debt and fund acquisitions.

Financial highlights

• Fiscal 2025 revenue reached $878.3 million, up 11%; Q4 revenue was $231 million, up 9%.

• Adjusted EBITDA for FY25 was $228 million (25.9% margin), up 14%; Q4 adjusted EBITDA was $60 million (25.9% margin), up 7%.

• Adjusted EPS for FY25 was $8.41 (up 20%); Q4 adjusted EPS was $2.24 (up 10%).

• Free cash flow for the year was $152.1 million; free cash flow per share was $9.32.

• Returned $32.9 million to shareholders via $18.3 million in share repurchases and $14.6 million in dividends.

Outlook and guidance

• Fiscal 2026 guidance anticipates growth in revenue and adjusted EBITDA for all segments, consolidated EPS growth, and strong operating cash flow.

• Aspen's revenue expected to grow high single to low double digits in FY26, with EBITDA margin around 24%.

• Contractor Solutions organic growth expected to outpace end markets through new products and expanded distribution.

• Anticipates $5.3 million in net interest expense and $9.5 million in additional amortization from Aspen in FY26.

• Forecasts a 26% tax rate for fiscal 2026.