CSW Industrials posts record fiscal 2026 sales on acquisition surge

CSW Industrials (NYSE:CSW) reported record financial results for both the fourth quarter and the full fiscal year of 2026, navigating higher interest expenses and non-cash charges through a combination of aggressive acquisition integration and a return to organic expansion in its core segment.

The Dallas-based industrial manufacturer stated that its fourth-quarter revenue surged 34% year-over-year to $309 million.

For the full fiscal year, top-line revenue scaled 23.3% to finish at $1.1 billion, crossing a key milestone for the company.

The growth was primarily anchored by recent corporate acquisitions alongside stable, single-digit organic growth.

The company's profitability profile showed diverging trends between adjusted metrics and GAAP figures.

Fourth-quarter adjusted EBITDA reached a record $82.9 million, and adjusted earnings per share rose 21.1% to $3.14.

However, unadjusted GAAP earnings per share fell 41.1% to $1.22 for the quarter, weighed down by a non-cash impairment charge and elevated borrowing costs.

On a full-year basis, adjusted EBITDA climbed 18.3% to a record $269.6 million, while full-year adjusted earnings per share advanced 6.9% to $10.38.

Operationally, the company’s Contractor Solutions division—a key indicator of baseline market demand—rebounded into positive organic growth territory during the period.

This operational stability supported an aggressive capital allocation strategy over the fiscal year, during which CSW Industrials deployed $1 billion toward strategic acquisitions.

Concurrently, the company returned $145.5 million to its shareholders via dividends and share repurchases.

Management confirmed that despite the heavy capital deployment, its balance sheet remains within historical risk parameters, closing the fiscal year with a net leverage ratio of 2.55x, well within its targeted range of 1x to 3x.