CSW Industrials Posts Record Q1 FY2027: Revenue Climbs 33%, Adjusted EPS Up 35%

summarizeSummary

Record Q1 FY2027 results featured revenue up 33% to $350.6M and adjusted EPS of $3.84, driven by acquisitions and a return to organic growth in Contractor Solutions.

check_boxKey Events · Earnings and Guidance · CSW

• Record Revenue and Earnings

  Revenue reached $350.6M in Q1 FY2027, a 33% increase year-over-year, while adjusted EPS climbed 35% to $3.84. Both figures mark all-time quarterly records.

• Organic Growth Returns

  Contractor Solutions, the largest segment, delivered 6% organic revenue growth—its second consecutive quarter of positive organic growth—alongside 34% inorganic growth from acquisitions.

• Margin Expansion

  Adjusted gross margin improved 130 basis points to 45.1%, and adjusted EBITDA margin expanded 290 basis points to 29.0%, driven by pricing actions and operating leverage.

• Strong Cash Flow and Deleveraging

  Operating cash flow hit a record $75.6M, up 25% year-over-year. Net debt stood at $815M with a leverage ratio of 2.37x, within the 1-3x target range and down from fiscal year-end.

auto_awesomeAnalysis · CSW · Industrial Applications And Services

A standout quarter saw revenue surge 33% to $350.6 million and adjusted EPS jump 35% to $3.84, both all-time records. Organic growth returned in Contractor Solutions at 6%, while acquisitions continued to fuel the top line. Margins expanded across the board, and operating cash flow hit a record $75.6 million. The balance sheet is manageable with leverage at 2.37x, within the company's target range. This quarter reinforces the acquisition strategy and organic momentum, though interest expense has risen sharply with higher debt.