Capital Southwest Q1 FY2027: Pre-Tax NII of $0.57/Share, NAV of $16.61, and $63.6M Raised via ATM
CSWC sits 24% above its 52-week low of $19.37.
Summary
Capital Southwest posted Q1 FY2027 pre-tax NII of $0.57 per share and NAV of $16.61, while raising $63.6 million through its ATM program at a premium to NAV. The portfolio grew to $2.2 billion with strong credit quality.
Key Events · Earnings and Guidance · CSWC
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Q1 FY2027 Earnings
Pre-tax net investment income came in at $35.0 million, or $0.57 per share, compared with $35.2 million in the prior quarter. Total investment income rose to $61.0 million from $57.8 million.
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NAV and Portfolio Growth
Net asset value per share edged down to $16.61 from $16.69, largely reflecting net realized and unrealized losses of $10.9 million and restricted stock grants, partially offset by equity issuance at a premium. The total investment portfolio at fair value reached $2.2 billion.
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ATM Equity Issuance
The company raised $63.6 million in gross proceeds by selling 2.7 million shares at a weighted-average price of $23.47 per share, a 41% premium to NAV. Under the $2.0 billion ATM program, $1.07 billion remains available.
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Dividend Declaration
A regular quarterly dividend of $0.58 per share and a supplemental dividend of $0.06 per share were declared for the quarter ending September 30, 2026, consistent with prior quarters.
Analysis · CSWC · Unknown
Solid Q1 results underscore Capital Southwest's earnings power, with pre-tax net investment income of $0.57 per share fully covering the $0.58 regular dividend. The company strengthened its capital base by raising $63.6 million in equity through its ATM program at a premium to NAV, while maintaining a conservative 0.91x regulatory debt-to-equity ratio. The portfolio expanded to $2.2 billion, anchored by 99% first-lien senior secured debt, and credit quality held firm with only 1.1% of investments on non-accrual. Net realized and unrealized depreciation of $10.9 million weighed on NAV, but the quarter overall demonstrates prudent capital management and sustained earnings momentum.
At the time of this filing, CSWC was trading at $23.94 on NASDAQ in the Unknown sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $19.37 to $24.43. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.