CSW Industrials, Inc. Q2 2027 Earnings Recap

CSW Industrials’ shares were roughly flat after earnings, down 0.4%, as double-digit organic growth and higher EBITDA were offset by lower gross margin and rising interest expense. Results were mixed: adjusted EBITDA margin expanded, but adjusted gross margin contracted amid higher freight and raw-material costs.

Key Takeaways

• Revenue rose 31% year over year to a record $361 million; organic revenue growth was 10.2%.
• Adjusted EBITDA increased 33% to $97 million, with margin up 50 basis points to 26.8%. Adjusted EPS rose 24% to $3.66.
• Adjusted gross margin fell 90 basis points to 42.1%, primarily due to higher ocean and domestic freight expense and raw-material costs; pricing actions offset most of the dollar increases from inflation and tariffs.
• Contractor Solutions organic revenue grew 13% and adjusted EBITDA grew 31.5%; the segment’s adjusted EBITDA margin was 31%, versus 32% a year earlier.
• Net interest expense increased $11.1 million, weighing on EPS growth relative to EBITDA growth. CSW paid down $91 million of debt, lowering net debt to EBITDA to 2.1x from 2.37x at the end of the prior quarter.