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Jun 30, 2021
Csw Industri Q1 2022 Earnings Report
Reported record quarterly revenue and EPS.
Key Takeaways
CSW Industrials reported a strong fiscal first quarter with a 77% increase in total revenue to $161.3 million and adjusted EPS growth of 80% to $1.46. All three segments delivered organic revenue growth, with Contractor Solutions leading with 54% organic growth.
Total revenue increased 77% to $161.3 million, compared to $91.0 million.
Organic revenue growth of 40%, or $36.8 million, with all segments reporting organic growth.
Adjusted EPS attributable to CSWI grew by 80% to $1.46, compared to $0.81.
Adjusted EBITDA increased by 108% to $40.5 million, with a 25% adjusted EBITDA margin.
Forward Guidance
The company expects ongoing strength in top line growth, but short-term inflation is having a modest impact on near-term profit margins.
Positive Outlook
- Expect the demand for innovative products to translate into ongoing strength in top line growth.
- Sustained and sharp focus on customer service.
- Disciplined price actions amid an accelerating economic recovery.
- Effective tax rate for the fiscal first quarter was 23.9% on a GAAP basis.
- Company continues to expect a 25% tax rate for fiscal year 2022.
Challenges Ahead
- Short-term inflation, primarily in raw materials and transportation, is having a modest impact on near-term profit margins.
- Material and freight cost inflation that outpaced instituted price increases in some end markets served.
- Shift in sales to lower margin projects.
- Growth in material and freight expenses accelerated more quickly than the effectiveness of the implemented pricing initiatives.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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