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Dec 31, 2022
Csw Industri Q3 2023 Earnings Report
Reported record revenue, EPS and EBITDA, driven by organic growth and strategic acquisitions.
Key Takeaways
CSW Industrials reported a strong fiscal third quarter with record revenue of $171.1 million, a 26% increase year-over-year, and net income attributable to CSWI increased 68% to $15.6 million. The company's EPS improved 71% to $1.01, including a one-time tax benefit of $0.10 per share, and EBITDA increased 47% to $31.2 million.
Total revenue increased 26% to $171.1 million, with organic growth contributing 17%.
Net income attributable to CSWI increased 68% to $15.6 million.
Earnings per diluted share (EPS) improved 71% to $1.01, including a one-time tax benefit of $0.10 per share.
EBITDA increased 47% to $31.2 million, equating to an 18% EBITDA margin.
Csw Industri
Csw Industri
Forward Guidance
The company expects year-over-year revenue growth of approximately 20% with an EBITDA margin of over 22% for the full year. These full-year expectations imply fourth quarter revenue growth of approximately 9% as compared to the same period last year, with an EBITDA margin of approximately 23% in the fourth quarter.
Positive Outlook
- Expects year-over-year revenue growth of approximately 20% for the full year.
- Anticipates an EBITDA margin of over 22% for the full year.
- Implies fourth quarter revenue growth of approximately 9% as compared to the same period last year.
- Projects an EBITDA margin of approximately 23% in the fourth quarter.
- Demand for our high-value products remains strong
Challenges Ahead
- Economic headwinds
- Managing costs while pursuing market share growth
- Shift in revenue to lower margin projects
- Increased spending on third-party sales commissions that accompany higher revenue
- Increased employee compensation expenses