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Investor Presentation Fiscal 2025 Third Quarter Results January 2025
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Investor Presentation January 2025 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 relating to, among other things, the business, financial condition and results of operations of CSW Industrials, Inc. (“CSWI” or the “Company”). Any statements preceded or followed by or that include the words “believe,” “expect,” “intend,” “plan,” “should” or words, phrases or similar expressions or the negative thereof, are intended to identify forward-looking statements. These statements are made on the basis of the current beliefs, expectations and assumptions of the management of CSWI. There are a number of risks and uncertainties that could cause CSWI’s actual results to differ materially from the forward-looking statements included in this presentation. In light of these risks, uncertainties, assumptions, and other factors inherent in forward-looking statements, actual results may differ materially from those discussed in this presentation. Other unknown or unpredictable factors could also have a material adverse effect on CSWI’s actual future results, performance, or achievements and include, without limitation, the factors described from time to time in our filings with the SEC, including the risk factors described in our Annual Report on Form 10-K. As a result of the foregoing, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. CSWI does not assume any obligation to update these forward-looking statements to reflect any new information, subsequent events or circumstances, or otherwise, except as may be required by law. Forward Looking Statement This presentation includes non-GAAP financial measures including Adjusted Earnings Per Share, Adjusted Net Income, Adjusted Operating Income, Adjusted EBITDA and Free Cash Flows. Reconciliations to the most directly comparable GAAP measures are included in the Appendix of this presentation. These measures should be considered in addition to results prepared in accordance with GAAP, but are not a substitute for GAAP results. Non-GAAP Financial Information 2
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Index Overview, Culture, Values, and Investment Thesis Business Segment Overview Fiscal 2025 Third Quarter Results Fiscal 2025 Year-to-Date Results Appendix 4 18 28 33 38
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CSW Industrials, Inc. (Nasdaq: CSWI) A diversified industrial growth company with a strategic focus on providing niche, value-added products in the end markets we serve. 1 Throughout the presentation, Trailing Twelve Months (TTM) are defined as the twelve months ended December 31, 2024. 2 Listed publicly after spin-off from Capital Southwest Corporation (Nasdaq: CSWC). 3 As of 1/21/2025. 4 Reflects cash on hand of $214M and $499M of available capacity on the $500M revolving credit facility as of December 31, 2024. Key Highlights Publicly Listed on Nasdaq2 2015 Market Capitalization3 ~$6.7B Investment in Acquisitions ~$701M TTM Gross Margin ~45% Liquidity4 ~$712M Three Segments (Segment percentages reflect TTM1 Revenue) Contractor Solutions Engineered Building Solutions Specialized Reliability Solutions 4 TTM Total Revenue: $858.6M Investor Presentation January 2025
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Continuously Evolving Our Portfolio CSW Industrials has consistently evolved through strategic acquisitions and initiatives, resulting in a proven track record of sustained growth and margin expansion. 5 Investor Presentation January 2025 1 Segment reporting was updated to the current structure effective 04/01/2022 2 at 2015 public debut 3 as of 01/21/2025 2015 Portfolio Revenue by segment Revenue by segment ~$500M Market cap2 $262M Sales 21.4% EBITDA margin $1.90 EPS $56M EBITDA ~$6.7B Market cap3 $859M Sales $8.25 Adj. EPS 26.1% Adj. EBITDA margin $224M Adj. EBITDA $262M FY15 Sales $859M TTM 3Q25 Sales TTM 3Q25 portfolio1
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Corporate Culture and Values CSWI is committed to recruiting great talent, offering rewarding career destinations, and recognizing team members. Our employee-centric culture features a diverse and inclusive environment where every team member belongs, is encouraged to contribute, and is provided with options to develop and expand their skill sets. CSWI leaders embody and cultivate our Core Values. Everything we do is accomplished with a focus on environmental stewardship, and the health and safety of our team members. Investor Presentation January 2025 The Goal of Our Corporate Culture is to Maximize Performance 6 Our Core Values Provide the Framework for Our Corporate Culture Accountability Citizenship Teamwork Respect Integrity Stewardship Excellence
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Corporate Culture and Values We seek to create, nurture, and sustain an inclusive and diverse environment that attracts and retains the highest caliber team members, leveraging their skills and expertise to serve our customers. We are dedicated to attracting, developing, and retaining high-quality individuals of all backgrounds, and to making CSWI a place where everyone can contribute and grow. We at CSWI believe that diversity not only inspires our internal team, but also informs customer insight and service, and we are excited to have been named to Forbes 2024 America's Most Successful Midsize Companies list and certified as a Great Place To Work. Investor Presentation January 2025 Our Commitment to Diversity, Inclusion, and Respect: 1 TRIR is for the TTM period ended 12/31/24. 2 Employee Stock Ownership Plan (ESOP). Key Highlights: Total Recordable Incident Rate1 Insider ownership, including ESOP2 ~4% Independent Directors on our Board 89% Diverse Directors on our Board 33% 7 1.2
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• Total revenue CAGR of 17.8% from FY19 through FY241 • Organic revenue CAGR of 10.1% from FY19 through FY241, 2 Compelling Investment Thesis Investor Presentation January 2025 1 Compound Annual Growth Rate (CAGR) and average percentage calculations include continuing operations only. 2 Organic CAGR calculation excludes all revenue from product lines acquired after spin-off from CSWC 3 Cash on hand, revolving credit facility, and availability as of December 31, 2024.4 Adjusted EBITDA is earnings before interest, tax, depreciation & amortization, and excludes significant nonrecurring items. Growth exceeding end markets served Robust margin profile Strong financial position Experienced leadership team • $500M revolving credit facility with no borrowings outstanding, and $214M cash on hand3 • $223.9M TTM EBITDA, and 26.1% EBITDA margin as a percent of revenue4 • Dedicated to enhancing shareholder value • Committed to exemplifying CSWI’s culture and values 8 • 43.6% adjusted Gross Profit Margin annual average FY19 – FY241 • 22.7% adjusted EBITDA Margin annual average FY19 – FY241
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Sustainable Growth in Shareholder Value • 1325% market cap growth1 • 222% Revenue growth2 • 271% adjusted EBITDA growth3 • $218M cash returned to shareholders through dividends and share repurchases4 • 1220% total shareholder return5 • $701M investment in acquisitions6 • 15.6M shares outstanding in Sept 2015 and 16.8M shares outstanding today Investor Presentation January 2025 Our demonstrated track record of growth and enhancing long-term shareholder value. 1 ~$6.7B market cap as of 01/21/2025,compared to ~$500M at 2015 public debut. 2 $858.6M TTM Revenue versus $266.9M FY16. 3 $223.9M TTM adjusted EBITDA versus $60.3M FY16. 4 From 3Q18 thru the February 2025 dividend payment. 5 Calculated starting with the date shares began trading "regular way" (10/01/2015 - 01/21/2025). 6 Completed FY16 through 3Q25 Maintain Our Strong Balance Sheet Allocate Capital Efficiently Maximize Channels to Market and Increase Market Share Invest in Organic Growth Disciplined Acquisition Strategy 9 Since Inception
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Strong Long-Term Free Cash Flow and EPS Growth Free Cash Flow1/ Share and Adjusted EPS (FY20 - FY24) 1 Defined as Cash from Operations less capital expendituresInvestor Presentation January 202510 FCF / Share FY20 - TTM FY24 CAGR: 24.5% Legend ■ Free Cash Flow1/Share ■ Adjusted EPS Adjusted EPS FY20 - TTM FY24 CAGR: 21.8%
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Stated Capital Allocation Principles CSW Industrials is committed to maintaining a strong balance sheet with ample liquidity through both cash and available credit to capitalize on growth opportunities, both organically and inorganically. 11 Investor Presentation January 2025 Capital Allocation Policy issued in November 2018 and reaffirmed in December 2022. CSW Industrials targets a sustained leverage ratio of 1x to 3x total debt to EBITDA with the flexibility to exceed the maximum sustained leverage ratio for a limited time to support strategic investment opportunities. Investment to support organic growth opportunities Investment in inorganic growth opportunities Return of excess free cash to shareholders as appropriate through opportunistic share repurchases and dividends
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Capital Expenditures $16.6 Debt Repayments $153.0 Acquisitions $112.0 Dividends $13.5 Share Repurchases $18.3 Allocating Capital Efficiently Investor Presentation January 2025 1 Acquisition capital includes the cash portion of the acquisitions considerations during the TTM. 2 As of December 31, 2024. 3 Share repurchase program inception 3Q18 TTM Capital Allocation1 ($ in millions) • Prioritize accretive, synergistic acquisitions within current end markets • Consider broader strategic opportunities as appropriate Inorganic Growth • Continue to maintain strong balance sheet for future opportunities • No borrowings outstanding on our $500M revolver Repayment of Debt • Cumulative share repurchases of $155M and 2.0M shares since 3Q18 2, 3 • 24 consecutive quarters of dividends declared since first dividend in April 2019, for cumulative cash return of $63M Return of Capital to Shareholders $313.4M Organic Growth Capital allocation decisions are prioritized on a risk-adjusted returns basis, with the ultimate goal of driving long-term shareholder value. 12 • Invest in enhancing innovative, value- adding products and efficiency initiatives • Increase global sales footprint
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Successful Follow-On Equity Offering 13 Investor Presentation January 2025 • Announced follow-on equity offering on September 4, 2024, with pricing and upsize on September 5, 2024 • Offered a total of 1,265,000 shares of common stock, an 8% increase to our existing share count • Priced at $285 per share, a 10% discount to the September 4th closing price • Resulted in net proceeds of $347.4M • Strong demand of more than four times the number of shares offered • Share price fully recovered in the following days and continued to rise • Stock price and market valuation were strong, amidst attractive equity market back-drop • Paid down all outstanding debt under our Revolver and invested the remaining proceeds, which is accretive to our FY25 EPS • Enhanced capital available for future M&A opportunities Why now?
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Strategic, Disciplined Approach to M&A Investor Presentation January 2025 • Long-term growth well in excess of GDP • Strong margin contribution in-line with existing operations, and margin resiliency through cycles • Leverage our strategy and channels to market, including our extensive distribution network • Execute our capital allocation strategy, investing in opportunities with the highest risk-adjusted rate of return • Expand in current markets with product introductions and meaningful acquisitions • Maintain strong balance sheet • Drive enhanced returns by leveraging market knowledge, and existing systems and processes As a diversified industrial growth company, our goal is to increase free cash flow through sustainable organic growth, accretive inorganic growth, and operational efficiencies. CSW Industrials Criteria: 14
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15 Investor Presentation January 2025 Long Standing Track Record of Successful Acquisitions We have a successful record of making attractive and synergistic acquisitions that support expansion of our broad portfolio of solutions. Acquisition Metrics Acquisitions Post-Spin • Identify and execute accretive acquisitions that will broaden and complement our portfolio of brands and products • Focus on commercially proven products and solutions that: ◦ Are attractive in our target end markets ◦ Currently have limited access to distribution channels that will benefit from our market channels • Utilize strong free cash flow or financing to fund acquisitions 1 Reflects median of publicly disclosed purchase multiples; excludes 2024 plumbing acquisitions, Petersen Metals, MSD Research and Deacon acquisitions due to undisclosed multiples (Acquisition Price in millions; years reflect CSWI Fiscal years) Key Highlights 16 Acquisitions completed since October 2015 $701M Cumulative capital deployed on acquisitions 7.7x Median purchase price multiple1 Legend Contractor Solutions Specialized Reliability Solutions Engineered Building Solutions 16 13 $386 CAB 2 Add-on acquisitions 34 3 3 37 22 43 47 3CB
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Our Distribution Channels Accelerate Growth Investor Presentation January 202516 We have focused on expanding our distribution network in recent years, enhancing revenue growth from new product introductions and acquisitions. Without CSWI: Limited Distribution With CSWI: Broad Distribution The Power of Our Distribution Model CSWI sustains strong access to distributors, including through buying groups and national account relationships. CSWI can acquire or mass distribute products, resulting in sales at a faster and more cost-effective rate due to logistics leverage, supply agreements, sales staff, credit and back-office support. Newly designed products, while innovative & helpful for contractors, are often challenged by limited distribution
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• Continuous improvement in material and freight costs • Minimize freight delays and maximize supplier on-time delivery • Proactively increased dual- sourcing on critical components • Leverage internal manufacturing capacity • Top-Line Growth: 17.8% Revenue 5-Year CAGR1 • Compelling Profitability: 26.0%, 24.8%, and 22.2% adjusted EBITDA margin 3Q25 YTD, 3Q24 YTD, and 3Q23 YTD, respectively • Capital Allocation Priorities: $153M pay-down of borrowings under our Revolving Credit Facility during the last twelve months ended December 31, 2024 • Focus on Safety: ◦ Goal is a zero-incident workplace • Focus on Total Rewards: ◦ Competitive total rewards with generous health and retirement benefits • Focus on Wellness: ◦ Cigna Well-Being Award • Great Place to Work Certified for two years in a row Our Guiding Objectives Investor Presentation January 2025 1 Compound Annual Growth Rate (CAGR) and average percentage calculations include continuing operations only. At CSWI, how we succeed matters, and accordingly we will: Treat Our Team Members Well • Emphasize consistent availability and timely delivery • Continuously evaluate inventory at both the product and category levels to meet customer demand, while optimizing working capital investments • Focus on driving market and wallet share gains Serve Our Customers Well Manage Our Supply Chains Effectively Position CSWI for Sustainable, Long-Term Growth and Profitability 17
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Business Segment Overview
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Segments Summary Investor Presentation January 2025 • $592.7M TTM Revenue, $196.7M adjusted EBITDA, and 33.2% adjusted EBITDA margin • Manufactures and supplies efficiency and performance enhancing products for residential and commercial HVAC/R, electrical, and plumbing applications, designed primarily for professional tradespeople Contractor Solutions • $122.5M TTM Revenue, $23.0M EBITDA, and 18.8% EBITDA margin • Provides primarily code-driven products focused on life-safety that are engineered to provide aesthetically-pleasing solutions for the construction, refurbishment and modernization of commercial, institutional, and multi-family residential buildings Engineered Building Solutions • $151.5M TTM Revenue, $30.5M EBITDA, and 20.1% EBITDA margin • Provides long-established products for increasing the reliability, performance, and lifespan of industrial assets and solving equipment maintenance challenges Specialized Reliability Solutions 19
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Contractor Solutions Segment: Markets & Brands Investor Presentation January 2025 ◦ Highly diversified product portfolio providing industry leading products in both direct-to- customer and distributor models ◦ Adding value by innovating new and existing products to accelerate organic growth Summary: End Markets Served: HVAC/R Plumbing Electrical General Industrial 20 ◦ Future growth focus on new product introductions through organic innovation and inorganic additions ◦ Strong reputation for providing high quality products to long-standing customer base Contractor Solutions Brands:
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Secondary Condensate Drain Pans Pipe Thread Sealant Plumbing Products (Retail & Distribution Channels) Indoor Air Quality (IAQ) Products Water & Gas Connectors Condensate overflow switches and clean out devices Contractor Solutions: Products 21 Surge Protective Devices Grilles, Registers, and Diffusers (GRD) Investor Presentation January 2025
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HVAC/R Mini-Split Niche Market: Products 22 Safe-T-Switch Primary drain pan overflow protection. Mighty Bracket Support tool - allows single person evaporator installation or repair Aspen Pumps Univolt or Silent+. Four discrete condensate pump models. White, Aqua, Orange, Lime. Nokink Flexible, easy flare line connector Dust Free Duality Germicidal UV light and VOC filter for improved IAQ Coil-Cure EPA registered coil cleaner and disinfectant. Desolv Cleaning Kit and Aerosol protect walls and floors Condenser brackets Powdercoat and stainless EZ Trap Waterless in-line condensate trap AC Leak Freeze with UV Leak stop sealant, non clogging, non reactive polymer-free nano formula Flaretite Flare gasket against leaks for common fittings, 45° copper stamping with coating Slimduct, Fortress, Cover Guard Lineset duct and fitting systems, 7 sizes, 4 colors Surge Protection Protects equipment from electrical surges and other voltage disturbances PRO-Fit Flaring & Swaging Tool Bit Kits Create precise and fast standard 45° flare or swage Novent Code compliant, locking caps protect against refrigerant theft and inhalation. A2L refrigerant compatible Investor Presentation January 2025
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Specialized Reliability Solutions Segment: Markets & Brands Investor Presentation January 2025 ◦ Our product portfolio allows us to compete and capture enhanced margins relative to larger peers ◦ Focus on end markets with sustainable growth trends, offering products that serve niche solutions ◦ Established reputation for solving equipment maintenance challenges and increasing the reliability, performance, and lifespan of industrial assets utilized in the most demanding environments and extreme conditions Summary: End Markets Served: Rail Transport Energy Mining General Industrial 23 ◦ Innovating new and existing products to accelerate organic growth ◦ Growth focus on new product introductions through organic innovation and inorganic additions ◦ Two centuries of combined operations manufacturing and supplying our trusted specialty lubricants, compounds, sealants, coatings, desiccant breather filtration, and lubrication management systems Specialized Reliability Solutions Brands:
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Specialized Reliability Solutions: Products Investor Presentation January 202524
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Specialized Reliability Solutions: Shell Whitmore JV Products Investor Presentation January 202525
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Engineered Building Solutions Segment: Markets & Brands Investor Presentation January 2025 ◦ Market leader in providing unique solutions to architects and contractors that meet code requirements, while adding functionality, performance, and aesthetically-pleasing designs ◦ Decades of experience creating products that protect lives ◦ Endless use cases for construction, refurbishments, and modernization of buildings Summary: End Markets Served: Smoke & Fire Protection Safety Railings Expansion Joints Safety Egress 26 ◦ Multiple manufacturing locations provide efficiency to meet the needs of general contractors and architects ◦ Continuous engineering improvement to produce best in class products ◦ Design, manufacture and install stainless steel and other architectural metal product railings for interior and exterior end uses Engineered Building Solutions Brands:
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Engineered Building Solutions: Products Investor Presentation January 202527
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Fiscal 2025 Third Quarter Summary of Financial Results
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Consolidated Results: 3Q25 Summary • Record third quarter revenue of $193.6M, a 11% increase ◦ $15.3M increase from inorganic revenue from the Dust Free, PSP Products, and PF WaterWorks acquisitions ◦ $3.4M increase from organic revenue as a result of increased volumes ◦ Increased revenue in the HVAC/R, plumbing, electrical, and rail transportation end markets • Record third quarter adjusted EBITDA of $42.0M, a 14% increase ◦ Adjusted EBITDA increase a result of increase in revenue from acquisitions and increased organic volumes ◦ Adjusted EBITDA margin improved 70 basis points to 22% • Record third quarter adjusted EPS of $1.48, a 38% increase ◦ Increased adjusted EPS due to accretion from interest income versus interest expense in the prior year period, and increased performance Investor Presentation January 2025 Consolidated Financial Highlights (3Q25 vs 3Q24): Summary Quarterly Consolidated Results ($ in millions) 21.7% Margin21.0% Margin18.3% Margin Contractor Solutions Engineered Building Solutions Specialized Reliability Solutions 3Q25 Revenue ($ in millions) $193.6M Consolidated CSWI1 29 1 Consolidated CSWI revenue includes Corporate & Other, which are not depicted above. Please see the Appendix for the breakout.
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Contractor Solutions: 3Q25 Segment Summary Investor Presentation January 2025 • Segment Revenue of $132.2M, a 15% increase ◦ Inorganic revenue of $15.3M, due recent acquisitions ◦ Organic increase of $1.4M, due to an increase in unit volumes • Segment adjusted EBITDA increased 13% to $37.5M, but adjusted EBITDA margin decreased 30 basis points to 28.4% ◦ Adjusted EBITDA increase driven mainly by incremental profit from revenue growth and the inclusion of recent acquisitions, partially offset by increased freight, including a freight expense alignment in the quarter ◦ Adjusted EBITDA margin decrease was as result of the increased freight, partially offset by improved leverage on operating expenses • Segment revenue expected to outgrow our end markets through new business and product introductions added to our extensive distribution network 25.4% Margin 28.6% Margin 28.4% Margin Segment as a % of Consolidated CSWI Revenue: 64% 3Q23 65% 3Q24 67% 3Q25 30 Segment Financials (3Q25 vs 3Q24):Summary Quarterly Segment Results ($ in millions)
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• Segment Revenue of $34.6M, a $0.9M, or 3% increase ◦ Primarily driven by an increase in volume ◦ Revenue growth in the general industrial and rail transportation end markets • Segment EBITDA increased 26% to $6.6M, and EBITDA margin increased 360 basis points ◦ EBITDA margin improvement driven mainly by gross margin manufacturing efficiencies and management of operating expenses • A growing pipeline of opportunities, our niche products, high value solutions, and new product introductions allows this segment to grow faster than the GDP. Specialized Reliability Solutions: 3Q25 Segment Summary Investor Presentation January 2025 Segment as a % of Consolidated CSWI Revenue: 21% 3Q23 19% 3Q24 18% 3Q25 13.9% Margin 15.4% Margin 19.1% Margin 31 Segment Financials (3Q25 vs 3Q24):Summary Quarterly Segment Results ($ in millions)
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• Segment Revenue of $28.8M, a 3% increase ◦ Growth driven by backlog conversion into revenue • Segment EBITDA increased 3%, and EBITDA margin remained at 14.2% • Backlog turning into revenue as projects close out ◦ Eight quarter Book to Bill ratio of 1 to 1 ◦ Backlog quality continues to improve with better margin products ◦ Product development for future booking opportunities Segment as a % of Consolidated CSWI Revenue: 14% 3Q23 16% 3Q24 15% 3Q25 10.8% Margin 14.2% Margin 14.2% Margin Engineered Building Solutions: 3Q25 Segment Summary Investor Presentation January 202532 Segment Financials (3Q25 vs 3Q24): Summary Quarterly Segment Results ($ in millions)
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Fiscal Year-to-Date 2025 Summary of Financial Results
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• Record 3Q YTD Revenue of $647.8M, a 11% increase ◦ Inorganic revenue of $34.1M from the recent acquisitions ◦ $31.7M organic increase due to unit volume growth and a slight increase from pricing actions, with each of the three segments reporting organic growth • Adjusted EBITDA of $168.1M, or 17% growth ◦ Adjusted EBITDA margin increased 120 basis points ◦ Adjusted EBITDA growth due to gross profit expansion, offset some by increased operating expenses • Adjusted EPS of $6.17, a 24% increase, compared to $4.97 • Returned $24.3M of cash to shareholders, including $13.7M through share repurchases and $10.6M in dividends Consolidated Results: 3Q25 YTD Summary Investor Presentation January 2025 Consolidated Financial Highlights (3Q25 YTD vs 3Q24 YTD): 1 Consolidated CSWI revenue includes Corporate & Other, which are not depicted above. Please see the Appendix for the breakout. Summary 3Q25 YTD Consolidated Results1 ($ in millions) 26.0% Margin24.8% Margin22.2% Margin Contractor Solutions Engineered Building Solutions Specialized Reliability Solutions 3Q25 YTD Revenue ($ in millions) $647.8M Consolidated CSWI 1 34
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Contractor Solutions: 3Q25 YTD Segment Summary Investor Presentation January 2025 • Segment Revenue increased 14% to $451.4M, primarily driven by: ◦ Inorganic growth of $34.1M from the Dust Free, PSP Products, and PF WaterWorks acquisitions ◦ Organic increase of $22.1M, driven by an increase in unit volumes and a slight increase from pricing actions • Segment adjusted EBITDA increased 18% to $149.4M ◦ Revenue growth, volume leverage, pricing actions, and a favorable product mix more than offset increased freight, costs from the inclusion of recent acquisitions, employee compensation, and integration ◦ Segment adjusted EBITDA margin increased 110 basis points • Contractor Solutions continues to deliver growth well above the end markets served, and we will continue our aggressive acquisition strategy for great companies 29.1% Margin 32.0% Margin 33.1% Margin Segment as a % of Consolidated CSWI Revenue: 67% 3Q23 YTD 67% 3Q24 YTD 69% 3Q25 YTD 35 Segment Financials (3Q25 YTD vs 3Q24 YTD): Summary 3Q25 YTD Segment Results ($ in millions)
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• Segment Revenue increased 2%, to $109.9M, primarily driven by: ◦ Increased unit volumes ◦ Growth coming from the rail transportation and general industrial end markets • Segment operating income increased 17% to $18.2M due to revenue growth and a modest inventory adjustment • Segment EBITDA increased 11% to $22.2M and EBITDA margin increased 170 basis points ◦ Improved margin was primarily driven by the above mentioned inventory adjustment Specialized Reliability Solutions: 3Q25 YTD Segment Summary Investor Presentation January 2025 Segment as a % of Consolidated CSWI Revenue: 19% 3Q23 YTD 19% 3Q24 YTD 17% 3Q25 YTD 16.3% Margin 18.5% Margin 20.2% Margin 36 Segment Financials (3Q25 YTD vs 3Q24 YTD):Summary 3Q25 YTD Segment Results ($ in millions)
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• Segment Revenue increased 9% to $92.4M, primarily driven by: ◦ Conversion of backlog into revenue, market expansion through code required products, and focused efforts on high-growth markets • Segment EBITDA increased 17% to $16.9M ◦ Segment EBITDA margin increased 130 basis points over the prior year, driven by gross margin expansion due to volume leverage and management of operating expenses • Actions provide future confidence ◦ Focus on multifamily, institutional, data centers, warehouses, parking garages, and airports with high quality contractors ◦ Backlog quality continues to improve with better margin products Segment as a % of Consolidated CSWI Revenue: 14% 3Q23 YTD 15% 3Q24 YTD 14% 3Q25 YTD 14.3% Margin 17.0% Margin 18.3% Margin Engineered Building Solutions: 3Q25 YTD Segment Summary Investor Presentation January 202537 Segment Financials (3Q25 YTD vs 3Q24 YTD): Summary 3Q25 YTD Segment Results ($ in millions)
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Appendix
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James has been EVP and CFO since May 2020. From 2004 to 2019, he served in financial roles with Trinity Industries, a publicly held, diversified industrial company, and served as its CFO from 2010 to 2019. From 2001 to 2004, Mr. Perry was a senior financial executive at RMH Teleservices, including serving as CFO. He previously held positions at JP Morgan Chase & Co. and Ernst & Young LLP. Donal has served as EVP & Chief Strategy Officer since April 2024, and previously served as EVP & General Manager, Contractor Solutions since May 2020. Prior to that Mr. Sullivan served as SVP, Industrial Products since January 2016, and was appointed as an executive officer of the Company in March 2019. He has previously held roles at Goodman Global and Carrier Corporation. Luke has served as SVP, General Counsel & Secretary since February 2016. From May 2008 to February 2016, Mr. Alverson held roles of increasing responsibility with Flowserve Corporation, a leading global manufacturer of fluid motion control products and provider of related services, serving most recently as VP, Corporate Legal Services & Assistant Secretary. CSWI Executive Team Investor Presentation January 2025 Veteran leadership with broad industry experience, dedicated to enhancing shareholder value. 39 Joseph B. Armes Chairman, CEO and President Joe has served as the Company’s Chairman of the Board of Directors & CEO since September 2015, & President since February 2018. Prior to the Company’s September 2015 spin- off from Capital Southwest Corporation, a capital provider to middle market companies, Mr. Armes served as the Chairman, CEO & President of Capital Southwest Corporation from June 2013 to September 2015. James E. Perry Executive VP and CFO Donal J. Sullivan Executive VP and Chief Strategy Officer Luke E. Alverson Senior VP, General Counsel and Secretary Danielle R. Garde Senior VP and Chief People Officer Danielle has served as SVP and Chief People Officer since October 2022. From June 2020 to September 2022, she was the Chief Human Resources Officer at PlayPower, Inc., a privately- held producer of recreation equipment. From March 2014 to February 2020, Ms. Garde held roles of increasing responsibility with KidKraft Inc., a privately- held producer of children’s toys and furniture, last serving as VP, Human Resources. Jeff A. Underwood Senior VP and GM, Contractor Solutions Jeff has served as SVP & General Manager, Contractor Solutions since April 2024, and previously served as SVP, Sales & Marketing for the Company's RectorSeal operating subsidiary within the Contractor Solutions segment since May 2021. Mr. Underwood joined the Company in September 2018 as VP of Sales for RectorSeal. He previously held roles at Goodman Manufacturing and Bain & Company.
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Reconciliation of Fiscal Third Quarter Segment Operating Income to Segment Adjusted EBITDA Investor Presentation January 2025 Note: Numbers may not foot due to rounding. CS - Contractor Solutions | SRS - Specialized Reliability Solutions | EBS - Engineered Building Solutions | Other - Corporate & Other 40 (unaudited) (unaudited) (unaudited) (Amounts in thousands) Three months ended December 31, 2024 Three months ended December 31, 2023 Three months ended December 31, 2022 CS SRS EBS Other CSWI CS SRS EBS Other CSWI CS SRS EBS Other CSWI Revenue, net $132,150 $34,566 $28,821 $ (1,889)$193,649 $115,412 $33,711 $27,861 $ (2,017)$174,967 $111,906 $36,334 $24,619 $ (1,767)$171,093 Operating Income $26,756 $ 5,238 $ 3,645 $ (6,045)$29,595 $25,751 $ 3,740 $ 3,537 $ (5,447)$27,581 $21,829 $ 3,921 $ 2,257 $ (4,896)$23,112 % Revenue 20.2 % 15.2 % 12.6 % 15.3 % 22.3 % 11.1 % 12.7 % 15.8 % 19.5 % 10.8 % 9.2 % 13.5 % Adjusting Items: Other Income (Expense) (188) (17) 38 (131) (298) (8,433) (9) (8) 21 (8,428) (308) (324) (31) (74) (738) Depreciation & amortization 9,179 1,366 420 48 11,012 7,178 1,477 437 42 9,134 6,906 1,464 433 50 8,853 Reversal of Indemnification Receivable 858 — — — 858 8,519 — — — 8,519 — — — — — Acquisition Broker Fee 860 — — — 860 — — — — — — — — — — Adjusted EBITDA $37,466 $ 6,587 $ 4,102 $ (6,128)$42,027 $33,015 $ 5,208 $ 3,966 $ (5,383)$36,805 $28,427 $ 5,061 $ 2,659 $ (4,919)$31,227 % Revenue 28.4 % 19.1 % 14.2 % 21.7 % 28.6 % 15.4 % 14.2 % 21.0 % 25.4 % 13.9 % 10.8 % 18.3 %
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Reconciliation of 3Q YTD Segment Operating Income to Segment EBITDA Investor Presentation January 2025 Note: Numbers may not foot due to rounding. CS - Contractor Solutions | SRS - Specialized Reliability Solutions | EBS - Engineered Building Solutions | Other - Corporate & Other 41 (unaudited) (unaudited) (unaudited) (Amounts in thousands) Nine Months ended December 31, 2024 Nine Months ended December 31, 2023 Nine Months ended December 31, 2022 CS SRS EBS Other CSWI CS SRS EBS Other CSWI CS SRS EBS Other CSWI Revenue, net $451,403 $109,893 $92,387 $ (5,930)$647,754 $395,268 $108,037 $84,660 $ (5,984)$581,980 $379,831 $108,958 $78,978 $ (5,549)$562,219 Operating Income $122,894 $18,208 $15,451 $ (20,348)$136,204 $104,443 $15,534 $13,029 $ (18,227)$114,780 $90,416 $13,658 $10,172 $ (14,945) $99,302 % Revenue 27.2 % 16.6 % 16.7 % 21.0 % 26.4 % 14.4 % 15.4 % 19.7 % 23.8 % 12.5 % 12.9 % 17.7 % Adjusting Items: Other Income (Expense) (335) (200) 18 (200) (716) (7,686) (100) 2 1,595 (6,188) 243 (375) (190) (207) (528) Depreciation & amortization 25,164 4,198 1,399 135 30,896 21,118 4,512 1,332 132 27,094 19,895 4,519 1,343 149 25,905 Reversal of tax indemnification receivable 858 — — — 858 8,519 — — — 8,519 — — — — — Acquisition Broker Fee 860 — — — 860 — — — — — — — — — — Adjusted EBITDA $149,442 $22,206 $16,868 $ (20,413)$168,102 $126,394 $19,947 $14,363 $ (16,500)$144,205 $110,554 $17,802 $11,326 $ (15,003)$124,679 % Revenue 33.1 % 20.2 % 18.3 % 26.0 % 32.0 % 18.5 % 17.0 % 24.8 % 29.1 % 16.3 % 14.3 % 22.2 %
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Reconciliation of TTM Segment Operating Income to Adjusted Segment EBITDA Investor Presentation January 2025 Note: Numbers may not foot due to rounding. CS - Contractor Solutions | SRS - Specialized Reliability Solutions | EBS - Engineered Building Solutions | Other - Corporate & Other 42 (unaudited) (Amounts in thousands) Trailing Twelve Months Ended December 31, 2024 CS SRS EBS Other CSWI Revenue, net $ 592,747 $ 151,478 $ 122,468 $ (8,082) $ 858,611 Operating Income $ 160,488 $ 24,940 $ 21,126 $ (26,011) $ 180,542 % Revenue 27.1 % 16.5 % 17.3 % 21.0 % Adjusting Items: Other income (expense), net 224 (245) 17 (440) (443) Depreciation & amortization 34,278 5,760 1,877 176 42,091 Reversal of tax indemnification receivable 858 — — — 858 Broker acquisition fee 860 — — — 860 Adjusted EBITDA $ 196,708 $ 30,455 $ 23,020 $ (26,274) $ 223,909 % Revenue 33.2 % 20.1 % 18.8 % 26.1 %
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Reconciliation of Fiscal Year Company Net Income to Adjusted EBITDA Investor Presentation January 2025 Note: Numbers may not foot due to rounding.43 (Amounts in thousands) Year Ended 3/31/2024 Year Ended 3/31/2023 Year Ended 3/31/2022 Year Ended 3/31/2021 Year Ended 3/31/2020 Year Ended 3/31/2019 Year Ended 3/31/2015 Net Income attributable to CSWI 101,648 96,435 66,385 40,099 44,656 46,051 29,705 Plus: Income attributable to Redeemable Noncontrolling Interest 891 139 934 — — — — Net Income 102,539 96,574 67,319 40,099 44,656 46,051 29,705 Adjusting Items: Interest Expense 12,723 13,197 5,449 2,383 1,331 1,442 611 Income Tax Expense 37,942 29,338 24,146 10,769 12,732 15,389 15,223 Depreciation & Amortization 38,289 34,958 36,408 22,718 15,587 13,670 10,515 Transaction Costs & Other Professional Fees — — — 10,360 200 — — Reversal of Indemnification Receivable 8,519 — — 5,000 — — — Pension Termination — — — — 6,488 — — Gain on Sale of Property — — — — (776) (2,047) — Adjusted EBITDA 200,011 174,067 133,323 91,329 80,217 74,506 56,054 % Revenue 25.2 % 23.0 % 21.3 % 21.8 % 20.8 % 21.3 % 21.4 %
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Reconciliation of Fiscal Year Company Gross Profit to Adjusted Gross Profit Investor Presentation January 2025 Note: Numbers may not foot due to rounding.44 (Amounts in thousands) Year Ended 3/31/2024 Year Ended 3/31/2023 Year Ended 3/31/2022 Year Ended 3/31/2021 Year Ended 3/31/2020 Year Ended 3/31/2019 Revenue, net 792,840 757,904 626,435 419,205 385,871 350,155 Cost of Revenue 442,095 439,690 370,473 234,655 209,034 188,787 Gross Profit 350,745 318,214 255,962 184,551 176,837 161,368 Adjusting Items: Purchase Accounting Effect — — 3,919 2,963 — — Gain on Sale of Property — — — — (776) (2,047) Adjusted Gross Profit 350,745 318,214 259,881 187,514 176,061 159,321 % Revenue 44.2 % 42.0 % 41.5 % 44.7 % 45.6 % 45.5 %
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Reconciliation of Fiscal Year Company Operating Cash Flow to Free Cash Flow/Share Investor Presentation January 2025 Note: Numbers may not foot due to rounding.45 (Amounts in thousands) Year Ended 3/31/2024 Year Ended 3/31/2023 Year Ended 3/31/2022 Year Ended 3/31/2021 Year Ended 3/31/2020 Net Cash Provided by Operating Activities 164,332 121,453 69,089 66,254 71,397 Less: Capital Expenditures (16,575) (13,951) (15,653) (8,833) (11,437) Free Cash Flows 147,757 107,502 53,436 57,421 59,960 Diluted Shares 15,581 15,546 15,807 15,126 15,206 Free Cash Flow/Share 9.48 6.92 3.38 3.80 3.94 FCF/Adjusted EBITDA 73.9 % 61.8 % 40.1 % 62.9 % 74.7 %
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Reconciliation of Fiscal Year Company EPS to Adjusted EPS Investor Presentation January 2025 Note: Numbers may not foot due to rounding.46 (Amounts in thousands) Year Ended 3/31/2024 Year Ended 3/31/2023 Year Ended 3/31/2022 Year Ended 3/31/2021 Year Ended 3/31/2020 Net Income attributable to CSWI 101,648 96,435 66,385 40,099 44,656 Diluted Shares 15,581 15,546 15,807 15,126 15,206 GAAP EPS 6.52 6.20 4.20 2.65 2.94 Adjusting Items: Transaction Costs & Other Professional Fees — — — 0.58 0.01 Reversal of Indemnification Receivable 0.49 — — (0.02) — Purchase Accounting Effect — — 0.19 0.15 — Pension Termination — — — — 0.32 Gain on Sale of Property — — — — (0.04) Other Misc. Items — — — — (0.04) Adjusted EPS 7.01 6.20 4.39 3.36 3.19