At a glance
CSW Industrials Inc is worth $4.76B, about 44 times its fiscal 2026 earnings. Revenue grew 23.3% to $1.08B in fiscal 2026, with 10.4% kept as profit; over 5 years it has grown 20.9% a year. It pays a 0.39% dividend yield, raised every year for at least 5 years, and returned $298.5M to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned +21.4% over the past year with dividends reinvested, against +11.5% for the S&P 500.
The business in plain English
CSW Industrials makes niche products used mostly by professional contractors who install and service heating, ventilation, air conditioning and refrigeration (HVAC/R) and plumbing systems. Its brands include RectorSeal, TRUaire, MARS and Aspen Manufacturing. Most products reach contractors through wholesalers and distributors, including regional and national chains. Sales peak in spring and summer.
Contractor Solutions is the core of the business. It brought in $802.7 million, or 74%, of the $1.08 billion in revenue for the fiscal year ended March 31, 2026. It sells items such as condensate pumps, drain systems, grilles and registers, evaporator coils, motors and capacitors. Engineered Building Solutions (15%) serves architecturally specified building products, meaning products written into building plans by architects and engineers. Specialized Reliability Solutions (11%) supplies specialty lubricants, sealants and filtration products that help mining, rail, energy and industrial equipment last longer.
About 90% of revenue came from the U.S. Manufacturing is concentrated in the U.S., Vietnam and Canada. CSW grows partly through acquisitions. It paid $327.6 million for Aspen Manufacturing, an evaporator coil and air handler maker, in May 2025. It then paid $658.1 million for MARS Parts, a large HVAC/R parts supplier weighted toward repairs, in November 2025. It is seeking a buyer for Greco US and exiting Greco Canada. CSW has been independent since 2015, when Capital Southwest Corporation handed CSW shares to its own shareholders.
Price history
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CSW +21.4% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Book-and-ship | $976.9M | 90.2% |
| Build-to-order | $105.6M | 9.8% |
By business segment
| Contractor Solutions | $802.7M | 74.1% |
| Engineered Building Solutions | $160.0M | 14.8% |
| Specialized Reliability Solutions | $119.9M | 11.1% |
By geography
| U.S. | $968.6M | 89.5% |
| Non-U.S. | $113.9M | 10.5% |
Latest results
- In Q2 FY2027 (ended Sep 30, 2026), revenue was $361.4M, up 30.5% from a year earlier, and net income was $47.3M (+16.4%).
- For fiscal 2026, revenue was $1.08B (+23.3% year over year; +20.9% a year from FY2021 to FY2026) with a 10.4% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +20.9% good |
|---|---|
| Operating margin | 15.6% good |
| Free cash flow margin | 12.2% good |
| Return on equity (FY2026) | 10.7% watch |
| Return on assets (FY2026) | 4.8% watch |
| Net cash (cash minus debt) | $-720.1M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $419.2M | $40.1M | $57.4M |
| FY2022 | $626.4M | $66.4M | $53.4M |
| FY2023 | $757.9M | $96.4M | $107.5M |
| FY2024 | $792.8M | $101.6M | $147.8M |
| FY2025 | $878.3M | $136.7M | $152.1M |
| FY2026 | $1.08B | $112.0M | $132.4M |
Valuation snapshot
| Market value | $4.76B |
|---|---|
| P/E ratio | 43.7 |
| Dividend yield | 0.39% |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| CSW price data to Oct 28, 2026 | -0.1% | +21.4% | — | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -0.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 8 sales ($4.5M), 6 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 5, 2026 | Don Sullivan EVP, Chief Strategy Officer | sell | $1.6M |
| Aug 14, 2026 | Joseph B Armes Chairman, President & CEO, Director | sell (plan) | $518K |
| Jul 15, 2026 | Joseph B Armes Chairman, President & CEO, Director | sell (plan) | $435K |
| Sep 15, 2026 | Joseph B Armes Chairman, President & CEO, Director | sell (plan) | $434K |
| Oct 15, 2026 | Joseph B Armes Chairman, President & CEO, Director | sell (plan) | $431K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 13.9% | Sep 30, 2025 |
| Vanguard Portfolio Management | 5.53% | Mar 31, 2026 |
| Vanguard Capital Management | 5.2% | Mar 31, 2026 |
| Capital World Investors | 4.3% | Mar 31, 2026 |
| Wasatch Advisors LP | 4.2% | Jun 30, 2026 |
What could go wrong
- Tariffs on Vietnam and China supply chains. CSW has significant manufacturing in Vietnam and uses third-party makers in China. Tariffs on those countries, and on steel, aluminum and copper, raise costs that price increases may not fully offset.
- Heavy borrowing to fund big acquisitions. MARS Parts ($658.1 million) and Aspen Manufacturing ($327.6 million) were paid for largely with borrowed money. Debt was about $855 million versus $55 million of cash as of June 30, 2026.
- Acquisitions may not pay off. Growth depends partly on acquisitions, which can cost more or deliver less than planned. CSW took a $15.6 million non-cash write-down on its Greco businesses, which it is putting up for sale or exiting.
- Dependence on independent distributors. Most products reach contractors through wholesalers and distributors, many of them regional or national chains. Losing many of these relationships, or distributors favoring rival brands, could hurt sales.
- Cyclical and seasonal demand. Demand in HVAC/R, construction, energy, mining and rail rises and falls with business cycles. Distributor stocking swings add volatility, and HVAC/R sales peak in spring and summer, so results can vary sharply.
- Competition from rivals with lower costs. Competitors range from small single-product firms to large multinational equipment makers. Named rivals include DiversiTech, Nu-Calgon and Oatey. Some have cost advantages that make less specialized products harder to defend.
Recent events
- Quarterly results released
- Shareholder vote results; Other company announcement
- Quarterly results released
- Quarterly results released
- Quarterly results released
- Major agreement signed; Acquisition or sale of assets completed; New debt or financial obligation; Investor presentation or announcement
- Quarterly results released
For income and retirement investors
CSW pays a small but fast-growing dividend. It has raised the dividend in each of the last 5 fiscal years, from about $0.53 a share in fiscal 2021 to about $1.08 in fiscal 2026 (ended March 31, 2026). That works out to roughly 15% a year. The fiscal 2026 payout used only 16% of earnings and 14% of free cash flow, the cash left after expenses and investment. But the yield was just 0.39% as of October 28, 2026, so the income is small. Share repurchases have been bigger: $234 million over fiscal 2022–2026, including $133 million in fiscal 2026, versus $64 million in dividends. Even so, the share count rose 3.6% from July 2021 to July 2026.
Price figures here cover only about 1.4 years, so they don't show how the shares held up in the 2020 COVID crash or the 2022 market decline. The deepest drop in that span was about 25%. A single stock carries more risk than a diversified fund.
Questions investors ask
How does CSW Industrials make money?
It sells niche building and industrial products, mainly to wholesalers and distributors that supply heating, ventilation, air conditioning and refrigeration (HVAC/R) and plumbing contractors. In the fiscal year ended March 31, 2026, revenue was about $1.08 billion. Contractor Solutions brought in 74% and Engineered Building Solutions 15%. Specialized Reliability Solutions, which sells industrial lubricants and sealants, brought in 11%. About 90% of sales were in the U.S. Net income was $112.0 million, or 10.4% of revenue.
Does CSW Industrials raise its dividend every year?
Yes, it has raised its dividend in each of the past 5 fiscal years. Dividends per share rose from about $0.53 in fiscal 2021 to about $1.08 in fiscal 2026, which ended March 31, 2026. That is a gain of roughly 15% a year. The dividend took only 16% of fiscal 2026 earnings and 14% of free cash flow. The yield was low, though, at 0.39% as of October 28, 2026.
Why does CSW Industrials have so much debt?
It borrowed to pay for acquisitions. In November 2025, CSW paid $658.1 million for MARS Parts, an HVAC/R parts supplier. It used a new term loan and its revolving credit line, which is a reusable borrowing line. In May 2025, it paid $327.6 million for Aspen Manufacturing with cash and credit-line borrowings. As of June 30, 2026, total debt was about $855 million against about $55 million of cash. Shareholders' equity was $1.07 billion.
What is CSW Industrials' P/E ratio?
It was 43.7 as of October 28, 2026, based on fiscal 2026 earnings of $6.70 per share. The price-to-earnings (P/E) ratio divides the share price by a year's earnings per share. Earnings per share fell from $8.38 in fiscal 2025, even though revenue grew 23.3%. In the quarter ended June 30, 2026, revenue rose 33% and net income rose 21.6% from a year earlier. A multiple this high leaves the share price dependent on continued growth.
Are CSW Industrials insiders selling shares?
Yes, insiders have been net sellers. Filings reviewed for October 29, 2025 to October 29, 2026 show 8 sales worth about $4.5 million and no purchases. Six were made under prearranged trading plans, which set sales in advance. Chairman and CEO Joseph Armes made several planned sales between July and October 2026. Chief Strategy Officer Don Sullivan sold about $1.6 million in August 2026 outside a plan. Insider sales can reflect personal reasons such as taxes or diversification.