CSW Industrials, Inc.

Greetings and welcome to the CSW Industrials, Inc. Fiscal 2025 First Quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alexa Huerta, CSWI's Vice President of Investor Relations and Treasurer. Thank you. You may begin.

Thank you, Michelle. Good morning, everyone, and welcome to the CSW Industrials Fiscal 2025 First Quarter Earnings Call. Joining me today is Joseph Arms, Chairman, Chief Executive Officer, and President of CSW Industrials, and James Perry, Executive Vice President and Chief Financial Officer. We issued our earnings release, updated investor relations presentation, and Form 10-Q prior to the market's opening today, all of which are available on the investors portion of our website at www.cswindustrials.com. This call is being webcast, and information on accessing the replay is included in the earnings release. During this call, we will make forward-looking statements. These statements are based on current expectations and assumptions that are subject to various risks and uncertainties. Actual results could materially differ because of factors discussed today in our earnings release and the comments made during this call, as well as the risk factors identified in our annual report on Form 10-K and other filings with the SEC. We do not undertake any duty to update any forward-looking statements. I will now turn the call over to Joe.

Thank you, Alexa. Good morning, everyone. I'm proud to report that once again, our team has delivered record results in the first fiscal quarter of 2025 and has outperformed the markets we serve. This morning, we reported all-time highs for each of our quarterly revenue of $226 million, EBITDA of $65 million, earnings per diluted share of $2.47, net income of $39 million, and cash flow from operations of $63 million. Our gross profit margin expanded an additional 220 basis points to 47.5 percent as a result of pricing, favorable product mix, cost containment, and operational efficiency. Our EBITDA margin also expanded by 210 basis points to 28.9% in the quarter. Our sharp focus on cash flow from operations drove a fiscal first quarter record of $63 million or 24.7% growth over the prior year. Our strong cash flow will continue to fund our capital allocation strategy and we remain focused on building our pipeline of inorganic investment opportunities with returns that will grow shareholder value. During the fiscal first quarter, we utilized our strong cash flow to pay down the outstanding debt on our revolving credit facility by $51 million. We ended the quarter with a balance of $115 million outstanding on our $500 million facility. allowing us to further reduce our interest expense and to maximize the capital available to us, which will fund future opportunities as they arise. Our balance sheet strength, liquidity, and increasing cash flows give us the luxury of being able to quickly act on business opportunities of size. Once again, each of the three business segments impressed during the quarter with their execution, resilience, and ability to deliver results. I will let James provide more details on the performance of each segment during the quarter. CSWI has a demonstrated nine-year track record of increasing long-term shareholder value. We continue to maintain a strong balance sheet, grow revenue meaningfully, and efficiently allocate capital using a rigorous risk-adjusted returns analysis to guide us. The power of our product distribution model is one key to our success, allowing us to grow faster than our market served, and our acquisitions benefit greatly from this model. At CSWI, we also care about how we succeed, so we prioritize investing in our team members' well-being and focusing on our customers, which positions us for sustainable, long-term growth and profitability. At this time, I will turn the call over to James for a closer look at our results, and following that, I will return and conclude our prepared remarks.