CSW Industrials, Inc.

Greetings and welcome to the CSW Industrial Second Quarter 2025 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, Alex West, Vice President of Investor Relations and Treasurer. Thank you. You may begin.

Thank you, Maria. Good morning, everyone, and welcome to the CSW Industrials Fiscal 2025 Second 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, and good morning, everyone. I'm proud to report that, once again, our team has delivered record results for the second quarter of this fiscal year, outperforming the markets we serve. This morning, we reported all-time high for quarterly revenue of $228 million and cash flow from operations of $67 million, and fiscal second quarter records for EBITDA of $61 million earnings per diluted share of $2.26, and net income of $37 million. As compared to the prior year period, our gross profit margin expanded an additional 90 basis points to 45.6% as a result of volume leverage and pricing. Our EBITDA margin also expanded by 70 basis points to 26.7 percent in the quarter. During the second fiscal quarter, CSWI issued equity to the public for the first time in our history. We saw strong investor demand for the shares offered, allowing the company to issue a total of 1.265 million common shares in the successful follow-on equity offering, ultimately raising $347 million of proceeds, further strengthening our balance sheet. Also in September, we were pleased to be added to the S&P 600 Small Cap Index. We are already a member of the Russell 2000 and other indices, but this new index inclusion is a testament to our long-term growth and overall strength as a company. Our sharp focus on cash flow from operations drove a fiscal second quarter record of $67 million, or 49.5% growth over the prior year. Our continued strong cash flow, now combined with proceeds from the follow-on equity offering, will continue to fund our capital allocation strategy. We remain focused on our pipeline of innovative, inorganic investment opportunities with returns that will enhance shareholder value. During the fiscal second quarter, we paid down all of the outstanding borrowings under our revolving line of credit, utilizing the cash received from our follow-on equity offering and our record quarterly cash flows from operations of $67 million. As a result, we ended the quarter with no debt outstanding. Our balance sheet strength liquidity, and increasing cash flows enable CSWI to swiftly act on business opportunities of any size. I am pleased to announce that each of the three business segments delivered impressive results and growth and profitability during the quarter marked by resilience and execution. I will let James provide more details on the performance of each segment during this quarter. CSWI has a proven track record as a compounder of long-term shareholder value, and the success of our follow-on equity offering proved that both existing and new shareholders believe in our ability to continue to perform. Our approach to allocating capital, meaningfully growing revenue and profits while maintaining a strong balance sheet has been the foundation for the success of the company. At CSWI, our CSWI, our employee-centric culture, helps to drive these results, and the health and safety of our team members truly matter. We also focus on serving our customers well by being their partner of choice and managing our supply chains effectively to position us for long-term growth and profitability. At this time, I'll turn the call over to James for a closer look at our results, and following James, I'll return to conclude our prepared remarks.