10/30/2025

speaker
Operator
Conference Operator

and welcome to the CSW Industrials Fiscal 2026 Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. A 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, VP of Investor Relations and Treasurer. Thank you, Alexa. You may begin.

speaker
Alexa Huerta
Vice President of Investor Relations and Treasurer

Thank you, Alicia. Good morning, everyone, and welcome to the CSW Industrials Fiscal 2026 Second Quarter Earnings Call. Joining me today on the call 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 quarterly report on 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. In 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.

speaker
Joseph Arms
Chairman, Chief Executive Officer and President

Thank you, Alexa, and good morning, everyone. It is my pleasure to report that, once again, our team has delivered record quarterly results for revenue, adjusted EBITDA, adjusted net income, and adjusted earnings per diluted share. Before I turn the call over to James to provide further details on our results and the performance of each of our business segments, I'd like to brag on and thank the entire CSW team for working so well together to build what has become a truly great company. Diligence and perseverance have defined our 10 years as an independent public company The financial results we have delivered, the value we have created during that time has been impressive. Our success is directly attributable to our disciplined deployment of capital into innovative businesses and product lines that, when combined with operational excellence under our ownership, grow faster than the overall end market. Despite headwinds and broad economic uncertainty during the quarter, especially in the residential HVACR end market, The CSW team delivered strong financial results. Our resilient balance sheet, access to capital, and disciplined approach to allocating capital have continued to fuel growth opportunities, most recently evidenced by our definitive agreement to acquire Mars parts, as previously announced. Despite short-term demand fluctuations and market volatility, we have been willing and able to execute on two highly accretive synergistic acquisitions in the last 12 months. We expect to close on Mars parts, our largest acquisition to date very soon, as we continue to maintain a long-term perspective, investing in growth opportunities for the future. In light of the compelling growth and value creation opportunity ahead of us in our second decade, I have communicated to our board my intentions to continue serving as the company's CEO for the next several years. I remain passionate about the business itself and about the opportunity that we can provide for all of our team members to participate in the success that they helped create. I firmly believe that we have a partnership between capital and labor that meaningfully enhances the likelihood of sustainable long-term success. and I'm honored to continue serving our company in this role, and I eagerly look forward to the success that we can achieve together in the decade ahead. At this time, I'll turn the call over to James for a closer look at our results, and after that, I will return and conclude our prepared remarks.

Disclaimer

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Investor presentation