CSW Industrials (UCI) Q2 2027 Earnings Report
DE:UCI Q2 2027 EPS Results
- Actual EPS
- EUR 3.27
- Consensus EPS
- EUR 3.24
- Beat/Miss
- Beat by +EUR 0.03
- One Year Ago EPS
- EUR 2.64
DE:UCI Q2 2027 Revenue Results
- Actual Revenue
- EUR 322.55M
- Expected Revenue
- EUR 313.21M
- Beat/Miss
- Beat by +EUR 9.33M
- YoY Revenue Growth
- +30.51%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
CSW Industrials's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
The call was strongly positive, with record revenue, adjusted EBITDA, adjusted EPS and cash flow, double-digit organic growth in two major segments, successful acquisition integration, improved leverage, and a positive fiscal 2027 outlook. The main challenges were gross-margin pressure from freight, raw materials and tariffs, higher interest expense and amortization, lower Contractor Solutions and EBS margins, a soft commercial construction market, and the ongoing Greco exit. Management characterized demand, pricing execution, the M&A pipeline and long-term margin outlook as resilient.
For fiscal 2027, CSW expects Contractor Solutions to deliver healthy mid- to high single-digit organic growth through the cycle; excluding the Greco businesses within Engineered Building Solutions, each segment is expected to deliver year-over-year organic revenue growth and EBITDA growth, while consolidated adjusted EBITDA and EPS are expected to show significant growth, full-year organic revenue growth is expected to be in excess of end markets, and free cash flow is expected to show significant growth from the fiscal 2026 level. The company expects fiscal year 2027 amortization of intangible assets to be approximately $61 million, fiscal 2027 interest expense of approximately $49 million, assuming no additional M&A or outsized share repurchase activity, a GAAP tax rate of approximately 22%-23%, and an adjusted tax rate of approximately 25%-26%; SRS margins are expected to remain strong for the full fiscal year, with long-term 20%+ margins, while EBS margins are expected to be above 20% in the medium and long term.
- Record First-Half ResultsManagement reported all-time record first-half fiscal 2027 results for revenue, adjusted EBITDA, adjusted EPS, and cash flow.
- Record Quarterly Revenue and EBITDASecond-quarter consolidated revenue reached a record $361 million, increasing $84 million or 31% year over year. Adjusted EBITDA rose $24 million or 33% to a record $97 million, while adjusted EBITDA margin expanded 50 basis points to 26.8%.
- Strong Organic Revenue GrowthConsolidated organic revenue growth was 10.2%, with double-digit organic growth in Contractor Solutions and Specialized Reliability Solutions and growth in the retained Engineered Building Solutions businesses.
- Contractor Solutions Delivered Double-Digit GrowthContractor Solutions revenue increased more than 37% to $286 million, representing 78% of consolidated revenue. Organic growth was 13%, supported by both pricing and volume, and adjusted EBITDA increased 31.5% to $89 million.
- Contractor Solutions Portfolio Resilience and Growth OpportunitiesApproximately 75% of Contractor Solutions revenue is tied to replacement and repair demand, while about 25% is tied to new housing. Management expects the segment to outgrow its end markets and deliver healthy mid- to high single-digit organic growth through the cycle. Acquisitions of MARS and Aspen expanded the product portfolio and created additional cross-selling and wallet-share opportunities.
- MARS Synergies Exceeded Original TargetMARS-related synergies are approaching $15 million, surpassing the originally stated $10 million target. All synergies have been actioned and most have been realized as the first year of ownership concludes.
- Specialized Reliability Solutions Achieved Record PerformanceSpecialized Reliability Solutions revenue increased 28% to $50 million, including 13% organic growth. Adjusted segment EBITDA increased 66% to $11 million, and adjusted EBITDA margin expanded 490 basis points to 21.5%, above the segment's 20% target.
- SRS Integration and Demand MomentumIntegration of the two businesses acquired in fiscal third quarter 2026 is substantially complete. Management cited restructuring savings, pricing actions, favorable product mix, and higher-margin acquisitions as contributors, and reported the highest-ever incoming order day in early October.
- Engineered Building Solutions Retained Businesses Showed Positive MomentumExcluding Greco, Engineered Building Solutions revenue increased 2.4% to $22.7 million. The segment ended the quarter with a healthy backlog and a trailing four-quarter book-to-bill ratio of 1.05 to 1.
- Record Cash Flow Supported DeleveragingSecond-quarter operating cash inflow reached a record $95 million, up 54% from $62 million in the prior-year quarter. Free cash flow was $92 million versus $59 million in the prior year, an increase of $33 million.
- Debt Reduction and Improved LeverageThe company paid down $91 million of outstanding debt during the quarter. Net debt to EBITDA declined from 2.37x at the end of fiscal first quarter 2027 to 2.1x at quarter end, remaining within the company's target range of 1x to 3x.
- Shareholder Returns and Lower Borrowing SpreadCSW returned $10.7 million to shareholders, including $5.8 million of open-market share repurchases and $4.9 million of dividends. Debt repayment reduced the revolver and Term Loan A pricing to SOFR plus 175 basis points, a 25-basis-point reduction.
- Strong Balance Sheet and M&A PipelineManagement said the balance sheet provides ample liquidity for growth initiatives and capital allocation priorities. The company reported a robust M&A pipeline, with activity described as up slightly rather than declining, and said its relative financial strength supports its ability to transact.
- Positive Fiscal 2027 OutlookExcluding Greco, management expects each segment to deliver year-over-year organic revenue growth and EBITDA growth. The company continues to expect significant fiscal 2027 growth in adjusted EBITDA and EPS, strong free cash flow with significant growth from fiscal 2026, organic revenue growth above end-market growth, and fiscal 2027 GAAP and adjusted tax rates of approximately 22%-23% and 25%-26%, respectively.
- Customer Recognition and Cross-Selling WinsContractor Solutions was named Home Depot's 2025 Plumbing Partner of the Year. Management attributed the recognition to customer service and operational excellence and cited ongoing wins with existing retail and distribution customers through cross-selling.
- Ongoing Productivity InitiativesManagement described continued efficiency initiatives across all three business segments and the Vietnam facility, including efforts to increase output without proportionally adding overhead. The company said it sees continued margin opportunity as the top line grows organically and through acquisitions.
DE:UCI Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 04, 2027 | 2027 (Q3) | 1.58- | 1.27 | ― | ― |
| Oct 29, 2026 | 2027 (Q2) | 3.243.27 | 2.64 | 23.65% (+0.62) | |
| Jul 30, 2026 | 2027 (Q1) | 3.103.43 | 2.54 | 34.74% (+0.88) | |
| May 26, 2026 | 2026 (Q4) | 2.152.80 | 2 | 40.18% (+0.80) | |
| Jan 29, 2026 | 2026 (Q3) | 1.721.27 | 1.32 | -4.05% (-0.05) | |
| Oct 30, 2025 | 2026 (Q2) | 2.462.64 | 2.02 | 30.97% (+0.62) | |
| Jul 31, 2025 | 2026 (Q1) | 2.502.54 | 2.2 | 15.38% (+0.34) | |
| May 22, 2025 | 2025 (Q4) | 1.982.00 | 1.82 | 9.80% (+0.18) | |
| Jan 30, 2025 | 2025 (Q3) | 1.281.32 | 0.95 | 38.32% (+0.37) | |
| Oct 30, 2024 | 2025 (Q2) | 1.902.02 | 1.72 | 17.10% (+0.29) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.