On this page of StockholderLetter.com we present the latest annual shareholder letter from CSW INDUSTRIALS, INC. — ticker symbol CSWI. Reading current and past CSWI letters to shareholders can bring important insights into the investment thesis.
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7/1/2024 Letter Continued (Full PDF)
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7/14/2023 CSWI Stockholder Letter
• More "Specialty Chemicals" Category Stockholder Letters
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CSWI Benford's Law Stock Score = 76
7/1/2024 Letter Continued (Full PDF)
•
7/14/2023 CSWI Stockholder Letter•
More "Specialty Chemicals" Category Stockholder Letters•
CSWI Benford's Law Stock Score = 76CSWI Shareholder/Stockholder Letter Transcript:
CSW INDUSTRIALS, INC. | 2024 ANNUAL REPORT Building Lasting Value Through Consistency ANNUAL REPORT Driving Sustainable Growth and Long-term Shareholder Value, With a Focus on Disciplined Capital Allocation CSW Industrials is a diversified industrial growth company with industry-leading operations in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. CSWI provides niche, value-added products with two essential commonalities: performance and reliability. The primary end markets we serve with our well-known brands include: HVAC/R, plumbing, general industrial, architecturally-specified building products, energy, mining, and rail. Maintain Our Strong Balance Sheet Allocate Capital Efficiently Invest in Organic Growth Disciplined Acquisition Strategy Maximize Channels to Market and Increase Market Share FY 2024 PERFORMANCE REVENUES ADJUSTED EBITDA ADJUSTED EPS OPERATING CASH FLOW $793m $200m $7.01 $164m +4.6% +14.9% REVENUE* (in millions) ADJUSTED EBITDA* (in millions) 2024 $792.8 $200.0 $174.1 2023 $626.4 2022 +35.2% OPERATING CASH FLOW* (in millions) 2024 $757.9 2023 2022 +13.1% $133.3 2024 $164.3 $121.5 2023 2022 $69.1 TOTAL SHAREHOLDER RETURN 100 80 73.8% 60 CSWI Russell 2000 40 Custom Peer Group 20 13.0% 0 -4.3% -20 2021 * Co ntinuing Operatio n s On ly 2022 2023 2024 Dear CSWI Stakeholders, Fiscal 2024 marked our ninth year as an independent, publicly traded company. This journey has been marked by significant growth, consistent outperformance of the markets we serve, and substantial increases in shareholder value. Our collective efforts to build a great company and enduring value have propelled us to new heights, and I am delighted to share the highlights of our most recent successes with you. CULTURE, SAFETY, AND SUCCESS From our inception, we have aspired to create a distinctive, employeefocused culture. We are driven by the convictions that our employees are worthy of our care and that a strong culture forms the foundation for sustainable success. As we continued to demonstrate in fiscal 2024, we remain committed to recruiting and retaining great talent, offering rewarding careers with the opportunity for a secure and dignified retirement, and recognizing and developing team members who excel. Our employees drive our success daily because their interests are aligned with our shareholders through profit sharing and employee ownership. Markers of our culture and the success it breeds can be found across our organization. Last year, we were honored to be added to the Forbes list of America s Best Small Companies, and we would have been pleased to repeat that recognition in fiscal 2024. However, based on our strong growth and increase in shareholder value, 0.9 for calendar 2023, a significant we became eligible for, and were improvement over 2022 and our fourth honored to be added to, Forbes list consecutive year of improvement. of America s Most Successful Mid-Cap We continue to make a zero-incident Companies in fiscal 2024. Additionally, workplace the goal for all CSWI CSWI was certified as a Great Place locations, and we will not waver in our to Work for the second consecutive commitment to achieving it. year, and our Employee Wellness Program received Cigna s Gold Healthy RECORD RESULTS Workforce designation Cigna s In fiscal 2024, we delivered record highest honor for the fourth year in results across the board, highlighted a row. These recognitions are a result by organic and inorganic growth, of, and a testament to, our focus on expanded margins, and robust cash the CSWI core values of accountability, flow. While certain key end markets citizenship, teamwork, respect, were challenged throughout the integrity, stewardship, and excellence. year, we continued to outperform the External recognition of our culture and success is certainly welcome, but it means little without first ensuring that we are taking good care of our employees. As our most important asset, our team members benefit from our focus on, and investments in, employee safety and wellness. I am perhaps most pleased to share that fiscal 2024 was CSWI s safest year on record. We achieved a Total Recordable Incident Rate ( TRIR ) of markets we serve and delivered our seventh consecutive year of increases in revenue and earnings before interest, taxes, depreciation, and amortization ( EBITDA ). Moreover, we again executed on all elements of our capital allocation strategy, efficiently allocating capital according to a rigorous, risk-adjusted returns analysis. This ultimately resulted in record growth in shareholder value.