CSW Industrials signals margin expansion and synergy gains following $1B acquisition spree

CSW Industrials reported record Q3 2026 results with revenue of $233 million, a 20% increase driven by recent acquisitions, including the $650 million purchase of MARS Parts. Adjusted EBITDA grew 7%, but adjusted EPS fell 21% due to higher interest expenses. The company executed $1 billion in acquisitions over the past year and expects to achieve a 30% EBITDA margin for MARS Parts within 12 months. Management remains cautiously optimistic about future growth despite market challenges, maintaining long-term expectations of mid- to high single-digit organic growth in the Contractor Solutions segment.