CSW INDUSTRIALS, INC.CSW
CSW INDUSTRIALS, INC. Segments Disclosure
SEGMENTS
As described in Note 1, we conduct our operations through three reportable segments:
•Contractor Solutions
•Specialized Reliability Solutions and
•Engineered Building Solutions
The Eliminations and Other segment information is included to reconcile segment data to the consolidated financial statements and includes general expenses that are applicable to the consolidated group and are, therefore, not allocated to the other reportable segments. All expenses reported within the Elimination and Other segment are not included in our chief operating decision maker's ("CODM"") evaluation of the operating performance of the other reportable segments.
The Company's CODM is the Chief Executive Officer. The CODM primarily uses segment operating income in the annual budget and monthly forecast processes. The CODM considers actual-to-budget and actual-to-forecast variances on a monthly basis when making decisions about capital allocations across the three reportable segments.
The following is a summary of the financial information of our reporting segments reconciled to the amounts reported in the consolidated financial statements (in thousands).
| Year Ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| (in thousands) | Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Subtotal - Reportable Segments | Eliminations and Other | Total | ||||||||||||||||||||||||||||||||
| Revenues, net to external customers | $ | 609,706 | $ | 147,476 | $ | 121,119 | $ | 878,301 | $ | — | $ | 878,301 | ||||||||||||||||||||||||||
| Intersegment revenue | 7,626 | 166 | — | 7,792 | (7,792) | — | ||||||||||||||||||||||||||||||||
| Cost of revenues | 326,611 | 93,941 | 72,229 | 492,781 | (7,792) | 484,989 | ||||||||||||||||||||||||||||||||
| Selling, general, and administrative expenses | 124,828 | 31,028 | 29,703 | 185,559 | 26,505 | 212,064 | ||||||||||||||||||||||||||||||||
| Operating income | 165,893 | 22,673 | 19,187 | 207,753 | (26,505) | 181,248 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 34,666 | 5,553 | 1,826 | 42,045 | 177 | 42,222 | ||||||||||||||||||||||||||||||||
| Capital expenditures | 12,667 | 2,453 | 1,040 | 16,160 | 106 | 16,266 | ||||||||||||||||||||||||||||||||
In the fiscal quarter ended March 31, 2025, we recorded a $2.1 million increase in fair value of contingent consideration liability related to the PSP acquisition, included in selling, general and administrative expenses, for our Contractor Solutions segment.
| Year Ended March 31, 2024 | ||||||||||||||||||||||||||||||||||||||
| (in thousands) | Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Subtotal - Reportable Segments | Eliminations and Other | Total | ||||||||||||||||||||||||||||||||
| Revenues, net to external customers | $ | 528,641 | $ | 149,458 | $ | 114,741 | $ | 792,840 | $ | — | $ | 792,840 | ||||||||||||||||||||||||||
| Intersegment revenue | 7,853 | 155 | — | 8,008 | (8,008) | — | ||||||||||||||||||||||||||||||||
| Cost of revenues | 286,203 | 95,894 | 68,006 | 450,103 | (8,008) | 442,095 | ||||||||||||||||||||||||||||||||
| Selling, general, and administrative expenses | 108,254 | 31,453 | 28,031 | 167,738 | 23,889 | 191,627 | ||||||||||||||||||||||||||||||||
| Operating income | 142,037 | 22,266 | 18,704 | 183,007 | (23,889) | 159,118 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 30,231 | 6,074 | 1,812 | 38,117 | 173 | 38,290 | ||||||||||||||||||||||||||||||||
| Capital expenditures | 8,754 | 5,602 | 2,146 | 16,502 | 73 | 16,575 | ||||||||||||||||||||||||||||||||
In the fiscal quarter ended March 31, 2024, we recorded a $1.5 million impairment relating to a trademark, included in selling, general and administrative expenses under depreciation and amortization, for our Contractor Solutions segment.
| Year Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||
| (in thousands) | Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Subtotal - Reportable Segments | Eliminations and Other | Total | ||||||||||||||||||||||||||||||||
| Revenues, net to external customers | $ | 506,634 | $ | 147,301 | $ | 103,969 | $ | 757,904 | $ | — | $ | 757,904 | ||||||||||||||||||||||||||
| Intersegment revenue | 7,142 | 145 | — | 7,287 | (7,287) | — | ||||||||||||||||||||||||||||||||
| Cost of revenues | 287,801 | 95,573 | 63,603 | 446,977 | (7,287) | 439,690 | ||||||||||||||||||||||||||||||||
| Selling, general, and administrative expenses | 99,772 | 31,697 | 27,477 | 158,946 | 20,202 | 179,148 | ||||||||||||||||||||||||||||||||
| Operating income | 126,203 | 20,176 | 12,889 | 159,268 | (20,202) | 139,066 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 26,951 | 6,035 | 1,771 | 34,757 | 200 | 34,957 | ||||||||||||||||||||||||||||||||
| Capital expenditures | 6,545 | 6,877 | 449 | 13,871 | 80 | 13,951 | ||||||||||||||||||||||||||||||||
| TOTAL ASSETS | ||||||||||||||||||||||||||||||||||||||
| (Amounts in thousands) | Contractor Solutions | Specialized Reliability Solutions | Engineered Building Solutions | Subtotal - Reportable Segments | Eliminations and Other | Total | ||||||||||||||||||||||||||||||||
| March 31, 2025 | $ | 941,087 | $ | 145,663 | $ | 81,347 | $ | 1,168,097 | $ | 210,968 | $ | 1,379,065 | ||||||||||||||||||||||||||
| March 31, 2024 | 806,261 | 139,968 | 81,256 | 1,027,485 | 15,841 | 1,043,326 | ||||||||||||||||||||||||||||||||
| March 31, 2023 | 823,750 | 136,248 | 71,429 | 1,031,427 | 12,026 | 1,043,453 | ||||||||||||||||||||||||||||||||
Geographic information – We attribute revenues to different geographic areas based on the destination of the product or service delivery. Long-lived assets are classified based on the geographic area in which the assets are located and exclude deferred taxes. No individual country, except for the U.S., accounted for more than 10% of consolidated net revenues or total long-lived assets.
Revenues and long-lived assets by geographic area are as follows (in thousands, except percent data):
| Year Ended March 31, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
| U.S. | $ | 771,018 | 87.8 | % | $ | 703,282 | 88.7 | % | $ | 678,126 | 89.5 | % | ||||||||||||||||||||||||||
| Non-U.S. (a) | 107,283 | 12.2 | % | 89,558 | 11.3 | % | 79,778 | 10.5 | % | |||||||||||||||||||||||||||||
| Revenues, net | $ | 878,301 | 100.0 | % | $ | 792,840 | 100.0 | % | $ | 757,904 | 100.0 | % | ||||||||||||||||||||||||||
(a) No individual country within this group represents 10% or more of consolidated totals for any period presented.
| As of March 31, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
| U.S. | $ | 748,303 | 95.2 | % | $ | 672,887 | 94.5 | % | $ | 679,731 | 94.4 | % | ||||||||||||||||||||||||||
| Non-U.S. | 37,901 | 4.8 | % | 39,030 | 5.5 | % | 40,665 | 5.6 | % | |||||||||||||||||||||||||||||
| Long-lived assets (a) | $ | 786,204 | 100.0 | % | $ | 711,918 | 100.0 | % | $ | 720,396 | 100.0 | % | ||||||||||||||||||||||||||
(a) Long-lived assets consist primarily of property, plant and equipment, intangible assets, goodwill and other assets.
Major customer information – We have a large number of customers across our locations and we do not have sales to any individual customer that represented 10% or more of consolidated net revenues for any of the fiscal years presented.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.