CSW Industrials: 1Q Results: Execution Wins Again on Synergy Flow Through with PT Raised to $380

Research evidence excerpt

CSW Industrials: 1Q Results: Execution Wins Again on Synergy Flow Through with PT Raised to $380

J P M O R G A N North America Equity Research

31 July 2026

CSW Industrials Overweight

CSW, CSW US

1Q Results: Execution Wins Again on Synergy Flow Price (30 Jul 26):$313.40

Through with PT Raised to $380 ▲Price Target (Dec-27):$380.00 Prior (Dec-26):$350.00

Following a robust beat in 1Q and share price pressure into the print, CSW posted

resilient organic growth and margin performance in the backdrop of a weak North America Small and Mid Cap

Industrialsenvironment. We believe the quarter underscored management’s ability to drive

resilient, above-market growth, highlighted by 5.9% organic CS growth driven Tomohiko Sano AC

through positive volume and price, as well as margin expansion of ~290bps YoY. (1-212) 622-1099

tomohiko.sano@jpmorgan.com

We reiterate our Overweight rating, raising our price target to $380 (from $350),

and maintain CSW as our top pick in Building Products for 2026. Ethan Coyle

(1-212) 270-0613

• Beating the Tape with Execution and Synergies: CSW delivered another ethan.coyle@jpmchase.com

record quarter that exceeded expectations, with CS growing 5.9% organically Brendan Shea, CFA

(following 2.6% in 4Q26) and the total company growing ~7.6% (excluding (1-212) 622-0770

brendan.shea@jpmorgan.com

Greco) on both volume and pricing gains despite a pressured demand J.P. Morgan Securities LLC

environment. Margins expanded ~290bps YoY to 29.0% (vs. consensus

27.3%), driven by disciplined cost actions, synergy realization, and

restructuring. Investor expectations had been tempered by cautious end- Quarterly Forecasts (FYE Mar)

market commentary from peers, yet CSW grew in a down market while Adj. EPS ($)