What CSW Industrials, Inc. told the SEC could break it.

Production relies on commodity inputs — base oils, copper flakes, steel, aluminum, PVC and tetra-hydrofuran — exposing margins to commodity-price swings, though CSW multi-sources and does not depend on any single supplier for a significant amount.

“components and raw materials such as base oils, copper flakes, steel, aluminum, polyvinyl chloride and tetra-hydrofuran. We acquire raw materials and components from numerous sources, and we do not depend on a single source of supply for any significant amount of raw materials and components.”

An active M&A program added debt: the $658.1M MARS Parts (Nov 2025) and $327.6M Aspen Manufacturing (May 2025) acquisitions were funded with a term loan and the revolving credit facility, increasing leverage and integration risk.

“we acquired 100% of the equity interests of Dusk Acquisition Corporation and its wholly owned subsidiaries, Motors & Armatures, LLC and HVAC South, LLC (collectively, “MARS Parts”) for an aggregate purchase price of $658.1 million. The cash consideration was funded with a combination of the TLA and borrowings under our existing Revolving Credit Facility.”

CSW has significant manufacturing in Vietnam plus third-party manufacturing in China; the 2025 U.S. reciprocal country-specific tariffs (notably on Vietnam and China) drove up tariff and material costs, helping cut gross margin from 44.8% to 41.9% year-over-year.

“We have significant manufacturing operations in Vietnam, in addition to using third parties located in China and elsewhere outside the United States to manufacture some of our products.”