Liquidity has tightened as cash reserves fell to $33.8 million in 2026Q4, while a $69.7 million working capital outflow contributed to a negative free cash flow margin of -2.2%.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 |
|---|
| Cash from Operations | 149.65M | 168.36M | 164.33M | 121.45M | 69.09M | 66.25M | 69.9M | 59.71M | 43.16M | 39.04M | 41.53M | 35.47M | 21.63M | 27.81M |
| Operating CF Margin % | 13.82% | 19.17% | 20.73% | 16.02% | 11.03% | 10.58% | 18.11% | 17.05% | 13.23% | 11.93% | 12.98% | 13.55% | 9.33% | 13.97% |
| Operating CF Growth % | -11.11% | 2.45% | 35.3% | 75.79% | 4.28% | -5.21% | 17.06% | 38.36% | 10.55% | -6.01% | 17.09% | 63.98% | -22.21% | - |
| Net Income | 112.85M | 137.48M | 101.65M | 96.57M | 67.32M | 40.29M | 45.72M | 46.05M | 32.68M | 11.07M | 25.47M | 29.7M | 24.73M | 21.7M |
| Depreciation & Amortization | 67.08M | 43.01M | 37.65M | 35.55M | 36.89M | 23.04M | 14.85M | 13.84M | 14.93M | 15.8M | 14.16M | 10.52M | 9.11M | 6.7M |
| Stock-Based Compensation | 14.93M | 13.59M | 11.54M | 9.75M | 8.45M | 8.69M | 5.07M | 3.95M | 4.16M | 4.64M | 2.23M | 2.3M | 2.3M | 2M |
| Deferred Taxes | -6.04M | -6.92M | -2.5M | -6.01M | -3.26M | -1.74M | 486K | 10.63M | 1.64M | 528K | 7.26M | -7.89M | -1.02M | -2.79M |
| Other Non-Cash Items | 36.54M | 6.29M | 4.92M | 3.94M | 3M | -1.39M | 5.09M | -12.14M | -15.58M | 4.69M | -6.69M | 3.99M | 4.8M | 6.42M |
| Working Capital Changes | -75.71M | -25.09M | 11.07M | -18.36M | -43.3M | -2.56M | -1.31M | -2.62M | 5.32M | 2.31M | -909K | -855K | -16M | -4.22M |
| Change in Receivables | -27.08M | -9.12M | -17.9M | 1.1M | -26.73M | -7.22M | -8M | -3.83M | -2.7M | -5.76M | 2.52M | -37K | -9.96M | -4.71M |
| Change in Inventory | -36.75M | -35.7M | 10.36M | -11.42M | -49.4M | -3.38M | -1.65M | -5.54M | 992K | -36K | 5.06M | -6.66M | -6.76M | -2.87M |
| Change in Payables | 10.7M | 21.66M | 12.29M | -7M | 27.98M | 13.86M | 5.88M | 5.7M | 6.26M | 4.71M | 910K | 5.55M | -850K | 3.8M |
| Cash from Investing | -1.04B | -102.22M | -45.45M | -69.72M | -51.46M | -289.89M | -20.44M | -3.06M | -4.54M | -25.97M | -110.22M | -2.63M | -39.94M | -34.09M |
| Capital Expenditures | -17.26M | -16.27M | -16.57M | -13.95M | -15.65M | -8.83M | -11.44M | -7.51M | -5.53M | -9.37M | -11.05M | -8.67M | -15.04M | -15.5M |
| CapEx % of Revenue | 1.59% | 1.85% | 2.09% | 1.84% | 2.5% | 1.41% | 2.96% | 2.15% | 1.7% | 2.86% | 3.46% | 3.31% | 6.49% | 7.79% |
| Acquisitions | -1.02B | -84.68M | -32.73M | -55.88M | -35.94M | -287.24M | -11.84M | -10.1M | 92K | -28.18M | -97.24M | -7.19M | -24.63M | -26.35M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 1.23M | 2.19M | 120K | 139K | -8.8M | 2.83M | 3.29M | -1.42M | 263K | 46K | 6.39M | 5K | 13.19M |
| Cash from Financing | 701.47M | 138.05M | -114.07M | -49.29M | -13.04M | 214.05M | -57.15M | -39.27M | -51.52M | -15.32M | 74.69M | -26.89M | 13.07M | 11.3M |
| Debt Issued (Net) | 871.27M | -166M | -87M | 225K | 10.44M | 231.29M | -20.56M | 7.44M | -49.19M | -16.48M | 61.9M | -18.39M | 21.75M | 17.25M |
| Equity Issued (Net) | -132.75M | 319.71M | -15.27M | -39.07M | -19.31M | -10.49M | -28.46M | -46.71M | -2.24M | -1.01M | 0 | -206K | 0 | 0 |
| Dividends Paid | -18.02M | -14.58M | -11.8M | -10.55M | -9.46M | -8.08M | -8.13M | 0 | 0 | 0 | -300K | -8.29M | -8.65M | -6.95M |
| Share Repurchases | -132.75M | -27.69M | -15.27M | -39.07M | -19.31M | -10.49M | -28.46M | -46.71M | -2.24M | -1.01M | 0 | -206K | 0 | 0 |
| Other Financing | -19.03M | -1.08M | 0 | 112K | 5.29M | 1.33M | 0 | 0 | -93K | 2.17M | 13.1M | 0 | -30K | 1M |
| Net Change in Cash | -192.05M | 203.69M | 3.7M | 1.84M | 6.53M | -8.25M | -8.31M | 14.95M | -11.44M | -2.84M | 5.54M | 5.04M | -5.95M | 5.01M |
| Free Cash Flow | 132.4M | 152.1M | 147.76M | 107.5M | 53.44M | 57.42M | 58.46M | 52.2M | 37.62M | 29.67M | 30.48M | 26.8M | 6.59M | 12.3M |
| FCF Margin % | 12.23% | 17.32% | 18.64% | 14.18% | 8.53% | 9.17% | 15.15% | 14.91% | 11.53% | 9.07% | 9.53% | 10.23% | 2.84% | 6.18% |
| FCF Growth % | -12.95% | 2.94% | 37.45% | 101.18% | -6.94% | -1.78% | 12% | 38.74% | 26.81% | -2.66% | 13.74% | 306.8% | -46.46% | - |
| FCF per Share | 7.92 | 9.32 | 9.48 | 6.92 | 3.38 | 3.80 | 3.84 | 3.36 | 2.40 | 1.87 | 1.94 | 1.72 | 0.42 | 0.79 |
| FCF Conversion (FCF/Net Income) | 1.34x | 1.23x | 1.62x | 1.26x | 1.04x | 1.00x | 1.53x | 1.31x | -3.63x | 3.53x | 1.63x | 1.19x | 0.87x | 1.28x |
| Interest Paid | 20.91M | 4.79M | 12.25M | 12.5M | 4.96M | 1.88M | 1.17M | 1.3M | 2.12M | 2.62M | 3.07M | 1.05M | 742K | 366K |
| Taxes Paid | 46.42M | 50.87M | 39.3M | 47.48M | 20.48M | 14.02M | 8.87M | 2.89M | 9.67M | 9.79M | 18.3M | 16.72M | 12.78M | 10.27M |
M&A integration and execution
According to the latest quarterly data, CSW reported a net income of $20.2 million in 2026Q4, yet operating cash flow turned negative at -$1.7 million, highlighting a significant disconnect between accounting profits and actual cash generation that warrants close investor scrutiny regarding working capital management.
The negative operating cash flow in 2026Q4, despite positive net income, suggests that non-cash charges and working capital outflows are currently obscuring the company's underlying cash-generative capacity. Investors should monitor whether this divergence is a temporary byproduct of aggressive inventory stocking or a more persistent trend of declining cash conversion efficiency.
As reported in financial statements, CSW's free cash flow margin swung from a peak of 26.9% in 2025Q2 to a negative 2.2% in 2026Q4, illustrating that the company's cash flow trajectory is highly sensitive to the timing of large-scale capital deployment and operational working capital fluctuations.
The sharp decline in FCF margins suggests that the company's cash flow profile is currently dominated by its inorganic growth strategy rather than steady-state operational performance. This volatility makes it difficult to assess the true recurring cash flow baseline, as periodic spikes in acquisition activity and working capital requirements frequently overwhelm core operational gains.
Based on reported figures, CSW experienced a substantial working capital outflow of $69.7 million in 2026Q4, a stark reversal from the $650,000 inflow seen in 2026Q1, which indicates that inventory and receivables management is currently exerting significant pressure on the company's short-term cash position.
The massive working capital drag in the most recent quarter suggests that the company may be building inventory in anticipation of future demand or struggling with the timing of collections across its diverse distribution channels. This variability in working capital management appears to be a primary driver of the company's inconsistent cash flow performance.
As detailed in recent filings, CSW utilized $674.7 million for acquisitions in 2026Q3 alone, demonstrating a persistent commitment to inorganic growth that frequently outpaces the company's internal cash generation and necessitates careful monitoring of the resulting impact on long-term balance sheet flexibility.
The company's capital deployment strategy is heavily skewed toward M&A, which appears to be the primary lever for revenue expansion. While this strategy has historically supported growth, the reliance on external capital or cash reserves to fund these acquisitions suggests that the company's ability to self-fund its expansion is currently constrained.
Quick answers to the most common questions about buying CSW stock.
CSW Industrials, Inc. (CSW) generated $149.7M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
CSW Industrials, Inc. (CSW) generated $132.4M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
CSW Industrials, Inc. (CSW) spent $17.3M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, CSW Industrials, Inc. (CSW) returned $18.0M to shareholders via cash dividends and spent $132.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.