CSW completes $658M MARS Parts acquisition, exits Greco; organic sales decline 2.1%

Filed May 26, 2026 · Period ending March 31, 2026 · Compared to 10-K May 22, 2025 · ~2 min read

Key Changes

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  Acquired MARS Parts for $658.1M in November 2025, the company's largest deal, funded with new $600M term loan and revolver draws. MARS is one of North America's largest HVAC/R parts providers, focused on repair vs. CSW's traditional new-install business.

  MD&A: MARS Parts acquisition verify on EDGAR →
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  Organic sales declined 2.1% on lower unit volumes despite pricing actions; gross margin compressed 290 bps to 41.9% from tariffs, integration costs, and inventory write-down. Operating margin fell from 20.6% to 15.6%.

  MD&A: Revenue growth drivers, Gross profit margin verify on EDGAR →
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  Recorded $15.6M impairment and committed to selling Greco US business and exiting Greco Canada operations in Q4 FY2026, marking strategic retreat from Engineered Building Solutions segment.

  MD&A: Greco impairment and exit verify on EDGAR →