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Research Alert: Sw Q1: Weather & Downtime Pressure Earnings Despite Improving Demand Trends

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

SW delivered mixed Q1 2026 results. Net sales were $7.71B (+0.7% Y/Y, $184M above consensus), but adjusted EBITDA was $1.08B (-14.1% Y/Y, $77M below consensus), resulting in a 14.0% margin, down 240 bps Y/Y. Management quantified $65M in weather-related headwinds, primarily $55M in North America, which significantly affected quarterly performance. The company took strategic downtime for system optimization, which had a $74M impact, but demonstrated improving underlying demand trends. Net income dropped substantially to $63M from $382M. The decline was due to higher restructuring charges ($54M vs. $15M) and sustained elevated interest expense of $166M, reflecting ongoing integration costs. Consequently, basic EPS fell sharply to $0.12 from $0.74 (-83.8% Y/Y), while adjusted basic EPS declined to $0.33 from $0.68 (-51.5% Y/Y, $0.07 below consensus).

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