Capital Southwest reports preliminary Q4 earnings

DALLAS – Capital Southwest Corporation (NASDAQ:CSWC), a business development company providing financing solutions to middle market businesses with a market capitalization of $976.74 million, announced preliminary results for its fourth quarter ended March 31, 2025, today. The company, which boasts a remarkable 43-year history of consistent dividend payments according to InvestingPro, currently offers investors a substantial 13.35% dividend yield. The company reported a one-time expense of $2.8 million, or $0.05 per share, due to the departure of its former President and CEO.

The preliminary pre-tax net investment income for the quarter is estimated to be between $0.55 and $0.56 per share, with net investment income ranging from $0.54 to $0.55 per share. Adjusted figures, which exclude the one-time expense, suggest pre-tax net investment income of $0.60 to $0.61 per share and net investment income of $0.59 to $0.60 per share.

Capital Southwest’s net asset value per share as of March 31, 2025, is preliminarily estimated to be between $16.65 and $16.75. Non-accruals as a percentage of the total investment portfolio at cost and fair value were 3.5% and 1.7%, respectively. InvestingPro analysis reveals the company maintains strong financial health with liquid assets exceeding short-term obligations and has achieved a 17.51% revenue growth in the last twelve months.

The finalized fourth quarter results will be released on May 14, 2025, after market close. A live webcast to discuss these results is scheduled for the following day, May 15, 2025, at 11:00 a.m. Eastern Time. Investors can participate in the webcast or join the live call by registering online.

Capital Southwest, with approximately $1.7 billion in investments at fair value as of December 31, 2024, specializes in supporting the acquisition and growth of middle market businesses with investments ranging from $5 million to $50 million. Trading at a P/E ratio of 13.52, the company is among 1,400+ US equities covered by comprehensive InvestingPro Research Reports, which provide detailed analysis and actionable insights for investors seeking deeper understanding of their investments.

The company cautions that these preliminary results are based on management’s initial review and may differ from the final results after the completion of year-end closing procedures and audit. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

The information in this article is based on a press release statement from Capital Southwest Corporation.

In other recent news, Capital Southwest Corporation has expanded its credit facility by $25 million, increasing the total to $510 million. This development was facilitated through agreements with Apple Bank and Mitsubishi HC Capital America, leveraging the existing accordion feature of their credit arrangement. The expansion aims to provide the company with greater financial flexibility as it continues its investment strategies. Additionally, Capital Southwest has announced a leadership transition, appointing Michael Sarner as the new President and CEO, with Chris Rehberger stepping in as CFO. This change follows Bowen Diehl’s decade-long leadership, who will remain in an advisory role for another year.

Analysts have also weighed in on Capital Southwest’s recent performance. JMP Securities maintained a Market Perform rating, citing the company’s strong position in the lower middle markets and a positive outlook on its dividend trajectory. Meanwhile, Raymond James adjusted its stock price target from $26 to $24 but maintained an Outperform rating, noting the company’s robust fee income and net portfolio growth. These analyst perspectives underscore Capital Southwest’s solid fundamentals and potential for continued growth.

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