Carlisle Companies Reports First Quarter Results

Carlisle Companies Incorporated announced its first quarter 2024 financial results.

• Diluted EPS of $3.52 and adj. EPS of $3.72, an increase of 85% YoY
  • Revenue of $1.1 billion, an increase of 23% YoY
  • Operating margin of 20.5% and adj. EBITDA margin of 24.2%, expanded 530 bps YoY
• CCM expanded adj. EBITDA margin by 510 bps on 36% YoY sales growth
• CWT delivered adj. EBITDA margin expansion of 370 bps on 1% lower sales
• Signed definitive agreements to sell CIT and acquire MTL
• Raising 2024 outlook to include ~10% revenue growth and >100 bps margin expansion

Comments from Chris Koch, Chair, President and Chief Executive Officer

“We were pleased with our overall sales growth and margin expansion during the first quarter which reinforces the underlying themes and key strategies we have outlined in Vision 2030. While still early in the year, our general market feedback indicates the overall construction markets we participate in will have a productive 2024 season. Growing re-roof activity from pent-up demand, favorable weather conditions fostering healthy construction activity, and normalized customer inventory levels all positively impacted our first quarter efforts. We are pleased that the margin expansion delivered in the second half of 2023 continues as we benefit from synergies from the Henry integration, our on-going COS initiatives, and operating efficiencies on higher volumes. Pricing continues to be in-line with our expectations, and we are optimistic on pricing for the balance of the year based on the recent price increases in the industry.

“After announcing our Vision 2030 plan in December of last year, we took the final step in delivering on our commitment to becoming a pure play building products company with the announced sale of CIT in January for approximately $2 billion to Amphenol. Furthermore, in March, we announced the signing of an agreement to acquire MTL, a specialty manufacturer of high-performance metal edge and wall systems. Both actions reinforce our commitment to our pure play building products strategy, our philosophy of superior capital allocation, and ultimately driving best-in-class ROIC. We are very excited with the planned acquisition of MTL which aligns seamlessly with Carlisle’s Vision 2030 strategy to invest in and enhance our building envelope product portfolio.

“Continuing with our capital allocation theme, as part of our plan to repurchase $1.4 billion of shares in 2024, we deployed $150 million in the first quarter to share repurchases.

“As we move through the rest of 2024, we are excited to continue to share the Vision 2030 story and discuss the value creation opportunity unlocked by our transition to a pure play building products portfolio. As mentioned earlier, our Q1 performance demonstrated many of the themes we discussed in our Vision 2030 presentation, including being well-positioned to leverage mega-trends in energy efficiency, labor savings, and growing re-roof demand within the building envelope marketplace. With this in mind and in combination with the strength of our first quarter results, we are increasing our full year 2024 outlook to approximately 10% revenue growth with adjusted EBITDA margins expanding by at least 100 basis points.”

First Quarter 2024 Segment Highlights

Carlisle Construction Materials (“CCM”)

• Revenue of $784 million, increased 36.0% (+35.9% organic) year-over-year, driven by the end of channel destocking, growing re-roof activity and favorable weather.
• Operating income was $211 million and adjusted EBITDA was $227 million, up 65.8% year-over-year, reflecting an adjusted EBITDA margin of 28.9%. The 510 basis point increase was driven by strong operating leverage on higher revenues as well as operating efficiencies through COS.

Carlisle Weatherproofing Technologies (“CWT”)

• Revenue of $313 million, declined 1.2% (-2.5% organic) primarily due to lower pricing.
• Operating income was $42 million and adjusted EBITDA was $65 million, up 20.0% year-over-year reflecting an adjusted EBITDA margin of 20.7%. The 370 basis point increase was driven by strategic sourcing, execution of COS, and realized synergies from the Henry acquisition.

Cash Flow

Operating cash flow from continuing operations for the three months ended March 31, 2024, was $156 million, an increase of $33 million versus the prior year. Free cash flow from continuing operations was $132 million, an increase of $42 million versus the prior year (defined as cash provided by operating activities less capital expenditures and comprised of continuing operations). This increase was driven by higher income from operations more than offsetting an increase in working capital uses, as a result of the increase in revenues.

During the three months ended March 31, 2024, we deployed $150 million toward share repurchases and paid $42 million in cash dividends. As of March 31, 2024, we had 6.9 million shares available for repurchase under our share repurchase program with $553 million of cash and cash equivalents and $1 billion of availability under our revolving credit facility.

2024 Outlook

• FY 2024 revenues to increase ~10%
  • CCM – FY 2024 revenues to increase low double digits
  • CWT – FY 2024 revenues to increase mid single digits
• Adjusted EBITDA margins expanding >100 bps

For full first quarter results click here.

About Carlisle Companies Incorporated

Carlisle Companies Incorporated is a leading supplier of innovative building envelope products and solutions for more energy efficient buildings. Through its building products businesses – Carlisle Construction Materials (“CCM”) and Carlisle Weatherproofing Technologies (“CWT”) – and family of leading brands, Carlisle delivers innovative, labor-reducing and environmentally responsible products and solutions to customers through the Carlisle Experience. Carlisle is committed to generating superior shareholder returns and maintaining a balanced capital deployment approach, including investments in our businesses, strategic acquisitions, share repurchases and continued dividend increases. Leveraging its culture of continuous improvement as embodied in the Carlisle Operating System (“COS”), Carlisle has committed to achieving net-zero greenhouse gas emissions by 2050.

Contact:

Mehul Patel – Vice President, Investor Relations – mpatel@carlisle.com – (310) 592-9668

Source: Carlisle Companies Incorporated