Carlisle Companies Reports Second Quarter Results

Carlisle Companies Incorporated announced its second quarter 2024 financial results.

• Diluted EPS of $5.94 and adj. EPS of $6.24, an increase of 33% on a year-over-year basis
  • Revenue of $1.5 billion, an increase of 11% year-over-year
  • Record operating margin of 26.0% and record adj. EBITDA margin of 28.8%
  • CCM and CWT delivered adj. EBITDA margins of 33.4% and 22.5%, respectively
• Completed the sale of CIT for $2.025 billion
• Acquired MTL for $410 million
• Repurchased 1.3 million shares for $550 million
• Raising 2024 outlook to ~ 12% revenue growth and ~ 150 bps margin expansion

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

“In the second quarter, Carlisle hit a major milestone in our 106 year history as we completed the final step in becoming a pure-play building products company with the sale of our Carlisle Interconnect Technologies business to Amphenol Corporation. CIT was part of a multi-decade value creation story for Carlisle, and one of Carlisle’s oldest businesses, which began with the purchase of the Tensolite company in 1959. We thank all of the CIT employees, and especially CIT President John Berlin, for their outstanding accomplishments over the years.

“Our ‘Pivot’ to a pure-play building products company has laid the foundation for Vision 2030. Consistent with the Vision 2030 goal of delivering $40 of adjusted EPS, we delivered another strong quarter of sales and adjusted EBITDA performance, reflecting the continued strength of our business model and our focus on executing the Vision 2030 strategies. CCM and CWT both delivered superb performance, driven by pent-up re-roofing demand, continued price discipline, and operational efficiencies gained through the Carlisle Operating System (COS).

“CCM posted impressive 15% year-over-year sales growth and expanded adjusted EBITDA margin by 220 basis points, benefiting from the end of destocking of inventory in the channels, a productive start to the commercial construction season driving solid contractor backlogs, and robust re-roofing activity. CCM’s 33.4% adjusted EBITDA margin reflects the impact of the Carlisle Experience and excellent operating execution. CWT showcased its earnings resilience, delivering a 22.5% adjusted EBITDA margin on essentially flat year-over-year revenue, as integration synergies and COS implementation helped offset investments in growth initiatives.

“In addition to completing our pivot to a pure-play building products company with the sale of CIT for $2.025 billion, we continued to make progress on our Vision 2030 objectives during the second quarter. We completed the acquisition of MTL, establishing Carlisle as an industry leader in the $4 billion architectural metal category. Leveraging our Carlisle integration playbook, we are on track to exceed the $13 million of synergies we announced in May. We now expect to deliver $20 million of synergies from the MTL acquisition. This is another example of the effectiveness of Carlisle’s integration playbook, which was also successfully used in the Henry acquisition where we delivered over $50 million of synergies, compared to the $30 million of synergies that we initially announced at the time of the acquisition.

“As we look ahead, we remain confident in the strength of our business and our ability to navigate complex market dynamics. Supported by the Carlisle Experience, our pricing to value philosophy, and COS initiatives, combined with the positive momentum in re-roofing demand, we are raising our full-year 2024 outlook to revenue growth of approximately 12% and approximately 150 basis points of adjusted EBITDA margin expansion. We remain excited about the future for Carlisle, motivated by our new Vision 2030, and confident in our ongoing efforts to drive sustainable value creation for all our stakeholders.”

Second Quarter 2024 Segment Highlights

Carlisle Construction Materials (“CCM”)

• Revenue of $1.1 billion, increased 15% (+13% organic) year-over-year, driven by the normalization of inventory in the channels, strong re-roofing activity from pent-up demand and the acquisition of MTL.
• Operating income was $347 million and adjusted EBITDA was $364 million, up 23% year-over-year, reflecting an adjusted EBITDA margin of 33.4%. The 220 basis point increase was driven by volume leverage on strong sales growth, favorable raw materials, and operating efficiencies through COS.

Carlisle Weatherproofing Technologies (“CWT”)

• Revenue of $362 million, increased 0.6% (-0.6% organic) driven by higher volume and the benefit from the acquisition of Polar Industries mostly offset by lower pricing.
• Operating income was $59 million and adjusted EBITDA was $81 million, up 0.7% year-over-year reflecting an adjusted EBITDA margin of 22.5%. Volume leverage, integration synergies and COS execution, were partially offset by higher operating expenses tied to growth initiatives.

Cash Flow

Operating cash flow from continuing operations for the six months ended June 30, 2024, was $333 million, an increase of $61 million versus the prior year. Free cash flow from continuing operations was $288 million, an increase of $73 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 continuing operations more than offsetting an increase in working capital uses, as a result of the increase in revenues.

During the six months ended June 30, 2024, we deployed $700 million toward share repurchases, including $550 million in the current quarter, and paid $82 million in cash dividends, including $40 million in the current quarter. As of June 30, 2024, we had 5.6 million shares available for repurchase under our share repurchase program with $1.7 billion of cash and cash equivalents and $1 billion of availability under our revolving credit facility.

2024 Outlook

• FY 2024 revenues to increase ~ 12%
  • CCM – FY 2024 revenues to increase ~ 15%
  • CWT – FY 2024 revenues to increase ~ 3%
• Adjusted EBITDA margin expanding ~ 150 bps

For full second 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