Carlisle Companies Reports Fourth Quarter Results

Carlisle Companies Incorporated announced its fourth quarter 2024 financial results.

• Delivered record full year diluted EPS of $18.34 and adj. EPS of $20.20, a 30% YoY increase
  • Fourth quarter revenue of $1.1 billion, declined 0.4% YoY
  • Diluted EPS of $3.56 and record adj. EPS of $4.47 for the quarter, increased 7% YoY
  • Operating margin of 19.9% and adj. EBITDA margin of 25.1%
• Completed the acquisition of Plasti-Fab, a Canadian based manufacturer of EPS insulation
• Repurchased $420 million of shares in Q4, totaling $1.6 billion of share repurchases in 2024
• 2025 outlook includes MSD revenue growth and ~50 bps of adj. EBITDA margin expansion

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

“We are pleased to report that Carlisle ended 2024 with a record full year adjusted EPS of $20.20, which was a 30% increase over 2023, as we progress towards our Vision 2030 target of $40 of adjusted EPS. We achieved this record EPS with full year revenue growth of 9% along with record adjusted EBITDA margin of 26.6% and ROIC of 28.5%, supported by resilient and recurring re-roofing revenue, which more than mitigated the negative impact from the broader challenging construction environment.

“In the fourth quarter, revenue was challenged by the continued broader macroeconomic pressures impacting the construction industry that began in the third quarter, particularly higher interest rates, housing affordability challenges, and unfavorable weather conditions in November and December. Despite these significant headwinds, Carlisle generated record adjusted EPS in the fourth quarter, increasing 7% on a year-over-year basis.

“2024 was a transformative year for Carlisle as we successfully executed on multiple strategic initiatives under Vision 2030 that positioned us as a pure-play building products company. We also strengthened our commitment to returning capital to shareholders, deploying a record $1.6 billion to share repurchases utilizing the proceeds from the divestiture of CIT, our last non-building products business. Our acquisition playbook also yielded significant results, with nearly $700 million deployed to strengthen our building envelope capabilities, including the strategic additions of MTL, Plasti-Fab, and most recently the acquisition of ThermaFoam.

“After launching our Vision 2030 strategy in December of last year, the stage has been set for the future of Carlisle with clear direction to all our stakeholders. Vision 2030 positions us to benefit from the widely understood macro-trends, including growing commercial re-roofing demand, an ongoing housing shortage, and our ability to provide energy efficient and labor-saving solutions and systems. Furthermore, our 2024 acquisitions strengthen our position as a leading manufacturer within the building envelope and reinforce our commitment to acquire growth and create value through a superior integration playbook.

“As we look further ahead into 2025, we expect the market challenges that persisted in the second half of 2024 to continue into the first half of 2025. We are optimistic that the strong underlying trends in our businesses, along with the execution of our strategic initiatives under Vision 2030, will result in another record year for Carlisle. Our guidance for 2025 reflects mid-single-digit revenue growth, along with approximately 50 basis points of adjusted EBITDA margin expansion. We expect CCM to continue to benefit from solid re-roofing demand, new products, the full-year of the MTL acquisition and, as we enter the second half of 2025, improving new construction markets. CWT will improve performance on share gain initiatives, new products and the integration of Plasti-Fab and ThermaFoam.”

Fourth Quarter 2024 Segment Highlights

Carlisle Construction Materials (“CCM”)

• Revenue of $834 million, increased 2% (-2% organic) year-over-year, driven by the acquisition of MTL and healthy re-roof activity partially offset by lower commercial construction activity.
• Operating income was $223 million, down 6% year-over-year. Adjusted EBITDA was $245 million, down 4% year-over-year, reflecting an adjusted EBITDA margin of 29.4%. The decrease in adjusted EBITDA was due to lower volumes and negative price/cost in the quarter.

Carlisle Weatherproofing Technologies (“CWT”)

• Revenue of $289 million, declined 7% (-8% organic) year-over-year, primarily due to softer residential end markets in the quarter as a result of broader residential market weakness from higher interest rates and lower roof coatings sales at retail negatively impacted by dry weather.
• Operating income was $25 million, down 44% year-over-year. Adjusted EBITDA was $53 million, down 24% year-over-year, reflecting an adjusted EBITDA margin of 18.3%. The decrease in adjusted EBITDA was primarily due to a decline in volumes, lower prices in insulation products, and strategic investments in the business to support longer term growth initiatives.

Cash Flow

Operating cash flow from continuing operations for the year ended December 31, 2024, was $1.0 billion. Free cash flow from continuing operations was $938 million, an increase of $12 million versus the prior year, resulting from lower capital expenditures during the year due to timing of projects.

During the year ended December 31, 2024, we deployed $1.6 billion toward share repurchases, including $420 million in the current quarter, and paid $172 million in cash dividends, including $45 million in the current quarter. As of December 31, 2024, we had 3.5 million shares available for repurchase under our share repurchase program with $754 million of cash and cash equivalents and $1.0 billion of availability under our revolving credit facility.

2025 Outlook

• FY 2025 revenues to increase in the mid-single-digit percentage range year-over-year.
  • CCM – FY 2025 revenues to increase in the mid-single-digit percentage range year-over-year.
  • CWT – FY 2025 revenues to increase in the high-single-digit percent range year-over-year.
• Adjusted EBITDA margins expanding ~50 bps.

For full 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