Carlisle Companies Reports First Quarter Results

Carlisle Companies Incorporated announced its first quarter 2025 financial results.

• Revenue of $1.1 billion, diluted EPS of $3.13 and adj. EPS of $3.61
• Operating margin of 16.8% and adj. EBITDA margin of 21.8%
• Repurchased 1.2 million shares for $400 million, increasing share repurchase target to $1 billion for 2025
• Reaffirming Full-Year outlook of mid-single-digit revenue growth and ~50 bps adj. EBITDA margin expansion

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

“We are pleased with Carlisle’s first quarter results. With perseverance and a commitment to achieving Vision 2030, our team overcame challenges from the continued softness in the residential construction market, the negative impact of this winter’s weather, and the significant economic uncertainty created by the recent tariffs. Despite these headwinds, Carlisle delivered revenue of $1.1 billion, essentially flat year-over-year, with diluted EPS of $3.13 and adjusted EPS of $3.61. Better weather in March contributed to positive momentum that continues into April, the start of our U.S. summer construction season.

“Despite the broad tariff actions, we remained relatively unaffected by the tariffs in the first quarter with over 90% of our raw materials sourced in North America and over 90% of our sales in North America. At the current levels, the tariffs should have a minimal impact in the second quarter. While the direct impact of the current tariffs may be limited, we do remain concerned regarding the increased potential for a further slowdown in the state of the U.S. economy in the second half of 2025. Nonetheless, we have increased conviction in the well understood drivers to our businesses and remain committed to our 2025 outlook of mid-single-digit revenue growth and approximately 50 basis points of adjusted EBITDA margin improvement.

“Feedback from our latest Carlisle Market Survey (“CMS”) conducted in early April reinforces our positive outlook on the 2025 roofing season. Survey participants expect a low-single-digit increase in commercial roofing volumes, driven more by re-roofing than new construction demand. Participants also expect commercial roofing prices will increase low-single-digits with increases starting in the second quarter, consistent with prior expectations. Our survey results also suggest that inventory levels in the channel remain lower than normal due to higher carrying costs and economic uncertainty. Participants expect residential volumes will decrease low-single-digits due to continued buyer uncertainty, affordability challenges, higher interest rates and low housing turnover that has impacted this part of the industry since the second quarter of 2024.

“Our acquisition playbook continues to deliver results. Our recent acquisitions of MTL, Plasti-Fab and ThermaFoam contributed $50 million of revenue in the first quarter, and we expect all three of these acquisitions to exceed our original synergy projections.

“Free cash flow remains very much in line with our expectations to generate approximately $1 billion dollars in 2025. Consistent with our commitment to generate superior shareholder returns through a balanced capital deployment approach, we are raising our 2025 target level of share repurchases from $800 million to $1 billion. During the first quarter, we repurchased 1.2 million shares for $400 million.

“As we move forward in 2025, we will continue to invest in accelerating our introduction of innovative energy-efficient and labor-saving solutions, improving the Carlisle Experience, and optimizing operating efficiencies through the Carlisle Operating System. Our recent innovation efforts are bolstering our Voice of the Customer process and accelerating our speed-to-market through initiatives like our recently announced innovation accelerator program.

“We remain committed to our 2030 goal of $40 of adjusted EPS and 25% ROIC built on the strength of an imperative business model reinforced by well-known re-roofing drivers, along with the advantages of being a market leader in North America, which is arguably the best market globally for building envelope solutions and in general, economic performance.

“Throughout our 108-year history, Carlisle has demonstrated our commitment to deliver results for our customers, employees and shareholders and our strong resiliency during challenging times backed by our talented employee base, strong cash flow generation, and robust balance sheet. We are confident in our ability to navigate this current challenging environment.”

First Quarter 2025 Segment Highlights

Carlisle Construction Materials (“CCM”)

• Revenue of $799 million, increased 2% (-1% organic) year-over-year, driven by the acquisition of MTL and positive end-market demand partially offset by the year-over-year negative impact from weather and lower carryover pricing from 2024.
• Operating income was $195 million, down 8% year-over-year. Adjusted EBITDA was $217 million, down 5% year-over-year, reflecting an adjusted EBITDA margin of 27.1%. The decrease in adjusted EBITDA was due to the lower carryover pricing from 2024 and targeted investments in innovation and Carlisle Experience enhancements.

Carlisle Weatherproofing Technologies (“CWT”)

• Revenue of $297 million, declined 5% (-12% organic) year-over-year, primarily due to lower new construction activity and lower retail sales resulting from the drier-than-normal West Coast winter partially offset by the acquisitions of Plasti-Fab and ThermaFoam.
• Operating income was $16 million, down 62% year-over-year. Adjusted EBITDA was $46 million, down 28% year-over-year, reflecting an adjusted EBITDA margin of 15.6%. The decrease in adjusted EBITDA was primarily due to deleverage on lower revenue and negative price/cost in the quarter.

Cash Flow

Operating cash flow used by continuing operations for the three months ended March 31, 2025, was $1.4 million. Free cash flow used by continuing operations was $30 million, a decrease of $162 million versus the prior year, resulting from lower income from continuing operations and higher uses of working capital compared to the prior year.

During the three months ended March 31, 2025, we deployed $400 million toward share repurchases and paid $45 million in cash dividends. As of March 31, 2025, we had 2.3 million shares available for repurchase under our share repurchase program, with $220 million of cash and cash equivalents and $1.0 billion available 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 percentage range year-over-year.
• Adjusted EBITDA margins to expand ~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