Carlisle Companies Reports Second Quarter Results

Carlisle Companies Incorporated announced its second quarter 2025 financial results.

• Revenue of $1.4 billion flat year-over-year
• Operating margin of 23.1% and adj. EBITDA margin of 26.9%
• Diluted EPS of $5.87
• Record adj. EPS of $6.27
• Repurchased 0.8 million shares for $300 million
• Acquired Bonded Logic, a manufacturer of innovative recycled denim insulation
• FY 2025 outlook now LSD revenue growth with adj. EBITDA margins down 150 bps

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

“We are proud of the Carlisle team’s ability to deliver record adjusted EPS of $6.27. Our ability to hold second quarter revenues flat at $1.4 billion and maintain margins above our Vision 2030 target in a second quarter that saw continued deterioration in new construction markets speaks to the resiliency of our pure play building products business.

“Our second quarter results demonstrate the underlying strength in our re-roofing markets at CCM and showcase our capacity to achieve top-tier margins even in a sluggish new construction landscape. The commercial re-roofing market is meeting mid-single-digit growth expectations, contributing reliable recurring revenue and accounting for approximately 70% of CCM’s commercial roofing business.

“CCM’s solid performance in the quarter was offset by lower-than-expected results at CWT, influenced by continued declines in the residential end-markets. While residential end-markets were not expected to rebound in the quarter, the continued deterioration in key growth drivers—housing starts, interest rates and builder sentiment—put additional pressure on CWT sales.

“As a reminder, last quarter we maintained our full-year outlook based on increased market confidence in rising stability on the macroeconomic front, positive contractor sentiment reflected in our April Carlisle Market Survey, and the prospect of a more normal construction season. Many of our CCM contractors entered the second quarter with solid backlogs and anticipated robust activity, suggesting a strong market “load-in” typical of historical construction seasons. Unfortunately, the external risks that we identified in our first quarter earnings call materialized during the second quarter, leading to an increase in project delays, smaller-than-expected distributor inventory “load-in” related to commercial construction, and a slowdown in new construction bidding as economic uncertainties made decision-making more difficult. Insights from over 150 participants in our July Carlisle Market Survey confirmed this negative shift in contractor and distributor sentiment had accelerated in the quarter. The July survey also reflected that expectations of a continuation of those pressures will persist throughout the remainder of 2025.

“As a result, we have cautiously revised our full-year outlook to account for these market changes since our last earnings call. We now anticipate low-single-digit revenue growth, with an adjusted EBITDA margin decline of 150 basis points. This new outlook reflects lower volume expectations and limited traction on the price increases announced earlier this year, exclusive of tariff driven increases in a very limited number of purchased products.

“Throughout the quarter, we remained committed to our key strategic pillars to drive to our Vision 2030 financial goals. We maintained our focus on operational excellence through the Carlisle Operating System, completing major automation capital projects within our CWT factories. These investments, along with other COS actions, are expected to generate $12 million in adjusted EBITDA annually. We also continued to enhance the Carlisle Experience by investing in technical and customer service personnel to better support our customers. And we continued to meet our commitment to superior capital allocation, returning $343 million to shareholders through dividends and share repurchases.

“We continued to execute our proven M&A playbook to strategically allocate capital toward acquisitions that align with our Vision 2030 strategy. Our most recent acquisition, Bonded Logic, strengthens our portfolio of innovative solutions for more energy-efficient buildings and enhances our position in the $14 billion addressable insulation market. This acquisition also supports the growth of our Henry UltraTouch denim insulation product, which was named a 2025 finalist for The Home Depot Merchandising Innovation Award—an honor recognizing products that are transforming the home improvement industry.

“Additionally, we expect annual synergies from our recent acquisitions of MTL, Plasti-Fab, and ThermaFoam to exceed $34 million, while gaining traction in cross-selling opportunities through our comprehensive building envelope systems approach.

“During the quarter, we advanced our innovation agenda, earning market recognition and awards for several new product launches including our dual-tank Flexible Fast Adhesive, Blueskin VP Tech, and the Henry UltraTouch insulation product.

“As we enter the second half of 2025, we remain focused on executing our Vision 2030 strategic initiatives to bolster our market leadership and secure a premium position through the Carlisle Experience. We will continue to enhance efficiency via automation, emerging AI technologies, and the Carlisle Operating System; expedite growth-driven innovation initiatives; and leverage synergies from integrating our strategic acquisitions. Coupled with disciplined capital deployment, we are committed to achieving our Vision 2030 objectives of $40 of adjusted EPS and 25% ROIC, built on the strength of our imperative business model, reinforced by well-known re-roofing drivers with the advantages of being a market leader in North America.”

Second Quarter 2025 Segment Highlights

Carlisle Construction Materials (“CCM”)

• CCM revenue increased 0.6% (-0.6% organic) to $1,096 million, driven by the acquisition of MTL.
• CCM operating income decreased 7% to $324 million, and adjusted EBITDA decreased 5% to $346 million, reflecting an adjusted EBITDA margin of 31.6%. This decrease was the result of higher operating costs, investments in innovation and Carlisle Experience enhancements.

Carlisle Weatherproofing Technologies (“CWT”)

• CWT revenue decreased 2% (-10% organic) to $354 million as the result of lower volumes due to the continued softness in residential and commercial end-markets, partially offset by revenue from the acquisitions of Plasti-Fab and ThermaFoam.
• CWT operating income decreased 28% to $43 million, and adjusted EBITDA decreased 13% to $71 million, reflecting an adjusted EBITDA margin of 19.9%. This decrease was primarily the result of lower volumes and the impact of volume deleverage.

Cash Flow

• For the six months ended June 30, 2025, cash provided by operating activities was $289 million, and free cash flow from continuing operations was $228 million.
• During the six months ended June 30, 2025, we invested $166 million in the business with $58 million in capital expenditures and $108 million in acquisitions. We also returned $788 million to shareholders through $700 million of share repurchases and $88 million of dividends.
• As of June 30, 2025, we had $68 million of cash and cash equivalents and $1.0 billion available under our revolving credit facility.

2025 Outlook

• FY 2025 revenues up low-single-digit percentage range year-over-year
  • CCM up low-single-digit percentage range year-over-year
  • CWT up low-single-digit percentage range year-over-year
• FY 2025 adjusted EBITDA margins down 150 basis points

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 – (310) 592-9668 – mpatel@carlisle.com

Source: Carlisle Companies Incorporated