Carlisle Companies (CSL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $1.1 billion, essentially flat year-over-year, with adjusted EPS of $3.61 (down 3%) and diluted EPS of $3.13, reflecting resilience amid residential market softness, adverse weather, and economic uncertainty.

• CCM segment saw strong reroofing activity and benefits from the MTL acquisition, offsetting softer new commercial construction and low single-digit price declines.

• CWT segment faced headwinds from weak residential markets, higher interest rates, and lower housing turnover, with adjusted EBITDA down 28% year-over-year.

• Acquisitions of MTL, Plasti-Fab, and ThermaFoam contributed $50 million in Q1 revenue and are expected to exceed synergy projections.

• $400 million was spent on share repurchases in Q1, with the 2025 repurchase target raised to $1 billion; $445 million was returned to shareholders via dividends and buybacks.

Financial highlights

• Adjusted EBITDA margin for Q1 was 21.8%, down 240 basis points year-over-year; operating margin was 16.8%.

• CCM revenue was $799 million (up 2% YoY), with adjusted EBITDA margin of 27.1% (down 180 bps YoY); CWT revenue was $297 million (down 5% YoY), with adjusted EBITDA margin of 15.6% (down 510 bps YoY).

• Net income for Q1 2025 was $143.3 million, down from $192.3 million in Q1 2024; net income from continuing operations was $140.1 million.

• Operating cash flow from continuing operations was negative $1.4 million; free cash flow used was $30 million, a $162 million decrease from prior year.

• Cash and cash equivalents at quarter end: $220 million; long-term debt: $1.89 billion; total liquidity of $1.2 billion.

Outlook and guidance

• Reaffirmed mid-single-digit revenue growth and ~50 bps adjusted EBITDA margin expansion for 2025, with full-year adjusted EPS expected to grow over 10% YoY.

• CCM expected to deliver mid-single-digit revenue growth, driven by reroofing and MTL acquisition, with margin expansion anticipated in H2.

• CWT expected to achieve high single-digit revenue growth, with margin improvements from synergies and automation.

• Free cash flow for 2025 expected to be approximately $1 billion, with FCF margin above 15%.

• Vision 2030 targets include $40+ adjusted EPS and cumulative free cash flow of $6 billion by 2030.