Carlisle Companies (CSL) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 results with 6% revenue growth to $1.33 billion, adjusted EPS up 24% to $5.78, and adjusted EBITDA margin expanding 60 bps to 27.6%, despite residential market headwinds and weather disruptions.

• CCM segment drove growth through strong reroofing demand, contractor backlogs, and the MTL acquisition, while CWT faced declines from residential softness and pricing pressure.

• Returned $512 million to shareholders in Q3 via dividends and share repurchases, with an 18% dividend increase marking 48 consecutive annual increases.

• Announced and executed acquisitions of MTL and Plasti-Fab, with Plasti-Fab expected to add $14 million in annual synergies and $0.30 to adjusted EPS in 2025.

• Vision 2030 strategy remains on track, targeting $40 EPS, 25% ROIC, and 15%+ free cash flow margins by 2030.

Financial highlights

• Q3 2024 revenue: $1,333.6 million (+5.9% YoY); adjusted EPS: $5.78 (+24% YoY); adjusted EBITDA: $367.9 million (+8.3% YoY); adjusted EBITDA margin: 27.6% (+60 bps YoY).

• CCM revenue: $998 million (+9% YoY); adjusted EBITDA: $328 million (+13% YoY); margin: 32.8% (+110 bps YoY).

• CWT revenue: $335 million (-3% YoY); adjusted EBITDA: $69 million (-14% YoY); margin: 20.7% (-270 bps YoY).

• Free cash flow for nine months: $597 million (+$22 million YoY); Q3 free cash flow: $309 million (23.2% margin).

• Operating cash flow for nine months: $662 million; cash and cash equivalents at period end: $1.53 billion.

Outlook and guidance

• Full-year 2024 revenue growth outlook lowered to ~10% due to residential softness and weather/strike impacts; adjusted EBITDA margin expansion of ~150 bps reaffirmed.

• Q4 2024: CCM revenue expected up mid-single digits, CWT down low single digits; total revenue to grow low single digits; adjusted EBITDA margin ~25%.

• Record full-year EPS expected, with >25% growth YoY; free cash flow margin targeted at least 15%; ROIC >25%.