Carlisle Companies (CSL) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted EPS of $20.20 for 2024, up 30% year-over-year, with revenue growth of 9% to $5.0B and completed the strategic pivot to a pure-play building products company via the $2B sale of CIT.

• Deployed nearly $700M for synergistic acquisitions (MTL, Plasti-Fab, ThermaFoam), strengthening the building envelope portfolio.

• Returned $1.8B to shareholders in 2024 through $1.6B in share repurchases and $172M in dividends.

• Fourth quarter 2024 revenues were $1.1B, flat year-over-year, with adjusted EPS up 7% to $4.47.

• Vision 2030 targets $40 adjusted EPS, driven by innovation, M&A, and operational excellence.

Financial highlights

• FY 2024 revenues reached $5.0B, with adjusted EBITDA margin at a record 26.6%, up 150 bps year-over-year.

• Q4 adjusted EBITDA margin was 25.1%, down 130 bps year-over-year due to lower volumes and unfavorable mix.

• Full-year free cash flow margin was 18.8%, with ROIC at 28.5%.

• Net debt-to-EBITDA was 0.8x, with $754M cash and $1B available credit at year-end.

• Full year operating income rose 16% to $1.14B; net income from continuing operations was $865M, up 20% year-over-year.

Outlook and guidance

• 2025 guidance projects mid-single-digit consolidated revenue growth and ~50 bps adjusted EBITDA margin expansion, with double-digit EPS growth targeted.

• CCM segment expected to see mid-single-digit revenue growth and margin expansion; CWT segment to grow in the high-single-digit range with margin improvement from synergies and automation.

• R&D expense expected to increase 50% year-over-year to support innovation.

• Q1 2025 expected to be flat, with growth building through the year; price increases anticipated to take effect in Q2.

• Market challenges from 2024 expected to persist into the first half of 2025, with improvement anticipated in the second half.