Carlisle Q2 Earnings Miss Estimates, Organic Revenues Decline Y/Y

Carlisle Companies Incorporated CSL reported second-quarter 2025 adjusted earnings of $6.27 per share, which missed the Zacks Consensus Estimate of $6.67. However, the bottom line increased 0.5% year over year.

Carlisle’s total revenues of $1,449.5 million lagged the consensus estimate of $1,497 million and inched down 0.1% year over year. Organic revenues fell 3% year over year.

CSL's Segmental Discussion

Carlisle has divested its Carlisle Interconnect Technologies segment. The company now reports under the following two segments.

Revenues from the Carlisle Construction Materials segment increased 0.6% year over year to $1,096 million. Our estimate for segmental revenues was $1,115 million. Organic revenues decreased 0.6%. Revenues were driven by contributions from the MTL acquisition and stable recurring re-roof activity, partially offset by the weakness in the new construction market. Adjusted EBITDA of $346 million decreased 5% year over year.

Revenues from the Carlisle Weatherproofing Technologies segment decreased 2% year over year to $354 million, due to lower construction activities, partially offset by the buyouts of Plasti-Fab and ThermaFoam. Our estimate for segmental revenues was $384.7 million. Organic revenues slipped 10%. Adjusted EBITDA of $71 million declined 12.9% year over year.

Carlisle Companies Incorporated Price, Consensus and EPS Surprise

Carlisle Companies Incorporated price-consensus-eps-surprise-chart | Carlisle Companies Incorporated Quote

CSL’s Margin Profile

Carlisle’s cost of sales increased 3% year over year to $908.4 million. Selling and administrative expenses increased 4% to $196.9 million. Research and development expenses totaled $11.1 million, up 19.3% year over year.

CSL recorded an operating income of $335 million, down 11.3% year over year. The operating margin decreased 290 basis points to 23.1% from the year-ago quarter. Our estimate for the operating margin was pegged at 23.9%.

Carlisle’s Balance Sheet and Cash Flow

At the end of the second quarter, Carlisle had cash and cash equivalents of $68.4 million compared with $753.5 million at the end of 2024. Long-term debt (including the current portion) was $1.9 billion, relatively stable compared with the figure reported at the end of 2024.

In the first six months of 2025, CSL generated net cash of $288.9 million from operating activities compared with $346.9 million in the year-ago period.

In the same period, CSL rewarded its shareholders with a dividend payment of $88.3 million, up 8.1% year over year. The company bought back shares worth $700 million, flat year over year.

CSL’s 2025 Outlook

The company expects revenues to increase in the low single digits on a year-over-year basis. Revenues from both the Construction Materials and Weatherproofing Technologies segments are projected to increase in low-single-digit year- over year.

Adjusted EBITDA margin is expected to contract approximately 150 bps. Carlisle anticipates delivering record earnings per share in 2025. The free cash flow margin is expected to be more than 15%.

Zacks Rank & Key Picks

CSL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks from the same space are discussed below:

Flowserve Corporation FLS currently sports a Zacks Rank of 1. In the trailing four quarters, FLS surpassed the consensus estimate twice and missed in the other two quarters. The average earnings surprise was 5.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2025 earnings has increased 1.6%.

Federal Signal Corporation FSS presently carries a Zacks Rank #2 (Buy). FSS earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.4%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2025 earnings has been stable.

ITT Inc. ITT currently carries a Zacks Rank of 2. ITT has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 1.7%.  In the past 60 days, the Zacks Consensus Estimate for ITT’s 2025 earnings has increased 0.9%.

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This article originally published on Zacks Investment Research (zacks.com).

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