Carlisle Q1 Earnings Beat, Construction Materials Sales Up Y/Y

Carlisle Companies Incorporated CSL reported first-quarter 2025 adjusted earnings of $3.61 per share, which surpassed the Zacks Consensus Estimate of $3.53. However, the bottom line decreased 3% year over year.

Carlisle’s total revenues of $1,096 million narrowly missed the consensus estimate of $1,101 million. The top line inched down 0.1% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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 2% year over year to $799 million. Our estimate for segmental revenues was $791.4 million. Organic revenues decreased 1%. Revenues were driven by contributions from the MTL acquisition and healthy end-market demand, partially offset by the adverse impact from weather and lower carryover pricing from the previous year. Adjusted EBITDA of $217 million decreased 5% year over year.

Revenues from the Carlisle Weatherproofing Technologies segment decreased 5% year over year to $297 million, due to lower construction activities, partially offset by the buyouts of Plasti-Fab and ThermaFoam. Our estimate for segmental revenues was $324.9 million. Organic revenues slipped 12%. Adjusted EBITDA of $46 million declined 28% 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 1.8% year over year to $710.1 million. Selling and administrative expenses increased 16.3% to $194 million. Research and development expenses totaled $10.7 million, up 16.3% year over year.

CSL recorded an operating income of $183.6 million, down 18.4% year over year. The operating margin decreased 370 basis points to 16.8% from the year-ago quarter. Our estimate for the operating margin was pegged at 16.9%.

Carlisle’s Balance Sheet and Cash Flow

At the end of the first quarter, Carlisle had cash and cash equivalents of $220.2 million compared with $753.5 million at the end of 2024. Long-term debt (including the current portion) was $1.89 billion, relatively stable compared with the figure reported at the end of 2024.

In the first three months of 2025, CSL generated net cash of $1.8 million from operating activities compared with $163.5 million in the year-ago period.

In the same period, CSL rewarded its shareholders with a dividend payment of $45.2 million, up 8.9% year over year. The company bought back shares worth $400 million, up 166.5% year over year.

CSL’s Outlook

The company reaffirmed its financial guidance for 2025. Management expects revenues to witness a mid-single-digit increase. It anticipates delivering earnings growth of more than 10% on a year-over-year basis. Adjusted EBITDA margin is expected to expand approximately 50 bps. The free cash flow margin is anticipated to be more than 15%.

Zacks Rank

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

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GFF delivered a trailing four-quarter average earnings surprise of 14.7%. In the past 60 days, the consensus estimate for Griffon’s fiscal 2025 (ending September 2025) earnings has increased 2.9%.

Astronics Corporation ATRO currently sports a Zacks Rank of 1. ATRO delivered an earnings surprise of 128.6% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for Astronics’ 2025 earnings has increased 3.5%.

AerSale Corporation ASLE presently sports a Zacks Rank 1. ASLE delivered an earnings surprise of 28.6% in the last reported quarter. In the past 60 days, the consensus estimate for AerSale’s 2025 earnings has increased 32.1%.

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

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