Key Takeaways CSL benefits from strong reroofing demand, lifting its Construction Materials segment revenues by 2%. MMM's Safety and Industrial segment grew 2.5%, but retail market softness hurt its Consumer segment. CSL's EPS estimates for 2026 rose, while MMM's estimates for both 2025 and 2026 declined recently.3M Company (MMM) and Carlisle Companies Incorporated (CSL) are two familiar names operating in the Zacks Diversified Operations industry. Both companies compete in multiple sectors with significa ...

Group 1: Company Performance - Carlisle Companies Incorporated (CSL) is benefiting from strong performance in the Carlisle Construction Materials (CCM) segment, with a 2% year-over-year revenue increase in Q1 2025 driven by robust demand for reroofing products and healthy construction activity [1] - The acquisition of MTL Holdings positively impacted sales by 4.6% in Q1 2025, enhancing CSL's architectural metals business and broadening customer offerings [3] - CSL's dividend payments in Q1 2025 totaled $45.2 million, an increase of 8.9% year-over-year, while share buybacks reached $400 million, up 166.5% year-over-year [4] Group 2: Acquisitions and Market Expansion - CSL has strengthened its business through strategic acquisitions, including ThermaFoam in February 2025, which enhanced its Insulfoam EPS business and expanded its presence in Texas and the South-Central U.S. market [2] - The acquisition of Plasti-Fab in December 2024 expanded CSL's building envelope product portfolio, reinforcing its position in the North American polystyrene insulation market [2] Group 3: Segment Challenges - The Carlisle Weatherproofing Technologies (CWT) segment experienced an 11.7% decline in organic revenues in Q1 2025 due to a slowdown in the residential construction market and project delays [9] - High selling, general, and administrative expenses have adversely impacted CSL, with a 1.8% increase in cost of sales and a 16.3% rise in selling and administrative expenses year-over-year in Q1 2025 [10]

It has been about a month since the last earnings report for Carlisle (CSL) . Shares have added about 2.1% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Carlisle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?It turns ...

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Acquisition Announcement - Carlisle Companies Incorporated (CSL) has signed a definitive deal to acquire certain assets of Bonded Logic, Inc. and Phoenix Fibers, LLC, indicating CSL's intention to become a pure-play building products company [1] - The financial terms of the acquisition have not been disclosed [1] Acquisition Rationale - The acquisition aligns with Carlisle's Vision 2030 strategy, aimed at strengthening its business and product portfolio [2] - Bonded Logic's advanced natural fiber insulation products will enhance CSL's building envelope product offerings [2] Timeline - The acquisition is expected to be completed in the second quarter of 2025, subject to customary closing conditions [3] Market Position and Performance - Carlisle has a market capitalization of $17.3 billion and currently holds a Zacks Rank 3 (Hold) [4] - The company is benefiting from strength in the non-residential market, particularly from increased re-roofing activities [4] - Revenues are anticipated to grow in the mid-single digits in 2025 due to strong momentum in the Construction Materials unit [4] Challenges - The Weatherproofing Technologies unit is facing challenges due to lower volumes from a slowdown in the residential construction market [5] - High debt levels are also a concern for the company [5] Stock Performance - Over the past three months, CSL's shares have increased by 12%, outperforming the industry's growth of 1.3% [6] - The Zacks Consensus Estimate for CSL's 2025 earnings has decreased by 0.1% in the last 60 days [6] - CSL has a trailing four-quarter average earnings surprise of 2.3% [6]

Griffon Corporation (GFF) and Carlisle Companies Incorporated (CSL) are both familiar names operating in the Zacks Diversified Operations industry. As rivals, both companies are engaged in producing innovative home and building envelope products and solutions in the United States and internationally.Both companies have been enjoying significant growth opportunities in the construction sector on account of several ongoing projects across both the residential and non-residential markets. But which one is a be ...

Group 1: Company Performance - Carlisle Companies Incorporated (CSL) is experiencing strong momentum in the Construction Materials segment, with a 2% year-over-year revenue increase in Q1 2025, driven by higher sales in the non-residential construction market and acquisitions [1] - The company anticipates mid-single-digit revenue growth for the Construction Materials segment in 2025, supported by strong contractor backlogs and customer demand [2] - CSL's acquisitions, including ThermaFoam, Plasti-Fab, and MTL Holdings, have positively impacted net sales growth by 4.6% in Q1 2025, expanding its product offerings and market presence [3][4] Group 2: Shareholder Returns - In Q1 2025, CSL rewarded shareholders with a dividend payment of $45.2 million, an increase of 8.9% year-over-year, and repurchased shares worth $400 million, up 166.5% year-over-year [5] Group 3: Challenges - The Weatherproofing Technologies segment is facing challenges, with organic revenues declining by 11.7% year-over-year due to lower volumes from a slowdown in the residential construction market and project delays [9] - The company is also dealing with rising raw material and labor costs, which have increased selling and administrative expenses by 16.3% and cost of sales by 1.8% year-over-year in Q1 2025 [10]

Financial Performance - Carlisle reported revenue of $1.1 billion for the first quarter of 2025, essentially flat year-over-year, with diluted EPS of $3.13[57] - Operating income for the company decreased to $183.6 million, with an operating margin of 16.8%, down from 20.5% in the previous year[63] - Gross profit decreased by 3.3% to $385.7 million, with a gross margin of 35.2%[65] - Net income for Q1 2025 was $143.3 million, down from $192.3 million in Q1 2024, with income from continuing operations at $140.1 million compared to $170.9 million[82] - Adjusted EBITDA for Q1 2025 was $238.4 million, a decrease from $265.5 million in Q1 2024, resulting in an adjusted EBITDA margin of 21.8% compared to 24.2%[82] - EBIT for Q1 2025 was $183.4 million, down from $225.5 million in Q1 2024, with adjusted EBIT at $190.6 million compared to $226.6 million[82] Revenue Segments - Revenues for Carlisle Construction Materials segment increased by 1.9% to $798.5 million, primarily due to higher sales in the non-residential construction end-market[72] - The Carlisle Weatherproofing Technologies segment saw a revenue decrease of 5.0% to $297.3 million, attributed to lower sales in the residential construction end-market[74] - Recent acquisitions contributed $50 million in revenue during the first quarter, with expectations that these acquisitions will exceed original synergy projections[60] Cash Flow and Investments - Operating cash flow for Q1 2025 was $1.8 million, a decrease of $161.7 million compared to Q1 2024, primarily due to lower income from continuing operations and higher working capital uses[78] - Cash used in investing activities was $78.9 million in Q1 2025, mainly for the purchase of ThermaFoam ($52.9 million) and capital expenditures ($29.0 million)[79] - Cash used in financing activities totaled $456.4 million in Q1 2025, primarily for share repurchases ($400.0 million) and cash dividends ($45.2 million)[80] Strategic Focus - Carlisle raised its 2025 share repurchase target from $800 million to $1 billion, having repurchased 1.2 million shares for $400 million in the first quarter[61] - Research and development expenses increased by 16.3% to $10.7 million, reflecting a commitment to innovation and new product development[67] - The company plans to continue focusing on strategic acquisitions and product development to enhance competitive positioning in the market[84] Market Conditions - The company expects a low-single-digit increase in commercial roofing volumes driven by re-roofing demand, while residential volumes are anticipated to decrease low-single-digits due to buyer uncertainty and affordability challenges[59] - There were no material changes in the company's market risk for the three months ended March 31, 2025[85] - The company anticipates potential impacts on future performance due to various external factors, including competition, economic conditions, and geopolitical events[84] Working Capital - The company reported a significant increase in working capital uses, with accounts receivable up by $29.1 million and accounts payable by $28.1 million compared to the previous year[78] - The provision for income taxes decreased by 20.5% to $34.9 million, reflecting lower pre-tax income[70]

Core Viewpoint - Carlisle Companies Incorporated (CSL) reported first-quarter 2025 adjusted earnings of $3.61 per share, exceeding the Zacks Consensus Estimate of $3.53, but reflecting a 3% year-over-year decline [1] - Total revenues for CSL were $1,096 million, slightly below the consensus estimate of $1,101 million, marking a 0.1% decrease year over year [1] Segmental Discussion - Revenues from the Carlisle Construction Materials segment increased by 2% year over year to $799 million, driven by contributions from the MTL acquisition and strong end-market demand, despite a 1% decrease in organic revenues [2] - Revenues from the Carlisle Weatherproofing Technologies segment decreased by 5% year over year to $297 million, primarily due to lower construction activities, with organic revenues slipping 12% [3] Margin Profile - Cost of sales rose by 1.8% year over year to $710.1 million, while selling and administrative expenses increased by 16.3% to $194 million [4] - Operating income fell by 18.4% year over year to $183.6 million, resulting in an operating margin decrease of 370 basis points to 16.8% [4] Balance Sheet and Cash Flow - At the end of Q1 2025, CSL had cash and cash equivalents of $220.2 million, down from $753.5 million at the end of 2024, while long-term debt remained stable at $1.89 billion [5] - Net cash generated from operating activities in the first three months of 2025 was $1.8 million, a significant decrease from $163.5 million in the same period last year [5] Shareholder Returns - CSL rewarded shareholders with a dividend payment of $45.2 million, an increase of 8.9% year over year, and repurchased shares worth $400 million, up 166.5% year over year [6] Outlook - The company reaffirmed its financial guidance for 2025, expecting mid-single-digit revenue growth and earnings growth of over 10% year over year, with an anticipated adjusted EBITDA margin expansion of approximately 50 basis points [7]

First Quarter 2025 Earnings Call April 23, 2025 Forward Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally use words such as "expect," "foresee," "anticipate," "believe," "project," "should," "estimate," "will," "plans," "intends," "forecast," and similar expressions, and reflect our expectations concerning the future. Such statements are made b ...