Carlisle Companies Publishes 2025 Annual Report Carlisle Companies Publishes 2025 Annual Report Share Contacts Mehul Patel Vice President, Investor Relations Carlisle Companies Incorporated (310) 592 - 9668 mpatel@carlisle.com Industry: SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Carlisle Companies Incorporated (NYSE:CSL) today published its 2025 Annual Report, highlighting resilient financial performance, continued execution of Vision 2030, and significant progress in building a scalable, enterprise-wide innovatio ...

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.The ability t ...

Core Insights - Big Tech and growth stocks have outperformed value stocks and the broader market for approximately a decade [1] Group 1 - The article emphasizes the sustained performance of Big Tech and growth stocks compared to value stocks [1] - The author, Leo Nelissen, focuses on long-term investment strategies, particularly in dividend growth and high-quality compounders [1] - The approach combines macro analysis with detailed stock research to identify businesses with strong cash-flow potential [1]

Group 1 - The article focuses on Carlisle Companies Incorporated (CSL) as a target for investment, with shares being acquired starting in 2025 and continued purchases in 2026 at an average price of $327.9 per share [1] - The investor's strategy is centered around dividend growth investing and value, aiming for financial freedom through a long-term investment approach [1] Group 2 - The analyst has a beneficial long position in CSL shares, indicating confidence in the company's future performance [2]

Core Viewpoint - The article discusses the investment strategies and preferences of Leo Nelissen, a long-term investor and macro-focused strategist, emphasizing his focus on dividend growth, high-quality compounders, and structural investment themes [1]. Group 1: Investment Strategy - Leo Nelissen combines macro analysis with bottom-up stock research to identify durable businesses with strong cash-flow potential [1]. - The emphasis is placed on long-term investment strategies that focus on companies with sustainable growth and reliable dividends [1]. Group 2: Analyst's Position - The analyst has a beneficial long position in the shares of QXO, MIAX, CSL, and TDG through various financial instruments [2]. - The article reflects the author's personal opinions and does not involve compensation from the companies mentioned [2].

Core Insights - The article discusses the concept of finding asymmetric investment opportunities as introduced by Mohnish Pabrai, emphasizing the importance of identifying ideas with limited downside risk and significant upside potential [1]. Group 1: Investment Strategy - The focus is on long-term investment strategies that prioritize dividend growth and high-quality compounders, which are businesses with strong cash-flow potential [1]. - The approach combines macroeconomic analysis with detailed stock research to identify durable businesses [1]. Group 2: Analyst Background - The author, Leo Nelissen, is characterized as a macro-focused strategist with a passion for structural investment themes [1]. - The article is part of a broader effort to provide actionable investment ideas for long-term investors [1].

Group 1 - Carlisle Companies (CSL) is benefiting from low interest rates in the US economy [1] - The cyclical downturn in construction is expected to end as economic activity improves [1] - This improvement in economic activity will necessitate a gradual increase in construction demand [1]

Core Insights - The article discusses the psychological impact of anxiety, emphasizing that the "what-if" cycle often exacerbates fears rather than the initial source of anxiety itself [1] Group 1 - Leo Nelissen is identified as a long-term investor and macro-focused strategist, specializing in dividend growth and high-quality compounders [1] - The investment strategy combines macro analysis with bottom-up stock research to identify businesses with strong cash-flow potential [1] - Nelissen also contributes to Main Street Alpha, providing in-depth research and actionable investment ideas for long-term investors [1]

Core Insights - The current year has shown a positive trend, particularly in the demand for value-focused investments, which has exceeded expectations [1] Group 1 - There is a strong surge in demand for value-focused investments, indicating a successful rotation thesis [1] - Leo Nelissen is identified as a long-term investor and macro-focused strategist, emphasizing dividend growth and high-quality compounders [1] - The approach combines macro analysis with bottom-up stock research to identify businesses with strong cash-flow potential [1]

Financial Performance - Carlisle generated revenues of $5,019.9 million in 2025, a slight increase of 0.3% from $5,003.6 million in 2024[88]. - Operating income decreased to $1,002.5 million in 2025, down 12.3% from $1,143.1 million in 2024, resulting in an operating margin of 20.0%[88]. - The company reported an adjusted EBITDA of $1,225.4 million in 2025, with an adjusted EBITDA margin of 24.4%, down from 26.6% in 2024[88]. - Net income for 2025 was $740.7 million, a decrease of 43.5% from $1,311.8 million in 2024[131]. - Income from continuing operations for 2025 was $742.5 million, down from $865.1 million in 2024, reflecting a decline of 14.2%[131]. - Adjusted EBITDA for 2025 was $1,225.4 million, compared to $1,332.7 million in 2024, representing a decrease of 8.0%[131]. - Total revenues for 2025 increased slightly to $5,019.9 million from $5,003.6 million in 2024, showing a growth of 0.3%[131]. - Adjusted EBITDA margin decreased to 24.4% in 2025 from 26.6% in 2024[131]. - Operating income for the CCM segment in 2025 was $997.2 million, down from $1,084.3 million in 2024, a decline of 8.0%[131]. - Adjusted EBIT for the CWT segment in 2025 was $121.0 million, compared to $180.0 million in 2024, a decrease of 32.8%[131]. Cash Flow and Investments - Carlisle's operating cash flow exceeded $1 billion in 2025, providing balance sheet flexibility for capital deployment[83]. - Net cash provided by operating activities in 2025 was $1.1 billion, an increase of $71.5 million compared to 2024[106]. - Net cash used in investing activities in 2025 was $240.4 million, primarily due to acquisitions of ThermaFoam for $53.7 million and Bonded Logic for $61.4 million[108]. - Net cash used in financing activities in 2025 was $503.7 million, mainly from share repurchases of $1.3 billion and cash dividend payments of $181.1 million[110]. - The company experienced a $136.9 million decrease in working capital uses in 2025 compared to 2024, attributed to steady inventory levels[107]. - The net cash provided by operating activities was primarily driven by lower working capital uses of $115.7 million[106]. Expenses and Taxation - Selling and administrative expenses rose by 3.1% to $745.4 million in 2025, attributed to recent acquisitions and increased wage expenses[91]. - The effective tax rate for 2025 was 21.7%, a slight decrease from 22.1% in 2024, reflecting lower pre-tax income[95]. - Research and development expenses increased by 33.1% to $47.1 million in 2025, reflecting a focus on new product development[92]. Market Outlook and Risks - Carlisle expects challenging market conditions to persist into the first half of 2026 but remains committed to operational excellence and shareholder value[87]. - The company is exposed to foreign currency exchange risks primarily with the Canadian Dollar, Euro, British Pound, and Chinese Renminbi[135]. - The company had no derivative financial instruments in place to manage commodity price risks as of December 31, 2025[137]. Goodwill and Impairment - The total goodwill allocated to reporting units as of December 31, 2025, was $1.5389 billion, an increase from $1.4780 billion in 2024[117]. - The impairment test for goodwill indicated that it is not likely that the fair value of reporting units is less than their carrying values, thus no quantitative analysis was performed[118]. - The company utilized a qualitative approach for the annual impairment test of indefinite-lived intangible assets, with the Henry trade name tested using a quantitative approach[123]. - The company recorded a valuation allowance of $52.0 million on deferred tax assets related to certain U.S. federal, state, and foreign net operating loss carryforwards[128].