Core Viewpoint - Carlisle (CSL) reported quarterly earnings of $3.61 per share, exceeding the Zacks Consensus Estimate of $3.53 per share, but down from $3.72 per share a year ago, indicating a 2.27% earnings surprise [1][2] Financial Performance - The company posted revenues of $1.1 billion for the quarter ended March 2025, which was a miss by 0.46% compared to the Zacks Consensus Estimate, and remained unchanged from the previous year's revenues [2] - Over the last four quarters, Carlisle has surpassed consensus EPS estimates three times and topped consensus revenue estimates only once [2] Stock Performance - Carlisle shares have declined approximately 3.6% since the beginning of the year, while the S&P 500 has seen a decline of 10.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $6.96 on revenues of $1.52 billion, and for the current fiscal year, it is $22.31 on revenues of $5.26 billion [7] - The trend of estimate revisions for Carlisle is mixed, which could change following the recent earnings report [6] Industry Context - The Diversified Operations industry, to which Carlisle belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Markel Group (MKL), is expected to report quarterly earnings of $18.89 per share, reflecting a year-over-year increase of 4% [9]

Revenue and Earnings - Revenue for Q1 2025 was $1.1 billion, essentially flat year-over-year, with diluted EPS of $3.13 and adjusted EPS of $3.61[2] - Revenue for Carlisle Construction Materials (CCM) was $799 million, a 2% increase year-over-year, while Carlisle Weatherproofing Technologies (CWT) revenue declined by 5%[12] - Total revenues for the three months ended March 31, 2025, were $1,095.8 million, slightly down from $1,096.5 million in the same period of 2024[28] - Adjusted net income for the three months ended March 31, 2025, was $161.5 million, with an adjusted EPS of $3.61, compared to $180.5 million and $3.72 for the same period in 2024[38] - Income from continuing operations (GAAP) for Q1 2025 was $140.1 million, resulting in a diluted EPS of $3.13, down from $170.9 million and $3.52 in Q1 2024[38] - The company reported a decrease in net income (GAAP) to $143.3 million in Q1 2025 from $192.3 million in Q1 2024[38] Operating Performance - Operating income decreased by 18.5% year-over-year to $183.6 million, with an operating margin of 16.8%[9] - Adjusted EBITDA for the three months ended March 31, 2025, was $238.4 million, compared to $265.5 million in 2024, reflecting a decrease in adjusted EBITDA margin from 24.2% to 21.8%[34] - The company’s income from continuing operations for the three months ended March 31, 2025, was $140.1 million, down from $170.9 million in 2024[34] Cash Flow and Investments - Free cash flow is expected to generate approximately $1 billion in 2025, with share repurchase target raised from $800 million to $1 billion[6] - Operating cash flow used by continuing operations was $1.4 million, with free cash flow used by continuing operations decreasing by $162 million year-over-year[11] - Free cash flow from continuing operations was negative $30.4 million for the three months ended March 31, 2025, down from $132.0 million in 2024[31] - The company reported a net cash used in investing activities of $78.9 million, compared to $32.0 million in the prior year, primarily due to acquisitions totaling $49.9 million[23] Acquisitions and Synergies - Recent acquisitions contributed $50 million in revenue during Q1 2025, with expectations to exceed original synergy projections[5] - The company incurred $6.8 million in costs related to acquisitions, which contributed $5.2 million and $0.12 to adjusted net income[38] - Acquisition-related amortization for Q1 2025 was $28.4 million, impacting adjusted net income by $21.6 million and $0.48 per share[38] Market Trends and Outlook - The company anticipates mid-single-digit revenue growth for FY 2025, with adjusted EBITDA margins expected to expand by approximately 50 basis points[15] - The Carlisle Market Survey indicates a low-single-digit increase in commercial roofing volumes, primarily driven by re-roofing demand[4] Financial Position - The company’s cash and cash equivalents decreased to $220.2 million as of March 31, 2025, from $753.5 million at the beginning of the period[25] - Long-term debt increased slightly to $1,894.4 million as of March 31, 2025, compared to $1,890.6 million at the end of 2024[25] Shareholder Returns - The company repurchased $400.0 million of common stock during the three months ended March 31, 2025, compared to $150.0 million in the same period of 2024[23]

Group 1 - The article discusses a survey conducted by the company, leading to a recommendation for a specific dividend stock as a top choice for investors [1] - The company promotes its research services, highlighting a strong customer satisfaction rate with 438 testimonials, most of which are 5 stars [1] Group 2 - The company has disclosed a beneficial long position in several stocks, indicating confidence in their performance [2] - The article emphasizes that the opinions expressed are personal and not influenced by any business relationships with the mentioned companies [2]

Group 1: Company Performance - Carlisle Companies Incorporated (CSL) is experiencing growth in the Construction Materials segment, with a 2% year-over-year revenue increase in Q4 2024, driven by non-residential construction market strength in the U.S. and Europe [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] - The Weatherproofing Technologies segment is facing challenges, with organic revenues declining by 8% year-over-year in Q4 due to a slowdown in the residential construction market and project delays [8] Group 2: Acquisitions and Expansion - CSL acquired ThermaFoam in February 2025, enhancing its polystyrene insulation product portfolio and expanding its market presence in Texas and the South-Central U.S. [3] - The acquisition of Plasti-Fab in December 2024 strengthened CSL's position in the North American polystyrene insulation market [4] - The acquisition of MTL Holdings in May 2024 expanded customer offerings and boosted the architectural metals business [4] Group 3: Financial Management - In 2024, CSL rewarded shareholders with $172.4 million in dividends, a 7.6% increase year-over-year, and repurchased shares worth $1.59 billion, up 76.2% year-over-year [5] - The company is facing rising raw material and labor costs, with selling and administrative expenses increasing by 15.6% and cost of sales by 5.5% year-over-year in 2024 [9]

Group 1: Company Performance and Outlook - Carlisle Companies Incorporated (CSL) is expected to benefit from strong demand in the Carlisle Construction Materials segment, particularly in reroofing products and non-residential construction activity in the U.S. and Europe, with projected revenue growth in the mid-single digits for 2025 compared to the previous year [1] - The company has solidified its product portfolio through strategic acquisitions, including ThermaFoam in February 2025 and Plasti-Fab in December 2024, enhancing its offerings and market presence in the polystyrene insulation sector [2] - The acquisition of MTL Holdings in May 2024 will expand CSL's architectural metals business by adding pre-fabricated edge metal products to its portfolio [3] Group 2: Shareholder Returns - CSL has implemented shareholder-friendly policies, increasing its dividend by 18% to $1.00 per share in August 2024, and rewarding shareholders with a total dividend payment of $172.4 million in 2024, a 7.6% increase year over year [4] - The company also engaged in significant share buybacks, repurchasing shares worth $1.59 billion in 2024, which represents a 76.2% increase year over year [4] Group 3: Challenges and Costs - CSL faces challenges in the Weatherproofing Technologies segment due to lower volumes from a slowdown in the residential construction market, exacerbated by high interest rates and unfavorable weather conditions [5] - The company is dealing with rising raw material and labor costs, leading to increased direct expenses and higher selling, administrative, and R&D costs, with selling and administrative expenses rising by 15.6% and cost of sales by 5.5% year over year in 2024 [6]

Group 1 - The article discusses the performance and insights of a portfolio managed by the author, which has garnered significant engagement with close to 300 comments, indicating high interest from readers [1] - The author holds a beneficial long position in the shares of ODFL and CSL, suggesting a positive outlook on these companies [1] Group 2 - The article emphasizes that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [2] - It clarifies that no specific investment recommendations are provided, and opinions expressed may not reflect the views of Seeking Alpha as a whole [2]

Financial Performance - In 2024, Carlisle reported diluted earnings per share (EPS) from continuing operations of $18.34, reflecting a 29% increase over 2023[94]. - Total revenues for 2024 were $5,003.6 million, representing a 9.1% increase from $4,586.9 million in 2023[99]. - Operating income increased to $1,143.1 million in 2024, with an operating margin of 22.8%, up from 21.4% in 2023[105]. - Gross profit for 2024 was $1,887.7 million, with a gross profit margin of 37.7%, compared to 35.6% in 2023[101]. - Net income for 2024 reached $1,311.8 million, a significant increase from $767.4 million in 2023[157]. - Adjusted EBITDA for 2024 was $1,332.7 million, compared to $1,152.8 million in 2023, reflecting an adjusted EBITDA margin of 26.6%, up from 25.1%[157]. Segment Performance - Revenues for the Carlisle Construction Materials segment increased to $3,704.3 million in 2024, up 13.9% from $3,253.4 million in 2023, driven by higher sales in the non-residential end market[113]. - Operating income for the Carlisle Construction Materials segment rose to $1,084.3 million in 2024, an increase of 18.6% compared to $913.9 million in 2023[113]. - Adjusted EBITDA for the Carlisle Construction Materials segment was $1,163.8 million in 2024, compared to $976.8 million in 2023, reflecting improved operational performance[113]. - Revenues for the Carlisle Weatherproofing Technologies segment decreased to $1,299.3 million in 2024, down 2.6% from $1,333.5 million in 2023, primarily due to lower sales in the residential end market[115]. Cash Flow and Capital Management - Cash provided by investing activities in 2024 was $1,229.6 million, primarily from the sale of the CIT business, offset by $676.9 million used for acquisitions and capital expenditures[124]. - Cash used in financing activities totaled $2,110.2 million in 2024, mainly for share repurchases of $1,585.9 million and the redemption of 2024 Notes of $400.0 million[126]. - The total cash and cash equivalents increased to $753.5 million as of December 31, 2024, compared to $576.7 million at the end of 2023, primarily due to cash generated from operations and the sale of the CIT business[117]. - The company anticipates sufficient cash on hand and operating cash flows to meet business requirements for at least the next 12 months[119]. - The company repurchased approximately 3.9 million shares in 2024, utilizing $1,585.9 million of cash on hand, as part of its capital return strategy[128]. Tax and Impairment - The effective tax rate for 2024 was 22.1%, slightly down from 22.7% in 2023, with a provision for income taxes of $245.8 million[109]. - Goodwill allocated to reporting units totaled $1,478.0 million as of December 31, 2024, an increase from $1,202.5 million in 2023[140]. - The company conducted an annual impairment test for goodwill on November 1, 2024, and determined that it was not likely that the fair value of reporting units was less than their carrying values[141]. - A valuation allowance of $51.7 million was recorded on deferred tax assets related to net operating loss and credit carryforwards, indicating potential realizability concerns[154]. - The company recognized an impairment charge for intangible assets only when the carrying amount exceeded the fair value, with no significant impairments reported for indefinite-lived intangible assets[146]. Strategic Initiatives - The company deployed $1.6 billion for share repurchases in 2024, funded by the divestiture of Carlisle Interconnect Technologies (CIT)[95]. - Carlisle's acquisition strategy included nearly $700 million spent on enhancing building envelope capabilities, notably acquiring MTL Holdings LLC and PFB Holdco, Inc[95]. - Research and development expenses rose to $35.4 million in 2024, a 23.3% increase from $28.7 million in 2023, focusing on new product development[103]. - The company expects mid single-digit revenue growth for CCM in 2025, driven by continued strength in re-roofing and a full year of MTL[159]. - Capital expenditures for 2025 are projected to be around $150 million, focusing on new product and capacity expansion, business sustaining projects, and cost reduction efforts[161]. Market Dynamics - Revenues from the non-residential construction market increased by $468.6 million, while residential construction revenues decreased by $58.1 million[99]. - International revenues accounted for 9.5% of total revenues in 2024, with the United States contributing 90.5%[100]. - Raw material costs accounted for approximately 66% of the company's cost of goods sold in 2024, highlighting the significant impact of material price volatility on financial performance[72]. - The company has committed to achieving net zero GHG emissions by 2050, which may require significant resources and could increase operational costs[75]. - The company anticipates high single-digit revenue growth for Carlisle Weatherproofing Technologies in 2025, supported by market share gains and acquisitions[159]. Risks and Challenges - Non-operating expenses for the corporate and unallocated segment were $19.7 million in 2024, compared to $(2.9) million in 2023, indicating a significant increase in costs[158]. - The company faces risks from widespread health emergencies, which could adversely affect demand, supply chains, and overall financial performance[78].

Core Insights - Warren Buffett emphasizes two fundamental rules for investing: never lose money and always remember the first rule [2]. Summary by Categories Investment Philosophy - The core investment philosophy of Warren Buffett revolves around the importance of avoiding losses, as financial setbacks can have a lasting impact on one's financial future [2].

Core Insights - Carlisle Companies Incorporated (CSL) reported fourth-quarter 2024 adjusted earnings of $4.47 per share, slightly missing the Zacks Consensus Estimate of $4.48, but showing a 7% year-over-year increase [1] - Total revenues for the fourth quarter were $1.12 billion, which also fell short of the consensus estimate of $1.15 billion, reflecting a 0.4% decrease year over year [1] Financial Performance - For the full year 2024, CSL reported net revenues of $5 billion, marking a 9.1% increase year over year, with adjusted earnings of $20.20 per share, up 30.2% year over year [2] - The Carlisle Construction Materials segment saw revenues increase by 2.2% year over year to $856.3 million, with organic revenues rising 1.8% due to strong re-roofing activity [3] - Conversely, revenues from the Carlisle Weatherproofing Technologies segment decreased by 7% year over year to $289 million, attributed to soft residential end markets and lower pricing in select product categories [4] Margin Analysis - The cost of sales increased by 1.4% year over year to $717.4 million, while selling and administrative expenses rose by 11% to $174.9 million [5] - Operating income was reported at $224.0 million, down 11.7% year over year, leading to a decrease in operating margin by 260 basis points to 19.9% [5] Balance Sheet and Cash Flow - At the end of the fourth quarter, CSL had cash and cash equivalents of $753.5 million, an increase from $576.7 million at the end of 2023, while long-term debt decreased to $1.89 billion from $2.29 billion [6] - The company generated net cash of $1.03 billion from operating activities in 2024, slightly up from $1.02 billion in the previous year [6] Shareholder Returns - CSL rewarded shareholders with a dividend payment of $172.4 million, reflecting a 7.6% year-over-year increase, and repurchased shares worth $1.59 billion, up 76.2% year over year [7] Future Outlook - Management anticipates mid-single-digit revenue growth in 2025, with expected earnings growth of over 10% year over year and an adjusted EBITDA margin expansion of approximately 50 basis points [8]

Core Insights - Carlisle (CSL) reported revenue of $1.12 billion for the quarter ended December 2024, a decrease of 0.4% year-over-year, with EPS at $4.47 compared to $4.17 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $1.15 billion, resulting in a surprise of -2.61%, while the EPS also missed the consensus estimate of $4.48 by -0.22% [1] Financial Performance Metrics - Carlisle Construction Materials (CCM) generated revenues of $833.60 million, below the four-analyst average estimate of $850.75 million, reflecting a year-over-year increase of 2.2% [4] - Carlisle Weatherproofing Technologies (CWT) reported revenues of $289.30 million, missing the four-analyst average estimate of $302.30 million, with a year-over-year decline of 7.2% [4] - Adjusted EBIT for CCM was $222.80 million, lower than the estimated $233.48 million, while CWT's adjusted EBIT was $30.20 million, also below the average estimate of $38.23 million [4] - The corporate and unallocated adjusted EBIT was reported at -$17.30 million, outperforming the average estimate of -$30.79 million [4] Stock Performance - Over the past month, shares of Carlisle have returned +2.7%, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]