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Carlisle(CSL) - 2025 Q1 - Quarterly Report
CSLCarlisle(CSL)2025-04-24 17:57
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Financial Performance - Carlisle reported revenue of 1.1billionforthefirstquarterof2025,essentiallyflatyear−over−year,withdilutedEPSof1.1 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 183.6million,withanoperatingmarginof16.8183.6 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 143.3million,downfrom143.3 million, down from 192.3 million in Q1 2024, with income from continuing operations at 140.1millioncomparedto140.1 million compared to 170.9 million[82] - Adjusted EBITDA for Q1 2025 was 238.4million,adecreasefrom238.4 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 183.4million,downfrom183.4 million, down from 225.5 million in Q1 2024, with adjusted EBIT at 190.6millioncomparedto190.6 million compared to 226.6 million[82] Revenue Segments - Revenues for Carlisle Construction Materials segment increased by 1.9% to 798.5million,primarilyduetohighersalesinthenon−residentialconstructionend−market[72]−TheCarlisleWeatherproofingTechnologiessegmentsawarevenuedecreaseof5.0798.5 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 50millioninrevenueduringthefirstquarter,withexpectationsthattheseacquisitionswillexceedoriginalsynergyprojections[60]CashFlowandInvestments−OperatingcashflowforQ12025was50 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 161.7millioncomparedtoQ12024,primarilyduetolowerincomefromcontinuingoperationsandhigherworkingcapitaluses[78]−Cashusedininvestingactivitieswas161.7 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 (52.9million)andcapitalexpenditures(52.9 million) and capital expenditures (29.0 million)[79] - Cash used in financing activities totaled 456.4millioninQ12025,primarilyforsharerepurchases(456.4 million in Q1 2025, primarily for share repurchases (400.0 million) and cash dividends (45.2million)[80]StrategicFocus−Carlisleraisedits2025sharerepurchasetargetfrom45.2 million)[80] Strategic Focus - Carlisle raised its 2025 share repurchase target from 800 million to 1billion,havingrepurchased1.2millionsharesfor1 billion, having repurchased 1.2 million shares for 400 million in the first quarter[61] - Research and development expenses increased by 16.3% to 10.7million,reflectingacommitmenttoinnovationandnewproductdevelopment[67]−Thecompanyplanstocontinuefocusingonstrategicacquisitionsandproductdevelopmenttoenhancecompetitivepositioninginthemarket[84]MarketConditions−Thecompanyexpectsalow−single−digitincreaseincommercialroofingvolumesdrivenbyre−roofingdemand,whileresidentialvolumesareanticipatedtodecreaselow−single−digitsduetobuyeruncertaintyandaffordabilitychallenges[59]−Therewerenomaterialchangesinthecompany′smarketriskforthethreemonthsendedMarch31,2025[85]−Thecompanyanticipatespotentialimpactsonfutureperformanceduetovariousexternalfactors,includingcompetition,economicconditions,andgeopoliticalevents[84]WorkingCapital−Thecompanyreportedasignificantincreaseinworkingcapitaluses,withaccountsreceivableupby10.7 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 28.1millioncomparedtothepreviousyear[78]−Theprovisionforincometaxesdecreasedby20.528.1 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]