Carlisle(CSL)2025-02-14 20:19Financial 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].