Carlisle(CSL)2025-04-24 17:57Financial 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]