Carlisle(US:CSL)2025-07-30 20:16Financial Performance - Carlisle Companies reported record adjusted EPS of $6.27 for Q2 2025, with revenues flat at $1.4 billion[2][8] - Revenues for Q2 2025 were $1,449.5 million, a slight decrease of 0.1% compared to $1,450.6 million in Q2 2024[24] - Operating income for Q2 2025 was $335.0 million, down 11.3% from $377.5 million in Q2 2024[24] - Net income for Q2 2025 was $255.8 million, significantly lower than $712.4 million in Q2 2024, primarily due to income from discontinued operations in the previous year[24] - Basic earnings per share for Q2 2025 were $5.93, compared to $15.03 in Q2 2024, reflecting a decrease of 60.6%[24] - Free cash flow from continuing operations for the first half of 2025 was $227.6 million, down from $287.8 million in the same period of 2024[34] - The company reported a decrease in organic revenue of 3.5% for the first half of 2025 compared to the same period in 2024[31] - Adjusted net income for Q2 2025 was $273.2 million, with an adjusted EPS of $6.27, compared to $299.5 million and $6.24 in Q2 2024[41] - Adjusted net income for the six months ended June 30, 2025, was $434.7 million, with an adjusted EPS of $9.85, compared to $480.0 million and $9.94 for the same period in 2024[43] Revenue and Growth - CCM revenue increased by 0.6% to $1,096 million, while CWT revenue decreased by 2% to $354 million due to lower volumes in residential and commercial end-markets[15] - The company anticipates low-single-digit revenue growth for FY 2025, with adjusted EBITDA margins expected to decline by 150 basis points[6][18] - Total revenues for Q2 2025 were $1,449.5 million, slightly lower than $1,450.6 million in Q2 2024[39] - The company’s total revenues for the first half of 2025 were $2,545.3 million, slightly lower than $2,547.1 million in the first half of 2024[37] Margins and Expenses - The operating margin was 23.1% and adjusted EBITDA margin was 26.9%, reflecting a decline of 150 basis points in adjusted EBITDA margins for FY 2025[8][18] - Adjusted EBITDA for Q2 2025 was $389.3 million, down from $417.6 million in Q2 2024, resulting in an adjusted EBITDA margin of 26.9%[39] - The company’s interest expense for Q2 2025 was $14.7 million, a decrease from $18.8 million in Q2 2024[37] - The adjusted EBIT for Q2 2025 was $340.4 million, compared to $374.5 million in Q2 2024, reflecting a decline of 9.1%[39] Shareholder Returns and Capital Management - Carlisle repurchased 0.8 million shares for $300 million and returned $343 million to shareholders through dividends and share repurchases[8][9] - Cash provided by operating activities for the six months ended June 30, 2025, was $289 million, with free cash flow from continuing operations at $228 million[18] - Cash and cash equivalents at the end of Q2 2025 were $68.4 million, a decrease from $753.5 million at the end of 2024[28] - Long-term debt as of June 30, 2025, was $1,895.8 million, slightly up from $1,890.6 million at the end of 2024[28] - Total stockholders' equity decreased to $2,120.6 million as of June 30, 2025, from $2,463.3 million at the end of 2024[28] Strategic Initiatives and Acquisitions - The acquisition of Bonded Logic enhances Carlisle's position in the $14 billion addressable insulation market and supports the growth of the Henry UltraTouch insulation product[10] - Annual synergies from recent acquisitions are expected to exceed $34 million, enhancing cross-selling opportunities[11] - The company completed major automation capital projects expected to generate $12 million in adjusted EBITDA annually[7] Market Sentiment and Outlook - Insights from the July Carlisle Market Survey indicated a negative shift in contractor and distributor sentiment, with expectations of continued pressures through the remainder of 2025[5] - The overall financial performance indicates a decline in net income and adjusted EPS compared to the previous year, highlighting potential areas for strategic improvement[43]