Carlisle(US:CSL)2025-10-30 19:53Financial Performance - Revenue for the third quarter of 2025 was $1.3469 billion, a 1% increase year-over-year from $1.3336 billion in 2024[67][70] - Diluted earnings per share (EPS) from continuing operations decreased to $4.97 in Q3 2025, down from $5.30 in Q3 2024[70] - The operating income for Q3 2025 was $293.9 million, compared to $316.4 million in Q3 2024, reflecting a decrease in operating margin from 23.7% to 21.8%[70] - The gross profit for Q3 2025 was $485.2 million, down 5.7% from $514.4 million in Q3 2024, with a gross margin of 36.0%[73] - Net income for Q3 2025 was $214.2 million, a decrease of 12.3% compared to $244.3 million in Q3 2024[97] - Adjusted EBITDA for the third quarter of 2025 was $302.6 million, reflecting a decrease of 7.6% from $327.6 million in the same period last year[83] - Adjusted EBITDA for the nine months ended September 30, 2025, was $976.4 million, down 7.1% from $1,051.0 million in the same period of 2024[97] - Operating income for the nine months ended September 30, 2025, was $798.9 million, compared to $861.0 million in the same period of 2024, reflecting a decrease of 7.2%[98] - Adjusted EBIT for the nine months ended September 30, 2025, was $799.0 million, down from $860.3 million in 2024, indicating a decline of 7.1%[98] Expenses - Research and development expenses increased by 53.1% to $12.4 million in Q3 2025, driven by higher new product development costs[77] - Selling and administrative expenses decreased by 7.2% to $177.9 million in Q3 2025, primarily due to lower wage and benefit expenses[74][75] - The company experienced a decrease in operating margin and adjusted EBITDA margin in Q3 2025 due to materials inflation and higher operating costs[84][87] Cash Flow - Cash provided by operating activities increased to $715.8 million in the first nine months of 2025, up $56.1 million from $659.7 million in 2024[90] - Cash used in investing activities was $199.4 million in the first nine months of 2025, primarily for acquisitions and capital expenditures[94] - Cash used in financing activities totaled $165.4 million in the first nine months of 2025, mainly due to share repurchases of $1,000.0 million and cash dividend payments of $135.3 million[95] Market and Strategic Focus - The company is focused on innovation, with strong market adoption of new products such as RapidLock™, SeamShield™, and UltraTouch, which align with energy efficiency trends[69] - The company anticipates continued challenges from competition and raw material costs, which may impact future performance[99] - The company is focused on strategic acquisitions and dispositions to enhance its market position and operational efficiency[99] - CCM's revenue growth in the first nine months of 2025 was primarily driven by the acquisition of MTL, while CWT's revenue was impacted by lower sales volumes due to market softness[83][86] Shareholder Returns - The company repurchased 0.8 million shares for $300 million during the quarter and raised its dividend by 10%, marking the 49th consecutive annual increase[69] Tax and Interest - The effective tax rate for Q3 2025 was 23.1%, slightly down from 23.3% in Q3 2024, with a provision for income taxes of $64.3 million[81] - The company reported a decrease in interest expense for the first nine months of 2025 to $50.8 million, down from $56.0 million in the same period of 2024[78][79] Revenue Overview - For the first nine months of 2025, revenues totaled $2,894.9 million, an increase of 0.8% compared to $2,870.7 million in 2024[83] - Revenues for the third quarter of 2025 were $1,000.8 million, a slight increase of 0.3% compared to $998.2 million in 2024[83] - Total revenues for Q3 2025 increased to $1,346.9 million, a slight increase of 1.3% from $1,333.6 million in Q3 2024[97] Risk Assessment - There have been no material changes in the company's market risk for the nine months ended September 30, 2025[100]