Carlisle(CSL) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter revenue increased by 0.4% year-over-year to $1.1 billion, with full-year revenue at $5.02 billion, a 0.3% increase from 2024[4][9] - Fourth quarter diluted EPS was $3.19, down 10% from $3.56 in the previous year, while adjusted EPS decreased by 13% to $3.90[8][9] - Net income for the year ended December 31, 2025, was $740.7 million, down from $1,311.8 million in 2024, a decrease of 43.5%[17] - Basic earnings per share for 2025 was $17.27, compared to $28.17 in 2024, a decline of 38.7%[17] - Net income for Q4 2025 was $127.4 million, a decrease of 21.7% from $162.8 million in Q4 2024[30] - Income from continuing operations for the year ended December 31, 2025, was $742.5 million, down 14.2% from $865.1 million in 2024[30] - Adjusted net income for Q4 2025 was $163.5 million, with an adjusted EPS of $3.90, compared to $204.0 million and $4.47 in Q4 2024[34] - Adjusted net income for the year ended December 31, 2025, was $839.4 million, resulting in an adjusted EPS of $19.40, compared to $952.9 million and $20.20 for the year ended December 31, 2024[36] Cash Flow and Investments - Operating cash flow for 2025 was over $1 billion, with free cash flow from continuing operations at $972 million[3][11] - The company reported a net cash used in investing activities of $240.4 million in 2025, compared to a net cash provided of $1,229.6 million in 2024[19] - Free cash flow from continuing operations for the year ended December 31, 2025, was $972.4 million, an increase from $938.3 million in 2024[27] - Cash and cash equivalents at the end of 2025 were $1,112.1 million, up from $753.5 million at the end of 2024[21] Shareholder Returns - The company repurchased $300 million of shares in Q4, totaling $1.3 billion in share repurchases for 2025[8][11] - The company plans to repurchase up to $1 billion of shares in 2026, continuing its commitment to shareholder value[7][11] Revenue Breakdown - Carlisle Construction Materials (CCM) revenue decreased by 0.8% to $827 million, while Carlisle Weatherproofing Technologies (CWT) revenue increased by 4% to $301 million[11] - Revenues for Q4 2025 reached $1,127.7 million, a slight increase of 0.4% from $1,122.9 million in Q4 2024[17] - Total revenues for the year ended December 31, 2025, were $5,019.9 million, slightly up from $5,003.6 million in 2024[30] Operating Performance - Operating income decreased to $190.0 million in Q4 2025 from $224.0 million in Q4 2024, reflecting a decline of 15.2%[17] - CCM operating income fell by 11% to $198 million, and adjusted EBITDA decreased by 10% to $222 million, reflecting a margin of 26.8%[11] - CWT operating income decreased by 46% to $14 million, with adjusted EBITDA down 10% to $48 million, resulting in a margin of 15.9%[11] - Operating income for the year ended December 31, 2025, was $997.2 million, compared to $1,084.3 million in 2024[32] Research and Development - Research and development expenses increased to $12.9 million in Q4 2025, up from $8.8 million in Q4 2024, representing a growth of 46.6%[17] Debt and Equity - Long-term debt increased to $2,886.4 million in 2025 from $1,890.6 million in 2024, an increase of 52.7%[21] - Total stockholders' equity decreased to $1,795.4 million in 2025 from $2,463.3 million in 2024, a decline of 27.1%[21] Adjusted Metrics - Adjusted EBITDA for Q4 2025 was $249.0 million, representing a margin of 22.1%, compared to $281.7 million and a margin of 25.1% in Q4 2024[30] - The adjusted EBITDA margin for the year ended December 31, 2025, was 24.4%, down from 26.6% in 2024[30] - Adjusted EBIT for Q4 2025 was $199.0 million, down from $235.7 million in Q4 2024[32] Non-Comparable Items - The company incurred total non-comparable items of $10.2 million in Q4 2025, down from $32.4 million in Q4 2024[30] - Total adjustments to net income amounted to $96.9 million in 2025, contributing an additional $2.24 to the adjusted EPS[36] - Acquisition-related amortization for 2025 was $114.2 million, impacting the adjusted net income by $2.03 per share[36] - The company reported a pre-tax impact of $11.5 million from acquisitions in 2025, with an after-tax impact of $8.8 million[36] - Legal settlements contributed $3.6 million to pre-tax income in 2025, resulting in an after-tax impact of $2.8 million[36] - Restructuring costs for 2025 were $9.8 million, leading to an after-tax impact of $7.6 million[36] - The company experienced a decrease in income from discontinued operations, reporting a loss of $1.8 million in 2025 compared to a gain of $446.7 million in 2024[36] - The total impact of discrete tax items was a reduction of $12.3 million in 2025, affecting the diluted EPS by $0.28[36] - The blended tax rate used for calculating the tax effect of noted items reflects the company's operations across various jurisdictions[36] Future Outlook - Looking ahead to 2026, the company expects low-single-digit revenue growth and approximately 50 basis points of adjusted EBITDA margin expansion[7][11] - Carlisle's strategic investments in innovation and operational excellence are expected to support long-term growth despite current market challenges[2][6]