Carlisle(US:CSL)2026-02-13 19:18Financial Performance - Carlisle generated revenues of $5,019.9 million in 2025, a slight increase of 0.3% from $5,003.6 million in 2024[88]. - Operating income decreased to $1,002.5 million in 2025, down 12.3% from $1,143.1 million in 2024, resulting in an operating margin of 20.0%[88]. - The company reported an adjusted EBITDA of $1,225.4 million in 2025, with an adjusted EBITDA margin of 24.4%, down from 26.6% in 2024[88]. - Net income for 2025 was $740.7 million, a decrease of 43.5% from $1,311.8 million in 2024[131]. - Income from continuing operations for 2025 was $742.5 million, down from $865.1 million in 2024, reflecting a decline of 14.2%[131]. - Adjusted EBITDA for 2025 was $1,225.4 million, compared to $1,332.7 million in 2024, representing a decrease of 8.0%[131]. - Total revenues for 2025 increased slightly to $5,019.9 million from $5,003.6 million in 2024, showing a growth of 0.3%[131]. - Adjusted EBITDA margin decreased to 24.4% in 2025 from 26.6% in 2024[131]. - Operating income for the CCM segment in 2025 was $997.2 million, down from $1,084.3 million in 2024, a decline of 8.0%[131]. - Adjusted EBIT for the CWT segment in 2025 was $121.0 million, compared to $180.0 million in 2024, a decrease of 32.8%[131]. Cash Flow and Investments - Carlisle's operating cash flow exceeded $1 billion in 2025, providing balance sheet flexibility for capital deployment[83]. - Net cash provided by operating activities in 2025 was $1.1 billion, an increase of $71.5 million compared to 2024[106]. - Net cash used in investing activities in 2025 was $240.4 million, primarily due to acquisitions of ThermaFoam for $53.7 million and Bonded Logic for $61.4 million[108]. - Net cash used in financing activities in 2025 was $503.7 million, mainly from share repurchases of $1.3 billion and cash dividend payments of $181.1 million[110]. - The company experienced a $136.9 million decrease in working capital uses in 2025 compared to 2024, attributed to steady inventory levels[107]. - The net cash provided by operating activities was primarily driven by lower working capital uses of $115.7 million[106]. Expenses and Taxation - Selling and administrative expenses rose by 3.1% to $745.4 million in 2025, attributed to recent acquisitions and increased wage expenses[91]. - The effective tax rate for 2025 was 21.7%, a slight decrease from 22.1% in 2024, reflecting lower pre-tax income[95]. - Research and development expenses increased by 33.1% to $47.1 million in 2025, reflecting a focus on new product development[92]. Market Outlook and Risks - Carlisle expects challenging market conditions to persist into the first half of 2026 but remains committed to operational excellence and shareholder value[87]. - The company is exposed to foreign currency exchange risks primarily with the Canadian Dollar, Euro, British Pound, and Chinese Renminbi[135]. - The company had no derivative financial instruments in place to manage commodity price risks as of December 31, 2025[137]. Goodwill and Impairment - The total goodwill allocated to reporting units as of December 31, 2025, was $1.5389 billion, an increase from $1.4780 billion in 2024[117]. - The impairment test for goodwill indicated that it is not likely that the fair value of reporting units is less than their carrying values, thus no quantitative analysis was performed[118]. - The company utilized a qualitative approach for the annual impairment test of indefinite-lived intangible assets, with the Henry trade name tested using a quantitative approach[123]. - The company recorded a valuation allowance of $52.0 million on deferred tax assets related to certain U.S. federal, state, and foreign net operating loss carryforwards[128].