Carlisle Q1 Earnings Beat, Construction Materials Sales Up Y/Y

Core Viewpoint - Carlisle Companies Incorporated (CSL) reported first-quarter 2025 adjusted earnings of $3.61 per share, exceeding the Zacks Consensus Estimate of $3.53, but reflecting a 3% year-over-year decline [1] - Total revenues for CSL were $1,096 million, slightly below the consensus estimate of $1,101 million, marking a 0.1% decrease year over year [1] Segmental Discussion - Revenues from the Carlisle Construction Materials segment increased by 2% year over year to $799 million, driven by contributions from the MTL acquisition and strong end-market demand, despite a 1% decrease in organic revenues [2] - Revenues from the Carlisle Weatherproofing Technologies segment decreased by 5% year over year to $297 million, primarily due to lower construction activities, with organic revenues slipping 12% [3] Margin Profile - Cost of sales rose by 1.8% year over year to $710.1 million, while selling and administrative expenses increased by 16.3% to $194 million [4] - Operating income fell by 18.4% year over year to $183.6 million, resulting in an operating margin decrease of 370 basis points to 16.8% [4] Balance Sheet and Cash Flow - At the end of Q1 2025, CSL had cash and cash equivalents of $220.2 million, down from $753.5 million at the end of 2024, while long-term debt remained stable at $1.89 billion [5] - Net cash generated from operating activities in the first three months of 2025 was $1.8 million, a significant decrease from $163.5 million in the same period last year [5] Shareholder Returns - CSL rewarded shareholders with a dividend payment of $45.2 million, an increase of 8.9% year over year, and repurchased shares worth $400 million, up 166.5% year over year [6] Outlook - The company reaffirmed its financial guidance for 2025, expecting mid-single-digit revenue growth and earnings growth of over 10% year over year, with an anticipated adjusted EBITDA margin expansion of approximately 50 basis points [7]