Carlisle Q2 Earnings Miss Estimates, Organic Revenues Decline Y/Y

Core Insights - Carlisle Companies Incorporated (CSL) reported second-quarter 2025 adjusted earnings of $6.27 per share, missing the Zacks Consensus Estimate of $6.67, but showing a year-over-year increase of 0.5% [1] - Total revenues for CSL were $1,449.5 million, slightly below the consensus estimate of $1,497 million, and a minor decline of 0.1% year over year, with organic revenues falling by 3% [1] Segmental Discussion - CSL has divested its Carlisle Interconnect Technologies segment and now reports under two segments: Construction Materials and Weatherproofing Technologies [2] - Revenues from the Construction Materials segment increased by 0.6% year over year to $1,096 million, although organic revenues decreased by 0.6%. The segment's growth was supported by contributions from the MTL acquisition and stable re-roof activity, despite weakness in the new construction market [3] - Revenues from the Weatherproofing Technologies segment decreased by 2% year over year to $354 million, impacted by lower construction activities, with organic revenues slipping by 10%. The decline was partially offset by acquisitions of Plasti-Fab and ThermaFoam [4] Margin Profile - CSL's cost of sales rose by 3% year over year to $908.4 million, while selling and administrative expenses increased by 4% to $196.9 million. Research and development expenses totaled $11.1 million, up 19.3% year over year [5] - The company recorded an operating income of $335 million, down 11.3% year over year, with the operating margin decreasing by 290 basis points to 23.1% from the previous year [5] Balance Sheet and Cash Flow - At the end of Q2 2025, CSL had cash and cash equivalents of $68.4 million, a significant decrease from $753.5 million at the end of 2024. Long-term debt remained stable at $1.9 billion [6] - In the first half of 2025, CSL generated net cash of $288.9 million from operating activities, compared to $346.9 million in the same period last year [6] Shareholder Returns - CSL rewarded shareholders with a dividend payment of $88.3 million, reflecting an increase of 8.1% year over year. The company also repurchased shares worth $700 million, unchanged from the previous year [7] 2025 Outlook - The company anticipates low single-digit revenue growth year-over-year for 2025, with both Construction Materials and Weatherproofing Technologies segments expected to contribute to this growth [8] - Adjusted EBITDA margin is projected to contract by approximately 150 basis points, but CSL expects to achieve record earnings per share in 2025, with a free cash flow margin anticipated to exceed 15% [9]