Adjusted EPS and Margin Expansion
Adjusted EPS of $3.63, up 1% year over year; adjusted EBITDA of $235 million with adjusted EBITDA margin of 22.3%, a 50 basis point improvement versus prior year.
Carlisle Companies
· CSL
April 23rd, 2026
Summary
- Earnings Call Date:
- 2026-04-23
- Change Since:
- +4.42%
- Next Earnings Date:
- 2026-07-29
Earnings Call Sentiment
NeutralThe call conveyed a balanced message: management delivered positive execution on profitability (adjusted EPS growth, EBITDA margin expansion, COS-driven productivity), maintained a strong balance sheet, and implemented pricing and product initiatives to offset raw material inflation. However, meaningful near-term headwinds remain—Q1 revenue fell 4%, new construction demand is soft, input costs are meaningfully higher (MDI/TPO double-digit increases), CWT experienced margin pressure, and Q1 cash flow was affected by a large tax payment. Management reaffirmed full-year guidance and outlined a path for margin recovery, but uncertainty from weather, interest rates, and geopolitical risks keeps near-term visibility limited.
Company Guidance
Management reaffirmed full-year 2026 guidance calling for consolidated revenue growth in the low single digits (now aiming at the higher end, roughly 3%, driven by pricing), about 50 basis points of adjusted EBITDA margin expansion and double‑digit adjusted EPS growth; segment guidance calls for CCM revenue up low single digits (CCM margin expansion ~50 bps with Q2 EBITDA margin approaching ~31%, slightly above 31% in Q3 and ~28% in Q4) and CWT revenue up low single digits with at least 100 basis points of year‑over‑year margin improvement (CWT roughly ~19% in Q2 and ~22% in Q3), assuming price‑cost neutrality as recent ~5–8% price increases offset an implied high‑single‑digit raw material inflation expectation; balance‑sheet and cash metrics supporting the plan include $771M cash, $1.0B available on the revolver, net debt/EBITDA of 1.7x (target 1–2x), Q1 capex $28M, Q1 free cash flow used $73M (including a $125M tax payment), Q1 returns of $296M (share repurchases $250M, dividends $46M) while maintaining a $1.0B 2026 repurchase target, and longer‑term Vision 2030 targets of $40 adjusted EPS and 25%+ ROIC.
CCM Margin Improvement
CCM adjusted EBITDA margin expanded 30 basis points to 27.4% in Q1 despite a 5% revenue decline; management expects CCM Q2 margin near 31% and sequential improvement through Q3.
Strong Balance Sheet and Liquidity
Cash and cash equivalents of $771 million and $1.0 billion available on the revolving credit facility; net debt/EBITDA of 1.7x, inside the 1.0–2.0x target range, providing financial flexibility.
Capital Return and Shareholder Actions
Returned $296 million to shareholders in Q1 (share repurchases of $250 million and $46 million of dividends); on pace toward a $1 billion annual repurchase target for 2026.
Price Actions to Offset Cost Inflation
Two rounds of price increases (mid-March and mid-April) implemented to offset petrochemical-linked raw material and freight cost pressure; company expects price realization to drive revenue toward the higher end of low single-digit growth for 2026.
Product and Innovation Momentum
Plans to release approximately 10–12 new products in 2026, highlighted by ThermaThin R-7 insulation (awarded at IRE) with deliveries starting in July; additional product introductions and service enhancements aimed at improving contractor productivity and pricing power.
Reaffirmed 2026 Guidance and Vision 2030 Targets
Reaffirmed full-year 2026 outlook: low single-digit consolidated revenue growth (management indicating ~3% at the higher end), approximately 50 basis points of adjusted EBITDA margin expansion, and confidence in Vision 2030 long-term targets (targeting $40 adjusted EPS and 25%+ ROIC).
Improving Order Momentum and Reroofing Demand
Orders improved through the quarter, with the company exiting March with stronger momentum and April activity in line with seasonal norms; reroofing activity grew low single digits and remains a stable recurring revenue base.
Operator
Good afternoon. My name is Colby, and I will be your conference operator today. At this time, I would like to welcome everyone to Carlisle Companies Incorporated’s First Quarter 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, we will conduct a question-and-answer session. I would like to turn the call over to Mehul S. Patel, Carlisle Companies Incorporated’s Vice President of Investor Relations. Mehul, please go ahead.
Mehul S. Patel
Thank you, and good afternoon, everyone. Welcome to Carlisle Companies Incorporated’s First Quarter 2026 Earnings Call. We released our first quarter financial results today, and you can find both our press release and the presentation for today’s call in the Investor Relations section of our website. On the call with me today are D. Christian Koch, our Board Chair, President, and CEO, along with Kevin P. Zdimal, our CFO. Today’s call will begin with Chris providing key highlights for the first quarter. Kevin will follow Chris and provide an overview of our Q1 financial performance and our reaffirmed outlook for the full year of 2026.
Following our prepared remarks, we will open up the line for questions. Before we begin, please refer to slide two of our presentation. We note that comments today will include forward-looking statements based on our current expectations. Actual results could differ materially from these statements due to a number of risks and uncertainties discussed in our press release and SEC filings. As Carlisle Companies Incorporated provides non-GAAP financial ...
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