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Jun 30, 2023
Carlisle Q2 2023 Earnings Report
Carlisle reported a recovery in the second quarter, demonstrating improved earnings and value creation despite channel destocking activities.
Key Takeaways
Carlisle Companies reported a decrease in revenue and earnings per share (EPS) for the second quarter of 2023 compared to the same period in 2022. Revenue decreased by 14.0% to $1.5 billion. GAAP diluted EPS from continuing operations was $4.71, and adjusted EPS was $5.18, representing a 13.7% decrease year-over-year. The company highlighted strong underlying demand for building products, particularly in non-residential construction, and progress in operational efficiencies and integration efforts.
Second quarter revenues declined 14.0% year-over-year to $1.5 billion.
Reported GAAP diluted EPS was $4.71, and adjusted EPS was $5.18, down 13.7% year-over-year.
CCM operating income margin was 29.6%, with adjusted EBITDA margin returning to 30%+
CWT operating income margin grew to 16.6%, with adjusted EBITDA margin growing to 22.5% due to integration and efficiency gains.
Carlisle
Carlisle
Carlisle Revenue by Segment
Revenue by Segment
CCM Revenue
CapyFin.comCWT Revenue
CapyFin.com Forward Guidance
The company expects full year 2023 revenues to decrease low-teens year-over-year for CCM and CWT. CIT expects full year 2023 revenues to increase mid-single-digits year-over-year.
Positive Outlook
- Strong underlying demand for building products, particularly in non-residential construction markets.
- New construction is buoyed by growth in manufacturing construction projects and government-funded activity.
- CCM generates two-thirds of its revenue from non-discretionary re-roofing demand that provides sustainable growth runway.
- Contractor backlogs remain strong, and new products that remove labor from the job site are strongly desired.
- CIT is poised to leverage increasing aircraft production rates of both Boeing and Airbus.
Challenges Ahead
- Rising interest rates may hinder construction activity.
- Concerns of an economic slowdown may hinder construction activity.
- Weather disruptions may hinder construction activity.
- Labor constraints may hinder construction activity.
- Medical customers work to right-size inventory levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income