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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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