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Carlisle
🇺🇸 NYSE:CSL
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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.

Total Revenue
$1.53B
Previous year: $1.85B
-17.4%
EPS
$5.18
Previous year: $6.15
-15.8%
Organic Revenue Growth
-13.9%
Gross Profit
$530M
Previous year: $632M
-16.1%
Cash and Equivalents
$349M
Previous year: $353M
-1.1%
Free Cash Flow
$191M
Previous year: $129M
+48.2%
Total Assets
$7.18B
Previous year: $7.58B
-5.3%

Carlisle

Carlisle

Carlisle 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.
  • 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

Company Overview

Full financial data and analysis

View Carlisle