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Sep 30, 2023
Carlisle Q3 2023 Earnings Report
Carlisle Companies' third quarter results were announced, marking the completion of the company's restructuring into a pure-play building products company. The company demonstrated resilience and delivered strong margin results in a challenging environment.
Key Takeaways
Carlisle Companies reported a decrease in revenue by 15.8% year-over-year, amounting to $1.3 billion for the third quarter of 2023. Despite the revenue decline, the company improved its adjusted EBITDA margin by 100 bps. The adjusted EPS was $4.68, a 7.1% decrease year-over-year.
GAAP diluted EPS was $4.32, and adjusted EPS was $4.68, a decrease of 7.1% year-over-year.
Third quarter revenues were $1.3 billion, a decline of 15.8% year-over-year.
The company's operating margin was 24%, and adjusted EBITDA margin improved by 100 bps.
1.2 million shares were repurchased for $330 million during the quarter.
Carlisle
Carlisle
Carlisle Revenue by Segment
Revenue by Segment
CCM Revenue
CapyFin.comCWT Revenue
CapyFin.com Forward Guidance
Looking ahead to the fourth quarter, Carlisle acknowledges headwinds in residential and non-residential construction markets but remains confident in its long-term vision and strategies.
Positive Outlook
- CCM and CWT are poised to capitalize on growing demand for green building solutions and energy-efficient systems.
- There is an increasing need for innovative products that simplify installation processes and reduce labor.
- CCM derives approximately 70% of its revenue from non-discretionary re-roofing demand, providing a reliable and sustainable growth path.
- The vast majority of destocking is now behind us.
- Vision 2030 will be released in December and will provide comprehensive details about our path to further value creation for all our stakeholders.
Challenges Ahead
- Headwinds are present in the residential and non-residential construction markets.
- The Federal Reserve’s tightening actions and a desire to reduce inflation pose a challenge.
- CCM expects Q4 2023 revenues to decrease 3% to 5% year-over-year.
- CWT expects Q4 2023 revenues to decrease approximately 10% year-over-year.
- The company acknowledges the macro environment is difficult.
Revenue & Expenses
Visualization of income flow from segment revenue to net income