Carlisle Q3 2023 Earnings Report
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
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