In This Article:
-
Revenue: $1.1 billion, flat year-over-year.
-
Diluted EPS: $3.13.
-
Adjusted EPS: $3.61, a 3% decrease from the prior year.
-
Adjusted EBITDA Margin: 21.8%, down 240 basis points from the prior year.
-
CCM Segment Revenue: $799 million, up 2% year-over-year.
-
CCM Adjusted EBITDA Margin: 27.1%, a decrease of 180 basis points year-over-year.
-
CWT Segment Revenue: $297 million, down 5% year-over-year.
-
CWT Adjusted EBITDA Margin: 15.6%, a decrease of 510 basis points year-over-year.
-
Share Repurchases: 1.2 million shares for $400 million in Q1 2025.
-
Net Debt-to-EBITDA Ratio: 1.2 times.
-
Free Cash Flow Projection for 2025: Approximately $1 billion.
-
ROIC: Expected to remain above 25% for the full year 2025.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Carlisle Companies Inc (NYSE:CSL) reported solid first-quarter results despite significant challenges, including unfavorable weather and economic uncertainty.
-
The company maintained a strong focus on reroofing activity, which represents 70% of its commercial business, helping to offset negative macroeconomic conditions.
-
Carlisle Companies Inc (NYSE:CSL) successfully integrated its 2024 MTL acquisition, exceeding synergy expectations and contributing positively to the company's performance.
-
The company reaffirmed its 2025 outlook, expecting mid-single-digit revenue growth and adjusted EBITDA margin expansion of approximately 50 basis points.
-
Carlisle Companies Inc (NYSE:CSL) continues to invest in innovation, with new product introductions and factory automation expected to provide incremental adjusted EBITDA gains.
Negative Points
-
The company faced continued weakness in residential construction markets due to buyer uncertainty, affordability challenges, and higher interest rates.
-
First-quarter revenue was essentially flat year-over-year, with adjusted EBITDA margin down 240 basis points compared to the prior year.
-
Pricing across both CCM and CWT segments experienced modest declines, with low single-digit price declines during the quarter.
-
The indirect impact of tariffs remains difficult to quantify, with potential unforeseen consequences for contractors, distributors, and suppliers.
-
Cash generation in the first quarter was lighter than usual due to higher year-end liabilities and unfavorable weather impacting shipping patterns.
Q & A Highlights
Q: Can you provide some color on the volume cadence within the CCM segment through the quarter and into April, and what are you hearing from contractors about the upcoming season? A: (Dale Koch, CEO) The market survey indicates optimism among contractors despite negative press. Reroofing is strong, although new construction is less optimistic. (Kevin Zdimal, CFO) January and February were slow due to weather, but March and April have shown favorable order patterns.