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Carlisle Gains From Business Strength & Buyouts Amid Headwinds

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Key Takeaways

  • CSL's Construction Materials sales rose 1.2% in H1 2025, backed by re-roof demand.
  • Recent acquisitions, including Bonded Logic, boosted insulation and metals offerings.
  • Weatherproofing sales fell 10.7% in H1 2025 due to residential market weakness.

Carlisle Companies Incorporated (CSL - Free Report) is benefiting from strength in the Construction Materials segment. Higher sales in the non-residential construction market in the United States and Europe, driven by the acquisition of MTL and growing re-roof activity as a result of pent-up demand, have been driving the segment’s performance. In the first six months of 2025, revenues from the segment increased 1.2% year over year. Backed by strong contractor backlogs and growing customer demand, the company expects the segment’s revenues to increase in the low single digits year over year in 2025.

The company remains focused on acquiring businesses to gain access to new customers, regions and product lines. In June 2025, Carlisle acquired Bonded Logic, a U.S. manufacturer of sustainable thermal and acoustical insulation products. The buyout will strengthen the company’s offering of building envelope products and enhance its position in the $14 billion addressable insulation market. 

CSL’s acquisition of Plasti-Fab (in December 2024) expanded its building envelope product portfolio and strengthened its position in the North American polystyrene insulation market. Also, its acquisition of MTL Holdings in May 2024 expanded its customer offerings and boosted its architectural metals business. Buyouts had a positive impact of 2.7% on net sales growth in the second quarter of 2025.

Management remains focused on rewarding its shareholders through dividend payouts. In the first six months of 2025, it rewarded its shareholders with a dividend payment of $88.3 million, an increase of 8.1% year over year. In the same period, it repurchased shares worth $700 million, stable year over year. Also, in August 2025, the company hiked its dividend by 10% to $1.10 per share.

CSL’s Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

In the past six months, the Zacks Rank #3 (Hold) company has gained 15.7% compared with the industry’s 0.6% growth.

Despite the positives, persistent softness in the Weatherproofing Technologies segment, owing to lower volumes from a slowdown in the residential construction market and project delays, is adversely affecting Carlisle’s performance. The slowdown in new housing, repair and remodel activities due to high interest rates and affordability challenges is concerning. In the first six months of the year, organic revenues from the segment fell 10.7% on a year-over-year basis.

Carlisle's high debt levels also remain a concern. Its long-term debt balance at the end of the second quarter of 2025 remained high at $1.89 billion, relatively stable on a sequential basis. Considering its high debt level, its cash and cash equivalents of $68.4 million do not look impressive.

Key Picks

Some better-ranked stocks are discussed below.

RBC Bearings Incorporated (RBC - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

RBC outperformed the consensus estimate thrice in the preceding four quarters and missed once, with an average surprise of 3.8%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ 2025 earnings has increased 1.4%.

Federal Signal Corporation (FSS - Free Report) currently carries a Zacks Rank #2 (Buy). FSS has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 5.7%.  In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2025 earnings has increased 4.2%.

ITT Inc. (ITT - Free Report) currently carries a Zacks Rank of 2. ITT has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 1.5%.  In the past 60 days, the Zacks Consensus Estimate for ITT’s 2025 earnings has increased 1.7%.

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