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Reasons Why You Should Avoid Betting on Carlisle Stock Right Now
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Key Takeaways
Carlisle's CWT segment saw a 10.7% organic revenue decline amid a housing and remodeling slowdown.
Rising raw material and labor costs pushed the cost of sales up 2.5% and administrative expenses up 9.8%.
Long-term debt reached $1.89 billion in Q2 2025, while cash reserves remained limited at $68.4 million.
Carlisle Companies Incorporated (CSL - Free Report) has failed to impress investors with its recent operational performance due to weakness across its businesses and high operational expenses.
Based in Scottsdale, AZ, Carlisle is a diversified company with a global portfolio of innovative brands and businesses with highly engineered and margin products. The company is engaged in the design, manufacture and sale of a wide range of roofing and waterproofing products, engineered products and finishing equipment.
Let’s discuss the factors that continue taking a toll on the firm.
Factors Affecting Carlisle
Business Weakness: Carlisle is witnessing weakness in its Weatherproofing Technologies (CWT) segment. The slowdown in the new housing, repair and remodel activities, due to high interest rates, unfavorable weather conditions and affordability challenges, affected the segment’s performance. In the first six months of 2025, organic revenues from the CWT segment declined 10.7% on a year-over-year basis.
However, underlying drivers, such as growing popularity for its building envelope solutions, signs of recovery in the residential construction market and synergies around new products in waterproofing, are likely to be favorable for the CWT segment in the long run.
Escalating Costs & Expenses: The company has been dealing with the increasing raw material and labor costs. Not only is this pushing up its direct expenses, but it is also raising selling, administrative and R&D expenses. In the first six months of 2025, Carlisle’s cost of sales increased 2.5% year over year, while its selling and administrative expenses increased 9.8%. Also, in 2024, its selling and administrative expenses and cost of sales increased 15.6% and 5.5%, respectively, year over year.
CSL Stock’s Price Performance
Image Source: Zacks Investment Research
Over the past year, the Zacks Rank #5 (Strong Sell) company has lost 29.9% compared with the industry’s 5.7% decline.
High Debt Level: CSL's high debt levels remain a major concern. The company’s long-term debt in the last five years (2020-2024) witnessed a CAGR of 7.1%. 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.
Downward Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for Carlisle’s 2025 earnings has trended down from $20.80 per share to $20.07 on three downward estimate revisions against none upward. The consensus estimate for 2026 earnings decreased from $24.67 per share to $23.67 on three downward estimate revisions against none upward.
Key Picks
Some better-ranked stocks from the same space are discussed below.
In the past 60 days, the Zacks Consensus Estimate for Star Equity Holdings’ 2025 earnings has increased 154.5%.
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 1.5%.
The Zacks Consensus Estimate for ITT’s 2025 earnings has increased 0.3% in the past 60 days.
Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 4.5%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 0.3%.
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Reasons Why You Should Avoid Betting on Carlisle Stock Right Now
Key Takeaways
Carlisle Companies Incorporated (CSL - Free Report) has failed to impress investors with its recent operational performance due to weakness across its businesses and high operational expenses.
Based in Scottsdale, AZ, Carlisle is a diversified company with a global portfolio of innovative brands and businesses with highly engineered and margin products. The company is engaged in the design, manufacture and sale of a wide range of roofing and waterproofing products, engineered products and finishing equipment.
Let’s discuss the factors that continue taking a toll on the firm.
Factors Affecting Carlisle
Business Weakness: Carlisle is witnessing weakness in its Weatherproofing Technologies (CWT) segment. The slowdown in the new housing, repair and remodel activities, due to high interest rates, unfavorable weather conditions and affordability challenges, affected the segment’s performance. In the first six months of 2025, organic revenues from the CWT segment declined 10.7% on a year-over-year basis.
However, underlying drivers, such as growing popularity for its building envelope solutions, signs of recovery in the residential construction market and synergies around new products in waterproofing, are likely to be favorable for the CWT segment in the long run.
Escalating Costs & Expenses: The company has been dealing with the increasing raw material and labor costs. Not only is this pushing up its direct expenses, but it is also raising selling, administrative and R&D expenses. In the first six months of 2025, Carlisle’s cost of sales increased 2.5% year over year, while its selling and administrative expenses increased 9.8%. Also, in 2024, its selling and administrative expenses and cost of sales increased 15.6% and 5.5%, respectively, year over year.
CSL Stock’s Price Performance
Image Source: Zacks Investment Research
Over the past year, the Zacks Rank #5 (Strong Sell) company has lost 29.9% compared with the industry’s 5.7% decline.
High Debt Level: CSL's high debt levels remain a major concern. The company’s long-term debt in the last five years (2020-2024) witnessed a CAGR of 7.1%. 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.
Downward Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for Carlisle’s 2025 earnings has trended down from $20.80 per share to $20.07 on three downward estimate revisions against none upward. The consensus estimate for 2026 earnings decreased from $24.67 per share to $23.67 on three downward estimate revisions against none upward.
Key Picks
Some better-ranked stocks from the same space are discussed below.
Star Equity Holdings, Inc. (STRR - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, the Zacks Consensus Estimate for Star Equity Holdings’ 2025 earnings has increased 154.5%.
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 1.5%.
The Zacks Consensus Estimate for ITT’s 2025 earnings has increased 0.3% in the past 60 days.
Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 4.5%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 0.3%.