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Carlisle Q3 Earnings Beat Estimates, Organic Revenues Decline Y/Y

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Key Takeaways

  • Carlisle's Q3 adjusted EPS of $5.61 beat estimates but declined 2.9% year over year.
  • Total revenues rose 1% to $1.35B, driven by acquisitions offsetting weaker organic sales.
  • Cash rose to $1.11B, while 2025 revenues are expected to stay flat with margin contraction.

Carlisle Companies Incorporated (CSL - Free Report) reported third-quarter 2025 adjusted earnings of $5.61 per share, which beat the Zacks Consensus Estimate of $5.47. However, the bottom line decreased 2.9% year over year.

Carlisle’s total revenues of $1.35 billion beat the consensus estimate of $1.33 billion and increased 1% year over year. Organic revenues fell 2.1% year over year. Acquisitions boosted the top line by 2.9% while foreign-currency translation had a positive impact of 0.2%.

CSL's Segmental Discussion

Carlisle has divested its Carlisle Interconnect Technologies segment. The company now reports under the following two segments.

Revenues from the Carlisle Construction Materials segment increased 0.3% year over year to $1.0 billion. Our estimate for segmental revenues was $1.01 billion. Organic revenues were flat. Revenues were driven by solid re-roof activity, partially offset by the weakness in the new construction market. Adjusted EBITDA of $303 million decreased 8% year over year.

Revenues from the Carlisle Weatherproofing Technologies segment increased 3% year over year to $346 million, due to buyouts of Plasti-Fab and ThermaFoam, partially offset by continued softness in residential and commercial end markets. Our estimate for segmental revenues was $354.9 million. Organic revenues slipped 8%. Adjusted EBITDA of $60 million declined 13% year over year.

CSL’s Margin Profile

Carlisle’s cost of sales increased 5.2% year over year to $861.7 million. Selling and administrative expenses decreased 7.2% to $177.9 million. Research and development expenses totaled $12.4 million, up 53.1% year over year.

CSL recorded an operating income of $293.9 million, down 7.1% year over year. The operating margin decreased 190 basis points to 21.8% from the year-ago quarter. Our estimate for the operating margin was pegged at 22.6%.

Carlisle’s Balance Sheet and Cash Flow

At the end of the third quarter, Carlisle had cash and cash equivalents of $1.11 billion compared with $753.5 million at the end of 2024. Long-term debt (including the current portion) was $2.9 billion compared with $1.89 billion reported at the end of 2024.

In the first nine months of 2025, CSL provided net cash of $715.8 million for operating activities compared with $659.7 million in the year-ago period.

In the same period, CSL rewarded its shareholders with a dividend payment of $135.3 million, up 6.2% year over year. The company bought back shares worth $1 billion, down 14.2% year over year.

CSL’s Outlook

For the fourth quarter of 2025, Carlisle expects revenues from the Construction Materials segment to decrease in low single-digits, while the Weatherproofing Technologies segment is projected to increase in low single-digits year over year.

For 2025, the company expects revenues to be flat on a year-over-year basis. Adjusted EBITDA margin is expected to contract approximately 250 bps. The free cash flow margin is expected to be more than 15%.

CSL Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Dover Corporation (DOV - Free Report) reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.

Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.

Ardagh Metal Packaging S.A. (AMBP - Free Report) came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.

Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion. 

Packaging Corporation of America (PKG - Free Report) reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.

Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.

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