We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Carlisle Benefits From Business Strength, Risks Persist
Read MoreHide Full Article
Key Takeaways
Carlisle Companies' Construction Materials revenues rose 7.8% to $1.18 billion in the second quarter.
CSL's Weatherproofing Technologies revenues increased 10%, including 8% organic growth.
Carlisle Companies faces higher costs, margin pressure and $2.89 billion in long-term debt.
Carlisle Companies Incorporated (CSL - Free Report) has been witnessing solid momentum in the Construction Materials segment, supported by the healthy demand for reroofing products. Strength in the non-residential construction market in the United States and Europe, driven by inventory normalization and growing re-roofing activity, has been driving the segment’s performance. In the second quarter of 2026, the segment’s revenues increased 8% year over year to $1.18 billion. The company expects the segment’s revenues to increase in the mid-single digits in 2026 from the previous year.
Carlisle is also witnessing strength in the Weatherproofing Technologies segment, supported by market-share gains and operational improvement initiatives. In the second quarter, the segment’s revenues increased 10% year over year, including 8% organic growth. The segment is also benefiting from automation, footprint consolidation and expanded in-house polystyrene resin capacity. The company projects the segment’s revenues to increase in the mid-single digits for the year.
CSL remains focused on rewarding its shareholders with dividend payouts and share buybacks. For instance, in the first six months of 2026, it paid a dividend of $90.1 million and repurchased shares worth $500 million. Also, the quarterly dividend rate was hiked 14% to $1.25 per share in August 2026.
CSL’s Price Performance
Image Source: Zacks Investment Research
In the year-to-date period, this Zacks Rank #3 (Hold) company’s shares have gained 5.6% against the industry’s 14.9% decline.
Despite the positives, the company has been subject to escalating operating costs and expenses. In the second quarter of the year, its cost of sales increased 10.3% year over year to $1 billion and represented 63.8% of revenues, higher than 62.7% a year ago. Also, research and development expenses increased 2.7% year over year to $11.4 million. CSL’s operating margin contracted 70 basis points to 22.4% in the second quarter on a year-over-year basis.
High debt levels raise financial obligations and hurt the company’s profitability. It exited the second quarter with long-term debt of $2.89 billion, slightly higher than the 2024-end figure. The company’s interest expense was $55.7 million in the first six months of 2026, up 89% year over year.
Key Picks
Some better-ranked stocks from the same space are presented below.
Griffon’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 6.6%. In the past 60 days, the Zacks Consensus Estimate for Griffon’s 2026 bottom line has increased 4.4%.
Helios Technologies (HLIO - Free Report) currently carries a Zacks Rank of 2. Helios Technologies’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 13.1%. In the past 60 days, the Zacks Consensus Estimate for HLIO’s 2026 earnings has increased 10.4%.
RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 8.7%. The Zacks Consensus Estimate for RBC’s fiscal 2027 (ending March 2027) earnings has increased 4.9% over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Carlisle Benefits From Business Strength, Risks Persist
Key Takeaways
Carlisle Companies Incorporated (CSL - Free Report) has been witnessing solid momentum in the Construction Materials segment, supported by the healthy demand for reroofing products. Strength in the non-residential construction market in the United States and Europe, driven by inventory normalization and growing re-roofing activity, has been driving the segment’s performance. In the second quarter of 2026, the segment’s revenues increased 8% year over year to $1.18 billion. The company expects the segment’s revenues to increase in the mid-single digits in 2026 from the previous year.
Carlisle is also witnessing strength in the Weatherproofing Technologies segment, supported by market-share gains and operational improvement initiatives. In the second quarter, the segment’s revenues increased 10% year over year, including 8% organic growth. The segment is also benefiting from automation, footprint consolidation and expanded in-house polystyrene resin capacity. The company projects the segment’s revenues to increase in the mid-single digits for the year.
CSL remains focused on rewarding its shareholders with dividend payouts and share buybacks. For instance, in the first six months of 2026, it paid a dividend of $90.1 million and repurchased shares worth $500 million. Also, the quarterly dividend rate was hiked 14% to $1.25 per share in August 2026.
CSL’s Price Performance
Image Source: Zacks Investment Research
In the year-to-date period, this Zacks Rank #3 (Hold) company’s shares have gained 5.6% against the industry’s 14.9% decline.
Despite the positives, the company has been subject to escalating operating costs and expenses. In the second quarter of the year, its cost of sales increased 10.3% year over year to $1 billion and represented 63.8% of revenues, higher than 62.7% a year ago. Also, research and development expenses increased 2.7% year over year to $11.4 million. CSL’s operating margin contracted 70 basis points to 22.4% in the second quarter on a year-over-year basis.
High debt levels raise financial obligations and hurt the company’s profitability. It exited the second quarter with long-term debt of $2.89 billion, slightly higher than the 2024-end figure. The company’s interest expense was $55.7 million in the first six months of 2026, up 89% year over year.
Key Picks
Some better-ranked stocks from the same space are presented below.
Griffon Corporation (GFF - Free Report) carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Griffon’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 6.6%. In the past 60 days, the Zacks Consensus Estimate for Griffon’s 2026 bottom line has increased 4.4%.
Helios Technologies (HLIO - Free Report) currently carries a Zacks Rank of 2. Helios Technologies’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 13.1%. In the past 60 days, the Zacks Consensus Estimate for HLIO’s 2026 earnings has increased 10.4%.
RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 8.7%. The Zacks Consensus Estimate for RBC’s fiscal 2027 (ending March 2027) earnings has increased 4.9% over the past 60 days.