Carlisle Companies Announces Q4 Financial Results
Carlisle Companies Incorporated has announced its financial results for the fourth quarter and full year ending December 31, 2024. The company delivered a record full-year diluted earnings per share (EPS) of $18.34 and adjusted EPS of $20.20, marking a 30% year-over-year (YoY) increase. Despite facing macroeconomic challenges, the company achieved significant milestones, reflecting its strategic execution under the Vision 2030 initiative.
Full Year 2024 Financial Performance
For the full year 2024, Carlisle Companies reported revenues of $5.0 billion, representing a 9.1% increase from $4.59 billion in 2023. The company achieved a record adjusted EBITDA margin of 26.6% and a return on invested capital (ROIC) of 28.5%, driven by resilient and recurring re-roofing revenue. This performance effectively offset the negative impacts from a challenging construction environment. The full-year operating income rose by 16.3% to $1.14 billion, compared to $982.8 million in the previous year.
Fourth Quarter 2024 Financial Summary
In the fourth quarter of 2024, Carlisle reported revenues of $1.12 billion, a slight decline of 0.4% from $1.13 billion in the same quarter of 2023. Despite the revenue dip, diluted EPS for the quarter was $3.56, and adjusted EPS reached a record $4.47, reflecting a 7% YoY increase. The company’s operating margin stood at 19.9%, while the adjusted EBITDA margin was 25.1%.
Operating income for the fourth quarter was $224 million, down 11.7% from $253.6 million in Q4 2023. Adjusted EBITDA decreased by 5.2% to $281.7 million, compared to $297.1 million in the prior-year quarter. The decline was attributed to macroeconomic pressures, including higher interest rates, housing affordability issues, and unfavorable weather conditions in November and December.
Strategic Initiatives and Shareholder Returns
2024 was a transformative year for Carlisle, marked by several strategic initiatives under the Vision 2030 strategy, which positions the company as a pure-play building products company. Key achievements include the acquisition of Plasti-Fab, a Canadian-based manufacturer of EPS insulation, and the completion of the MTL and ThermaFoam acquisitions, collectively enhancing Carlisle’s building envelope capabilities.
The company demonstrated a strong commitment to returning capital to shareholders, repurchasing $420 million of shares in the fourth quarter and totaling $1.6 billion in share repurchases for the year. These repurchases were funded by proceeds from the divestiture of CIT, Carlisle’s last non-building products business. Additionally, Carlisle paid $172 million in cash dividends during 2024, including $45 million in the fourth quarter.
Segment Highlights
Carlisle Construction Materials (CCM)
CCM reported revenues of $834 million for the fourth quarter, a 2% increase YoY, driven by the acquisition of MTL and healthy re-roof activity. However, organic revenue declined by 2% due to lower commercial construction activity. Operating income for the segment was $223 million, down 6% YoY, while adjusted EBITDA was $245 million, reflecting a 4% decrease and an adjusted EBITDA margin of 29.4%. The decline in adjusted EBITDA was primarily due to lower volumes and negative price/cost dynamics.
Carlisle Weatherproofing Technologies (CWT)
CWT’s fourth-quarter revenue was $289 million, a 7% decline YoY, with an 8% decrease in organic revenue. The decline was mainly due to softer residential end markets affected by higher interest rates and reduced roof coatings sales at retail, impacted by dry weather conditions. Operating income for CWT was $25 million, down 44% YoY, while adjusted EBITDA fell by 24% to $53 million, with an adjusted EBITDA margin of 18.3%. The reduction in adjusted EBITDA was driven by decreased volumes, lower prices in insulation products, and strategic investments aimed at supporting long-term growth initiatives.
Cash Flow and Financial Position
Carlisle generated $1.0 billion in operating cash flow from continuing operations for the year ended December 31, 2024. Free cash flow from continuing operations was $938 million, an increase of $12 million compared to the prior year, attributed to lower capital expenditures due to project timing. As of December 31, 2024, Carlisle had $754 million in cash and cash equivalents and $1.0 billion of availability under its revolving credit facility. The company also had 3.5 million shares available for repurchase under its share repurchase program.
Chris Koch, Chair, President, and Chief Executive Officer of Carlisle Companies, expressed optimism about the company’s future, stating, “We are pleased to report that Carlisle ended 2024 with a record full-year adjusted EPS of $20.20, a 30% increase over 2023, as we progress towards our Vision 2030 target of $40 of adjusted EPS. Our strategic initiatives and acquisitions in 2024 have strengthened our position as a leading manufacturer within the building envelope, and we remain committed to creating value for our shareholders.”
Koch acknowledged the challenges faced in the second half of 2024 due to macroeconomic pressures but emphasized the company’s resilience and strategic positioning for future growth. “As we look ahead into 2025, we expect the market challenges to persist in the first half of the year. However, the strong underlying trends in our businesses and the execution of our Vision 2030 strategy will drive another record year for Carlisle,” he added.
