Carlisle Companies Incorporated

Carlisle reported record second-quarter revenue of $1.6 billion, up 8% year over year, and record adjusted EPS of $7.03, up 12%. Adjusted EBITDA increased 6% to $412 million, with adjusted EBITDA margin at 26.2%, down 70 basis points year over year. By segment, CCM revenue rose 8% to $1.2 billion, adjusted EBITDA rose 5% to $363 million, and margin was 30.7%; CWT revenue rose 10% to $389 million, adjusted EBITDA rose 5% to $74 million, and margin was 19.0%. For the full year 2026, management raised revenue guidance to mid-single-digit growth, lowered the margin outlook by 50 basis points to flat adjusted EBITDA margin year over year, still expects ROIC of approximately 25%, free cash flow margin of approximately 15%, and double-digit adjusted EPS growth, and increased the buyback target from $1 billion to $1.2 billion.

Christopher Koch framed the quarter as evidence that Carlisle can perform through a difficult macro backdrop, citing the company's focus on what it can control, record results, and strong execution. He emphasized innovation, saying new products like ThermaThin R-7 are designed to create value for contractors, distributors, and building owners while supporting both growth and margins over time. He also reiterated that Carlisle is a disciplined capital allocator, declined to comment on market rumors about Owens Corning, and stressed that the company is still on track for Vision 2030 despite weak new construction and a tougher deal environment.

Kevin Zdimal said the quarter was driven by disciplined pricing, Carlisle operating system productivity, and strong commercial execution, but margins were pressured by a significant increase in petroleum-based raw materials and freight costs tied to the Middle East conflict and supply chain disruptions. He noted Q2 price/cost was about minus $40 million at CCM and immaterial at CWT, with pricing expected to move from low single digits in Q2 to mid single digits in Q3 and high single digits in Q4. He also highlighted $665 million of cash, $1 billion available on the revolver, net debt to EBITDA of 1.7x, operating cash flow of $244 million, free cash flow of $203 million, capital expenditures of $42 million, and $250 million of share repurchases in the quarter.

Analysts focused on pricing, market growth, CWT recovery, and MDI supply. Management said CCM pricing lagged through Q2 but should improve through the second half, while market growth was broadly as expected with reroofing steady and data centers helping premium TPO. On CWT, management quantified full-year self-help benefits at about $20 million and said automation, footprint consolidation, and in-house EPS capacity are now contributing, but meaningful margin improvement still depends on a market recovery that they do not expect before year-end.