Carlisle Q4 Earnings Miss, Construction Materials Sales Up Y/Y

Carlisle Companies Incorporated CSL reported fourth-quarter 2024 adjusted earnings of $4.47 per share, which missed the Zacks Consensus Estimate of $4.48. However, the bottom line increased 7% year over year.

Carlisle’s total revenues of $1.12 billion missed the consensus estimate of $1.15 billion. The top line decreased 0.4% year over year.

For 2024, CSL reported net revenues of $5 billion, which increased 9.1% year over year. For the year, the company’s adjusted earnings were $20.20 per share, up 30.2% year over year.

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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 2.2% year over year to $856.3 million. Our estimate for segmental revenues was $856.3 million. Organic revenues increased 1.8%, driven by strong re-roofing activity. Adjusted EBITDA of $245 million decreased 4% year over year.

Revenues from the Carlisle Weatherproofing Technologies segment decreased 7% year over year to $289 million, due to soft residential end markets and lower pricing in select product categories. Our estimate for segmental revenues was $304.9 million. Organic revenues slipped 8%. Adjusted EBITDA of $53 million declined 24% year over year.

Carlisle Companies Incorporated Price, Consensus and EPS Surprise

Carlisle Companies Incorporated price-consensus-eps-surprise-chart | Carlisle Companies Incorporated Quote

CSL’s Margin Profile

Carlisle’s cost of sales increased 1.4% year over year to $717.4 million. Selling and administrative expenses increased 11% to $174.9 million. Research and development expenses totaled $8.8 million, up 10% year over year.

CSL recorded an operating income of $224.0 million, down 11.7% year over year. The operating margin decreased 260 basis points to 19.9% from 22.5% in the year-ago quarter. Our estimate for the operating margin was pegged at 17.8%.

Carlisle’s Balance Sheet and Cash Flow

At the end of the fourth quarter, Carlisle had cash and cash equivalents of $753.5 million compared with $576.7 million at the end of 2023. Long-term debt (including the current portion) was $1.89 billion compared with $2.29 billion reported at the end of 2023.

In 2024, CSL generated net cash of $1.03 billion from operating activities compared with $1.02 billion in the year-ago period.

In the same period, CSL rewarded its shareholders with a dividend payment of $172.4 million, up 7.6% year over year. The company bought back shares worth $1.59 billion, up 76.2% year over year.

CSL’s Outlook

Management expects revenues to witness a mid-single-digit increase in 2025. It anticipates to deliver earnings growth of more than 10% on a year-over-year basis. Adjusted EBITDA margin is expected to expand approximately 50 bps. The free cash flow margin is anticipated to be more than 15%.

CSL’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

RTX Corporation’s RTX fourth-quarter 2024 adjusted earnings per share (EPS) of $1.54 beat the Zacks Consensus Estimate of $1.37 by 12.4%. The bottom line also improved 19.4% from the year-ago quarter’s level of $1.29 per share.

RTX’s sales totaled $21.62 billion, which surpassed the consensus estimate of $20.56 billion by 5.2%. The top line also surged a solid 8.5% from $19.93 billion recorded in the fourth quarter of 2023.

Lockheed Martin Corporation LMT reported fourth-quarter 2024 adjusted earnings of $7.67 per share, which beat the Zacks Consensus Estimate of $6.60 by 16.2%. The bottom line slipped 0.4% from the year-ago quarter's adjusted figure of $7.70 per share.

Net sales were $18.62 billion, which missed the consensus estimate of $18.85 billion by 1.2%. The top line also dropped 1.3% from $18.87 billion reported in the year-ago quarter.

The Boeing Company BA incurred an adjusted loss of $5.90 per share in the fourth quarter of 2024, wider than the Zacks Consensus Estimate of a loss of $3.22 per share. The bottom line deteriorated from the year-ago quarter’s reported loss of 47 cents per share.

Revenues amounted to $15.24 billion, which beat the consensus estimate of $15.19 billion by 0.4%. The top line also decreased 31% from the year-ago quarter’s figure of $22.02 billion.

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