Carlisle Companies Incorporated Q1 FY2026 earnings call

1. First quarter revenue was $1.1 billion, down 4% year-over-year due to winter weather delays and lack of tariff-related order pull-forward from last year. 2. Underlying fundamentals performed as expected with better EBITDA margins despite sales challenges. Adjusted EPS rose to $3.63, up 1% vs last year, and adjusted EBITDA margin expanded by 50 basis points to 22.3%. 3. Teams have been driving productivity, improving manufacturing efficiency, tightening cost discipline, and simplifying execution across the network. 4. Reroofing activity grew low single digits, accounting for roughly 70% of CCM's commercial roofing business. 5. Announced price increases in mid-March and a second round in April to offset cost pressures from geopolitical escalation and petrochemical supply chain disruptions. 6. View capital allocation as a core competency, prioritizing returns over growth, investing organically where there's competitive advantage, pursuing acquisitions when meeting criteria, and returning excess capital to shareholders.

CCM generated first quarter revenue of $758 million, a 5% decline year-over-year. CCM adjusted EBITDA was $208 million in the quarter, down 4% year-over-year, however, adjusted EBITDA margin increased 30 basis points to 27.4%. CWT reported Q1 revenue of $294 million, down 1% year over year. CWT adjusted EBITDA was $45 million, down 3% year over year. Adjusted EBITDA margin was 15.2%, a decrease of 40 basis points compared to the first quarter of last year.

1. Reaffirm full year 2026 outlook of low single-digit revenue growth and approximately 50 basis points of adjusted EBITDA margin expansion. 2. Now expect revenue growth at the higher end of the low single-digit range due to recent price increase announcements. 3. Expect double-digit growth for EPS. 4. CCM revenue growth in low single digits driven by higher prices and continued strength in reroofing. 5. CWT revenue up low single digits as contributions from higher prices and synergy gain initiatives offset end market softness.

1. Geopolitical escalation, such as the Iran conflict and disruption through the Straits of Hormuz, introduces uncertainty in global energy markets and could lead to further cost pressures. 2. Oil price volatility impacts petrochemical-linked raw materials and freight costs. 3. Prolonged interest rate uncertainty weighs on new construction activity.

Q: Talk about new products, their market performance and path for further introductions, and how they help with price elasticity.

A: Forecast to release over 10 new products this year, e.g., Thermothin R7 insulation launched at IRE with awards, gathering momentum but delivery starting in July. New gun for foam adhesives also released. These products create value proposition for specifiers and contractors, helping with stickiness and potentially increasing share and profitability.

Q: Talk about efforts to improve CWT margins and path of expansion despite tough environment.

A: CWT team working on automation, footprint consolidation, insourcing. Q1 made progress towards 20% margin goal but mix of sales affected, expecting improvement quarter to quarter with at least 100 basis points of margin improvement year over year.