Carlisle’s first quarter was marked by resilience in the face of external challenges, with management highlighting strong reroofing activity and contributions from recent acquisitions as key factors supporting results. CEO Chris Koch noted that “the ongoing strength in reroofing demand, which represents 70% of CCM’s commercial business, continues to be a key driver of our resilient performance,” helping to offset persistent softness in new construction and the residential segment. While unfavorable winter weather and modest price declines weighed on the quarter, management credited gains from its MTL acquisition and operational discipline for stabilizing performance.
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Carlisle (CSL) Q1 CY2025 Highlights:
- Revenue: $1.1 billion vs analyst estimates of $1.09 billion (flat year on year, 0.6% beat)
- Adjusted EPS: $3.61 vs analyst estimates of $3.42 (5.6% beat)
- Adjusted EBITDA: $238.4 million vs analyst estimates of $236 million (21.8% margin, 1% beat)
- Operating Margin: 16.8%, down from 20.5% in the same quarter last year
- Organic Revenue fell 4.4% year on year (22.3% in the same quarter last year)
- Market Capitalization: $15.34 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Carlisle’s Q1 Earnings Call
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Tim Wojs (Baird) asked about volume trends and contractor sentiment entering the busier season; CEO Chris Koch cited optimism among contractors, especially for reroofing, and noted that order patterns improved in March and April after a weather-affected start.
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Susan Maklari (Goldman Sachs) inquired about how product innovation helps customers and whether demand is shifting to repairs; Koch emphasized that labor efficiency and product reliability are driving customer decisions rather than deferral of replacements.
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Bryan Blair (Oppenheimer) questioned pricing expectations and progress of the MTL integration; CFO Kevin Zdimal reaffirmed expectations for neutral price/cost in the near term, and Koch described MTL integration as exceeding expectations with cross-selling and product synergy benefits.
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Garik Shmois (Loop Capital Markets) probed the impact of pre-buying ahead of tariffs and inventory levels; Koch indicated pre-buying was mostly isolated and not significant for future quarters, with inventories remaining light in distribution channels.
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David MacGregor (Longbow Research) asked about the visibility behind margin expansion in CWT; Zdimal outlined expectations for margin improvement through price increases, automation, and new product contributions, with Koch adding that initiatives like Ultra Touch should gain momentum as the year progresses.
Catalysts in Upcoming Quarters
In the upcoming quarters, the StockStory team will watch for (1) the realization of pricing improvements and whether announced increases are sustained in the market, (2) margin recovery and incremental benefits from automation and new product launches, and (3) continued strength in reroofing activity as older buildings enter replacement cycles. Execution on integration of recent acquisitions and resilience in the residential segment will also be key indicators.
Carlisle currently trades at $355.54, down from $359.82 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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