Key Highlights

  • Consensus EPS of 5.89 compares with second-quarter adjusted EPS of 7.03 and GAAP diluted EPS of 6.30.
  • Consensus revenue of USD 1.42 billion compares with second-quarter revenue of USD 1,570.3 million, against USD 1,449.5 million.
  • Management guided flat 2026 adjusted EBITDA margin, a 50 basis point reduction from its previous expectation.
  • Management raised its 2026 share repurchase target to USD 1.2 billion from USD 1 billion.

Carlisle (NYSE:CSL) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 5.89 on revenue of USD 1.42 billion, and the company has a market capitalization of USD 13.74 billion.

Carlisle makes building envelope products through Carlisle Construction Materials and Carlisle Weatherproofing Technologies. Second-quarter revenue was USD 1,570.3 million against USD 1,449.5 million, and net income was USD 255.2 million against USD 255.8 million.

Estimates Against Second-Quarter Results and Revised Guidance

The EPS estimate of 5.89 is below the second-quarter adjusted EPS of 7.03 and the GAAP diluted EPS of 6.30, which compared with 5.88 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 1.42 billion is below the USD 1,570.3 million reported.

Management guided mid-single-digit revenue growth for 2026 with no near-term recovery in new construction, and a flat adjusted EBITDA margin. It cited raw material and freight inflation from the extended Middle East conflict.

What Management Guided and What It Left Open

Management guided Carlisle Construction Materials to mid-single-digit revenue growth, with reroofing growing 3% to 4% for the year. It implemented three broad-based price increases and cited a USD 40 million price-cost hit at CCM as committed quotes lagged input costs.

Management left open the timing of a new construction recovery, citing geopolitical events and interest rate uncertainty. It targets adjusted EPS of 40 under Vision 2030 and return on invested capital of 25%.

Segment Revenue and Margin Detail

Carlisle Construction Materials revenue was USD 1.2 billion, up 8%, with an adjusted EBITDA margin of 30.7%, down 90 basis points. Carlisle Weatherproofing Technologies revenue was USD 389 million, up 10%, with a margin of 19%.

Adjusted EBITDA margin was 26.2%, down 70 basis points. Reroofing makes up 70% of total sales. Revenue rose 8% on volume growth in both segments and reroofing demand, helped by customer pre-buying ahead of announced price increases. Cost of goods sold was USD 1,001.9 million against USD 908.4 million, and basic EPS was 6.33 against 5.93. The company targets 25% of sales from products introduced within the past five years. Operating income was USD 352.5 million against USD 335.0 million, and income before income taxes was USD 333.7 million against USD 323.6 million.

Capital Return, Cash Flow and Balance Sheet

The company repurchased USD 250 million of shares in the quarter and returned USD 590 million through dividends and buybacks in the first half. Free cash flow was USD 203 million. The dividend declared was 1.10 per share against 1.00.

Cash was USD 665 million and net debt to EBITDA was 1.7x. Henry synergies are 65% above initial targets. The estimates table lists a market capitalization of USD 13.74 billion.

Markers for the Release

Reported EPS against 5.89 and revenue against USD 1.42 billion are the headline comparisons. Other markers are input cost inflation, reroofing volumes and the repurchase pace.