Key Highlights

  • Adjusted EPS of USD 5.92 rose 6% from USD 5.61 and edged past the USD 5.89 consensus estimate.
  • Revenue grew 9% to USD 1.46 billion, with Construction Materials up 8% and Weatherproofing Technologies up 9%.
  • Adjusted EBITDA margin fell 210 basis points to 23.8% as raw material and freight inflation outpaced pricing.
  • Buybacks of USD 350 million in the quarter lifted nine-month repurchases to USD 850 million, with the dividend raised 14%.

Carlisle Companies Incorporated (NYSE:CSL) reported third-quarter 2026 adjusted EPS of USD 5.92, a record for the period and slightly above a consensus estimate of USD 5.89. Diluted EPS from continuing operations under GAAP was USD 5.22, up 5% from USD 4.97. Revenue rose 9% to USD 1,463.4 million, above a consensus estimate of USD 1.42 billion.

Operating income was flat at USD 293.2 million, so operating margin slipped to 20.0% from 21.8%. Income from continuing operations declined 3% to USD 207.4 million, as interest expense climbed to USD 27.7 million from USD 21.3 million. A lower share count of 39.6 million diluted shares, against 42.9 million a year earlier, supported per-share growth.

Segment Margins and Capital Returns

Carlisle Construction Materials revenue increased 8% to USD 1.1 billion, with organic growth of 9%. Chief executive Chris Koch said volume came from strategic initiatives, including growing traction in data centers, together with steady re-roofing demand and price realization. Management described its data center business as up something like 200% in the quarter. Segment adjusted EBITDA rose 1% to USD 306 million, but the margin of 28.2% was 200 basis points lower.

Carlisle Weatherproofing Technologies revenue grew 9% to USD 379 million on share gains and weather-driven demand for roof coatings. Operating income rose 31% to USD 39 million, and adjusted EBITDA increased 13% to USD 68 million at an 18.0% margin, up 60 basis points. Over the nine months, the company returned USD 990 million to shareholders through USD 850 million of buybacks and USD 140 million of dividends. Net debt to EBITDA was 1.8 times, and cash stood at USD 547 million.

Fourth-Quarter Guidance and Cost Pressures

Management said petroleum-derived raw materials, diesel and freight costs rose well above what the July outlook assumed, driven by renewed escalation of the conflict in the Middle East. Pricing lags cost in such cycles, which the company described as a timing issue. The company guided to high-single-digit revenue growth in the fourth quarter for both segments and a flat adjusted EBITDA margin year over year. The outlook does not assume a near-term recovery in new construction.

For full-year 2026, management projects return on invested capital of about 25% and a free cash flow margin of about 15%. It also reiterated a USD 1.2 billion repurchase target and the Vision 2030 goal of USD 40 in adjusted EPS. Management described the force majeure declarations on MDI and polyols, issued in May, as beginning to lift.

Watch List for the Coming Quarter

Four items anchor the next report. Price realization is first: roughly 4% at Carlisle Construction Materials in the third quarter, against about 7% year over year included in the fourth-quarter outlook. The adjusted EBITDA margin is second, at 23.8% against the flat year-over-year margin guided for the fourth quarter. Data center demand is third, after sales rose about 200% in the quarter. Capital deployment is fourth, with USD 350 million left to reach the USD 1.2 billion buyback target and nine of twelve planned 2026 product launches already in the market.