Carlisle Companies (CSL) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted EPS of $20.20 in 2024, up 30% year-over-year, with 9% revenue growth to $5.0 billion and completed the strategic pivot to a pure-play building products company via the $2 billion sale of CIT.

• Fourth quarter revenues were $1.1 billion, essentially flat year-over-year, with adjusted EPS up 7% to $4.47.

• Returned $1.8 billion to shareholders in 2024 via $1.6 billion in share repurchases and $172 million in dividends, funded by the CIT divestiture.

• Strong performance driven by recurring reroofing revenue, margin expansion, and successful integration of acquisitions including MTL, Plasti-Fab, and ThermaFoam.

• Vision 2030 targets $40 adjusted EPS, focusing on innovation, operational excellence, and strategic M&A.

Financial highlights

• 2024 revenue grew 9% year-over-year to $5.0 billion, including 7% organic growth.

• Adjusted EBITDA margin reached a record 26.6%, up 150 basis points from 2023.

• Free cash flow margin was 18.8%, with ROIC at 28.5%.

• Q4 adjusted EBITDA margin was 25.1%, down 130 basis points year-over-year due to lower volumes and unfavorable mix.

• Net income from continuing operations for 2024 was $865 million, up 20% year-over-year.

Outlook and guidance

• Expect mid-single-digit consolidated revenue growth in 2025, weighted to the back half of the year, and ~50 basis points adjusted EBITDA margin expansion.

• Double-digit EPS growth anticipated for 2025, with record EPS expected.

• Q1 2025 expected to be flat, with growth building through the year; price increases to take effect in Q2 and benefit the second half.

• R&D expense to increase by 50% year-over-year to support new product development.

• CCM segment expected to see mid-single-digit revenue growth; CWT segment to grow in the high-single-digit range, mainly from acquisitions.