Carlisle Raises Sales Outlook as Revenue Growth Returns
Adjusted earnings rose 12% to $7.03 a share in the second quarter.
Carlisle Companies (CSL), the building-envelope products manufacturer, returned to revenue growth in the second quarter as sales rose 8.3% from a year earlier, prompting the company to raise its full-year sales outlook.
The performance marked a sharp change from the first quarter, when revenue declined 4%. Second-quarter revenue reached $1.570 billion and increased 49% sequentially, driven by stronger re-roofing demand, customer purchases ahead of price increases and market-share gains.
Diluted earnings increased 8% to $6.36 a share after declining 1% in the first quarter. Adjusted EBITDA rose 6% to $412.0 million, reversing a 2% decline, while operating-income growth improved to 5% from a 2% contraction.
Carlisle Construction Materials produced record revenue of $1.181 billion, up 8%, including 7.7% organic growth. Higher volume and re-roofing demand helped reverse the segment’s first-quarter decline, though raw-material and freight inflation outpaced pricing and narrowed its adjusted EBITDA margin by 90 basis points to 30.7%.
Carlisle Weatherproofing Technologies revenue increased 10% to $389.0 million, including 8.4% organic growth, as share gains offset continued construction-market softness. Automation, manufacturing consolidation and added in-house resin capacity lifted the segment’s margin sequentially to 19.0%, though it remained 90 basis points below the year-earlier period.
The company now expects mid-single-digit revenue growth in 2026, up from its previous low-single-digit forecast. It expects adjusted EBITDA margin to remain flat, compared with its earlier projection for about 50 basis points of expansion, as input and freight costs continue to run ahead of pricing.
Carlisle implemented price increases and freight surcharges in April and July and scheduled another increase for August. Pricing recovery will build through the second half of 2026 and into 2027.
Carlisle raised its 2026 share-repurchase target to $1.2 billion from $1.0 billion after buying back $500 million of stock in the first half. First-half free cash flow fell 43% to $129.6 million as capital spending increased, leaving the larger repurchase plan dependent on stronger cash generation later in the year.