Carlisle (NYSE:CSL) Misses Revenue Estimates in Q4 Earnings

Carlisle Companies Incorporated (NYSE:CSL) reported its fourth quarter 2024 financial results, with revenue falling short of analyst estimates. The company's overall performance was impacted by macroeconomic pressures and lower commercial construction activity. Despite the revenue miss, Carlisle managed to increase its adjusted EPS by 7% year-over-year.



Carlisle's revenue for the fourth quarter was $1.12 billion, a slight decrease of 0.4% compared to the previous year. This result was below the estimated $1.13 billion expected by analysts. The revenue miss can be attributed to several factors, including macroeconomic pressures, lower commercial construction activity, and an organic revenue decline of -2% year-over-year.



Macroeconomic pressures, such as higher interest rates, housing affordability challenges, and unfavorable weather conditions in November and December, negatively impacted the construction industry and Carlisle's revenue growth. Additionally, lower commercial construction activity and lower volumes/negative price/cost in the Carlisle Construction Materials (CCM) segment contributed to the decline in revenue.

Despite the revenue miss, Carlisle managed to increase its adjusted EPS by 7% year-over-year, demonstrating the company's ability to maintain profitability amidst headwinds. The company's adjusted EPS for the quarter was $4.47, surpassing the anticipated $4.42.

Carlisle's acquisitions, such as MTL, Plasti-Fab, and ThermaFoam, have significantly contributed to its overall performance by strengthening its building envelope capabilities and positioning it as a leading manufacturer in the building envelope sector. These acquisitions have been part of Carlisle's strategic initiatives under its Vision 2030 plan, which aims to create value through superior integration playbooks.

Looking ahead, Carlisle expects mid-single-digit revenue growth and approximately 50 basis points of adjusted EBITDA margin expansion in 2025. The company anticipates that CCM will benefit from solid re-roofing demand, new products, the full-year impact of the MTL acquisition, and improving new construction markets in the second half of 2025. Carlisle Weatherproofing Technologies (CWT) is also expected to improve performance through share gain initiatives, new products, and the integration of Plasti-Fab and ThermaFoam.

In conclusion, Carlisle's Q4 earnings report showed a revenue miss compared to analyst estimates, primarily due to macroeconomic pressures and lower commercial construction activity. Despite this setback, the company managed to increase its adjusted EPS and remains optimistic about its future prospects. Carlisle's acquisitions have played a crucial role in its overall performance, and the company expects these strategic moves to continue driving growth and value in the future.