Carlisle’s Strong Financial Performance in 2024

Carlisle, the diversified manufacturer of premium building products and engineered solutions, delivered impressive financial results in 2024 despite macroeconomic headwinds. The company’s revenues grew 9.1% to $5,003.6 million, driven by robust demand in the non-residential construction market that offset softer residential activity. Operating income increased 16.3% to $1,143.1 million, reflecting strong operational execution and margin expansion.

Revenue Growth Across Segments

Carlisle’s Carlisle Construction Materials (CCM) segment, which produces roofing and building envelope solutions, saw revenues increase 13.9% to $3,704.3 million. This was primarily due to higher sales in the non-residential construction end market, which grew $428.9 million or 11.2% organically. The company attributed this growth to inventory normalization and increased re-roofing activity from pent-up demand.

In contrast, the Carlisle Weatherproofing Technologies (CWT) segment, which provides building envelope and thermal protection products, experienced a 2.6% revenue decline to $1,299.3 million. This was driven by lower sales in the residential construction market, down $80.1 million or 3.7% organically, partially offset by higher non-residential sales of $39.7 million.

The table below summarizes the revenue performance by segment:

Segment	2024 Revenues ($ millions)	2023 Revenues ($ millions)	Change (%)
CCM	3,704.3	3,253.4	13.9%
CWT	1,299.3	1,333.5	-2.6%

Margin Expansion and Profitability

Carlisle’s operating margin expanded 140 basis points to 22.8% in 2024, driven by strong volume leverage and operational efficiency in the CCM segment. Adjusted EBITDA, a non-GAAP measure that excludes certain one-time items, grew 15.6% to $1,332.7 million, with the adjusted EBITDA margin increasing to 26.6%.

The table below highlights Carlisle’s profitability metrics:

Metric	2024	2023
Operating Income ($ millions)	1,143.1	982.8
Operating Margin (%)	22.8%	21.4%
Adjusted EBITDA ($ millions)	1,332.7	1,152.8
Adjusted EBITDA Margin (%)	26.6%	25.1%

The strong operating performance was partially offset by a $21.1 million loss related to the accelerated recognition of pension actuarial losses, which was recorded in other non-operating expense. However, this was more than offset by a $457.3 million pre-tax gain on the sale of the Carlisle Interconnect Technologies (CIT) business, which was reported in discontinued operations.

Liquidity and Capital Allocation

Carlisle ended 2024 with $753.5 million in cash and cash equivalents, up from $576.7 million at the end of 2023. This increase was primarily due to the proceeds from the CIT divestiture and strong operating cash flow, partially offset by share repurchases, debt repayments, and capital expenditures.

The company remains committed to a balanced capital allocation strategy, investing in organic growth initiatives, pursuing strategic acquisitions, and returning capital to shareholders. In 2024, Carlisle repurchased $1,585.9 million of its shares and paid $172.4 million in dividends to stockholders. The company also completed the acquisitions of MTL and PFB to expand its building products portfolio.

Looking ahead, Carlisle expects capital expenditures of approximately $150 million in 2025 to support new product development, capacity expansion, and cost reduction efforts. The company also plans to continue its opportunistic share repurchase program in 2025.

Segment Highlights

Carlisle Construction Materials (CCM) The CCM segment, Carlisle’s largest, benefited from strong demand in the non-residential construction market, which offset softer residential activity. Revenues grew 13.9% to $3,704.3 million, while operating income increased 18.6% to $1,084.3 million. The segment’s operating margin expanded to 29.3%, up from 28.1% in the prior year, driven by volume leverage on higher sales.

Carlisle Weatherproofing Technologies (CWT) The CWT segment experienced a 2.6% revenue decline to $1,299.3 million, as lower sales in the residential construction market more than offset gains in the non-residential market. Operating income decreased 7.6% to $173.6 million, and the operating margin contracted to 13.4% from 14.1% in 2023. The margin decline was primarily due to higher operating costs to support long-term growth initiatives.

Outlook and Strategic Priorities

Looking ahead to 2025, Carlisle expects mid-single-digit revenue growth for the overall business, with the CCM segment forecasted to grow in the mid-single digits and the CWT segment expected to achieve high-single-digit growth. The company’s growth outlook is underpinned by continued strength in the non-residential construction market, market share gains in CWT, and the full-year contributions from recent acquisitions.

Carlisle remains focused on its strategic priorities, which include investing in organic growth opportunities, pursuing value-enhancing acquisitions, and returning capital to shareholders. The company’s Vision 2030 initiative emphasizes innovation, sustainability, and operational excellence as key drivers of long-term shareholder value creation.

Conclusion

Carlisle delivered impressive financial results in 2024, demonstrating the strength of its diversified business model and operational execution. The company’s ability to navigate macroeconomic challenges and capitalize on favorable market trends in the non-residential construction sector underscores its competitive positioning and resilience. Looking ahead, Carlisle’s strategic priorities and growth initiatives position the company well to continue creating value for its shareholders.