Breaking Down Carlisle Companies Incorporated (CSL) Financial Health: Key Insights for Investors

You're looking at Carlisle Companies Incorporated (CSL) and wondering if the market turbulence in building products is a headwind or a buying signal, and honestly, it's a bit of both right now. The company's financial health remains resilient, but the near-term picture is complex: Carlisle delivered a solid third quarter 2025, posting adjusted earnings per share (EPS) of $5.61 on $1.3 billion in revenue, which is a 1% year-over-year increase, but the full-year analyst consensus for 2025 EPS has been adjusted to $19.45, reflecting a challenging environment in new construction. Still, the underlying commitment to shareholder return is strong, with the full-year share repurchase target increased to $1.3 billion, and analysts see significant runway, pegging the average price target at $386.67-a potential upside of over 30% from the current price. We need to dig into how they plan to hit the consensus $5.06 billion in revenue for 2025 and what's driving that confidence in a soft market.

Revenue Analysis

You need to know where Carlisle Companies Incorporated (CSL) makes its money and how fast that engine is running. The direct takeaway is this: Carlisle is a US-centric, commercial roofing powerhouse, with its growth engine currently sputtering a bit due to residential market softness, but still holding up thanks to acquisitions and strong re-roofing demand.

As of the trailing twelve months (TTM) ending September 30, 2025, Carlisle Companies Incorporated (CSL) reported total revenue of approximately $5.02 billion. The year-over-year revenue growth for this period was a modest +0.14%, which is a clear sign of the construction market's current headwinds. The company's own updated full-year 2025 guidance projects only low-single-digit revenue growth, reflecting lower volume expectations in certain areas. That's a definite slowdown.

The revenue structure is simple, but the segments tell a complex story. Carlisle operates primarily through two segments: Carlisle Construction Materials (CCM) and Carlisle Weatherproofing Technologies (CWT). The vast majority of sales are generated in the United States, accounting for roughly 89.8% of TTM revenue, or about $4.51 billion.

Here's the quick math on segment contribution based on the TTM data ending September 2025:

The CCM segment is the undisputed heavyweight, focused on single-ply roofing products and systems for the commercial building industry. This segment's resilience is driven by the consistent demand for commercial re-roofing, which is less cyclical than new construction. For instance, Q1 2025 CCM revenue increased 2% to $799 million, largely due to recurring re-roofing activity and the contribution from the MTL Holdings LLC acquisition.

The CWT segment, which deals in waterproofing and sealing materials, is where you see the stress. Its Q1 2025 revenue declined 5% to $297 million, with organic revenue dropping by 12%. This decline is directly tied to the continued softness in the residential construction end-market. To be fair, strategic acquisitions like Plasti-Fab and ThermaFoam are helping to offset some of the organic decline in CWT. The company's long-term 'Vision 2030' strategy is focused on leveraging trends like energy efficiency to drive future growth, which you can read more about here: Mission Statement, Vision, & Core Values of Carlisle Companies Incorporated (CSL).

What this estimate hides is the power of the re-roofing cycle-it's a non-negotiable maintenance expense that provides a defintely stable revenue floor, even when new commercial and residential construction slows down. The near-term opportunity is in CCM's ability to maintain pricing power and fully integrate recent acquisitions, while the risk remains CWT's exposure to the volatile residential market.

Profitability Metrics

You're looking for a clear read on Carlisle Companies Incorporated (CSL)'s financial engine, and the profitability numbers for the 2025 fiscal year tell a story of premium performance under market pressure. Carlisle Companies Incorporated is defintely a high-margin player in its sector, consistently outperforming the industry averages, but the near-term trend shows a clear margin contraction you need to watch.

Here's the quick math on the Trailing Twelve Months (TTM) ending September 30, 2025, which gives us the most current picture of their fiscal health:

• Gross Profit Margin: The company's TTM Gross Profit was approximately $1.82 billion on revenues of $5.02 billion, translating to a margin of roughly 36.24%.
• Operating Profit Margin: The TTM Operating Margin stood at 20.29%.
• Net Profit Margin: The TTM Net Income was $774.70 million, yielding a Net Profit Margin of 15.48%.

Comparison with Industry Benchmarks

Carlisle Companies Incorporated's profitability ratios are not just good; they are substantially better than their industry peers, which is a hallmark of a strong competitive position and pricing power. This wide margin difference is a key reason for the stock's premium valuation.

To be fair, the industry average often includes smaller, less diversified players, but the gap is still striking. Carlisle Companies Incorporated's Gross Margin of 36.24% is nearly 8 percentage points higher than the industry average of 28.47%.

Operational Efficiency and Margin Trends

The trend in profitability is the most important near-term risk. The current Net Profit Margin of 15.3% is down from 17.8% a year ago, showing a clear squeeze from market conditions. The company's revised full-year 2025 outlook anticipates a decline of 250 basis points in adjusted EBITDA margin from 2024, even with flat revenue year-over-year. This is a significant headwind.

What this estimate hides is the segment-level pressure. In the third quarter of 2025, the Carlisle Construction Materials (CCM) segment saw its operating income decrease by 7%. This wasn't just a volume issue; it was driven by materials inflation and higher operating costs from investments in the 'Carlisle Experience' and innovation. Meanwhile, the Carlisle Weatherproofing Technologies (CWT) segment's operating income decreased sharply by 37%, primarily due to lower volumes and volume deleverage in soft residential and commercial end-markets. The core re-roofing market remains resilient, but new construction weakness is hitting their efficiency hard.

The good news is that management is focused on operational efficiency through the Carlisle Operating System (COS) and their Vision 2030 strategy, which aims to leverage trends in energy efficiency and labor savings to drive growth. Analysts expect margins to rise from 16.1% to 17.3% in the next three years, supported by these operational efficiency gains and a shift to higher-value products. That's the long-term thesis, but the short-term reality is margin compression.

For a deeper dive into the company's capital structure and valuation, look at the full post: Breaking Down Carlisle Companies Incorporated (CSL) Financial Health: Key Insights for Investors.

Next Step: Model a scenario where the full 250 basis point adjusted EBITDA margin decline materializes for the full year, and see how that impacts your valuation target.

Debt vs. Equity Structure

You want to know how Carlisle Companies Incorporated (CSL) is funding its growth, and the balance sheet tells a clear story: they are using a conservative mix of debt and equity, but recent capital market activity signals a strategic shift to lock in long-term funding.

As of the second quarter of 2025, Carlisle Companies Incorporated's total debt stood at approximately $1.90 billion, balanced against total stockholders' equity of about $2.1206 billion. This capital structure is defintely manageable, especially when you look at the company's ability to cover its obligations.

Debt-to-Equity: The Leverage Picture

The core metric here is the Debt-to-Equity (D/E) ratio, which shows how much of the company's assets are funded by debt versus shareholder money. Carlisle Companies Incorporated's D/E ratio is currently around 0.89 (or 89%). This means for every dollar of shareholder equity, the company has about $0.89 in debt.

Here's the quick math on how that stacks up against the industry:

• Carlisle Companies Incorporated D/E Ratio: 0.89
• Construction Materials Industry Average: 0.5684

To be fair, the industry average for construction materials is quite low, but a D/E ratio between 0.5 and 1.5 is generally considered healthy for a construction-related company. Carlisle Companies Incorporated is at the high end of the ideal range, but their net debt-to-EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ratio is a low 1.5x, which is right in their target range.

Recent Capital Moves: Locking in Long-Term Debt

Carlisle Companies Incorporated is not sitting still; they are actively managing their debt profile, which is a key sign of a seasoned management team. In August 2025, the company priced a public offering of $1 billion in senior notes. This move was clearly aimed at securing long-term capital at fixed rates, a smart play in a shifting interest rate environment.

The new debt is split into two tranches:

• $500 million in 5.250% notes due September 15, 2035
• $500 million in 5.550% notes due September 15, 2040

This debt issuance provides a pool of capital for general corporate purposes, including potential acquisitions or share repurchases, giving them flexibility. Plus, the company maintains strong liquidity with a $1.0 billion available credit facility as of mid-2025. The balance between debt financing for growth and returning capital to shareholders via buybacks ($700 million in the first half of 2025 alone) shows a commitment to both expansion and efficiency.

The table below summarizes the key leverage figures for a quick snapshot:

The bottom line is that while their D/E ratio is slightly above the narrow construction materials average, their strong cash flow and low net debt-to-EBITDA ratio suggest the debt is well-managed and being used strategically to fuel long-term growth. You can dive deeper into the operational performance that supports this financial health in this full post: Breaking Down Carlisle Companies Incorporated (CSL) Financial Health: Key Insights for Investors.

Next step: Look at their cash flow to see how easily they can service this debt.

Liquidity and Solvency

You need to know if Carlisle Companies Incorporated (CSL) can cover its near-term bills, and the 2025 numbers show a very strong liquidity position. The core takeaway is that CSL's liquid assets far exceed its short-term obligations, which is a significant strength, but the debt issuance in Q3 changes the solvency picture.

As of September 30, 2025, Carlisle Companies Incorporated's balance sheet data shows a current ratio of 3.25 and a quick ratio (Acid-Test Ratio) of 2.62. These are exceptionally high for an industrial conglomerate; anything over 1.0 is generally considered healthy, and over 2.0 is excellent. This means CSL has $3.25 in current assets for every dollar of current liabilities, and even after stripping out inventory, the quick ratio of 2.62 confirms its ability to meet immediate obligations without relying on selling stock.

Here's the quick math on their short-term financial health:

• Current Assets (Q3 2025): $2,483.1 million
• Current Liabilities (Q3 2025): $764.7 million
• Inventory (Q3 2025): $481.4 million

The company's working capital (Current Assets minus Current Liabilities) has also seen a healthy expansion. At the end of 2024, working capital was around $1,260.5 million, but by the end of Q3 2025, it had grown to approximately $1,718.4 million. This 36% increase in working capital over nine months is defintely a positive trend, indicating a larger buffer for operational needs and a strong ability to fund growth internally.

The cash flow statement for the nine months ended September 30, 2025, further paints a picture of financial strength, primarily driven by core operations. Cash provided by operating activities was a robust $716 million. This is the lifeblood of the company, showing a consistent ability to convert sales into cash. Operating cash flow is solid.

However, the investing and financing activities show a clear capital allocation strategy that impacts the overall balance sheet:

• Operating Cash Flow: Generated $716 million.
• Investing Cash Flow: Used $199 million for capital expenditures and acquisitions.
• Financing Cash Flow: Returned $1.1 billion to shareholders via share repurchases and dividends.

What this overview hides is the significant debt issuance of $1.0 billion during Q3 2025, which was used to fund the aggressive share repurchase program. While the liquidity ratios are excellent, this debt issuance-which pushed long-term debt to $2,878.8 million by Q3 2025-shifts the focus from pure liquidity to solvency (the ability to meet long-term obligations). The company is choosing to use debt to optimize its capital structure and return capital to shareholders, a move you should weigh against their Mission Statement, Vision, & Core Values of Carlisle Companies Incorporated (CSL).

The strength is clear: Carlisle Companies Incorporated has ample cash and liquid assets, with $1,105.0 million in cash and equivalents as of Q3 2025. The potential risk is the increase in leverage from the debt issuance, which will raise interest expense, but the high cash flow generation suggests they can service this debt comfortably. The liquidity position is a clear strength; the solvency profile is now more leveraged due to strategic capital deployment.

Valuation Analysis

You want to know if Carlisle Companies Incorporated (CSL) is a buy right now, and the quick answer is that the market sees it as a 'Hold' or 'Moderate Buy' depending on the analyst model you trust. The stock is currently trading near its 52-week low, which suggests a deep discount, but recent cautionary guidance from management has tempered the overall enthusiasm.

Looking at the 2025 fiscal year, the valuation metrics show a company that is reasonably priced relative to its future earnings, but still commands a premium on its assets. The key takeaway is that the current price of around $303.76 (as of mid-November 2025) is significantly below the average analyst target, signaling potential upside, but the market is clearly waiting for a bottom in nonresidential construction before committing capital. That's the realist's view.

Is Carlisle Companies Incorporated (CSL) Overvalued or Undervalued?

The valuation picture for Carlisle Companies Incorporated (CSL) is nuanced, sitting right at the intersection of 'fair value' based on discounted cash flow (DCF) models and 'undervalued' based on Wall Street's price targets. A DCF model suggests the stock is trading near its intrinsic value of approximately $295.69, meaning it's neither a bargain nor overpriced. However, the consensus of professional analysts paints a different picture, seeing a strong rebound ahead.

The forward Price-to-Earnings (P/E) ratio for 2025 is estimated to be around 15.33x to 16.7x, based on expected 2025 Earnings Per Share (EPS) of roughly $22.09 to $24.85. This is a reasonable multiple for a high-quality industrial conglomerate, especially when compared to its trailing P/E of around 17.56x. The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is also healthy, landing around 12.03x, which is slightly below its historical average and suggests operational cash flow is not being overvalued.

Here's the quick math on the core ratios:

• Forward P/E (2025 Est.): 15.33x to 16.7x
• Price-to-Book (P/B): 6.43x (This is high, reflecting the value of its brands and intellectual property, not just tangible assets).
• EV/EBITDA: 12.03x (A decent multiple for a market leader in building products).

Stock Performance and Dividend Stability

The stock price trend over the last 12 months has been a tough ride for investors. Carlisle Companies Incorporated (CSL) hit a 52-week high of approximately $472.66 in late 2024, but has since fallen sharply, showing a one-year decline of over 31% as of mid-November 2025. This drop reflects the market's reaction to a softer outlook for nonresidential construction, which is a core business segment.

Still, the company's commitment to returning capital is defintely strong. Carlisle Companies Incorporated (CSL) is a dividend aristocrat, having raised its dividend for 49 consecutive years.

The dividend metrics remain robust, even with the recent stock price volatility:

• Annual Dividend: $4.40 per share.
• Dividend Yield: Approximately 1.45%.
• Payout Ratio (Earnings): A very safe 17.6% to 23.91%, meaning the dividend is well-covered by earnings and cash flow.

Analyst Consensus and Price Targets

Wall Street's collective view, based on a recent poll of analysts, is a 'Hold' or 'Moderate Buy'. While there are more 'Buy' ratings than 'Sell' ratings, the majority of analysts have adopted a cautious 'Hold' stance, waiting for clearer signs of a cyclical upturn.

The average 12-month price target is approximately $386.67, which suggests an upside potential of over 30% from the current price. The range is wide, with a high target of $415.00 and a low of $340.00. This significant gap between the current price and the consensus target indicates that analysts believe the market has overreacted to the near-term weakness in the construction sector.

For a deeper dive into who is buying and selling at these prices, you should check out Exploring Carlisle Companies Incorporated (CSL) Investor Profile: Who's Buying and Why?

The action here is clear: if you believe in the company's long-term 'Vision 2030' targets-which aim for $40 in adjusted EPS-the current price offers a compelling entry point, but you must be prepared for volatility until the nonresidential construction cycle turns.

Risk Factors

You've seen the headlines for Carlisle Companies Incorporated (CSL): resilient Q3 earnings, strong cash flow, but a flat full-year revenue outlook. The financial health is robust, but a seasoned investor knows to look past the top-line numbers and straight into the risk factors that are actually driving management's cautious guidance.

The core issue is a significant slowdown in new construction, both residential and commercial, which is hitting CSL's Carlisle Weatherproofing Technologies (CWT) segment hard. This isn't a surprise, but the depth of the impact is key.

Here's the quick math on the near-term risks CSL is navigating:

• Market Headwinds: Elevated mortgage rates and affordability challenges continue to depress new residential construction, directly impacting CWT's volumes.
• Volume Deleveraging: The softness in new construction led to an 8% organic revenue decline in CWT for Q3 2025, which caused the segment's adjusted EBITDA margin to fall to 17.4%, a decrease of 330 basis points year-over-year.
• Distribution Channel Disruption: Management has also flagged temporary fluctuations in order patterns due to ongoing consolidation among distributors, manufacturers, and contractors, which creates short-term demand uncertainty.

The market is simply not buying new homes or starting new commercial projects fast enough. That's the reality.

The external risks are clearly centered on the macroeconomic environment. The construction industry is highly cyclical, and CSL is not immune to a prolonged period of high interest rates. While the company's financial health remains strong-net debt-to-EBITDA is approximately 1.4x-the operational risk is margin compression due to lower volumes, or 'volume deleverage,' which means fixed costs are spread over fewer sales.

The revised full-year 2025 outlook now anticipates consolidated revenue to be essentially flat year-over-year, plus a reduction of approximately 250 basis points in the adjusted EBITDA margin compared to 2024. That margin pressure is a defintely a signal to watch.

To be fair, CSL is not just sitting on its hands. The company's primary mitigation strategy is the sheer resilience of its Carlisle Construction Materials (CCM) segment, which is focused on the non-discretionary commercial reroofing market. CCM's Q3 2025 adjusted EBITDA margin remained over 30% (specifically 30.2%), largely insulated by the mandatory nature of roof repair and replacement. This segment acts as a powerful buffer against the CWT segment's struggles.

Also, CSL is using its strong balance sheet to aggressively return capital to shareholders, increasing its full-year share repurchase target to $1.3 billion. They're betting on their long-term strategy, which you can read more about here: Mission Statement, Vision, & Core Values of Carlisle Companies Incorporated (CSL).

Growth Opportunities

You're looking for a clear map of where Carlisle Companies Incorporated (CSL) goes from here, and the answer is simple: they are doubling down on the stable, recurring revenue of the commercial re-roofing market and the massive tailwind of energy efficiency. This strategic pivot, driven by their Vision 2030 plan, is their core growth engine, even as new construction markets slow down.

The company has successfully transformed into a pure-play building products enterprise, and its future is anchored by non-residential re-roofing demand, which accounts for approximately 70% of the Carlisle Construction Materials (CCM) commercial roofing business. This is a resilient, non-cyclical revenue stream. Plus, the push for stricter energy efficiency standards across the US and Europe creates a permanent demand floor for their premium, energy-saving building envelope solutions.

• Acquisitions: Strategic buyouts like Bonded Logic (June 2025), which specializes in sustainable thermal and acoustical insulation, directly expand their portfolio into the growing sustainable solutions space.
• Innovation: The new Innovation Accelerator program, launched in February 2025, is focused on developing new products that deliver energy efficiency and labor savings for contractors.
• Efficiency: The Carlisle Operating System (COS) continues to drive operational efficiencies, which helps maintain margins even when volumes are under pressure.

Near-Term Financial Projections (FY 2025)

While the long-term Vision 2030 targets are ambitious-aiming for over $40 in adjusted earnings per share (EPS) and a 25% return on invested capital (ROIC)-the near-term outlook for 2025 is more of a mixed bag due to weakness in new construction. Honestly, the market is correcting, but Carlisle is using this time to return significant capital to shareholders.

The latest outlook for the full 2025 fiscal year suggests revenue will be flat year-over-year, or show low-single-digit growth, a revision from earlier, more optimistic forecasts. However, the acquisitions are providing a crucial top-line boost. For example, buyouts had a positive impact of 2.7% on net sales growth in the second quarter of 2025. The company is also aggressively managing its capital, increasing its share repurchase target to $1.3 billion for the full year of 2025. That's a strong signal of management's confidence in future cash flow.

Here's the quick math on the analyst consensus and company outlook for the full 2025 fiscal year:

What this estimate hides is the segment-level performance: the CCM segment (re-roofing focus) is holding up better than the Carlisle Weatherproofing Technologies (CWT) segment, which is more exposed to the sluggish residential and new construction markets.

Competitive Advantages and Market Positioning

Carlisle Companies Incorporated's competitive advantage is built on its market leadership in commercial roofing, specifically its innovative, energy-efficient single-ply roofing products. They own the technological advantage in this space. This leadership is reinforced by a deep, established distribution network that is difficult for competitors to replicate. The company is defintely positioned to capture the growth in the $14 billion addressable insulation market, especially after the Bonded Logic acquisition, which enhances its offering of sustainable building envelope products.

The commitment to sustainability, including a goal to achieve net-zero greenhouse gas emissions by 2050, is not just an environmental statement; it's a strategic advantage that aligns with global building codes and customer demand for green buildings. This focus ensures their product pipeline remains relevant and premium-priced. For a deeper dive into who is betting on this strategy, you should check out Exploring Carlisle Companies Incorporated (CSL) Investor Profile: Who's Buying and Why?

Next step: Financial analysts should model the impact of the $1.3 billion share repurchase program on the 2026 EPS forecast by the end of the month.