Carlisle Companies Incorporated (CSL): BCG Matrix [Dec-2025 Updated]

You're digging into Carlisle Companies Incorporated's (CSL) portfolio as they push hard on their Vision 2030 pure-play building products goal. As your former BlackRock analyst, I've mapped their current segments onto the BCG Matrix, and the picture is clear: the 30.2% margin Cash Cow, Carlisle Construction Materials, is bankrolling the push into high-growth Stars like their new insulation tech, while funding the $1.3 billion share repurchase target, all while the Question Mark segment, Carlisle Weatherproofing Technologies, battles a -10% revenue dip in residential. Let's cut through the noise and see exactly where you should focus your attention on this portfolio right now.

Background of Carlisle Companies Incorporated (CSL)

You're looking at Carlisle Companies Incorporated (CSL), a key player in the building products space, headquartered in Scottsdale, AZ. As of late 2025, the company operates primarily through two segments: Carlisle Construction Materials (CCM) and Carlisle Weatherproofing Technologies (CWT). Honestly, the business model leans heavily on the imperative nature of commercial re-roofing, which helps provide a certain level of stability even when the broader market gets choppy.

For the third quarter of 2025, which ended on September 30th, Carlisle Companies Incorporated posted total revenues of $1.3 billion, representing a 1% year-over-year increase. You saw adjusted Earnings Per Share (EPS) come in at $5.61 for that quarter. The company, led by CEO Chris Koch, has about 11,000 employees and is focused on its Vision 2030 strategy, aiming to deliver innovative, labor-reducing products.

Let's break down those segments based on the Q3 2025 results. CCM, which is the larger piece, brought in revenue of $1.0 billion, showing a slight increase of 0.3% year-over-year, but its adjusted EBITDA margin was quite strong at 30.2%. On the other hand, CWT generated revenue of $346 million, up 3% overall, though its organic growth was down 8% as it navigated softer residential demand; its adjusted EBITDA margin was 17.4%.

Looking ahead, Carlisle Companies revised its full-year 2025 outlook to expect flat revenue year-over-year, with adjusted EBITDA margins expected to be down 250 basis points from 2024, yet still firmly in the mid-20s percent range. The company is committed to capital deployment, increasing its share repurchase target to $1.3 billion for the full year of 2025, and it just marked its 49th consecutive annual dividend increase with a recent 10% hike.

Financially, for the first nine months of 2025, cash provided by operating activities reached $716 million. Analysts, by the way, are looking for the full-year 2025 EPS to land around $22.31. The U.S. remains the core market, accounting for about 90.5% of total revenues.

Carlisle Companies Incorporated (CSL) - BCG Matrix: Stars

You're analyzing the portfolio of Carlisle Companies Incorporated (CSL) to pinpoint where the real momentum lies, and the Stars quadrant is where you see the future cash cow potential. Stars are the business units or product lines that dominate a rapidly expanding market, demanding heavy investment to maintain that lead. For Carlisle Companies Incorporated as of 2025, the primary Star focus is clearly within the Carlisle Construction Materials (CCM) segment, particularly its recurring re-roofing business, bolstered by strategic, high-growth acquisitions.

The Carlisle Construction Materials (CCM) segment is characterized by its leadership in the building envelope market, which is seeing sustained demand driven by energy efficiency mandates and the need for building maintenance. The commercial re-roofing market, a core driver here, is meeting management's expectations for mid-single-digit growth in 2025. This recurring revenue stream is significant, accounting for approximately 70% of CCM's commercial roofing business. This segment is a leader in a growing niche, fitting the Star definition perfectly, though it requires continued investment in promotion and placement to fend off competitors.

Here's a look at the key indicators for the identified Star areas within Carlisle Companies Incorporated's portfolio as of mid-2025:

The push into innovative, labor-saving products is a clear investment strategy to secure future Cash Cow status. The recent acquisition of Bonded Logic, finalized in June 2025, directly addresses the need for new products targeting sustainable, high-growth insulation. This move enhances Carlisle Companies Incorporated's offering in the building envelope, specifically with products like the Henry® UltraTouch® recycled denim insulation, which is noted for being easier to install than conventional options. This innovation is designed to capture market share in a segment where energy efficiency is a major purchasing driver.

The overall Carlisle Construction Materials (CCM) segment is expected by management to deliver mid-single-digit revenue growth for the full year 2025, supported by these strengths. The company is actively investing in these areas, as seen by the capital expenditures planned, which include priorities like new product development. To be fair, the overall company outlook was cautiously revised to low-single-digit revenue growth for FY 2025 due to CWT softness, but the Star segments are expected to outperform the aggregate.

You should track the following product/business characteristics that define these Stars:

• Innovative, labor-saving products in the building envelope market.
• High-performance insulation and air/vapor barrier systems, a high-growth niche.
• New products from the Bonded Logic acquisition, targeting sustainable, high-growth insulation.
• Energy-efficient solutions driving market share in the commercial reroofing market.

The investment thesis here is that sustained success in these high-growth, high-share areas will see them transition into Cash Cows as the overall market growth rate inevitably slows down. Finance: draft Q3 2025 capital allocation review focusing on Star segment reinvestment by next Tuesday.

Carlisle Companies Incorporated (CSL) - BCG Matrix: Cash Cows

You're looking at the engine room of Carlisle Companies Incorporated, the segment that consistently outperforms expectations even when the broader market is choppy. This is where the high market share in a mature space really pays off.

Carlisle Construction Materials (CCM) segment stands out as the market leader in commercial single-ply roofing. This position is buttressed by its dominant role in the non-discretionary commercial re-roofing market, which you should note accounts for approximately 70% of its total commercial business. This imperative, non-discretionary nature of re-roofing provides a stable foundation, even when new construction activity faces headwinds.

Here's a quick look at the financial muscle CCM is flexing, juxtaposed with the consolidated results from the third quarter of 2025:

The segment generates superior margins, a hallmark of a true Cash Cow. For instance, the CCM Adjusted EBITDA margin hit 30.2% in Q3 2025. This high profitability is what allows Carlisle Companies Incorporated to maintain its overall operating margin at 21.8% despite softness elsewhere. Honestly, this segment is the primary source of the stable, recurring cash flow the company relies on to fund its capital deployment strategy.

This cash generation is substantial. Carlisle Companies Incorporated expects to generate approximately $1.0 billion of cash from operating activities for the full year 2025. You see this commitment to returning capital directly reflected in the balance sheet actions. Management increased the share repurchase target to $1.3 billion for the full year 2025, having already deployed $1.0 billion in share repurchases year-to-date through the third quarter. This strategy of 'milking' the gains passively, while making low-growth, high-share investments to maintain efficiency, is exactly what you expect from a mature, market-leading business unit like CCM.

• CCM Revenue (Q3 2025): $1.0 billion
• CCM Adjusted EBITDA Margin (Q3 2025): 30.2%
• Commercial Re-roofing Share of CCM Commercial Business: 70%
• Full Year 2025 Share Repurchase Target: $1.3 billion

Finance: draft 13-week cash view by Friday.

Carlisle Companies Incorporated (CSL) - BCG Matrix: Dogs

Carlisle Companies Incorporated has actively streamlined its portfolio to align with the Vision 2030 focus on being a pure play building products company, which inherently means legacy non-core lines are candidates for removal, fitting the Dog profile.

The former Carlisle Brake & Friction (CBF) and Carlisle Fluid Technologies (CFT) segments represent historical examples of units that were candidates for divestiture as the company pivoted away from general industrial businesses.

The divestiture of Carlisle Interconnect Technologies (CIT), the last non-building products business, was completed in 2024, utilizing proceeds to fund share repurchases totaling $1.6 billion in 2024.

Within the continuing operations, the Carlisle Weatherproofing Technologies (CWT) segment exhibited characteristics aligning with the Dog quadrant in early 2025, specifically concerning its residential exposure, which faced sustained negative organic growth.

For the first quarter of 2025, the CWT segment revenue declined 5% year-over-year to $297 million. The organic revenue for CWT decreased by 12% in that same quarter, driven by softer residential end markets. This performance contrasts sharply with the Carlisle Construction Materials (CCM) segment, which saw revenue increase 2% year-over-year to $799 million in Q1 2025.

Margin pressure was significant in the struggling area; the CWT segment's Adjusted EBITDA margin for Q1 2025 was 15.6%, a decline of 510 basis points year-over-year. This segment's performance contributed to the total company Adjusted EBITDA margin falling to 21.8% in Q1 2025, down 240 basis points from Q1 2024.

The strategic implication for units fitting this profile is clear, as Carlisle Companies Incorporated continues to focus capital deployment on high-returning assets under Vision 2030.

Product lines facing sustained negative organic growth without a clear path to market leadership are candidates for minimization or divestiture, as the company prioritizes above-market growth.

• Legacy, non-core product lines within continuing operations not aligned with Vision 2030.
• Small, low-margin product offerings in highly fragmented or commoditized building materials sub-markets.
• Product lines facing sustained negative organic growth without a clear path to market leadership.

The company is actively deploying capital toward share repurchases, planning approximately $1 billion in 2025, signaling a preference for returning capital rather than investing in low-return areas.

For the six months ended June 30, 2025, cash provided by operating activities was $289 million, and free cash flow from continuing operations was $228 million. This cash generation is directed toward strategic acquisitions, like Bonded Logic completed in June 2025, and shareholder returns, rather than supporting low-growth, low-share businesses.

Finance: Review Q3 2025 CWT segment performance metrics against the FY 2025 low-single-digit revenue growth target by next Tuesday.

Carlisle Companies Incorporated (CSL) - BCG Matrix: Question Marks

You're looking at the units in Carlisle Companies Incorporated (CSL) that are currently burning cash but hold the promise of future dominance. These are the Question Marks, operating in markets that are expanding, but where Carlisle Companies Incorporated hasn't yet secured a leading position. They need serious capital to move into the Star quadrant, or they risk becoming Dogs.

The primary candidate for this quadrant is the Carlisle Weatherproofing Technologies (CWT) segment. This division is actively being built up through strategic Mergers & Acquisitions (M&A), like the recent purchase of Bonded Logic, which targets the $14 billion insulation market. Still, its current performance reflects the high-risk, high-reward nature of a Question Mark.

Here's the quick math on CWT's recent struggles, which highlight the cash consumption issue:

The core issue you see here is the exposure to struggling residential end-markets. That -10% organic revenue decline in the second quarter of 2025 is a clear signal that current market share isn't translating into growth in that specific area. This segment is consuming cash to maintain operations and fund growth initiatives while returns are lagging.

The strategy for CWT is clearly one of heavy investment to capture that high-growth niche potential. You're seeing this investment manifest in a few ways:

• Focus on strategic M&A to build scale in adjacent, high-growth areas like insulation.
• Investment in automation capital projects within CWT factories, expected to yield an incremental $12 million in annualized adjusted EBITDA.
• Pushing into high-growth areas like liquid-applied roofing (previously ~7-9% market growth) and spray foam polyurethanes (previously ~10% market growth).

Honestly, the segment's overall FY 2025 revenue guidance of low-single-digit growth seems optimistic given the Q2 residential performance, but it relies heavily on these capital investments paying off quickly. If these high-investment areas-like getting share in liquid-applied roofing-don't accelerate rapidly, CWT risks seeing that 19.9% margin compress further and the segment could easily slip into the Dog quadrant. Carlisle Companies Incorporated needs to see a quick conversion of this high-growth potential into market leadership, or divestment becomes the more logical choice. Finance: draft 13-week cash view by Friday.