Carlisle Q1 Earnings Beat Estimates, Organic Revenues Decline Y/Y

Carlisle Companies IncorporatedCSL reported first-quarter 2026 adjusted earnings of $3.63 per share, which beat the Zacks Consensus Estimate of $3.31. However, the bottom line increased 1% year over year.

Carlisle’s total revenues of $1.05 billion missed the consensus estimate of $1.06 billion and decreased 4% year over year. Organic revenues fell 5% year over year. Acquisitions boosted the top line by 0.4% while foreign-currency translation had a positive impact of 0.6%.

CSL's Segmental Discussion

Carlisle has divested its Carlisle Interconnect Technologies segment. The company now reports under the following two segments.

Revenues from the Carlisle Construction Materials segment decreased 5.1% year over year to $758.1 million. Our estimate for segmental revenues was $780.5 million. Organic revenues decreased 5.8%. Revenues were offset by the weakness in the new construction market. Adjusted EBITDA of $208 million decreased 4% year over year.

Revenues from the Carlisle Weatherproofing Technologies segment decreased 1.1% year over year to $294 million, due to continued softness in residential and non-residential end markets. Our estimate for segmental revenues was $285.7 million. Organic revenues slipped 3%. Adjusted EBITDA of $45 million declined 3% year over year.

CSL’s Margin Profile

Carlisle’s cost of sales decreased 3% year over year to $688.9 million. Selling and administrative expenses decreased 11.4% to $171.8 million. Research and development expenses totaled $12.1 million, up 13.1% year over year.

CSL recorded an operating income of $180.3 million, down 1.8% year over year. However, the operating margin increased 30 basis points to 17.1% from the year-ago quarter. Our estimate for the operating margin was pegged at 14.4%.

Carlisle’s Balance Sheet and Cash Flow

At the end of the first quarter, Carlisle had cash and cash equivalents of $771.3 million compared with $1.11 billion at the end of 2025. Long-term debt (including the current portion) was $2.89 billion, flat compared with the figure reported at the end of 2025.

In the first three months of 2026, CSL used net cash of $44.7 million for operating activities compared with $1.80 million cash used in the year-ago period.

In the same period, CSL rewarded its shareholders with a dividend payment of $45.7 million, up 1.1% year over year. The company bought back shares worth $250.0 million, down 37.5% year over year.

CSL’s Outlook

For 2026, Carlisle retained its outlook. The company expects revenues from the Construction Materials segment to increase in low single-digits, while the Weatherproofing Technologies segment is also projected to increase in low single-digits year over year.

For 2026, the company expects revenues to increase in low single digits on a year-over-year basis. Adjusted EBITDA margin is expected to increase approximately 50 bps. The free cash flow margin is expected to be more than 15%.

CSL Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Graco Inc.GGG posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.

Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.

Danaher Corporation’s DHR first-quarter 2026 adjusted earnings of $2.06 per share beat the Zacks Consensus Estimate of $1.95. The bottom line increased 9.6% year over year.

Danaher reported net sales of $5.95 billion, which missed the consensus estimate of $5.99 billion. However, the metric increased 3.5% year over year.

3M CompanyMMM delivered adjusted earnings of $2.14 per share in the first quarter of 2026, which surpassed the Zacks Consensus Estimate of $2.02. The bottom line increased 14% year over year.

MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.02 billion. On an adjusted basis, organic revenues increased 1.2% year over year.

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This article originally published on Zacks Investment Research (zacks.com).

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