Carlisle Companies (CSL1) Q3 2026 Earnings Report

The call was predominantly positive. Carlisle delivered record third-quarter adjusted EPS, 9% revenue growth, above-market growth in both segments, strong data center momentum, resilient reroofing demand, progress on efficiency and innovation initiatives, substantial capital returns, and reaffirmed long-term targets. The principal challenges were escalating raw material and freight costs, delayed price-cost parity, lower margins, and continued weakness in new construction and residential markets. Management characterized the margin pressure as a timing issue rather than a structural problem and maintained a constructive outlook for 2027.

For the fourth quarter, Carlisle expects consolidated revenue to grow high single digits year-over-year, with both CCM and CWT up high single digits; CCM price realization is expected to be about 7% on a year-over-year basis, with the end market being up a couple of percent, while adjusted EBITDA margin is expected to be flat year-over-year, including CCM margin flat year-over-year and about 100 basis points of improvement at CWT, with about $10 million of negative impact in both segments from higher raw material and freight costs. The company expects to reach price cost parity as it exits 2026, assuming stability in input costs and freight and no further deterioration in global markets, and expects the benefit of its pricing actions to carry into 2027; Q4 raw material and freight increases are expected to be somewhere between high -- mid-teens and high teens, assuming costs stay where they are right now. For the full year, Carlisle expects ROIC of approximately 25% and free cash flow margin of approximately 15%, remains on track for $1.2 billion of share repurchases, expects no recovery in new construction, and expects $20 million and $30 million of contribution from CWT structural efficiency investments for this year.