NYSE:CSL
CARLISLE COMPANIES INC
A diversified industrial manufacturer producing essential engineered composites and specialty chemicals for global transport and infrastructure sectors.
Key Metrics
Investment Thesis
Bull Case
Carlisle offers an attractive yield profile supported by a history of consistent dividend payments and aggressive share buybacks that enhance per-share value. The company's diversified product mix across multiple industrial cycles provides natural hedging against sector-specific downturns, offering stability compared to single-segment peers.
Bear Case
Investors should be cautious regarding the contraction in revenue from 2023 levels and the significant decline in net income compared to the previous year. The heavy reliance on cyclical industries exposes the stock to economic headwinds that could further compress margins or delay capital expenditure initiatives.
About CARLISLE COMPANIES INC
Carlisle Companies Inc. is a global provider of engineered composite products serving diverse markets including transportation, construction, mining, and energy. The company manufactures high-performance materials such as fiberglass reinforced plastics, rubber compounds, and specialized resins tailored for demanding industrial applications.
Analysis
Management Discussion
Management successfully navigated a volatile period where revenue decreased slightly to $5.02B while generating strong operational cash flow of $1.10B. Despite a drop in net income to $740.7M from the prior year, the firm returned substantial capital to shareholders through $1.30B in repurchases and maintained robust liquidity with over $1.11B in cash.
Industry Overview
The engineered composites industry is a critical backbone for modern infrastructure, supporting lightweighting trends in transportation and durability requirements in mining operations. This sector faces ongoing pressure from inflationary input costs but benefits from long-term secular growth driven by global industrialization and sustainability mandates.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $6.59B | $4.59B | $5.00B | $5.02B |
| Cost of Revenue | $4.43B | $2.95B | $3.12B | $3.23B |
| Gross Profit | $2.16B | $1.63B | $1.89B | $1.79B |
| Operating Expenses | $881.7M | $651.4M | $744.6M | $790.1M |
| Operating Income | $1.28B | $982.8M | $1.14B | $1.00B |
| R&D | $50.8M | $28.7M | $35.4M | $47.1M |
| G&A | $811.5M | $625.2M | $722.8M | $745.4M |
| Stock-Based Comp | $31.2M | $41.5M | $30.1M | $34.8M |
| D&A | $251.3M | $151.1M | $172.6M | $196.5M |
| Depreciation | $96.7M | $84.3M | $70.2M | $74.6M |
| Amortization | $154.6M | $120.4M | $102.4M | $121.9M |
| Other OpEx | $19.4M | $-2.5M | $-13.6M | $-2.4M |
| Non-Operating Income | $-80.1M | $-52.4M | $-32.2M | $-53.7M |
| Interest Income | $7.1M | $20.1M | $60.3M | $25.9M |
| Pre-Tax Income | $1.20B | $930.4M | $1.11B | $948.8M |
| Income Tax | $270.4M | $211.5M | $245.8M | $206.3M |
| Continuing Ops | $925.2M | $718.9M | $865.1M | $742.5M |
| Discontinued Ops | $-1.2M | $48.5M | $446.7M | $-1.8M |
| Net Income | $924.0M | $767.4M | $1.31B | $740.7M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $924.0M | $767.4M | $1.31B | $740.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.25B | $3.41B | $1.93B | $2.28B |
| Cash & Equivalents | $400.0M | $576.7M | $753.5M | $1.11B |
| Accounts Receivable | $829.1M | $615.3M | $579.7M | $593.8M |
| Inventory | $748.8M | $361.7M | $472.7M | $447.3M |
| Other Current Assets | $267.1M | $1.85B | $120.4M | $124.2M |
| Long-Term Assets | $4.98B | $3.21B | $3.89B | $3.99B |
| PP&E (Net) | $822.7M | $655.2M | $711.8M | $807.1M |
| Intangibles | $1.84B | $1.25B | $1.50B | $1.43B |
| Goodwill | $2.20B | $1.20B | $1.48B | $1.54B |
| Operating Leases | $68.2M | $50.4M | $121.6M | $129.6M |
| Other LT Assets | $48.1M | $50.9M | $74.0M | $84.5M |
| Total Assets | $7.22B | $6.62B | $5.82B | $6.26B |
| Current Liabilities | $1.08B | $1.19B | $665.8M | $736.0M |
| Accounts Payable | $370.5M | $245.5M | $261.1M | $233.0M |
| Current Debt | $301.8M | $402.7M | $3.2M | $4.8M |
| Current Leases | $23.5M | $19.8M | $25.7M | $30.2M |
| Deferred Revenue | $40.3M | $26.4M | $28.3M | — |
| Taxes Payable | — | — | — | $147.8M |
| Other Current Liab | $-23.5M | $199.0M | $-25.7M | $320.2M |
| Long-Term Liabilities | $3.12B | $2.60B | $2.69B | $3.73B |
| Long-Term Debt | $2.28B | $1.89B | $1.89B | $2.88B |
| LT Operating Leases | $50.8M | $34.8M | $100.5M | $105.4M |
| Other LT Liab | $516.5M | $385.6M | $377.4M | $402.1M |
| Total Liabilities | $4.20B | $3.79B | $3.35B | $4.47B |
| Shareholders' Equity | $3.02B | $2.83B | $2.46B | $1.80B |
| Retained Earnings | $5.03B | $5.63B | $6.77B | $7.33B |
| AOCI | $-157.8M | $-111.1M | $-110.1M | $-70.0M |
| Treasury Stock | $2.44B | — | — | — |
| Total L&E | $7.22B | $6.62B | $5.82B | $6.26B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $924.0M | $767.4M | $1.31B | $740.7M |
| Non-Cash Adjustments | $-21.0M | $640.3M | $-307.6M | $359.6M |
| Working Capital Changes | $97.9M | $-206.4M | $26.1M | $1.5M |
| Cash from Operations | $1.00B | $1.20B | $1.03B | $1.10B |
| Capital Expenditures | $183.5M | $142.2M | $113.3M | $131.2M |
| Cash from Investing | $-61.1M | $352.4M | $1.23B | $-240.4M |
| Debt Issuances | $0 | $0 | — | $987.8M |
| Debt Repayments | $350.0M | $300.0M | $400.0M | $0 |
| Share Buybacks | $400.0M | $900.0M | $1.59B | $1.30B |
| Dividends Paid | $134.4M | $160.3M | $172.4M | $181.1M |
| Cash from Financing | $-862.0M | $-1.35B | $-2.11B | $-503.7M |
| FX Effect | $-2.2M | $1.5M | $-1.7M | $900.0K |
| Net Change in Cash | $75.6M | $205.5M | $148.0M | $358.6M |
| Beginning Cash | $324.4M | $364.8M | $576.7M | $753.5M |
| Ending Cash | $400.0M | $576.7M | $753.5M | $1.11B |
Frequently Asked Questions
How does CARLISLE COMPANIES INC make money?
Revenue is driven by four primary segments: Transportation Solutions providing interior components for vehicles; Construction Products offering roofing membranes and insulation; Mining & Energy supplying durable equipment parts; and Industrial Composites serving various manufacturing needs with custom material solutions.
What are the main risks for CSL?
Fluctuations in raw material commodity prices, particularly resins and rubber, can impact gross margins if not hedged effectively. Global macroeconomic downturns may suppress demand from key cyclical sectors like transportation and mining construction projects. Currency exchange rate volatility could erode international earnings given the company's significant overseas operations.
What is CSL's competitive advantage?
The company leverages a global footprint with strategic manufacturing sites to ensure supply chain resilience and cost efficiency. Its deep technical expertise in formulating unique composite materials creates high switching costs for customers reliant on specific performance characteristics like heat resistance or lightweight durability.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.