Carlisle Companies Inc (CSL) Reports Q3 2023 Earnings: Revenue Declines but Margin Improves
Carlisle Companies Inc (NYSE:CSL) reported a GAAP diluted EPS of $4.32 and adjusted EPS of $4.68 for Q3 2023, marking a 7.1% YoY decrease.
Third quarter revenues stood at $1.3 billion, a 15.8% YoY decline.
Despite the revenue decline, the company saw an operating margin of 24% and an adjusted EBITDA margin improvement of 100 bps.
During the quarter, the company repurchased 1.2 million shares for $330 million.
On October 26, 2023, Carlisle Companies Inc (NYSE:CSL) announced its third quarter 2023 financial results. Despite a challenging macro environment, the company demonstrated resilience and delivered superior returns. The company's strategic focus on building products and the restructuring of its portfolio, referred to as the "Pivot", has positioned it as a pure-play building products company.
Financial Performance
Carlisle Companies Inc (NYSE:CSL) reported a GAAP diluted EPS of $4.32 and adjusted EPS of $4.68 for the third quarter, marking a 7.1% YoY decrease. The company's third quarter revenues stood at $1.3 billion, a 15.8% YoY decline. Despite the revenue decline, the company saw an operating margin of 24% and an adjusted EBITDA margin improvement of 100 bps.
Company's Comments
The third quarter results reinforced our conviction that a focused building products portfolio is the correct strategic path forward. Our building products portfolio demonstrated our resilience and ability to deliver superior returns in a challenging environment. We are pleased by the Carlisle teams strong margin results, achieving an adjusted EBITDA margin of 27.0% and adjusted EPS of $4.68 for the third quarter of 2023. We maintained pricing levels while delivering consistent share, evidenced by our ability to expand adjusted EBITDA margin by 100 basis points year-over year. This adjusted EBITDA margin expansion is a testament to our ability to sustain strong margins throughout economic cycles and reflects our team's unwavering dedication to providing the Carlisle Experience to end users and our commitment to continuous improvement through the Carlisle Operating System (COS)." - Chris Koch, Chair, President and Chief Executive Officer
Segment Highlights
The Carlisle Construction Materials (CCM) segment reported a revenue of $914.0 million, a 16.2% YoY decline. The Carlisle Weatherproofing Technologies (CWT) segment reported a revenue of $345.8 million, a 15.0% YoY decline. Despite the revenue decline, both segments saw an improvement in their adjusted EBITDA margins.
Cash Flow and Share Repurchase
Operating cash flow from continuing operations for the nine months ended September 30, 2023, was $661.9 million, an increase of $119.3 million versus the prior year. During the nine months ended September 30, 2023, the company deployed $580.0 million toward share repurchases, including $330.0 million in the current quarter.
Despite the challenges posed by the Federal Reserves tightening actions and a desire to reduce inflation, Carlisle Companies Inc (NYSE:CSL) remains confident in its long-term vision and strategies, and its strong positioning within the building products industry.
Explore the complete 8-K earnings release (here) from Carlisle Companies Inc for further details.
This article first appeared on GuruFocus.
