Carlisle Companies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue reached $1.5 billion for the quarter, a 9% year-over-year increase; for the nine months ended September 30, 2026, revenue was $4.09 billion, up 5% year-over-year.
• Diluted EPS was $5.22 for the quarter, up 5% year-over-year; for the nine months, diluted EPS was $14.65, up 5% year-over-year.
• Adjusted EPS was $5.92 for the quarter, up 6% year-over-year; for the nine months, adjusted EPS was $16.55, up 7% year-over-year.
• Operating margin was 20.0% for the quarter, down 180 basis points year-over-year; for the nine months, operating margin was 20.2%, down 70 basis points year-over-year.
• Adjusted EBITDA was $348.1 million for the quarter, flat year-over-year; for the nine months, adjusted EBITDA was $994.7 million, up 2% year-over-year.
• Adjusted EBITDA margin was 23.8% for the quarter, down 210 basis points year-over-year; for the nine months, adjusted EBITDA margin was 24.3%, down 80 basis points year-over-year.
• Cash provided by operating activities was $511 million for the nine months ended September 30, 2026.
• Free cash flow from continuing operations was $407 million for the nine months ended September 30, 2026.
• As of September 30, 2026, cash and cash equivalents were $547 million, with $1.0 billion available under the revolving credit facility.
• Long-term debt, including current portion, was $2.89 billion as of September 30, 2026.

Guidance and Future Outlook:

• Fourth quarter 2026 outlook calls for high-single-digit revenue growth year-over-year.
• Fourth quarter 2026 adjusted EBITDA margin is expected to be flat year-over-year.
• Management expects the benefit of pricing actions to continue building through the fourth quarter and into 2027, with margin expansion resuming as raw material costs normalize.
• The outlook does not assume a near-term recovery in new construction markets.
• Long-term goals include advancing "Vision 2030" to achieve $40 of adjusted EPS and 25%-plus ROIC.

Business Segments and Product Lines:

• Carlisle Construction Materials (CCM) revenue increased 8% (9% organic) to $1.1 billion, driven by strong volume from strategic initiatives, pricing realization, and re-roofing demand.
• CCM operating income was $281 million, and adjusted EBITDA increased 1% to $306 million, with an adjusted EBITDA margin of 28.2%, down 200 basis points year-over-year.
• CCM growth was supported by traction in data centers and non-discretionary re-roofing demand driven by an aging building stock.
• Carlisle Weatherproofing Technologies (CWT) revenue increased 9% (10% organic) to $379 million, driven by share gains and weather conditions boosting roof coating demand.
• CWT operating income increased 31% to $39 million, and adjusted EBITDA grew 13% to $68 million, with an adjusted EBITDA margin of 18.0%, up 60 basis points year-over-year.
• CWT margin expansion reflected savings from automation, manufacturing consolidation, and in-house expanded polystyrene resin capacity.
• Nine of twelve new products planned for the year were in the market.

Market and Competitive Landscape:

• Both CCM and CWT grew faster than their underlying markets.
• CWT experienced continued weakness in residential and non-residential new construction, which was offset by share gains and weather-driven demand.
• CCM faced soft commercial new construction activity, tempered by solid re-roofing demand.
• Customers continued to choose Carlisle despite price realization actions, with no material change in demand observed.

Risks and Challenges:

• Petroleum-derived input and freight costs rose sharply due to renewed escalation of conflict in the Middle East, exceeding July outlook expectations.
• Raw material and freight cost inflation outpaced pricing realization in the quarter, driving the year-over-year decline in adjusted EBITDA margin.
• Management views the margin decline as a timing issue rather than a structural one, noting that pricing lags costs.
• Forward-looking statements cite risks including increasing competition, reliance on key customers, manufacturing disruptions, raw material cost increases, geopolitical conflicts, and regulatory changes.

Management Commentary and Tone:

• Chris Koch, Chair, President and CEO, described the results as a record third quarter adjusted EPS driven by "Vision 2030" strategic initiatives and the "Carlisle Experience."
• Management expressed confidence in the durability of the business model and the path to long-term goals despite inflationary pressures.
• Pricing actions, including freight surcharges and broad-based price increases, were implemented across both segments to address cost inflation.
• Management highlighted the resilience of re-roofing demand and the strength of the business model in the face of new construction softness.

Other Key Points:

• The quarterly dividend was increased by 14%, marking Carlisle's 50th consecutive annual increase and earning the company "Dividend King" status.
• The company repurchased $350 million of shares during the quarter.
• Total shareholder returns for the nine months ended September 30, 2026, were $990 million, comprising $850 million in share repurchases and $140 million in dividends.
• The company remains on track with its $1.2 billion share repurchase target for 2026.
• The M&A framework remains focused on disciplined, synergistic building envelope acquisitions that enhance systems offerings and meet strict returns criteria.
• Capital expenditures for the nine months ended September 30, 2026, were $107 million.
• The company is committed to achieving net-zero greenhouse gas emissions by 2050.