Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q4 2024 Earnings Presentation
28 slides from Carlisle Companies's earnings presentation, Feb 4, 2025
Slide 1: Fourth Quarter 2024 Earnings Call
Fourth Quarter 2024 Earnings Call February 4, 2025
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally use words such as "expect," "foresee," "anticipate," "believe," "project," "
Slide 3: Full Year 2024 Overview
Full Year 2024 Overview • Record adjusted EPS, increased 30% YoY $5.0B ◦ Revenue growth of 9%, including 7% organic* Revenues ◦ Record adjusted EBITDA margin, up 150 bps YoY • Completed pivot to a pure play building products company 26.6% • Strengthened market position through strategic M&A Adj. EBI
Slide 4: Fourth Quarter 2024 Overview
Fourth Quarter 2024 Overview • Revenues flat YoY despite market headwinds $1.1B • Record fourth quarter adjusted EPS, increased 7% YoY Revenues • Completed acquisition of Plasti-Fab and announced acquisition of ThermaFoam (completed Feb 3rd) 25.1% Adj. EBITDA Margin* • Returned $465M to shareholders
Slide 5: Recent Acquisitions Aligned with Vision 2030 M&A Playbook
Recent Acquisitions Aligned with Vision 2030 M&A Playbook Consistent with Vision 2030 strategy to pursue and integrate accretive acquisitions that strengthen Carlisle's presence in the building envelope MTL is a best-in-class provider of high-performance, prefabricated perimeter edge metal systems a
Slide 6: Vision 2030 Value Creation Drivers and Targets
Vision 2030 Value Creation Drivers and Targets Key Pillars Vision 2030 Key Financial Carlisle Operating System • Drive operational excellence Targets The Carlisle Experience 5% • Win with customers through exceptional service Innovation $40+ Organic Revenue • Advance energy-efficient and labor savin
Slide 7: Fourth Quarter 2024 Results
Fourth Quarter 2024 Results Revenue Adj. EBITDA Margin* Adj. EPS* -0.4% (-4% Organic*) -130 bps +7% 26.4% 25.1% $4.47 $1,128M $1,123M $4.17 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 • MTL acquisition • Lower volumes • Share repurchases • Robust re-roofing • Negative price/cost • MTL acquisition • Offset by chal
Slide 8: Carlisle Construction Materials (CCM) Segment Fourth Quarter 2024 Performance
Carlisle Construction Materials (CCM) Segment Fourth Quarter 2024 Performance Revenue Adj. EBITDA* Adj. EBITDA Margin* +2% (-2% Organic*) -4% -180 bps $816M $834M $255M $245M 31.2% 29.4% 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 Notable Revenue Drivers: • Addition of MTL as of May 1, 2024 • Robust re-roof activ
Slide 9: Carlisle Weatherproofing Technologies (CWT) Segment Fourth Quarter 2024 Performance
Carlisle Weatherproofing Technologies (CWT) Segment Fourth Quarter 2024 Performance Revenue Adj. EBITDA* Adj. EBITDA Margin* -7% (-8% Organic*) -24% -390 bps $312M $289M $69M 22.2% $53M 18.3% 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 Notable Revenue Drivers: • Softer residential end market impacted by affordabi
Slide 10: Fourth Quarter 2024 Adjusted EPS Bridge
Fourth Quarter 2024 Adjusted EPS* Bridge $0.26 $4.47 $0.25 $4.17 $0.14 $(0.35) 4Q23 Adj. EPS* Organic Acquisitions Share Repurchases Net Interest/Tax 4Q24 Adj. EPS* * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. 10
Slide 11: FY 2024 Adjusted EPS Bridge
FY 2024 Adjusted EPS* Bridge $0.69 $1.20 $0.42 $20.20 $2.37 $15.52 FY23 Adj. EPS* Organic Acquisitions Share Repurchases Net Interest/Tax FY24 Adj. EPS* * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. 11
Slide 12: Strong Balance Sheet to Execute Growth and High-Return Capital Deployment Strategy
Strong Balance Sheet to Execute Growth and High-Return Capital Debt Maturity Schedule Deployment Strategy Total Liquidity Net Debt to Senior EBITDA* Ratio Note $750M $1.8B 0.8x Senior Note 2.75% Senior Senior Including cash of $754M and Below 1.0x-2.0x target $600M NoteNote driven by CIT proceeds 3.
Slide 13: Fourth Quarter 2024 Cash Flow Performance
Fourth Quarter 2024 Cash Flow Performance $1,039 $1,037 $101 $111 $938 $926 $378 $375 $37 $24 $341 $351 4Q24 4Q23 YTD24 YTD23 Operating Cash Flow* Capital Expenditures* Free Cash Flow* Achieved 18.8% free cash flow margin* in 2024, exceeding Vision 2030 target * Continuing Operations; Reference the
Slide 14: Disciplined Capital Deployment Approach to Drive Superior Returns
Disciplined Capital Deployment Approach to Drive Superior Returns $40+ 25%+ Adj. EPS ROIC Share Repurchases $1.6B repurchased in FY24 Dividends $172M paid in FY24 Acquisitions $677M for MTL & Plasti-Fab 15%+ Reinvestment $101M in capex (cont. ops.) FCF 14
Slide 15: 2025 Full-Year Growth Outlook
2025 Full-Year Growth Outlook Primary Drivers • CCM revenue up MSD YoY on continued strength in re- roofing and full year of MTL MSD ~50 bps • CWT revenue up HSD YoY on share gains and Revenue Adj. EBITDA acquisitions of Plasti-Fab and ThermaFoam Growth Margin Growth • Additional Items: • Corporate
Slide 16: Appendix
CARLISLE Appendix
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company uses the following definitions of financial measures that are not presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”): 1. Organic revenue: Revenues excluding revenue from acquisitions completed in the
Slide 18: Reconciliation to Organic Revenue
Reconciliation to Organic Revenue Three Months Ended December 31, (in millions, except percentages) CSL CCM CWT 2023 Revenues (GAAP) $ 1,127.5 $ 815.9 $ 311.6 Organic (39.2) (3.5)% (14.4) (1.8)% (24.8) (8.0)% Acquisitions 34.8 3.1 % 31.7 3.9 % 3.1 1.0 % FX impact (0.2) —% 0.4 0.1 % (0.6) (0.2)% Tota
Slide 19: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow Three Months Ended Year Ended December 31, December 31, (in millions) 2024 2023 2024 2023 Operating cash flow (GAAP) $ 370.6 $ 388.9 $ 1,030.3 $ 1,201.3 Less: operating cash flow from discontinued operations (7.1) 13.6 (8.9) 164.1 Operating cash flow from continuing
Slide 20: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended Year Ended December 31, December 31, (in millions, except percentages) 2024 2023 2024 2023 Net income (GAAP) $ 162.8 $ 205.5 $ 1,311.8 $ 767.4 Less: Income from discontinued operations 0.4 13.8 446.7 Senior 48.5 Income from continuing operations (
Slide 21: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended December 31, 2024 Corporate and (in millions, except percentages) CCM CWT unallocated Senior Operating income (loss) (GAAP) $ 223.3 $ 25.4 $ (24.7) Note Non-operating expense (income), net 0.8 (1.3) 21.2 $750 EBIT 222.5 26.7 (45.9) M Exit and disp
Slide 22: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended December 31, 2023 Corporate and (in millions, except percentages) CCM CWT unallocated Operating income (loss) (GAAP) $ 238.3 $ 45.5 $ (30.2) Non-operating (income) expense, net (0.4) 0.2 (1.7) EBIT 238.7 45.3 (28.5) Exit and disposal, and facility
Slide 23: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Year Ended December 31, 2024 Corporate and (in millions) CCM CWT unallocated Senior Operating income (loss) (GAAP) $ 1,084.3 $ 173.6 $ (114.8) Note Non-operating expense (income), net 0.8 (1.3) 19.7 $750 EBIT 1,083.5 174.9 (134.5) M Exit and disposal, and facility r
Slide 24: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Year Ended December 31, 2023 Corporate and (in millions) CCM CWT unallocated Operating income (loss) (GAAP) $ 913.9 $ 187.9 $ (119.0) Non-operating (income) expense, net (0.4) 0.2 (2.9) EBIT 914.3 187.7 (116.1) Exit and disposal, and facility rationalization costs 5
Slide 25: Reconciliation to Adjusted EPS
Reconciliation to Adjusted EPS Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Pre-tax Post-tax Impact to Pre-tax Post-tax Impact to (in millions, except per share amounts) Impact Impact(1) Diluted EPS(2) Impact Impact(1) Diluted EPS(2) Net income (GAAP) $ 162.8 $ 3.57 $ 20
Slide 26: Reconciliation to Adjusted EPS
Reconciliation to Adjusted EPS Year Ended Year Ended December 31, 2024 December 31, 2023 Pre-tax After-tax Impact to Pre-tax After-tax Impact to (in millions, except per share amounts) Impact Impact(1) Diluted EPS(2) Impact Impact(1) Diluted EPS(2) Net income (GAAP) $ 1,311.8 $ 27.82 $ 767.4 $ 15.18
Slide 27: Reconciliation to ROIC
Reconciliation to ROIC Year Ended (in millions, except percentages) December 31, 2024 Net income (GAAP) $ 1,311.8 Less: income from discontinued operations (GAAP) 446.7 Income from continuing operations (GAAP) 865.1 Provision for income taxes 245.8 Interest expense, net 73.3 Interest Income (60.3) E
Slide 28: Reconciliation of Debt Covenant Ratios
Reconciliation of Debt Covenant Ratios (in millions, except ratios) LTM 12/31/2024 Income from continuing operations (GAAP) $ 865.1 Income tax expense 245.8 Interest expense 73.3 Depreciation and amortization 172.6 Non-cash stock-based compensation expense 32.9 Senior EBITDA per debt covenants $ 1,3