Carlisle Companies Incorporated CSL has been witnessing solid momentum in the Construction Materials segment, supported by the healthy demand for reroofing products. Strength in the non-residential construction market in the United States and Europe, driven by inventory normalization and growing re-roof activity as a result of pent-up demand, has been driving the segment’s performance. The company expects the segment’s revenues to increase in the mid-single digit in fourth-quarter 2024 from the year-ago period.

The company remains focused on acquiring businesses to gain access to new customers, regions and product lines. In December 2024, it completed the acquisition of Plasti-Fab. The buyout is expected to expand its building envelope product portfolio and strengthen its position in the North American polystyrene insulation market.

In May 2024, Carlisle acquired MTL Holdings from GreyLion Partners. The inclusion of MTL’s solid pre-fabricated edge metal products portfolio enabled CSL to expand its customer offerings and boost its architectural metals business.  Also, it recently signed a definitive deal to acquire ThermaFoam. The buyout will enable CSL to strengthen its Insulfoam EPS business and boost its market position in the South-Central United States. Buyouts had a positive impact of 2% on net sales growth in the nine months of 2024.

CSL remains focused on rewarding its shareholders with dividend payouts and share buybacks. For instance, in the first nine months of 2024, it paid a dividend of $127.4 million and repurchased shares worth $1.17 billion. Also, the quarterly dividend rate was hiked 18% in August 2024.

CSL’s One-Year Price Performance

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In the past year, this Zacks Rank #3 (Hold) company’s shares have gained 20.5% against the industry’s 11.4% decline.

However, softness in the residential construction market and project delays are adversely affecting the Weatherproofing Technologies segment. The slowdown in the new housing, repair and remodel activities has been affecting the segment’s performance. For the fourth quarter of 2024, revenues from the segment are projected to decline in low-single-digit on a year-over-year basis.

The company has also been subject to escalating operating costs and expenses. In the first nine months of the year, its selling and administrative expenses and cost of sales rose 17.2% and 6.8%, respectively, on a year-over-year basis.

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Carlisle Companies Incorporated (CSL) : Free Stock Analysis Report

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