Carlisle Company Roofs Over Challenges in Q1 2025: Resilient Performance Despite Turmoil
Carlisle Company, a leading manufacturer of roofing and waterproofing products, has reported solid first-quarter 2025 financial results despite facing significant challenges. In a recent conference call, the company's management highlighted its perseverance and progress in driving key initiatives amidst tough year-over-year comparisons and an increasingly complex macroeconomic backdrop.
Revenue for Q1 came in at $1.1 billion, essentially flat year-over-year, with diluted EPS at $3.13 and adjusted EPS at $3.61. CEO Chris Koch attributed the company's resilience to its strong reroofing demand, which represents 70% of Carlisle's commercial business. This continued strength helped offset softer conditions in new commercial construction activity and low single-digit price declines.
Carlisle also benefited from its 2024 acquisition of MTL, a move that has contributed positively to the company's commercial segment (CCM). The ongoing challenge in residential end markets, however, remains a headwind for Carlisle's W&T segment. As Koch acknowledged, this is largely anticipated and impacts most market participants, although the underlying drivers are expected to bring significant growth and margin expansion.
A notable highlight from Q1 was the implementation of factory automation within Carlisle's CDT division. This effort is expected to provide incremental adjusted EBITDA per quarter of $3 million to $4 million, in addition to share gain initiatives. Furthermore, the company expects year-over-year pricing to be neutral for both its commercial and W&T segments in Q2.
Regarding tariffs, Carlisle emphasized that over 90% of its raw materials are sourced within North America, with many of its Mexican and Canadian materials covered by USMCA and not subject to tariffs. This positioning has helped mitigate the impact of ongoing U.S. tariff actions on the company's operations.
In conclusion, Carlisle Company has demonstrated remarkable resilience in Q1 2025, overcoming significant challenges and delivering solid results. As the residential market continues to evolve, the company remains committed to making progress in areas within its control, focusing on investments, new product introductions, and factory automation.
