CSL earnings analysis
What we found in CSL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Carlisle reported Q1 2026 revenue of $1,052.1 million, down $43.7 million (4.0%) year‑over‑year, with GAAP diluted EPS from continuing operations of $3.10 versus $3.13 in Q1 2025. Management drove margin resilience despite volume pressure: consolidated operating margin rose to 17.1% (from 16.8%) and adjusted EBITDA margin expanded 50 basis points to 22.3% even as gross margin compressed to 34.5%. Operating cash flow was a use of $(44.7) million in the quarter and free cash flow was negative (~$(73.0) million after $28.3 million of capex), while the company returned capital via $250.0 million of share repurchases and $45.7 million of dividends. Management cites raw‑material (oil‑linked) cost inflation, price increases and COS productivity as the primary drivers and confirms liquidity to fund operations for at least the next 12 months.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Adjusted EBITDA margin expansion
- Adjusted EBITDA margin expanded 50 bps year‑over‑year to 22.3% (adjusted EBITDA $234.6M versus $238.4M in Q1 2025) despite lower revenue of $1,052.1M.
- Operating margin improved
- Consolidated operating margin increased to 17.1% in Q1 2026 from 16.8% in Q1 2025, with operating income of $180.3M vs $183.6M.
- CCM margin resilience
- Carlisle Construction Materials (CCM) adjusted EBITDA margin rose to 27.4% in Q1 2026 (adjusted EBITDA $207.9M) while revenues were $758.1M (down $40.4M versus $798.5M).
- CWT operating margin expansion
- Carlisle Weatherproofing Technologies (CWT) operating margin improved to 5.9% in Q1 2026 (operating income $17.3M) despite revenue decline to $294.0M.
- Active capital returns
- Net cash used in financing activities included $250.0M of share repurchases and $45.7M of dividends in Q1 2026.
- Product innovation momentum
- Management says the new ThermaThin 7 polyiso received two Expo awards and the company is "on track to launch many new products in 2026," supporting future product‑led growth (qualitative progress noted in MD&A).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenue decline / market softness
- Consolidated revenues fell to $1,052.1M in Q1 2026, down $43.7M (4.0%) from $1,095.8M a year ago, driven by lower volumes and adverse winter weather.
- Operating cash outflow & tax settlement impact
- Net cash used in operating activities was $(44.7)M in Q1 2026 versus net cash provided of $1.8M in Q1 2025; management says $107.9M more cash was used to settle other current liabilities primarily reflecting a $125.0M post‑year‑end tax‑related settlement.
- Free cash flow negative this quarter
- Free cash flow was approximately $(73.0)M in Q1 2026 (operating cash flow $(44.7)M less capex $28.3M).
- Rising interest expense from higher debt
- Interest expense increased to $28.3M in Q1 2026 from $14.8M in Q1 2025 (a 91.2% increase), attributed to higher long‑term debt balances after notes issued Aug 20, 2025.
- Gross margin compression
- Gross margin decreased to 34.5% in Q1 2026 from 35.2% in Q1 2025 (a 70 bps decline) due to increased unit costs and lower absorption on reduced volumes.
- Revenue concentration / cyclicality remains
- Management reiterates exposure to cyclical non‑residential construction demand; CCM revenues remain the majority at $758.1M of consolidated $1,052.1M (72% of revenue in Q1 2026).
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.1
- Gross margin
- 34.5%
- Operating margin
- 17.1%
- Segment
- Carlisle Construction Materials (CCM): Revenue $758.1M in Q1 2026 (down $40.4M vs $798.5M in Q1 2025), operating income $184.0M, operating margin 24.3%, adjusted EBITDA $207.9M, adjusted EBITDA margin 27.4%.
- Segment
- Carlisle Weatherproofing Technologies (CWT): Revenue $294.0M in Q1 2026 (down $3.3M vs $297.3M in Q1 2025), operating income $17.3M, operating margin 5.9%, adjusted EBITDA $44.8M, adjusted EBITDA margin 15.2%.
What they said about what is next.
The 10‑Q contains no numeric FY2026 revenue or EPS guidance. MD&A states "current cash reserves, available credit facilities, and anticipated operating cash flows are adequate to meet our short‑term projected business requirements for at least the next 12 months." Forward‑looking language is included throughout MD&A but explicit numeric guidance is deferred.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 13, 2026
- Carlisle presents a clear strategic pivot under Vision 2030 to a pure‑play building products company focused on energy‑efficient, labor‑saving building envelope solutions, driven by organic innovation, the Carlisle…
- 10-Q · October 30, 2025
- Carlisle reported quarterly revenue of $1,346.9 million, up $13.3 million (+1.0%) versus $1,333.6 million in Q3 2024, but diluted EPS from continuing operations declined to $4.98 from $5.30 a year ago. Operating income…
- 10-Q · July 31, 2025
- Carlisle reported essentially flat revenue of $1,449.5M in Q2 2025 versus $1,450.6M a year ago, but gross margin compressed and operating income declined. Diluted EPS fell to $5.88 (Q2 2025) from $14.84 (Q2 2024)…
- 10-Q · April 24, 2025
- Carlisle reported essentially flat revenue of $1,095.8 million versus $1,096.5 million a year ago, while diluted EPS declined to $3.20 from $3.97. Gross margin compressed to ~35.2% and operating income fell to $183.6…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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