CSL Q2 Earnings Beat Estimates on Record Sales, Outlook Raised

CSL's Segmental Discussion

Carlisle has divested its Carlisle Interconnect Technologies segment. The company now reports under the following two segments.

Revenues from the Carlisle Construction Materials segment increased 7.8% year over year to $1.18 billion. Our estimate for segmental revenues was $1.09 billion. Organic revenues rose 7.7%, driven by healthy re-roofing demand, strategic initiatives and strong commercial execution, partly offset by continued softness in commercial new construction. Adjusted EBITDA of $363 million increased 4.8% year over year. 

Revenues from the Carlisle Weatherproofing Technologies segment increased 9.9% year over year to $389 million. Our estimate for segmental revenues was $350.2 million. Organic revenues rose 8.4% as share gains more than offset continued softness in residential and non-residential new construction markets. Adjusted EBITDA of $74.1 million increased 5% year over year.

CSL’s Margin Profile

Carlisle’s cost of sales increased 10.3% year over year to $1.00 billion. Selling and administrative expenses rose 1.2% to $199.3 million, while research and development expenses totaled $11.4 million, up 2.7% year over year. 

CSL recorded operating income of $352.5 million, up 5.2% year over year. However, the operating margin contracted 70 basis points to 22.4% from 23.1% in the year-ago quarter, as higher raw material and freight costs outpaced pricing realization.

Carlisle’s Balance Sheet and Cash Flow

At the end of the second quarter, Carlisle had cash and cash equivalents of $665.3 million compared with $1.11 billion at the end of 2025. Long-term debt, including the current portion, was $2.89 billion, largely unchanged from the year-end 2025 level. 

In the first six months of 2026, CSL generated net cash of $197.1 million from operating activities compared with $288.9 million in the year-ago period.

During the same period, CSL paid dividends of $90.1 million, up 2% year over year. The company repurchased shares worth $500 million, down 28.6% from the prior-year period.

CSL’s Outlook

For 2026, Carlisle raised its outlook. The company now expects revenues from the Carlisle Construction Materials segment to increase in the mid-single-digit range, while revenues from the Carlisle Weatherproofing Technologies segment are also projected to grow in the mid-single-digit range year over year.

For 2026, the company expects consolidated revenues to increase in the mid-single-digit range on a year-over-year basis. Adjusted EBITDA margin is projected to remain flat, while the free cash flow margin is expected to be approximately 15%.

CSL Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

3M Company MMM delivered adjusted earnings of $2.40 per share, which surpassed the Zacks Consensus Estimate of $2.27 by 5.7%. The bottom line increased 11% year over year.

MMM’s adjusted net revenues of $6.5 billion topped the consensus estimate of $6.4 billion and grew 5.5%. On an adjusted basis, organic revenues increased 5.4% year over year. The results were supported by strength in general industrial, safety and electronics end markets.

Honeywell Technologies HON reported second-quarter 2026 adjusted earnings of $1.95 per share, which surpassed the Zacks Consensus Estimate of $1.80. The bottom line increased 10% year over year on an adjusted basis. On a reported basis, the company’s earnings were $16.65 per share compared with $1.21 in the year-ago quarter, reflecting the impact of a one-time gain related to the deconsolidation of Quantinuum.

Total revenues of $5.19 billion surpassed the consensus estimate of $4.98 billion. The top line increased 3% from the year-ago quarter, driven by strength in the Building Automation and Industrial Automation segments. Organic sales increased 4% year over year.

Constellium SE CSTM came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.

Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.

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