Earnings per share rise despite lower profit
GAAP earnings per share increased to $5.24 from $4.98, even as total earnings fell from $214.2 million a year earlier. Excluding items, Carlisle earned $235.0 million, or $5.92 per share.
Revenue increased from $1.346 billion in the prior-year quarter. In rounded terms, the company's release described the result as 9% growth to $1.5 billion.
Higher costs squeeze margins
Carlisle said pricing did not keep pace with rising costs for petroleum-derived raw materials, diesel and freight. Its adjusted EBITDA margin narrowed by 210 basis points to 23.8%, compared with 25.9% a year earlier. Operating margin dropped 180 basis points, from 21.8% to 20.0%. Management characterized the pressure as a timing issue, not a structural one.
At Carlisle Construction Materials (CCM), revenue reached $1.085 billion, an 8% increase, with organic growth of 9%. The segment generated $281 million in operating income and $306 million in adjusted EBITDA, up 1%. Raw material and freight inflation outpaced pricing, reducing its adjusted EBITDA margin by 200 basis points to 28.2%.
Carlisle Weatherproofing Technologies (CWT) increased revenue 9% to $378.5 million, with organic growth of 10%. Operating income climbed 31% to $39 million, while adjusted EBITDA grew 13% to $68.3 million. Automation, manufacturing consolidation and additional in-house expanded polystyrene resin capacity helped lift its adjusted EBITDA margin by 60 basis points to 18.0%.
Shareholder returns and cash flow
Carlisle increased its quarterly dividend by 14%, extending its run of annual increases to 50 consecutive years. CEO Chris Koch said the milestone earned Carlisle the distinction of a "Dividend King."
Share repurchases totaled $350 million in the third quarter and $850 million for the first nine months of 2026. Carlisle said it remained on track to meet its $1.2 billion repurchase target for the year.
For the nine months ended September 30, 2026, operating activities provided $511 million in cash, down from $715.8 million a year earlier. Free cash flow from continuing operations declined to $406.9 million from $620.3 million.
At September 30, Carlisle had $546.7 million in cash and cash equivalents and $1.0 billion available under its revolving credit facility.
Fourth-quarter guidance and longer-term targets
Carlisle expects fourth-quarter 2026 revenue to grow at a high-single-digit rate both companywide and in each segment, with consolidated adjusted EBITDA margin roughly unchanged from a year earlier. The forecast does not assume a near-term recovery in new construction markets.
The company also reaffirmed its Vision 2030 goals of $40.00 in adjusted earnings per share and a return on invested capital of 25% or more. It pointed to growing traction in data center roofing as an additional avenue for growth.
