CSL - Earnings call transcript Q1 2024 | Carlisle Companies Incorporated

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Operator

Good afternoon. My name is Constantine and I will be your conference operator today. At this time, I would like to welcome everyone to the Carlisle Companies First Quarter 2024 Earnings Conference Call. [Operator Instructions]

I would like to turn the call over to Mr. President Relations, Vice ahead. please Carlisle's Giannakouros, of Jim, Investor go Jim

Mehul Patel

Earnings Mehul you, I Relations. to you XXXX everyone. good Carlisle's I to Quarter Thank afternoon, of want and of I'm Patel, Head welcome all First Call. Investor am today

released call XXXX results, in website. Relations of can first the and and the quarter press our both Investors our release our presentation today you We financial find for today's section

an Board Chair, the CFO. Today's our Koch. of on XXXX. for our On Chris. an results accomplishments with key He Kevin with our we me call provide an will with with our then and Kevin provide Chris follow highlights have overview President financial update Zdimal, call today, update on our begin our up outlook He is along along with will on CEO; and is who will and performance

statements Following Slide where our But include will begin, questions. we and Actual discussed differ our statements release today comments from these we please up which filings. number results to of and for line will X in on expectations. open a forward-looking the materially due are prepared note of press could that remarks, refer our to before risks current SEC we based presentation, uncertainties,

non-GAAP with website. And call the of our our appendix will reconciliations provides between which our in and available to GAAP I financial on over provided Carlisle information, we've turn in presentation As release and non-GAAP Chris. press measures that, are the materials,

D. Koch

direct margin the themes Call. To overall Vision afternoon, and pleased underlying presentation. we've X First in for sales start, Good We Slide which the our were like thank first us XXXX. to growth of Carlisle's attention to Thank reinforces for XXXX everyone, you during strategies and and your key the you, outlined expansion quarter Earnings joining with I'd Quarter Mehul.

in QX of were our comments of and ended $X.X in a XXXX. XX% billion previous First that quarter with line destocking sales reflect year-over-year increase

sales We a which a activity million XX%. Robust demonstrated stated call. earnings sales QX benefit impact favorable we in from CCM business, XXXX destocking. in had performance a rebounding substantial expected were ordering been by result and positive healthy that of of approximately to of primarily affected negatively of that ordering factors we pent-up offset return from year-over-year conditions levels, experienced return was normal than of patterns demand first and a our to QX that predicted construction had year-end that our reroofing also year-over-year indicated price normal $XXX fostering assisted as This growth additional from our weather more activity quarter negative in the as

a story positive story, was the a success. addition sales In also QX to margin

operational commitment Lean the where higher of year. full year, our expectations on expansion by and and bolstered well by EBITDA in to our Carlisle COS underpinned a adjusted continuously efficiency, pricing CCM our down our Operating contributed increase of half Our customers improving bottom million year-over-year. adjusted to was substantially the synergies, operations. Pricing first in over drove $XXX the robust with an Sigma CWT by volumes in on focus Carlisle X% over integration our with be line under both gained in impact XX% leveraging to improving and the strong for our performance be in continues flagship QX The delivering increased efficiencies of efforts X% unparalleled our margin we anticipated System EBITDA the would our marking of the value experience Henry all the commitment to result. Improved relentless focus to line our across margins to initiatives

industry. of for the the price competitors recent increases outlook pricing in the the our on bullish announced major year by on are the We balance based

year-over-year. Additionally, we achieved XX% of over substantial growth in adjusted EPS

Carlisle to that products future. Carrying were the and Vision step XXXX innovation, last Carlisle year with sustained continues pleased solidify to our in taking synergistic December acquisitions future, follow position the business Carlisle's selling delivery the become sustained in to the are with the the a superior to we our plan dedication for experience, performance our success on of organic on steadfast and Carlisle Interconnect and pure-play contribute of operational the in excellence, theme we delivering in the final announcement building commitment to investments company. Our positioning success for of

the In our to Corporation acquire January, with we reached Amphenol an CIT agreement business.

the deployed billion in the $X sale second the fund of from in additional growth be organic The proceeds acquisitions, transaction approximately initiatives. close $X expect to fuel further share We billion strategically to will anticipated nearly repurchases of quarter this execute year. and

pursuit And organic In significant hard and actionable announce investments, are: a manufacturer through is acquisition we're the of Wisconsin-based MTL, solid those team, as to edge a creation our management of generating of criteria a acquisition story; easily lastly, excited three, strategy with talented Carlisle's and criteria strategic acquisitions. metal all playbook. our clear wall two, growth Vision aligned XXXX The MTL of reminder, a specialty value systems. perfectly one, a four and and integration meaningful synergies; high-performance for

MTL strategy, have best-in-class value and buybacks acquisitions share driving we reinforce our pure-play very of our ROIC. And our QX. our The in our to continued shareholders allocation dividends of aimed always product our philosophy acquisition building are superior to enriching are to and building pleased and CIT ultimately tradition envelope and long-standing Our product commitment through at capital expanding planned returning offerings. lastly, divestiture

repurchase our $X.X During of in worth QX, as in million shares plan part XXXX. $XXX we completed billion of share to repurchases

now Vision continue XXXX. million be and consecutive early, to execution engaged paid turn Carlisle's history XX I creation X for our as success having to X the are of actions fully first our confidence After of These of and to our over building enhancing XXXX trajectory. Please we XXXX our in in underscore Vision our raised value discuss we quarter value on dividend dividends We targets. drivers proud years. shareholder $XX in long-term as Vision the commitment Vision growth Slide in and completing years XXXX also

the demonstrated to against top acquire MTL, synergistic recent efficiency. aligns envelope agreement and sustainability, value video, growth best our produced such XXXX are as to continue you building to foundational under plan delivering execute XXXX. delivering we have by on As our our portfolio, XXXX advancements and seamlessly Vision strategic report. progress Coupled drive in initiatives latest envelope evidenced energy committed emphasis we we new for driving solutions, tailwinds, customers and to unlocking can additional that stated outlined ensure Vision through in in as above-market that have to talent to expand X% Vision sustainability secular positive results innovative shareholders labor strategies objectives, on creation to the in sustainability major our our commitments sales and with with this next in holding attracting pillars which which add strategy by include investing of levels of retaining above-market of XXXX talent find A value and innovation to important building phase with to growth the and of growth, solutions key drive of to product and products our our journey. The continued our enhanced M&A steadfast our corporate a commitment Carlisle's our enhance

that and in premier position the move sector. investment we Vision Carlisle are returns the will opportunity confident shareholder we execution as products building of forward, superior a As XXXX drive

X. Slide to Turning

dollar quarter the aligned MTL acquisition second With building is close with that above-market in MTL's the planned solid architectural is envelope complement values of expected X with metal in and synergies of MTL especially to Carlisle are to Carlisle's, to expected an market with adjusted goal businesses add growth. products within cost multibillion leader the expected offerings. superior XXXX our record $XX highly high-returning million solutions in aligned years. track Our respect focus our MTL's existing reinforces EPS with approximately an of as $X.XX prudently customer and of directly industry invest and best-in-class and in expand first system over XXXX, of with hard

Slide positively three, stakeholders value Carlisle and energy-efficient initiatives. our two, to our sustainability value while for I materials from the landfills. diverting share progress the emissions; chain seek strategy, X environment creating one, greenhouse end-of-life minimizing on turn waste our updates of as through our pillars are: manufacturing please to all impact which recent gas with and X sustainability We products; Now

we Under buildings. provide in customers user pillar, our end to our first energy their efficiency access solutions drive that

in XXXX, in earlier, sales, XXXX, representing more is from mentioned against which this the trends demand $X.X reflecting billion of buildings. made and up I significant revenue, with energy-efficient pillar increasing XX% qualified lead we XX% our total As for progress an product in impressive

The informed facilities. our SEUs energy of reducing chain pillar, and our impacts. at data metering and equipment our efficiency. Carlisle more membrane operational plants polyiso reduce that energy footprint environmental significant conduct second Carlisle Tooele, real-time carbon results emissions, or helps facility. at from users and metering value major enable began metering our decisions on Phase manufacturing our will QX, X In and this the analysis Utah, Our energy to Carlisle installed make

content is and purchased focus metal Carlisle. XX,XXX raws entering waste the purchase over as from XX,XXX the a Carlisle's were well third paper CAM important recycling operational business of construction In polyiso of rooftop of waste very the recycled our landfills. focuses Lastly, of recycled enabled polyols contributors tons unit. Sustainability reduction, pillar diversion tons on of XXXX, as Significant the facer recycled takeoffs. for initiatives through scrap reduction from metric landfills and

we committed being to for our stakeholder a products offer proposition looking responsible solutions. world organization, remain and in a a an continue value-added value strong As environmental to energy-efficient,

are this that, increasing of the megatrends and Kevin? in quarter Vision in additional the of demand discussed first Kevin to turn outlook. And marketplace. results positioned many Our with in including it I'll within financial presentation, our reinforced our over building labor first in with the well year details. strength energy full and being With we to results, combination mind our leverage growing quarter reroof to efficiency, themes XXXX envelope growth provide XXXX we savings

Kevin Zdimal

Thank Chris. you,

strength footing. off the Our execution first our of reflect the XXXX start solid results to on priorities quarter successful strategic model business of our financial and

adjusted on U.S. X. billion, driven channels, by increasing leveraged year-over-year of increase across pent-up in margins by to The performance our demand, EBITDA XXX expand inventory an our EPS the was growth, margin starts quarter the and normalization we first at earnings results $X.XX. our Furthermore, year-over-year benefited EPS our Looking reroofing and grew from revenue grew XX.X%. Slide activity, sales growing XX% share expansion We driven $X.X of to favorable which XX% points weather strong residential to to topline repurchases. by We by basis

The to first Looking to patterns, XX% in quarter at CCM of driven of including first from revenues destocking delivered XX% the $XXX quarter return million the a EBITDA margin was increased operating channel, order CCM continued operating with with This starting highlights, the points XXXX. normalization driven growth positive of $XXX was X. favorable activity CCM of XX.X%. the higher reroof EBITDA volume on Carlisle basis leveraging by our system. through of efficiencies Slide and weather. adjusted increase to million, segment of XXX up a end adjusted and by combination

Revenues to lower to CWT due primarily in at from prices Moving categories. decreased Slide X% year-over-year, X. XXXX select carryover

above of EPS sourcing significantly However, COS, acquisition of points our for bridge XX.X%, expanding we expected This are lower to adjusted to efficiencies was first able quarter of Synergies the operational $XX the to adjusted million. reference. model margin realization XX The despite of items a adjusted synergies first by were revenue exceed gained represented XXX estimate drive driven growth through through Henry Henry strategic basis the XX% provides from margin $XX and your the from an from of deal $XX decline, in quarter input year-over-year million the acquisition. XXXX, XXXX. million. Slide improvement EBITDA costs EBITDA

XX XX. Slides hand. first of to of cash XXXX $XXX with ended Moving through Carlisle on quarter million the

full We We our XXXX. availability facility, maturity invested operations million to of from $XXX have operating solid for credit in cash $X in continuing flow we the cash revolving amended performance generated $XX achieved and flow over with of extend April billion capital expenditures. million of under leverage which to margin We flow target quarter we pace a and with remain for X quarter cash the We of Xx. free net on of ended the to of year. a X.Xx cash flow a for XX% free ratio margin within the our XX%,

We progress the are allocation significant strategy. goals making our XXXX in capital against already Vision outlined

paid and our businesses million building shareholders by and through so growth in through dividends dividends doing the ROIC quarter of are CapEx during continued to including $XXX high million first in We products shares investment returning value $XX of XXXX. repurchasing in reinvesting

actions to of synergistic acquire We an deliver our are are our plus reaching significant of XX% and million. collectively for disciplined ultimately integral creation that ROIC also announced delivering making allocation EPS MTL agreement part $XXX acquisitions in such by adjusted aligned recently excess $XX capital These which for as XXXX. value opportunities will of forms framework, with

we of of repurchase million $XXX under the shares during the million have share remaining Following repurchase our first X.X shares program. quarter,

creation financial well position our further to superior proceeds drive in structure years. of approach the we as is Complemented to are and additional CIT ahead. unlocking prudent from affords believe to the allocate underpinned our enhancing robust expect in of opportunities years And on second capitalize of an conservative for sheet in the returns. $X value by reminder, to value stakeholders a approximately we to capital and a substantial flexibility. arise, financial our we and a Our additional strategically equipped liquidity ability well quarters are gross pursuit leverage. in coming solid the us additional by We positioned quarter the $X.X balance billion, quarters sale billion resources that receive This

XX. to year full Slide will discuss Turning financial I our outlook.

of of We X% our through year at points are we our on first approximately balance by expand a XXX with in points. reroofing increase year-end is the expecting pricing, This XXXX additional year positive basis raising the to guidance EBITDA to a solid year. increase. the our previous and growth over combination at revenue prior revenue the outlook adjusted margins now when outlook of XX% expect which Operating along by XX outlook quarter outlook double driven is full for compared stronger were System demand to we a basis Leveraging least as the Carlisle our more

least in excess and XX%. we to at Additionally, free XX% maintain deliver expectations flow of our of ROIC cash margins

our As start directly XXXX expect in EPS. we strong XXXX. is adjusted aligned XXXX strategy and such, are outlined $XX a EPS with towards we continue in the to objectives This of goal double-digit of experiencing growth plus our Vision

drivers the outlook we now at demand. year-over-year and in absent was expect primary double components Looking tailwinds destocking the XXXX to low revenue from backlogs normalization are in order that from strong digits reroofing of the grow to for during to and The the CCM, due contractor the return patterns XXXX. pent-up

For as CWT, it remarks. over in strong now year-over-year for growth I mid-single well as from grow expect stronger trends execution we to digits closing markets. With in key in our the Chris initiatives sales that, turn revenue XXXX on to

D. Koch

Kevin. Thanks,

confidence In conclusion, Carlisle's in and our I to our Vision strong direction want XXXX strategic by under reiterate reinforced first quarter results.

and position ability our efficiency us simplification our drive anticipated innovate a further the on cash and excellent of robust portfolio, of combined Products growth results. with return in our forward, move we an to financial in proceeds us As a free focus on solutions engine puts the path from with above-market Building superior labor-saving and CIT right places flow for value The the drive to energy sale significant create shareholders. to

expect to of opportunity gratitude team all employees. The to our again exceptional embedded all exceptional of year strong XXXX already a what Vision Carlisle's have we take efforts like long-term in express about to also incredibly optimistic another operations, ensured start this of in would for I'm will Carlisle once XXXX. And to sincere members Carlisle's our be success. I with my deeply

strategy our cash for solid successfully and superb us our the brand, capital with all flexibility and strong execute to Our value additional flow generation position provides unlock stakeholders.

support. continued we Together, for brighter your Carlisle. for everyone, you, Thank a building are future

concludes questions. our are ready comments. that we formal And now Operator, for

Operator

Instructions] Wojs question from of first from Your Tim line comes Baird. [Operator the

Timothy Wojs

first my just Maybe Job. question. Nice

better the CCM, a when XX reroofing like I around lot XX it tone it ago. to just what than So days was is at mean, look you seems

seen comfort of in have you reroofing on get what or of pent-up kind is that guess business confidence to your there I demand kind So the side?

Kevin Zdimal

the pent-up our reason this doing some and the deferred. Yes. talked we COVID, come the had strong about just COVID. of lack out work that the And routes a that due contractors labor goes to patch of I of through. about some weren't on resulted being was in demand we And we're -- due that frankly, good last and that of a with forecast improvement. reroof during were this back we've seeing came it initially. a we now reroof really we to of get period when They the regroup, mean of some Tim, the talking years, couple in that construction able weren't half the was that, of of that's while you to to been then new for COVID able about or chunk raised increase,

Timothy Wojs

Okay.

can Kevin, X%. Okay. I maybe last I the go point, within just quarter, just you revenue on mean, CCM, Got that was if you. And guess it through bridge,

the Now your updated go price double it's low pieces underlying then through if digits. assumptions. and the What restocking you volume just are the

Kevin Zdimal

We Yes. year. expect increase it amount dollar the first in said million million the had we The $XXX full XX% at destocking the the to million change. about XX%. and had first didn't $XXX quarter, year, for the what for be $XXX We quarter. in was the that's We about saw, still

nothing on the the destock. changed What and is price. the did So change volume both

said the side, just volume would the we we X%. thought end reroofing had be about to down the coming total the market X% into I On talked year,

high up single recently we on think mid-single We we digits, it'll digits. we think, increases, construction be be new slightly. be pricing, some the year, Now then think recall, but still where, be be beginning we'd year that will down to X% the think the may price as only X% of X%. now down thought full we will announced for we down at And up will price reroof, on and about you

pretty what the beginning at that we're So of about up, when for CCM. the doubled much X% we year of talking you sum that all

Timothy Wojs

Okay.

mean, side, sneak I sums a on maybe would here. on does the question seeing EBITDA are just math change? then input it X? Or you last characterize and little cost polyiso. to to just price what net-net the cost of Okay. MDI, so Great. I inflation line, you're seeing guess in the pace bit how the more the just you And

Kevin Zdimal

Yes. When has the of we materials we had The up, flat been are raw into down. cost pretty mixed little a came materials, to going the was a on for raw bag that bit year. some raws year, be are some said

getting pricing, a now year maybe year, better So changed not of there, bit be think a about much the full pricing positive will that on has for full $XX little too with cost. but up price number million we

Operator

question comes from next Your Sachs. from line Goldman Susan Maklari the of

Susan Maklari

And sustainability year customers? how think the adding this? My cadence first tailwind can as do also initiatives around you that that's work maybe the there? you the question that that you is on this we CCM your move talk bit as of couple through is of think that about do done well. But of revenues the coming and the the you've a incrementally for also the Appreciating through some quarters about that you've with And of through. some to products this got and own next reroofing

D. Koch

Well, as we overall areas Susan, really look the initiatives. three on at

talked training. involves contractor think of a training, about really architect I intimacy, we this customer or -- margin lot

initiatives year, with done digital We've sales the last show better. getting taking of think Our it really I increase dollars is got teams. sales. the better cross-selling, of foot. and selling think trying is of really in our to I experience a they're starting do enhancing process up a -- And a into per hold. lot square quote We've to our optimizing excellence the like and Things work lot

seeing for think longer Vision you also much longer, We're little is as rate. in the we're SG&A. new higher more, Innovation under can market But to about a I is, We total a at play. will products investing continue our at a us, XXXX momentum. obviously, a talk gain already see bit that innovation. And

going a out. products introduce product and introduced we coming had some other to a ReadyFlash April, January, in in year, Last called we're TPO, XX-foot

of them of in QX SeamShield, One 'XX. be is to going introduced that's

increased a we So is going we continue to of commitment CCM moving years, every Obviously, quarter but to CWT. frankly, couple build we X% continue momentum to to innovator our as momentum drive take to there. and see should up

data little we're our about COS lastly, And an issues data. that ongoing to in process to the the how really X% from expectation everything in with starting maybe year. sales looking bit AI a to through anticipate off excellence, factories are it's quality the then by that's efficiency, line the at this actually to X% every improve to any just deal work that we come quote still coming getting more become operational -- may that of on and

We of sustainability trying the job to a factories drive also efforts driving are our through then forecasting AI to efficiency. too, better and do using through really

whether freight product within less less use to not trying we're but that reduce there. in turn, it's see just efficiency for goods to process, whether I And factories, nice all produces returns movement to of think it's program ways, trying whole throughout have energy, the So there in actually and trying just the waste. or to waste it, starting in a

So last when the to years, the had have it. these of we we've gains things a at XX into played over that lot X look

where to Henry latest, in continue I articulating example think sales. last on job the I it, some each this even better margin best a to doubt but one, continue we in expansion. is And we see expansion. quarter, And see we're probably good think pretty doing of margin

more So to a give try answer a bit of wants but be maybe for granularity. little context you, a to I Kevin long and more

Kevin Zdimal

your and sales, of us. year second for standfront. At about to a seasonality year, quarter, be of the question, had sales playing the strong we full part be XX% for and more of about holding is said us year full said looks QX, still out that beginning XX% sales year would to from for be Second we of the 'XX normal seasonality the

talked as the estimate So And as for year-end for about with that as that's still best well. what the business. we far quarterly call in revenue would be CCM CWT, consistent the

Susan Maklari

just following up color. then maybe great That's on helpful. And That's Okay. that. very

mentioned And in that at that synergies exceed on million guide $XX million million expect before. come through? there? Can any about you thoughts you incremental you Henry driving that in the now versus given you what's talk that to how will just $XX think had $XX I

D. Koch

Yes.

In of initiatives at, I our terms managing would efficiency sales, some helping the new factories. within cross-selling a working the to on that We're job our within How think around comes factories. one. we're of I through is on defer P&L, doing what better it Kevin automation the

Kevin Zdimal

Yes.

$XX So quarter. at see, we in the million first well. rate that that the run pretty We're that's

So get. million $XX about a quarter is what to we're going

quarter First last half year about of was that of number.

see in we did year. we QX, last those year but went the as synergies did ramp So up on

Operator

comes question of next Your from Shmois line Capital. Loop the Garik from

Garik Shmois

lower quarter. prices first to anniversary in you off, new I pricing how pressure? release, any forward the ask, should think think quarter? some would downward the we and carryover moving of potentially the when CWT. Was And pricing spoke there of during pricing Decent Wanted in pressure to carryover you

D. Koch

little detailed it bit to to others, quarter, out have you any the will pricing weren't be it We seeing of it then and think Yes, first get on come takes that into works, a I on flat. X%, X. would increases It and -- you X% ours Then lapped I that. doesn't hit that were the as what about came through. move we'll And bidding think if that it X% based we there's just we're the pressure we that. in third upon quarter, the work, Garik, day second. probably pricing the price will aware X%, down probably And think around don't way the

X% would we in anticipate that so fourth we might be to X% And the up then quarter.

Garik Shmois

to that the Got quarter, just it's back think we recently was to relative slower variance Recognizing expecting. in strength XQ circle it. what CCM. I And of kind to wanted volume I notable the but pretty were a

weather the saw as the you expected. But You favorable. track said that also as being lapping destock, of

to be weather? or wanted some a outperformance you the either any a How build just think contractor of distribution stronger as Did to you benefit at any color inventory see strength of much Just XQ see So was was additional do would the market? level? XQ great. the

D. Koch

couple of a too. and hit me Kevin let pick up, will some Yes, those

weather. depending the has compared maybe obviously, had I some volume, your Northwest to country, I have X a you big weaker I impact in due X others. think whether to in -- on mean, people were announced know or days weather, that that the some have on where to a they

So that on depends you're think where at. I

X X days. destock For us that year. about going big of being over deal into the a -- was end The to the

I we around think little a that. were conservative

we million about $XXX had Now talked QX. in

was pleased As call much there unfold you're was conservative, be of over. want in it QX sitting to and you're we and you yet, not the destocking then seeing I pretty And all that. the that got of

also extra in to We good. picked up, seemed build which some think, was the we reroofing, quarter. That

a little heavier the around why we might So be $XXX bit bit overall, I conservatism around than expected. think that have had little might a to do, the especially million

Garik Shmois

it. Got

great... That's Okay.

D. Koch

You asked building. inventory about

what we're in huge that I the inventory. over, on think is quarter a lot data, is not the a of conversations showing with destock our channel, the first really while are seeing that build in are

been. obviously, the now carrying the than they too cost around higher getting as think again get concerned season, still inventory. much a closer have about, bit or inventory of burned Maybe conservatism of are we on people having I to little

So them going that we increased we carrying be maybe into like to season. think have addressed, to if if holds able as address demand to contractors much -- and aren't obviously, up, be inventories position to will the need good in even a would all demand aren't distributors we're carrying they're and that

Operator

next the Your Bryan comes Blair line from question from of Oppenheimer.

Bryan Blair

Pleasant start to the year.

D. Koch

Thanks, Bryan.

Bryan Blair

in this. and if And -- some that the for script the I you in great apologize then all Kevin, on you Q&A, residential you seeing walked you're during offered could bridge do so the detail same to level CWT, through color CCM offer for the commercial you of can more versus we full But it the specific revenue. be year I set? kind would that And segment. if have applications guys what CWT missed

D. Koch

Yes.

still investments what see And need that, land idea there side, units. that and at still additional we're market and can is for -- the take in Let you look really housing year. just we an out underlying resi making the give the that addressing builders first for me still we're this seeing the When about Kevin on in demand, optimistic walk year. that buying the is we that CWT one. through

now continue a as But think X not or that there I I to there Could as X seen things underlying GDP many. we're going resi could is hesitation and or think digest the first today, stuff demand blip? some a be through year around to like as -- we've cuts the commercial, be headed people I were again, perhaps CWT for units. We on think to bit has we depends a need retail tough, think, go additional expected. be, drumbeat Obviously, it's I office the to for really not and the been the housing the segment. to the get or side be it

think then excuse to into could education, positive. spending, And it when be be you tended health little those I too. me. bit government tough, a expected, Warehousing get care,

COS a automation, approving improved And in in think at innovation. portfolio across the it when positive running more We've really and that you've before, should it Carlisle be building to too. it's and next So price/cost brought really and the then and run well as CWT it seeing anticipate and Sigma. And and applying about idea year is efficient, we CWT. this margin, in the of you're year, Lead that's we something factories. margin, that around innovation we to they're helpful out first this segments, We've spread going that talked the seen this to kind look mixed just through got then being table, bag. And lastly, we're that year driving then of all, as CCM, looked continue I see

side to than were bit price. more quarter we think the probably a on I in little raw cost the materials negative savings on first impact the

factories, So -- that, also improve to we continues to X% as the more and too. we see volume, should volume see we that benefits from some volume get

walks you talk do So ]? want Kevin, to the [ about

Kevin Zdimal

talked same about the at would it's and balance about in QX. the you the full Yes. we of businesses But are QX stronger much the our QX the we CWT both as and really and into the months. end And about summer year seasonality, where exit sales the know at be you think QX XX%. we of year then then as months very both specifically, XX% with the look that as

still As at EBITDA to far incrementals the mid-XXs on and they're for we see in low CCM, drop-through, the CWT as XX% about incrementals.

Bryan Blair

Very Understood. fit potential little the of and suite of metals strategic on and detail. a MTL platform asset strengthens growth looking product the helpful how Perhaps offer forward? the the more

D. Koch

a centers basically company. the over metal great Well, some goes just that Tony performance. a on great about around done The before, talked every Right. of years is which edge MTL, wonderful job on. roof low it has Mallinger, And really as driving edge MTL we of leader metal, put we've

big the us. brings think that that that that's We into the something warranty. into to so And Carlisle to benefit that's MTL Carlisle get a to get specification,

have metal and or market are patents accretive. innovation patented years. happens the just value edge know perhaps what there. Also, to you of bringing something an They team technology metal type Tony his have lot shows business. that products wouldn't things, actually that architectural of metal they and on that in you a the the that have You architectural expect But there's some this through other an been

the our the the in and think other our contractors. bringing we MTL synergies right synergies addition there from to it portfolio, adds that. able when we shipping really to fits offer we also when by much, integrating contractors, good line much train able being things going we So think to think And that into to of some are our well being the as having Drexel look well a down complete the material line be about like and volume as about metal and raw metal when product purchases, the into Peterson more as group specification,

something it like in about think in So $X.XX think to accretion addition. And what EPS would a we then had -- I XXXX. on we 'XX I be when back look -- and $X.XX good said we in

some benefits Henry. the be expectation, million. targeted stated going So that gets right it, that up away, we'll savings is and to we and like think And I just did was good But and synergies think my I into team with exceed there. $XX are as

Operator

the Saree from comes Boroditsky question next of from Your Jefferies. line

Saree Boroditsky

Just a of couple questions here.

any cost, talked out price that million. first, to on just $XX through you provide how the about on positive plays build So detail you the just a year? Could

Kevin Zdimal

Yes.

through year, pro quarter, pretty about then we the that. of The first And much it's got of half the balance rata.

Saree Boroditsky

Perfect. it an And in but great believe on would be then provide talked to going GDP, details I on you just Xx past, you about a more update MTL, get that. market. can on architectural growing the the metals

D. Koch

think I a rate. growing at that Yes, definitely higher it's

stick probably think say Xx could GDP. you probably I with -- your

us business XXX the think is line, brings after. go market, I to of $X -- the of billion obviously the for plenty something obviously metals that's is flexibility to the a metals had product -- us huge we One there's market benefit. The and that that things is

getting We along what and the in doing prefab also and want we're go I that where more more to out. applications lines after would factory standardization product say, we're it shipping

Saree, stop give can about if where information, or you edge business. good very a We keep I about about it's you just business. -- complementary. But I the metal. I'll would So ask more want talked It's metal talking that's to

in and the great the on gives seek or into roof lot it's them, like that put The wall. building other go that set the expanded look we really buildings add flat X specified time will it just especially would the when and us a and a roof metal have on that at do an office system warranty up facilities highly stories that small when of on roofs to with of the some or architectural after. Maybe the lot again, front. wrapping one-story thing value-add, warehouse potential put manufacturing time, they they'll warehouses an of Carlisle And that, the is X lot can on add either things office the I to on the whole people differentiation, and a side provide on building. A it they'll market

Saree Boroditsky

just last one, color. one appreciate we're so just then And the I on the same page.

interest for guidance expense have You of $XX the year million. net

expense of this $XX million had You interest quarter.

build that So getting would just the you're income interest year through helpful. be how to

Kevin Zdimal

but we down we no hard close May, closed, control, to in and that as approvals, a out When It sometime far little when the we're as to all the makes say range bit have at concerns. But challenging. interest CIT. of going expecting Yes. timing as well you're income to is far of forecasting our of more it as really there, getting end with CIT, regulatory billion, $X comes

for year, of $XXX the what have did we million. this we acquisition So MTL had

to interest have have not will looking been into we consideration at we the that the that at, so expecting as then increase we early take interest cuts close So well that our the expect to we're May. And income. beginning of year, the rate, now that might

against million that good the interest the net net still is a positive expense number We of So think around cash. use to use. MTL of $XX

Operator

Your next David question the from of Longbow comes Research. from line MacGregor

David S. MacGregor

Congratulations guess of represented? revenues really on business, on lower me, excuse percentage prices carryover Yes, the of for CWT, were just a the segment get strong quarter. What that sense results. great wanted I the I XXXX. to

Kevin Zdimal

digits. in carryover the the as down far as So was mid-single quarter first

Mehul Patel

were XX% segment decreases it's last David, business. year. from it, the side where That's of the probably selected price the roughly of

David S. MacGregor

Right.

Kevin XX%. of has leverage, the was the and granularity you then talked piece to kind all a it but question, little cost of about That a price around bit provided trying just volume the little here. Okay. bit And together

EBITDA that directly How if leverage? you much me just some Can was go How guess, and just favorable to price/cost? numbers I of on growth. around could volume you you that? back let just provide was XX% talk So it much ask get of that

Kevin Zdimal

QX? You're looking at

D. Koch

yes. QX,

Kevin Zdimal

Yes.

the on line on side. that to would put CCM the number offset side, just you right on EBITDA much segment. the bottom incrementals So substantially that then of in XX% in it QX, explains And that and pretty yes, XX%, price cost and on all CCM the can drop the there each other

CWT that a the with balance of but that of also was combination side, about slight then volume cost. and On is the then most talked efficiencies price we synergies pickup the ultimately these increase, their operating

cost had they in that quarter, million. CWT the positive to So close that first $XX price

D. Koch

referenced earlier. you $XX million. Yes, that

Operator

Baumgarten comes question from the next line from Adam Your of Zelman.

Adam Baumgarten

looks or XQ, modestly and or it XQ about pricing. the it expecting so there's how kind full to I thinking like markets tracks CCM negative and in little volumes destocking the out back were Just outlook you're And up mid-single and flattish some maybe end and like year looks digits. back price, the ex destocking of maybe if X%

come comps year. given So to -- the the maybe start strong throughout to do you year? get that tougher down expect of kind as you Just the

Kevin Zdimal

just be And digits. remove new about to markets, up down you talking -- the high as we expecting number, So but expect then construction digits. won't we do reroof that, we're destock mid-single end just single talk we

positive the might overall, a markets. So that be slight on end

Adam Baumgarten

was just to Yes. trying get I it.

better think it than seems, a I was the first quarter bit right? that,

Kevin Zdimal

quarter had we weather first as Yes, some positive well. in the

then I be to think it's that if you take going out, pretty consistent.

Adam Baumgarten

have out throughout just last quarter? Perfect. it And stable then as the expected. Things playing you it's year-end been Got on it. like since sounds year pricing, first

D. Koch

Yes.

things. around being of up there I the think to million. you turmoil progressing right things to carryover on projections We I pleased the One, about. around that -- a out. $XXX there's ended in there need broader line couple pricing be and seem our from in is pretty that. say about I and you destock, the it playing GDP know mean there's pricing -- the are planned that think we're much super stable. was tell But out a that or lot markets, economy of in as don't I'd our things

Operator

are at go hand Please to There questions no ahead. call Koch Chris this remarks. further the closing I'll time. over for

D. Koch

forward sorry, your year obviously, on thanks fourth second I'm our first call this coming you. participation. concludes up. speaking to quarter concludes And you and me, we quarter for and look quarter, excuse the our with This -- call full Thank

Operator

participation. you Ladies for today's conference and Thank your gentlemen, call. concludes this

disconnect. now You may

Carlisle Companies (CSL) 25 Apr 242024 Q1 Earnings call transcript