CSL - Earnings call transcript Q2 2024 | Carlisle Companies Incorporated

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Carlisle Companies Second Quarter 2024 Earnings Conference Call. [Operator Instructions]. This call is being recorded on the 24th of July 2024, and I would now like to turn the conference over to Mehul Patel, Carlisle's Vice President of Investor Relations.

Mehul Patel

Thank you, and good afternoon, everyone. Welcome to Carlisle's Second Quarter 2024 Earnings Call. of for Head Patel, Mehul Investor Carlisle. Relations I'm Investor XXXX today, press and released in and our can results quarter second the call today's our We you our financial find presentation for section Relations of the website. release both

with call Chris are and today Chair, our CFO. Koch, Kevin along with me Zdimal Board President the On our CEO;

an financial Followed Today's second quarter our and call highlights by who on for provide Kevin, of our will our begin XXXX. the will with overview will update an remainder provide and performance Chris. accomplishments. on He outlook results of

Following open questions. for remarks, our prepared we up the will line

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

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

D. Koch

and Second Thank your To afternoon, for Good . everyone, for presentation. Slide X Carlisle's to you attention you, I'd us like Quarter Mehul. joining Call. Earnings direct XXXX thank start, to of the

Vision underlying this launched strategies underlying of of of year a outlined reflecting completion this reinforces themes continued the to building December. attributes the have by performance, strategy story. our another we outstanding company are pure-play pleased past to The quarter and this pivot in report We success of been and XXXX our Carlisle products the story bolstered

been Carlisle introduction that stakeholders. remains continues pleased on our the Vision we've the and confirms transformation We XXXX see the one to all right since path the for of with success of are

businesses continue demand, pent-up sales performance delivering improved year-over-year quarter, first their The to second on CWT quarter we delivered supported gained discipline on price a build representing of efficiencies of reroofing operating the system. basis. by up CCM continued growth, billion, through and XX% on Carlisle and the operational $X.X driving In double-digit on profitability,

line combination translated with to -- The expanding adjusted year-over-year up EBITDA Carlisle, record EPS adjusted to bottom drivers key XXX and for basis XX% $X.XX into XX.X%. performance a a of and these margin record points

strong impressive -- quarter growth with solid previously revenue EBITDA XXX CCM which mentioned, I normalization inventory the adjusted and the of backlogs of an contractor by channel. delivered basis benefit reroofing XX% The margin in expansion, points demand, driven and

expected normalization As we discussed year-over-year the XXXX, we of improvement that and the when entered estimate mark. $XXX was on we in quarter, have from sales of inventory benefit to approximately second see million a

and normalization by million. million, a As of affected our we also normalization will inventory reminder, XXXX third first the positively project quarter $XXX that impact inventory quarter positively by $XX

residential well, EBITDA offset down performed its helped also growth XX.X% difficult from benefits end and initiatives CWT X% organic earnings building approximately power. a as synergies markets. showcasing COS in that were margin and investments CWT integration on more sales delivered adjusted

set We CWT by to of to on goal pleased their aspirational are have delivering returns XXXX. XX% very sights their EBITDA continues of see that the

is attention shareholders. keeps created company, our continue allows management for superior building strategic how approximately goals. pivot the on capital quarter, A returns, Vision sale successful focus CIT progress focused continued our our to make $X the to to of to our the picture a portfolio our and on This on of we a of culmination completion during to more a Amphenol pure-play delivering provides which marks sale billion. -- We milestone excellent XXXX clearer products of key us for was Corporation value

completed of also acquisition in May. our MTL We

systems. wall specialty Wisconsin-based a edge of in and Carlisle as acquisition the This $X is MTL reminder, category architectural industry a XXXX. billion of metal metal positions As leader an manufacturer high-performance

in team also and look great to pleased MTL's addition a Metals to Tony we the MTL, President. in through in they were our the to under consolidating Tony are able forward that Mallinger, Architectural Architectural team supporting to We continue We drive extremely acquisition as Metals strengthen platform business. success our

will resources necessary efficiency, to for energy innovation areas stage our accelerate the innovation integrated driving provide state-of-the-art in objective million support with our Continuing theme the XXXX announced investment our expansion journey. systems. will PA. innovation future in growth, Vision a additional center recently we of labor-saving next for investment of The Carlisle, in a and and This of $XX plans research solutions

is Expanding introduced our products revenues within help of in XXXX. by X generating goal our achieve center us of Carlisle from years new to R&D a initiative key XX%

maintained of billion focus the for of on through repurchases we returning Furthermore, quarter $X.X share capital is goal dividends we during repurchases. $XXX and XXXX. million share shareholders buybacks in -- executed planned X. consistent with share our our of to quarter, And This

prospects. million in These reflect ongoing shareholders commitment to returning in growth $XX confidence over distributed dividends. Carlisle's also We actions our future to our capital our and

markets, Turning Higher kept the sidelines, on have to consumer buyer the affecting are buyers negatively changes spending and residential continues and remodel. rates to home demand interest CWT. In repair in headwinds. experience affordability

to towards through continue enhancing drive price-to-value in approach, margins implementing business on by of channel, COS experience, especially EBITDA Carlisle expect retail grow However, our our with to bringing center by goal and and our products XX%. CWT our market focus home we to continuing the new to

our half to close for of and MTL -- our I XXXX. May results coupling of like out year as by half previous the that full we X, to addition We projections of the strong XXXX XXXX outlook raising would are second with Slide announce our first

points, continue first remainder of basis XXX adjusted EBITDA the from the expand XX% expect the up XXXX construction now approximately have XXX in that trends quarters will basis We grow confidence over season strong of previously. XX%, year. have this to revenue up second We approximately previously the to we experienced from margin approximately and and points

labor-saving value envelope businesses I XXXX that targets. Vision Vision as portfolio and for we Under Slide building high-performing our to solutions our creation for through innovative, our and a through creating discuss execution with with offer delivering operating XXXX, coupled consistent driving of our goals are relentless shareholders and service above-market growth, on focus cost and of energy-efficient turn customers, flawless value leadership drivers price please COS. and customer Now our X

reminder, X a Vision As XXXX focuses key pillars. on

application X% X% the continuous of function across Carlisle The our Under the will first in COS sales the we of drive every efficiencies. the annually through of continue goal drive enterprise, is to Operating culture Vision XXXX, System. improvement consistent savings through with to to operational

brand established backed proposition a and Carlisle recognized premium The high-quality value us as with has a Experience. Carlisle the is Second by products service. Experience exceptional

place our and the commitment we that ensure to is right the win at savings Our customers we products efficiencies. We with right understand labor through the at to customers exceptional and deliver time. service right

innovation. X% through our to R&D add energy accelerate to on increase advancements in of savings and sales creation solutions the is plan to and XXXX our that spend by Third of labor to customers sustainability, value We new products efficiency.

Fourth is M&A.

in allow portfolio. expand existing adjacent envelope to our enhance building us will We categories that and

playbook, we our team. competitive Carlisle believe are: cost synergies; talented organic for reminder, hard story; When X three, management acquisitions embedded have integration a and in a a advantage we one, two, an with M&A. As criteria completed growth our

to our we our Fifth capital ROIC our track is into shareholders a will with continue cash we disciplined in the work line opportunities. Ultimately, record, invest for approach and allocation. to highest responsibly

and retaining and above-market returns our shareholder talent product most XXXX drive growth. lastly execute And to and we to sixth as have building in to drive superior our is position best goal initiatives ensure strategic premier perhaps importantly, attracting execution top that Vision The Carlisle a of investment and performers sector. the the aims

XX% and in -- EPS, excess generate free deliver $XX We XX%. over XXXX expect of ROIC margins cash deliver by to of and flow

Turning to X. Slide

our MTL, now were million systems. strategy to annual in me are integration a our close and synergies set to with latest wall exceed Let provide and we we quarter, acquisition $XX our deploying metal We year acquisition, expect announced This of $XX MTL track of innovative, to Carlisle assets on We the second tremendous our MTL. May. the synergies Vision By XXXX addition discussing playbook million of X. of criteria. adding acquisition deliver aligns in minutes during high-performance a at our spend perfectly pleased that edge of MTL on meets few

playbook year We effectiveness integration of -- delivered was Henry another $XX initially the acquisition, compared synergies of X over Carlisle's in where we in the synergies million of example the million announced. of to $XX

innovation I'll and please a turn of work Slide highlight X, at examples Carlisle. and to few Now

investing key value our additional full I've potential on in R&D XXXX building unlock As competitive products strategy we at points. aim to such to and and higher with portfolio. results accelerating to our our pure-play of an initiatives customers Vision products our deliver includes By the development, further emphasis mentioned, new financial augment innovation increased to enhancements moat, our expand our price product new as

is spend products goal which sales, our grow a to last potential from of in Our sales revenue lift. increase new and XX% introduced of X% contribution years to X represents the to R&D the significant

XX launched XXXX strategy. energy-efficient the products, solutions new by Over and product we've several labor including Vision trends in the integrated months, the our One savings the adhesive capture the highlighted optimal technology light presented opportunities using last XX conditions market recent over that introductions ReadyFlash set dark rigid insulation board. new various our maintain side the in of applicators to adjusting allows time productivity roofing commercial temperature is either facer which or by of such

sacrifice customer can ReadyFlash with standard up no off faster provide than to in light the demonstrated Xx facer have Our performance. a trials flash dark that facer adhesive

increasing in our easy-to-remove the Another feature areas, market. This while membranes protective strength time for Sure-Weld XX% cleaning example weld the Carlisle's by and patented on is film technology bottom reducing seam by SeamShield commercial provides top TPO an XX%. innovative roofing

Additionally, an panel. seam trials by single performance. energy installed methods, and to and building's thermal saving with time insulation integrated VPTech a air that Henry enhancing XX% labor both barrier, contractors, VPTech, leakage faster Blueskin also weather-resistant introduced includes ceiling a traditional efficiency reducing panel and continuous we Blueskin compared improves cost. a It In in independent recently a

our product and new or a These X together products incremental patented represent opportunity sales other at launches patent higher are significant pending margins. with

As to that we customers. energy Vision and efficiency, strategy, savings the superior remain our innovative performance introduction products execute R&D drive of investing our XXXX to continue accelerating we committed and for labor in

Please Slide turn X. to

our reduce wanted our XXXX. landfills. highlight Carlisle's released in to Kevin, the footprint it products emissions our progress progress hand our sustainability operations detailed give latest how contains we X we by quickly on towards and in to emissions will to examples I plan of reductions It that reduce I and GHG emission also report including XXXX clear recently we reader report. buildings, reduce how information, waste Before The to carbon over how

XXXX. of of environment half I'm proud to Vision resilience -- and the extremely in We team's performance market conclusion, in first of a In our our strategic our demonstrates results XXXX model, execution business strategy. disciplined dynamic strong our of the ability the positioning produce our

Vision with in forward move growth. on XXXX, we we our profitable positioned are fundamentals As deliver businesses and positive to well long-term the capitalize

with to Kevin financial that, to provide turn it Kevin? over additional And I'll details.

Kevin Zdimal

you, Thank Chris.

Our and results effective second on financial initiatives. demonstrate continue Carlisle's strategic the strength to our quarter execution

X, normalization a delivered on robust our and solid billion, of Slide construction XX% activity. reroofing the We driven to top channels, the and by season shown to As in up $X.X sales levels strong bottom the both year-over-year, a grew on we lines. start second inventory quarter

EPS XX.X%. by the Furthermore, our record share the of leveraged to operating EBITDA and margin XX% adjusted we expand to repurchase by margin points $X.XX, to top reflecting results, strong program. performance expansion benefit XXX ongoing our We a adjusted line grew basis

and an COS. EBITDA favorable sales up reroofing adjusted delivered XX.X%, improvements materials leverage strong to year-over-year, expanded quarter XXX points segment CCM X. growth, with to Looking driven inventory XX% impressive on -- XX% MTL. at of year-over-year on CCM's basis normalization adjusted CCM million, activity, the and highlights. increased strong by raw billion, revenues a $X.X XX%. acquisition second the of $XXX Organic of reflecting revenue volume margin benefit reflecting increased operational And EBITDA Slide our Starting and continued

up was were acquisition the and Polar helped from million, ongoing CWT margin the higher adjusted increased XX.X% lower EBITDA as benefits investments. efficiencies a at CWT's integration year-over-year benefit driven year-over-year to from approximately Revenues to Adjusted $XXX operating volumes growth at pricing. and EBITDA XX. partially X% offset X% year-over-year Slide offset million. to Moving by -- by $XX Henry and Industries, of stable

second quarter For your reference, Slide year-over-year XX a bridge. provides EPS adjusted

million working in Slides flow XX $XXX million capital XX. $XXX We XXXX $XX management. continuing to from flow up year-over-year. disciplined through million, $XX was reflecting our earnings capital invested the operations million for Moving months Operating was and up cash X year-over-year, cash expenditures. growth of Free $XX million,

We cash full our while flow a of investing liquidity with quarter $X We year and pace the continue billion shareholders. also over us with availability on strong XX% of for billion This the for capital credit on to to $X.X hand in position XXXX. returning provides margin of cash facility. ample remain free under revolving businesses, flexibility our ended

-- X.Xx, the proceeds ended from of We the net by cash a leverage which sale with and impacted positively we ratio quarter the CIT. of was received

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

ROIC state-of-the-art recent doing continued We and a announcement for and research investment by building into CapEx, by million so -- through high product and are center. innovation businesses in our reinvesting our investment our $XX evidenced growth

$XXX $XX returning the of XXXX. of dividends our of repurchasing commitment our by reducing and including We we our inception than have program, Since our of XX continue million the shares quarter million capital through to to in demonstrate strategy shareholders diluted and more our XX%. dividends, over million paid during count repurchased shares, share second in conviction to

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

million we We remaining share repurchase shares our million program. of of have the -- repurchase following X.X the during second under $XXX quarter, shares

structure the foundation, $X.X now deploy with balance nearly of and pristine returns-oriented ready sheet our unlocking drive firm we for in Overall, in they the as a capital mindset. creation to our proceeds, resources term. a us leverage. long including CIT to significant approach we upon a our built are is and for shareholders confident near further managing disciplined thoughtful seize a ability strength empowers value both financial come. to and to meaningful This for value sustainable emerge, growth billion, liquidity are With Our stakeholders years position strategically significant to a opportunities

additional of half to and acquisition We XXXX XXX over solid our the now of full second for raising margins of we XX. our XXXX. adjusted Carlisle revenue are XX% revenue Operating noted, outlook approximately driven outlook financial quarter year of increase as margins -- XXX grow This the for basis Chris maintaining through to moving Now previously MTL EBITDA prior expect previous our the in System, Slide previous to second the outlook by we full by at year results, guidance our as compared by to Leveraging outlook least on is expanding year. the points. combination approximately expand basis a points our

As such, EPS we growth to continue in expect XXXX. double-digit

strategy, this of ROIC goal we in and free we EPS. Additionally, at maintain And expectation plus cash of towards XXXX XX%. XXXX to aligned We of of flow Vision $XX deliver adjusted an excellent objectives -- our XX% -- least start and our margins experiencing outlined is our the excess in with directly are

looking -- of outlook. components the the We at

of revenue in MTL For activity drivers in market the XX% destocking, XXXX CCM, we driven growth to reroofing now expect grow normalization and acquisition the a return more by for XXXX. tailwinds and year-over-year order that are to the XX% slight year-over-year offsetting end to solid pent-up We patterns the demand was from than absent due during decline approximately pricing. --

growth pricing. we any grow end as For more in execution strong modest X% than to XXXX initiatives expect on offsetting now sales declines key as growth CWT, year-over-year approximately from in revenue well market

approximately XX% XX.X%. we on and Based the approximately second and raising adjusted of strong points basis results In full revenue to to up up and acquisition, to quarter quarter record outlook MTL was -- EBITDA points EBITDA of expansion basis successful year XXX the a the XXX summary, and start second was our are margins. XX% revenue

With turn closing remarks. I for that, over Chris to it

D. Koch

with the carry pleased will the raising we quarter of in first are the We believe second we that conclusion, expectations in exhibited as into is trends In Kevin. significant XXXX. the over of you, positive our -- half, look belief embedded quarter, towards and performance second third Thank in the extremely XXXX. our half for we

to in under XXXX. our Vision addition, emphasize strategic dedication want to trajectory -- I unwavering We Carlisle's

progress our experience innovative, and Carlisle businesses we outstanding the solutions, and towards and energy-efficient stakeholders. and labor growth XXXX, As outpace execution on all systems focus outcomes our within to us for deliver savings flawless positions market consequently

our we our stage for portfolio tandem additional company innovation free sets to us as products our of shareholders unlock pivot with cash The generation building flow move in value the significant to and a investment for significant robust forward. in

remiss and if a my and map to convey the The XXXX about success, to are appreciation of talented member we've Vision to XXXX future. remain I be the of employees. quarter we've for take road the built optimistic our achievements skill and testament remarkable witnessed dedication momentum would I team. for With moment a every Carlisle didn't Carlisle's incredibly this I each serving our as the

your again comments. ready Operator, once for for we our concludes now you are Thank formal questions. support. That

Operator

moment, first One for question. your please, Instructions]. [Operator

Your first Baird. the question Tim from from comes Wojs of line

Timothy Wojs

at maybe year. of I to back are Maybe guys obviously, in start market the Chris, off, underlying of being just guess, the the destocking up year, comping backing kind X% of maybe QX kind into X%. the in to some of kind I'm like front half the last -- of half or you

market back from of kind of the or rate growth I contractors of And, you just of that continue? either you're to you what b, look of So that, kind confidence guess, order the with kind half that kind talking gives a, seeing? as is type can rates what

D. Koch

much team lack a and first job, think predicted, on right half Kevin the first you're defining the we of I'll impact destocking. indicator -- of I restocking, and good think as of [indiscernible] half we I pretty call of the the the was Tim, it, did

right mark. on And so that good was the

we the and of work, then and us and that we some that some independent confidence years bit and have that, did work had I think guard -- our work gave done before, the around we talked this X some later independent I of went a our little we couple we've after didn't also off of quarters got out about that think surveys issue, how talk that can ago. ago, some destocking about us own a did insight of gets to own really

the going was things third the mix. quarter. at the CCM the And quarter same end we we're the into seeing of little that in drives saw better around second really quarter, bit a second

added think We had a into I we that environment. there. operating positive momentum MTL better

you retail our I were about R&R expected. If what off while really about team given and that the couple in and retail there And look CWT, products resi into hope sales think, we new of and was CWT Henry I everybody impact channel, helped. took the excited at of what the markets context introduced for, was that on a and was channel the probably what the probably

we think things, I to at have look we so continue And introduced. those new products

We margin on record continue me, or to COS. a the record on quarter, -- side actually had we month excuse

then year on that. quarter the we demand see of we economy, board. see efficiency, into many something the weather just or third like as we the the we trend going at situation, think, QX look get the so what weather in quarter event we November And We we should we'll around get end the get the we to deteriorating go how at the in and -- the unless they they're when fourth roof look days field all into at we're and into operational look and situation as continue a there's kind and across look

Timothy Wojs

Okay.

reroofing late pent-up And new or is piece, right that the of you mid-XXXXs to kind demand the kind the reprioritize visibility it to pent-up kind helpful. the sense guess guys demand for demand, ago where boom market kind that of and of That's then or above-average reroofing 'XXs like like that, of that's now. backlog. trying prioritize Okay. in hitting had couple I kind just you the kind just the Or for and when the talk get to echo construction to terms you to a a about and that have years are on I'm what of of reroofing? of demand referring kind of really of industry just from pushed

D. Koch

And while. it's we of And about reroofing construction, in to occur. something talked new out We've know how. ago We're I isn't great. before, that's the increasing it XX going laying foundation years had is a Yes. really start for that there

continued say, we talked So that's innovation and our about we while, markets. a markets. as driving back Obviously, this constrained you that forecast is in big the for labor a labor constrained

a really of allocating set we have they when as it's new where so And been. accurately time probably reroofing backlog. which to that and And a addressed as had be If construction. had to you're being I then you it think weren't quickly that little some lag. up, it just into better, labor roofs gets could going Again, COVID, is and we have bit might then

really supporting that. so And what that's in

And of we're highlighted referenced seeing. consistent backlog and actually firm your issued think today months still with I I on think And about around that's kind what that. report, architectural X.X at commercial AIA you healthy in you

Timothy Wojs

And in. if I Okay. last then could one one sneak

I for that do centers, mean, of big type all you thinking data just hard outside, need? anything Carlisle. data to to needs in just sort happen get you a there's building? And from additional any relative is cooling the to market of the like like us run-of-the-mill that content a center like guess polyiso but that, and heating on I they're tell the any with if kind obviously, or I'm building. other it's how data center for benefit Just a from roofs putting

D. Koch

Right.

obviously, the this consumption centers, We've the seeing been data did increase like things see this. we with and in So build. data

Phoenix areas is It not in As construction interest small a -- where we've excuse of talk about a lot also part center center of seeing that, a in me, our and like growing. data more it's piece. the data just in country. around but seen We're it overall sales,

it's getting attention. And so our

a it. We on focused team have

really it that talked you that And is making about. not piece a is it because nice gets but what point to a of part big content it's you're of it, the

as a need as very secure building really things. envelope. You moisture efficiency other well there and to control Energy have prime is

of So and a the would roofs I it's about product it's most sophisticated Carlisle. into one down. you we put And when roof that translate good for it think think content,

Timothy Wojs

Great. Okay.

Operator

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

Susan Maklari

My first the question of is as we are still lean positioning that? year. maybe talk going fairly how like business about bit, bit second Can the back relative it to think for to about sounds the roofing this you inventories are channel half a you

doing key anything And XXXX, all quarters? restock over those the think next dynamics about levels ensure and that a change share maintain service can to of you demand the you you're the of that potential for sort couple market Vision a to as or in

D. Koch

Right.

be quarter, might last that said historically lighter on inventory was the it think side. we I

load a this obviously. We're this. wasn't year. think burned We the People Obviously, on destock that. to There I had that's through true. of inventory. big in were aware you're

didn't I think big in. coming expect into this a year, we load

with address And actually and built actually and through prepared were bit to more had quarter lower the the in we first on we prepared, little could be inventory customer needs channel. to point, sure -- being having a your

because months managing Historically, XXXX, address quarter that inventory be don't now? of load would inventory the to year. in inventory when people the you some season, haven't why the we traditionally, of half carefully spring. that more in, load we'll the see assessment. back into then we're winter I as the Susan, have in the we peak in picking past So time we done do look that would so up, more And construction that, begin would built third as they're the at the to in But go

at look so that. And

But that's we do one way it.

in increasing we I operations, just you that efficiency to continue COS the had we of a record And of of way I terms invest quarter. second simply other The can quarter is, as the our capital. in in said, and think think

roll automation. We're out different continue We invest to to in in starting places. AI

demand ourselves able One S&OP to surgeons any planning, that, and to things like quickly really respond of to had. inventory to be them make is efficient management, more we've more

point, this well. handled the to pretty year we've But

and good positioned think to inventory I we're right there be that weather production demand. to well obviously, the need we a meet we'll fourth continue quarter. for quarter if on third And there's that

think even this and into we're good then a I in position So for year XXXX.

Susan Maklari

to That's perhaps time mean move color, result? and towards to great what coming then And you how through investment you that start about shift what mix making you're Okay. that to how terms And that perhaps have? Pennsylvania. costs the in think will target $XX could we spend R&D about that of think up a 'XX that X% Chris. Carlisle, forward about mentioned in we talk those about as more you mean could in you the should there, that years Can as in bit think million ramping that over

Kevin Zdimal

Yes.

in currently be and getting X-year over more obviously, as cost project, going the but the we a place to it in. And the getting out on going putting in, pipeline a outcome that's far labs and loaded side, we're then of On bit will working on certainly, of building a that as everything and the we're getting then $XX be new period. as, be further that it'll when investment, the permits products have on. products yes, full million little and back-end the come

well. one we going making out really maintenance the very taking the buckets R&D first in we're of and work X where have We and costs that different on It's improvements. that's is the our products.

the this to some is than continue products, to his remarks in on evolutionary right the We in of that 'XX the that ramp. pointed lot see some pipeline that of immediate 'XX, going out that seeing into A part and start we're now impact. Chris call, that's

our So the products, to more new working we've really focus to and current transformational of R&D more the new X-year center that's that we on on, going the when X- been R&D that's bucket. be the that's seeing in some start

Susan Maklari

luck good everything. And color. That's with Okay. helpful

D. Koch

Susan. Thanks,

Kevin Zdimal

Thank you,

Operator

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

Garik Shmois

update was you hoping could on provide an price cost. I

be looking good for the well? to in for still the positive think quarter a I that $XX that to after was and a second Is you're million that first raised quarter. the and assumption it as year, looked also talk how maybe

Kevin Zdimal

And as has Certainly, MDI, CWT in as to that's we've million then year, year, really of then that we as through about bit sitting we've the up X the the given Yes. seen we flat in expecting uptick came in And first took an were for positive raw segments. call, mentioned, up their year. price a and we the little then a of you moved quarter $XX a bit. little on materials into

those the so are for is us bringing at flat back pretty what we're looking year looking And at. much to

If looked pretty flat segment, X CCM much is quarters. by throughout all it at you

we in the So no talked CWT a quarter, about first real million quarter. Last impact. $XX being positive

Second be And CWT. $X CWT the cost probably quarter both was down at million and side for will then fourth price quarter third flat. the about on

Garik Shmois

I on comment. pricing wanted the That's Great. follow helpful. up to

price implement quarter increase second the in in CCM. did a You

the second more by your just wondering in color customers? pricing on maybe a how Just quarter. how was And that moved accepted sequentially little bit

D. Koch

thought show price announcement the I'll there, sequential year pricing they Kevin rising. Garik, my about and value part of competitors, when they attempting that I and again, to can entered sense I the happy materials we we it, one their are think were also to we was raw and the stuff. saw take even think were of talk When from our

little I going little there of said if as think, just maybe if us, Labor 'XX mentioned, much an call a fourth that, in can correct to getting a Kevin wrong. a costs for me So MDI quarter, Kevin up. good were right, wasn't higher. going in that bit, the really I'm impact because . We have is I'm

So what see did the some we is traction. places saw increase, we were had quarter getting through pricing we and that actually where implemented we

to extension wouldn't I have just broader it was to current conviction would an that. say reduction, I the was response over of though, further a overall, terms lot continue not the just say it of the to into a markets year. And in was extend,

of out effective. implementation price room extending year on the keep increase you when ability run ultimately, and you And its a to date, be

have only but have all. So as wouldn't us, won't projected, I the in I think not impact think impact, it it we industry, much much overall, for

third I ability So costs, and like XXXX. it that labor to to you industry into costs, the chain to firmer that as to the think enter something go fourth be and do how we -- things build then see will the some quarter supply how how by

Garik Shmois

No, I guess on just it. is acquisition. Got question last the MTL color. the my appreciate I

just into a EPS the raised You guidance, of couple ownership. accretion months

that. wondering you confidence early that so you're what do seeing Just gave on to the

D. Koch

team. of new and we really But actual the team the that like how it, embrace passionately playbook we leadership and great together own our that's some when things, these that comes and projection integration either the key Henry, that pursue a be got -- this company. in just do or we identified good after and I playbook, team we come much the leader have the embraced identification we try about think to synergies do, don't the gets synergies was passionately. does Frank not we Well, they as Ready is integration we've we the a in, as thing because get of as with Henry

has and And In we fully a into leadership fully just things also think MTL running, the opportunities hit And we've we've I integration both thought accelerated bought for Henry the the COS, some there. some were new synergy. of into bought then identified as ground playbook. cases, result,

that the it's about our And then start how worthwhile things as initially sales together. say the bring synergies start on together, you take of and groups action thinking get you can you we stuff cost to I think to And synergies. most

job, teams the Peterson really the and a just feel there's doing put management Drexel and are upside that's actually raising million we in the and it's as well. going for we synergies. So at at even $XX team That great accretion target think and synergies, our think out I the confident I to why new

year. more through So as that of the get we

Garik Shmois

Right.

good. Sounds

Operator

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

Bryan Blair

now Sorry seems bit missed for baked just revised details, guidance. largely overall level back outlook if unchanged, What's is as I set volume, such. sales respectively, and and of better, in on CCM CWT? CWT dialed price some organic like to the our CCM It

parts. the about curious moving Just

Kevin Zdimal

Yes.

pretty You there. well summed it up

XX%. we said XX%. as to overall, this look double raised year, Just at so around that had digits up approximately quarter, the going We into we full low CCM, for

outlook the picked year, it changes provided that the any would we're earnings the X% the the MTL we quarter. haven't X% in maintaining half So And of last additional the second what other from increase to be And of the the the we -- second acquisition. is volume then really we up call. in we're made then expecting

Bryan Blair

follow-up is million like fit clarification. profile, about the going the team on a Peterson more a margin to sounds potential? how offer and profitability maybe deal here. detail up synergistic step the to ramp and And quickly little synergies in your is Appreciate MTL Drexel MTL, pretty with $XX it longer-term And on Understood. thinking

D. Koch

longer closer into think I we next the term, that CCM. Bryan, aspirational and we disappointed over the for I years mid-XXs if see of XX%. I MTL to going the somewhere to be to lines is we're along getting sure didn't mean, think be few

So I but that to across right right didn't start the panels, we a the We've the the platform right got have have resi, know that's team, the things out fabrication, for before. do platform got really think leverage that finally entire We've profiles, this get volume. really I game metals, big nonresi we building some the hedge approach. to the of like the

to mid-XXs to again, we So grow. get And if would target continue would yes, it and XX%. think see I can let's

Bryan Blair

always and may, of if impressive. in you M&A. sticking Any can on a of know is is other deals run, strategic I M&A MTL one And side team curious the aggressive things. in home likelihood future? potential your powder. of seemingly foreseeable dry repurchases, on of your or share deal current Very with last tons offer that pipeline one, terms the color We

D. Koch

is M&A quite The good. actually Yes. pipeline

wanting some we I that. probably what you're strategics private see of and it's publicly around have aware exits, and to whether equity said think

tension have as bit cuts people and might say wait I of -- bit be higher a seller 'XX better. I'd thinking and valuation some will a little a little rate getting that it's think a come will we're still around better this to idea think that

buyers if we and saying, going number, higher uncertainty well, then of sell, to want obviously and so for think compensated are lot that a yes, there's to I I'm And I uncertainty. be a want there,

So the is good. pipeline

differential have I said, that's aspirations. think it's slowing the maybe things valuation But we we as assets, down a you little bit. have

strategy. acquisitions. would good all a what a for target clear We've have good businesses of We be across our got

and getting think optimistic I will And both So Carlisle. growth close. them to just continue the to be are story question I now the part that Kevin solid is a of for

So there. I in shape we're think good

Operator

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

Saree Boroditsky

within CWT. highlighted especially year share half Can the opportunities? more through gain then this of XXXX? You growth, to initiatives and And what adds talk in those just you in some second those

Mehul Patel

Yes. It's here. Sure, Mehul I'll one. take that

prior we So opportunities. in a on talked lot cross-selling CWT, calls about

about Home You talked Depot.

So look example Depot into if product added we by you categories channel, going at is Home digits. with roughly that home just new that double the the that itself

which focus products portfolio, system around is pretty in some full is putting also synergies gaining selling addition gaining And is And to then the Frank nice which lot across waterproofing, have new traction. of on in some we a also that, traction.

CWT, growth of you when overall all in roll to together, X% the between half. So X% adding somewhere that's it for second

Saree Boroditsky

bit That's surveys work you learned little gives us what those in you've you've call, outlook? the some internally. Maybe super color on you and your earlier some confidence helpful. in survey that it give highlighted how done A just from

D. Koch

we the I So the call, at as we and in maybe disappointed the thought quarter contractor clarity we think level. that had distributor were investors where on other about and a at more it right wasn't both in I channel, you -- the anyway, after know third in the before but of the visibility year, -- were inventory in there I I talked don't destocking think,

And it so to size worked call various contractor distributors. points hundreds we don't we survey at multiple went firm contractors with various create we the where a, a kind were out in but of data geographies, I of and proprietary, and looking

And on a in of your market? then get a are tool to forecasting for levels? things And inventory then And effective doing asking a like pretty we seeing What What around around for consolidation how been questions us. series it's growth? doing that. you are are you

think done start I market put a lot is on thing some of Carlisle the insights us emphasis us the greater to into We of us. perception give other for it's experience.

our we've around questions some are in also in help we've like And to and that, quality customer us so and that embedded and back that experience. used delivery some things taken efforts direct

that have. not we to is earth direct needed shattering. So something we just it's like do, to need feel something It's connectivity we and

a it think conversations I'm is and do day every process would you're say, more it, our do valid. with have sure bit So I where statistically We think already you of formal -- that may this multiple a But customers. doing more all was I little that.

So was the of our disposal. it we a portfolio at gathering good have to addition tools information

Saree Boroditsky

the appreciate color. I

Operator

from next Longbow Research. David of line the The from McGregor comes question

David S. MacGregor

CWT a guiding like growth. quarter. But a some it down of most plays help how like drill of the Chris, up year. sounds you're sort what's commercial side organic could based flat you residential of just happening comments for little And idiosyncratic great I each wanted looks half about out the the congratulations talk X% understand to further side versus if the into open on you that on kind see that just second us year. just and into . Can of it that internal on of and just made, programs. that the the of and just

D. Koch

Yes.

So for commercial commercial David, R&R, balanced, know, you and the new about XX% R&R. it's residential as CWT, into end markets fairly each

that side. pretty were conservative see side, double-digit the significantly the single-family range. side, overall So XX%. down Multifamily kind low on around we on residential of fairly We on in residential the a

on commercial and side, CWT side. towards new the -- more And institution the leans

it R&R. down market between less initiatives it together, up We modest there. we or the talked growth roughly Obviously, -- on low X%. single there's the all between as so But lighter then that's side, people well you affordability and we're buyers about R&R sellers residential in pretty the our range. the And net there. X% up about overall, small on transactions the or X%, see So down side, as

that acquisition CWT in small a also QX. late did There's

there's add prices point. as Kevin the lower half So second that's the mainly going tune certain And to of insulation X categories, price, the then in around to side, mentioned, about X%. in

plus X%. to that's those net together, you So you how get the

David S. MacGregor

confident holding you that share your in Are CWT? you're Right. Right.

D. Koch

we around the the well things Depot Home through overall, side. Yes, some talked share cross-selling waterproofing as as about gains of

I pretty overall the So the channel, in feel we side, we going that's market end outside there. of trends. think see where on insulation the softness on And good there's some something

David S. MacGregor

Great.

Okay. And follow-up. just as a quick

in quarter? weather For how a much was . revenue impediment the CCM, of

D. Koch

some Weather was Yes. was it overall, there. But takes and minimal. very puts had impact. Yes. We Yes, no minimal.

Kevin Zdimal

flooding at [indiscernible] think bit I of little facility, X A

David S. MacGregor

Great. Congratulations. Okay.

Operator

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

Adam Baumgarten

question on quick CCM pricing. A

from you talked Or X% terms Is a of think quarter, down down to down X%, X% to maybe back down use? year. outlook that X% about about now X%? last being initial in that to is I X% still good for the that your number that to

Kevin Zdimal

. that. in what that on range, were approximate X% no to that's but somewhere we X%, higher and Yes, before than

Adam Baumgarten

there's CCM but you kind been takes, Okay. been what's what's give puts Got you're it. weak. some what and seeing, I'm office, business, warehouse, if retail, verticals, your maybe some the And could strong, within then of just color on sure it's whether us

D. Koch

were Right. we're think where than 'XX maybe in at we across, I that, little of think, inverse down we increase probably XX-plus when now look I and the has that. in the warehousing where a warehousing When thing down, No, and were the, we obviously, about been that's I percent in less been significantly. back maybe think

Education pretty years over of be couple to consistent buildings. has good office last a been place the is

bit negative. still can little You a not imagine, it's great,

that. You all read and home there, that from happening press the in work what's with

terms one attention care actually We think of And think again. lot of well. that construction. then been I has new stores. has add about the manufacturing everybody this doing done That's to a stores, a in Health the call it well reshoring drives we good year

bag, let you what mixed even probably trends. a upon but based overall, is to would have So you're the what expected

Operator

[Operator the Instructions]. call like remarks. I'd for final this turn There to ahead. over Koch to go Please at are back time. no further Chris questions closing now

D. Koch

earnings being the second on to call the with This I and all call. everybody our you. then Thank forward quarter call. speaking Look you appreciate Thank concludes you. at of questions. next earnings good

Operator

conference call ask We lines. your for disconnect this and gentlemen, please for participating you and you that Ladies your today. thank concludes

Carlisle Companies (CSL) 24 Jul 242024 Q2 Earnings call transcript