Second Quarter 2026
Filed Jul 29, 2026Record revenue of $1.6 billion, up 8% year-over-year, with record diluted EPS of $6.36 and record adjusted EPS of $7.03, while FY 2026 revenue outlook increased to mid-single-digit growth with flat adjusted EBITDA margin.
Revenue, diluted EPS and adjusted EPS reached records, and both CCM and CWT posted revenue growth. Margin performance was pressured by raw material and freight inflation that outpaced pricing realization, although management raised its full-year revenue outlook and increased its share-repurchase target.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended June 30, 2026GAAP | $ 1,570.3 | – | 8 % |
| Operating income, three months ended June 30, 2026GAAP | 352.5 | – | 5 % |
| Operating margin, three months ended June 30, 2026GAAP | 22.4 % | – | -70 bps |
| Income from continuing operations, three months ended June 30, 2026GAAP | 257.7 | – | 1 % |
| Diluted EPS, three months ended June 30, 2026GAAP | 6.36 | – | 8 % |
| Adjusted EBITDA, three months ended June 30, 2026non-GAAP | 412.0 | – | 6 % |
| Adjusted EBITDA margin, three months ended June 30, 2026non-GAAP | 26.2 % | – | -70 bps |
| Adjusted EPS, three months ended June 30, 2026non-GAAP | 7.03 | – | 12 % |
| Revenue, six months ended June 30, 2026GAAP | $ 2,622.4 | – | 3 % |
| Operating income, six months ended June 30, 2026GAAP | 532.8 | – | 3 % |
| Operating margin, six months ended June 30, 2026GAAP | 20.3 % | – | -10 bps |
| Income from continuing operations, six months ended June 30, 2026GAAP | 385.4 | – | (3) % |
| Diluted EPS, six months ended June 30, 2026GAAP | 9.43 | – | 5 % |
| Adjusted EBITDA, six months ended June 30, 2026non-GAAP | 646.6 | – | 3 % |
| Adjusted EBITDA margin, six months ended June 30, 2026non-GAAP | 24.7 % | – | 0 bps |
| Adjusted EPS, six months ended June 30, 2026non-GAAP | 10.64 | – | 8 % |
| CCM operating income, second quarter 2026GAAP | $338 million | – | 4% |
| CCM adjusted EBITDA, second quarter 2026non-GAAP | $363 million | – | 5% |
| CCM adjusted EBITDA margin, second quarter 2026non-GAAP | 30.7% | – | down 90 basis points year-over-year |
| CWT operating income, second quarter 2026GAAP | $42 million | – | (2)% |
| CWT adjusted EBITDA, second quarter 2026non-GAAP | $74 million | – | 5% |
| CWT adjusted EBITDA margin, second quarter 2026non-GAAP | 19.0% | improved 380 basis points compared to the prior quarter | down 90 basis points year-over-year |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Carlisle Construction Materials (CCM)Strong volume growth from continued execution of strategic initiatives and solid re-roofing demand, partially offset by continued softness in commercial new construction activity. | $1,181 million | – | 8% (8% organic) |
| Carlisle Weatherproofing Technologies (CWT)Share gains more than offset continued softness in residential and non-residential new construction end markets. | $389 million | – | 10% (8% organic) |
FY 2026 outlook
- Revenueconsolidated revenues up mid-single-digit percentage year-over-year
- NoteCCM up mid-single-digit percentage year-over-year
- NoteCWT up mid-single-digit percentage year-over-year
- Noteadjusted EBITDA margins flat
Capital returns
- Repurchased $250 million of shares during the quarter.
- Increased share repurchase target to $1.2 billion for 2026.
- Returned $590 million to shareholders during the six months ended June 30, 2026 through $500 million of share repurchases and $90 million of dividends.
What drove it
- Above-market volume growth from strategic growth initiatives.
- Solid re-roofing demand.
- Customer pre-buying activity ahead of announced price increases.
- Share gains at CWT.
- Swift pricing actions, disciplined cost management and Carlisle Operating System productivity gains.
- Operational improvements at CWT, including manufacturing-footprint consolidation and expansion of in-house expanded polystyrene resin capacity.
- Freight surcharges and broad-based price increases across CCM and CWT were implemented in April and July, with a third increase taking effect in August.
Concerns
- Elevated petroleum-derived raw material and freight costs outpaced pricing realization during the quarter.
- Pricing realization typically lags cost inflation, with benefits expected to build through the second half of 2026 and into 2027.
- Commercial new construction activity remained soft.
- Residential and non-residential new construction end markets remained soft.
- Consolidated operating margin declined 70 bps year-over-year and adjusted EBITDA margin declined 70 bps year-over-year.
What to watch
- Realization of April, July and August pricing actions through the second half of 2026 and into 2027.
- Raw material and freight-cost trends driven by the conflict in the Middle East.
- Execution against FY 2026 consolidated, CCM and CWT revenue outlooks of mid-single-digit percentage growth year-over-year.
- Ability to sustain flat FY 2026 adjusted EBITDA margins.
- Progress on the balance of planned new products for 2026 and investments in the research and innovation center.
- Execution against the increased $1.2 billion 2026 share-repurchase target.
Balance sheet and cash flow
- For the six months ended June 30, 2026, cash provided by operating activities was $197 million.
- For the six months ended June 30, 2026, free cash flow from continuing operations was $130 million.
- Invested $70 million in capital expenditures during the six months ended June 30, 2026.
- As of June 30, 2026, cash and cash equivalents were $665 million.
- As of June 30, 2026, $1.0 billion was available under the revolving credit facility.
Analysis
Carlisle reported record second-quarter revenue of $1.6 billion, up 8% year-over-year, while GAAP diluted EPS rose 8% to $6.36 and adjusted EPS rose 12% to $7.03. For the six months ended June 30, revenue increased 3% to $2,622.4 million, operating income increased 3% to $532.8 million, and adjusted EBITDA increased 3% to $646.6 million. Income from continuing operations for the six-month period declined 3% to $385.4 million.
Growth was broad across the two operating segments. CCM revenue increased 8%, including 8% organic growth, to a record $1,181 million, driven by strategic initiatives and re-roofing demand despite softness in commercial new construction. CWT revenue increased 10%, including 8% organic growth, to $389 million as share gains outweighed continued softness in residential and non-residential new construction markets. Management also cited customer pre-buying ahead of announced price increases as a contributor to consolidated revenue.
Margins remained resilient but contracted as elevated raw material and freight costs exceeded pricing realization. Consolidated operating margin was 22.4%, down 70 bps year-over-year, and adjusted EBITDA margin was 26.2%, also down 70 bps. CCM adjusted EBITDA margin was 30.7%, down 90 basis points year-over-year, while CWT adjusted EBITDA margin was 19.0%, down 90 basis points year-over-year but improved 380 basis points compared to the prior quarter. CWT's operational actions, including automation, manufacturing consolidation and expanded in-house resin capacity, helped offset some inflation pressure.
Capital allocation remained substantial. Carlisle repurchased $250 million of shares during the quarter and raised its 2026 repurchase target to $1.2 billion. For the six months ended June 30, it returned $590 million to shareholders through $500 million of repurchases and $90 million of dividends, while investing $70 million in capital expenditures. Cash and cash equivalents were $665 million, and the company had $1.0 billion available under its revolving credit facility as of June 30, 2026.
Management raised FY 2026 consolidated revenue outlook to mid-single-digit percentage growth year-over-year, with both CCM and CWT also expected to grow mid-single-digit percentages. It expects adjusted EBITDA margins to be flat for the year. The outlook incorporates partial recovery of higher raw material and freight costs and easier comparisons, while not assuming a near-term recovery in new construction markets. The central execution item is whether successive price actions can close the timing gap between inflation and pricing realization through the second half of 2026 and into 2027.
Management, verbatim
Our record second quarter results reflect the Carlisle team's relentless focus on execution and operational discipline in a challenging macroeconomic environment. We delivered record revenue of $1.6 billion, up 8% year-over-year, and record adjusted EPS of $7.03, up 12%. Our teams drove above-market growth in both CCM and CWT through continued execution of our strategic growth initiatives. We focused on the factors within our control: swift pricing actions, disciplined cost management, and continued progress on innovation. We remain committed to advancing our Vision 2030 strategy through organic growth, bolt-on acquisitions, margin expansion, increased free cash flow, and disciplined capital allocation.
Chris Koch, Chair, President and Chief Executive Officer
The most significant, and well-understood, external challenge in the quarter was the rapid rise in petroleum-derived raw material and freight costs driven by the conflict in the Middle East. We acted decisively to recover our costs through freight surcharges and broad-based price increases across CCM and CWT, implemented in April and July, with a third increase taking effect in August. As we have experienced in prior raw material inflationary cycles, pricing realization typically lags cost inflation, and we expect the benefit of our pricing actions to build through the second half of 2026 and into 2027.
Chris Koch, Chair, President and Chief Executive Officer
Based on our first-half performance, continued momentum in our strategic growth initiatives, and the pricing actions we have taken, we are raising our full-year 2026 revenue outlook to mid-single-digit growth with flat adjusted EBITDA margin.
Chris Koch, Chair, President and Chief Executive Officer
Not in the filing
stated, not guessed- GAAP net income was not reported.
- Gross profit and gross margin were not reported.
- Debt balance was not reported.
- Prior-quarter consolidated revenue, operating income, operating margin, income from continuing operations, diluted EPS, adjusted EBITDA, adjusted EBITDA margin and adjusted EPS were not reported.
- Prior-year CCM and CWT operating income, adjusted EBITDA and adjusted EBITDA dollar amounts were not reported.
- Prior-quarter CWT adjusted EBITDA margin was not reported.
- FY 2026 gross margin, operating-expense and tax-rate guidance were not reported.
- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.