GET DAILY SIGNALSCarlisle Companies (CSL) Reports Q3 2026 Revenue Up +8.6% With In-Line Adjusted EPS
Key Takeaways
- Carlisle Companies reported third-quarter 2026 revenue of $1.46 billion, up 8.6% year over year and ahead of the roughly $1.43 billion consensus estimate.
- Adjusted earnings per share (EPS, profit per share excluding one-time items) came in at $5.92, essentially in line with the ~$5.90 consensus and up from $5.61 a year earlier.
- Profitability slipped: operating margin narrowed to 20% from 21.8%, and adjusted EBITDA margin declined as cost and pricing pressures persisted.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $348.1 million (23.8% margin) landed slightly below the ~$351.8 million analyst estimate.
- Organic revenue rose 8.8% year over year, while free cash flow margin dropped to 18.9% from 29.2% in the prior-year quarter.
Why These Results Matter for Investors
Carlisle Companies is a leading supplier of building envelope products, operating through its Carlisle Construction Materials (CCM) and Carlisle Weatherproofing Technologies (CWT) businesses. As a bellwether for commercial and residential roofing demand, its quarterly results offer a real-time read on construction activity, input-cost inflation, and the company's ability to pass through price increases. Carlisle entered the third quarter on strong footing, having beaten estimates in July with adjusted EPS of $7.03, though seasonal demand typically eases after the summer. This report was closely watched because rising raw-material costs and softening pricing power across the commercial roofing industry have put margins under pressure, making the balance between revenue growth and profitability a central question for investors. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Reported Numbers
For the third quarter of 2026 ended September 30, Carlisle reported revenue of $1,463.4 million, an 8.6% increase from $1,346.9 million a year earlier and above the ~$1.43 billion consensus estimate. Organic revenue, which excludes acquisitions and divestitures, rose 8.8% year over year.
Adjusted EPS reached $5.92, up from $5.61 in the same period last year and in line with the ~$5.90 analyst consensus. On a generally accepted accounting principles (GAAP) basis, diluted EPS from continuing operations was $5.22, up 5% from $4.97.
The quarter's weak point was profitability. Adjusted EBITDA came in at $348.1 million, slightly below the ~$351.8 million consensus, while operating margin narrowed to 20% from 21.8% a year ago. Free cash flow margin also compressed to 18.9% from 29.2%, reflecting higher working-capital needs and cost pressures. Management guided for high-single-digit revenue growth and a flat adjusted EBITDA margin in the fourth quarter as pricing actions continue to build.
Market Reaction and Investor Sentiment
Sentiment heading into the report reflected caution about Carlisle's ability to defend margins amid rising raw-material costs and softer pricing power in commercial roofing. The company's strong revenue performance and in-line adjusted EPS provided reassurance on the demand side, while the modest adjusted EBITDA miss and narrowing margins underscored the cost pressures that analysts had flagged. Investors are likely to weigh the healthy top-line growth and resilient re-roofing demand against the slower-than-expected margin recovery. The fourth-quarter guidance for high-single-digit revenue growth and a flat adjusted EBITDA margin suggests management expects pricing actions to gradually offset input-cost inflation, though the timing of that margin inflection remains a key point of debate.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors should watch whether Carlisle's October pricing actions hold in the marketplace. The company has signaled that freight surcharges and disciplined pricing should support a margin recovery in coming quarters, but analyst commentary suggests some price increases have been slow to stick. Confirmation of pricing traction will be central to the margin outlook.
Demand indicators also warrant attention. Roughly 80% of Carlisle's roofing activity is tied to re-roofing and renovation rather than new construction, a mix that has provided relative stability even as commercial construction demand stays uneven. Continued strength in core products such as EPDM (a synthetic rubber roofing membrane) and TPO/polyiso (thermoplastic and insulation roofing systems) would support the top line.
Finally, capital deployment remains a factor. Carlisle has historically balanced acquisitions, share repurchases, and dividend increases, and its buyback activity influences per-share results. Monitor any updates on acquisition activity, free cash flow conversion, and raw-material costs for signals on how the margin trajectory may evolve through the remainder of the fiscal year.
Exploring Market Opportunities with AI Tools
From what I see, tools like Tickeron’s AI Screener can help investors quickly compare companies like CSL against peers on fundamentals, technical patterns, and performance metrics. I use it to scan for similar names in the building products space when earnings season highlights margin pressures or demand shifts. It surfaces ideas based on customizable filters without replacing my own analysis.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CSL in upward trend: price rose above 50-day moving average on October 20, 2026
CSL moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend. In 37 of 50 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 74%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 20, 2026. You may want to consider a long position or call options on CSL as a result. In 52 of 74 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 70%.
The Moving Average Convergence Divergence (MACD) for CSL just turned positive on September 28, 2026. Looking at past instances where CSL's MACD turned positive, the stock continued to rise in 32 of 46 cases over the following month. The odds of a continued upward trend are 70%.
The 10-day moving average for CSL crossed bullishly above the 50-day moving average on October 26, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 68%.
Following a +1.02% 3-day Advance, the price is estimated to grow further. Considering data from situations where CSL advanced for three days, in 245 of 343 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
The Aroon Indicator entered an Uptrend today. In 152 of 257 cases where CSL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 59%.
Bearish Trend Analysis
The 10-day RSI Indicator for CSL moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 similar instances where the indicator moved out of overbought territory. In 23 of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at 56%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CSL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 59%.
CSL broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 26 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 34 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. CSL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 50 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The Tickeron Valuation Rating of 78 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.477) is normal, around the industry mean (3.137). P/E Ratio (19.648) is within average values for comparable stocks, (25.023). Projected Growth (PEG Ratio) (0.906) is also within normal values, averaging (1.238). Dividend Yield (0.014) settles around the average of (0.071) among similar stocks. P/S Ratio (2.591) is also within normal values, averaging (1.941).
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a manufacturer of rubber construction materials, transportation products and general industry products
Industry BuildingProducts
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