Carlisle Companies Incorporated (NYSE:CSL) has announced its Q4 2023 financial results, which have broken records. The company's GAAP diluted EPS was $3.91, and its adjusted EPS was $4.17. While revenues declined slightly by 1.9% YoY to $1.1 billion, the company's operating and adjusted EBITDA margins expanded significantly by 440 basis points YoY, indicating an upward trend in profitability.
Record Numbers Amid Slight Revenue Dip
Despite a slight decrease in revenue, Carlisle accomplished significant achievements in 2023. The company repurchased an impressive 3.5 million shares worth $900 million and launched its Vision 2030 strategy. This strategy aims to achieve an ambitious adjusted EPS target of $40 and involves divesting CIT to focus solely on building products. The company's future looks promising, with expectations of mid-single-digit revenue growth and expanding EBITDA margins for 2024.
Increased Profitability and Vision 2030
Carlisle's CEO, Chris Koch, expressed satisfaction with the company's strong finish in 2023. The key drivers were increased sales in the CCM division, favorable weather, and operational improvements. Carlisle aims for a sustained ROIC exceeding 25% under its Vision 2030 strategy. The backlog of roofing projects and customer restocking is expected to offset macroeconomic risks in 2024.
"With our strong finish to 2023 and the end of the past year’s inventory destocking in our channels, our team enters 2024 energized and clearly aligned with our recently launched Vision 2030,” Koch said in a statement.
“The announced sale agreement of our CIT business serves as a critical last step in our successful pivot to a best-in-class pure-play building products company,” he continued. “As part of our superior capital allocation philosophy, we made the strategic decision in 2021 to allocate future cash flow and human capital to maximize total returns by focusing on our building products businesses which have consistently delivered the highest returns.
“With the expected proceeds from the sale, we begin 2024 with an eye toward significant value creation for shareholders and an expectation of delivering another year of superior ROIC in excess of 25%,” Koch added.
Expectations for 2024
The outlook for 2024 predicts an increase in revenue for both the CCM and Carlisle Weatherproofing Technologies divisions. A 5% revenue growth and a 50 basis points expansion in adjusted EBITDA margins are expected. Carlisle is committed to sustainability and aims to achieve net zero greenhouse gas emissions by 2050. The company has implemented a robust share repurchase program to demonstrate its commitment to shareholders and offers significant dividends.
