Oct 28, 2026 earnings call — Pricing pressure and long-term growth plan
Revenue rose 9% to $1.5 billion this quarter; adjusted EPS reached a third quarter record of $5.92.
Revenue $1.5B (est $1.4B) · EPS $5.92 (est $5.89)
Key quotes
"Price realization and our freight surcharges are gaining meaningful traction, and we now expect to reach price cost parity as we exit 2026."
"Adjusted EBITDA held at $348 million on 9% revenue growth as volume leverage and Carlisle Operating System productivity helped offset inflation."
"The remaining launches are on schedule, and we remain on track to generate 25% of total sales from products introduced in the past 5 years."
Analyst Q&A 9
CCM pricing and 2027 cost outlook
Q (Timothy Wojs · Baird): He asked what the price realization was in Q3, what the company exited the quarter with, and the Q4 guide for CCM. He also asked whether price beating cost in 2027 assumes prices catching up or costs falling.
A: Management said pricing has been catching up to costs through Q3 into Q4 and they expect to reach parity by the end of 2026, after which pricing should exceed cost. They reported CCM price realization was about 4% in Q3 and they expect about 7% year-over-year in Q4. They also said raw material and freight costs continued to escalate in Q3, which affected results.
"And then Q4, we're looking at about 7% of price realization on a year-over-year basis." — Kevin Zdimal (CFO)
Competition and Carlisle service investment
Q (Susan Maklari · Goldman Sachs): She asked how management sees the competitive environment and how investing in the Carlisle Experience and service levels supports their ability to compete. She also asked for general context on the competitive backdrop.
A: Management said Carlisle has built strong specification relationships and keeps investing through the cycle in sales, service, and delivery reliability, which helps customers rely on them. They pointed to high on-time delivery, warranty and training as part of that value. They also said the overall competitive backdrop is relatively unchanged with solid, professional competitors and a few new entrants with no real impact so far.
"I think the competitive backdrop is, I'm going to say, relatively unchanged." — D. Koch (CEO·CHAIR)
CWT cost savings and margin carryover
Q (Bryan Blair · Oppenheimer): He asked if structural cost savings at CWT from automation, footprint changes, and in-house resin are assumed to continue if volume stays flat, and what margin lift would carry into 2027.
A: Management said the investments were largely completed at the start of this year and they expect $20 million to $30 million of contribution from those investments this year. They said there will be a small Q1 carryover but those specific investments lap next year, though they see more opportunity for further investments to reach their Vision 2030 targets and have CWT reach up to 25%. Management also said progress was real but masked by rising raw material and freight costs.
"As a reminder, for this year, we expect somewhere between $20 million and $30 million of contribution from these investments." — Mehul Patel
Reroofing demand into 2027
Q (Tomohiko Sano · JPMorgan): He asked whether recent changes have affected reroofing activity, including project timing, customer behavior, or the pipeline into 2027.
A: Management said they are not seeing any change in reroofing activity. They described reroofing as annuity-like, with customers tending to stay with the same supplier, and distributors and contractors monitoring roofs and scheduling reroofs. They do not expect a change in reroofing demand into the fourth quarter or into 2027.
"So I don't see any change in reroofing demand as we go into the fourth quarter and as we go into 2027." — D. Koch (CEO·CHAIR)
Signs of demand elasticity for reroofing
Q (David S. MacGregor · Longbow): He asked where to watch for first signs that reroofing demand might become elastic under a stagflationary scenario and what indicators management monitors.
A: Management said they do not see specific signals that would change reroofing demand and emphasized the business's strength and resiliency after many shocks over the years. They described reroofing as largely nondiscretionary because customers want to avoid leaks and insurance liabilities, and noted labor constraints are where flexibility may appear. They watch new construction and residential activity as parts of the mix that can move, but overall reroofing remains resilient.
"I don't think there's really anything on reroofing that I would point to." — D. Koch (CEO·CHAIR)
Q4 margins by segment and supplier lag
Q (Garik Shmois · D.A. Davidson): He asked management to break down the expectation of flat EBITDA margin in Q4 by segment. He also asked how long it takes to get relief from MDI and polyols when supplier constraints ease.
A: Management said MDI force majeure lifting will provide relief starting in Q4, with some effects delayed into Q1 for physical movement, and polyol supply is back after a supplier fire. They expect improvement on these commodities into 2027. They also said there may be about $10 million of negative impact in both segments in the near term, with CCM EBITDA flat year-over-year and CWT about 100 basis points of improvement, and company-wide flat EBITDA margins after corporate expense.
"And with that, that brings our EBITDA margins that we're looking at CCM is flat year-over-year and then about 100 basis points of improvement at CWT." — Kevin Zdimal (CFO)
Q4 gross margin and raws/freight inflation
Q (Ryan Merkel · William Blair): He asked what fourth-quarter gross margin might look like and also asked for an estimate of raws and freight dollar inflation for 2026.
A: Management said gross margins should be about flat at CCM and improve about 100 basis points at CWT year-over-year. They said raws and freight combined rose double digits in Q2, jumped to high teens in Q3, and with current Q4 levels, assuming costs stay where they are, they expect somewhere between mid-teens and high teens increases in Q4. Those comments apply to the current cost levels for 2026.
"With the Q4 levels that we're seeing, assuming costs stay where they're at right now, we would expect somewhere between high -- mid-teens and high teens up in Q4 as well." — Mehul Patel
CCM 4Q pricing implementation and demand
Q (Keith Hughes · Truist): He asked whether the 7% CCM price increase in Q4 will accelerate through the quarter and whether implied volume (low single digits) says anything about demand.
A: Management said the end market is up a couple of percent and with price up 7% that implies high single digits for the fourth quarter. They said the 7% price realization was largely in place in October and then carries through November and December, so they don't expect to exit December at meaningfully higher than 7%.
"As the quarter goes on, I think that number of 7% pretty much is in place at -- in October, and then that just carries on through November, December." — Kevin Zdimal (CFO)
Price-cost parity assumption clarification
Q (Adam Baumgarten · Vertical Research Partners): He asked to confirm that the price-cost exit assumption uses the Q4 pricing plan and assumes inputs stay stable, and that it excludes any incremental future pricing actions.
A: Management confirmed that is accurate. They said they are seeing the price realization continue as a steady climb based on current raws and the price increases already implemented, and that this does not include any further pricing actions. In other words, the exit assumes current pricing and current input levels.
"We are just -- we are seeing the price realization continue and it's continued steady climb based on the raws of today and the price increases that are implemented." — D. Koch (CEO·CHAIR)