Carlisle Raises Dividend for 50th Straight Year as Costs Squeeze Margins

Carlisle Companies raised its quarterly dividend 14% on Wednesday, its 50th consecutive annual increase, as the roofing and building envelope maker posted record third-quarter adjusted earnings despite a sharp jump in oil-linked raw material and freight costs.

The Scottsdale, Arizona-based company reported revenue of $1.46 billion, up 9% from $1.35 billion a year earlier, according to the earnings release it filed with an 8-K on Wednesday. Adjusted EPS rose 6% to a third-quarter record of $5.92, and diluted EPS rose 5% to $5.22 from $4.97.

The dividend milestone earns Carlisle the label of a "Dividend King," Chair, President and CEO Chris Koch said in the release.

Costs outrun pricing, for now

Margins narrowed. Operating margin fell 180 basis points to 20.0%, and adjusted EBITDA margin dropped 210 basis points to 23.8%, with adjusted EBITDA roughly flat at $348.1 million.

Koch blamed the Middle East. "Renewed escalation of the conflict in the Middle East drove petroleum-derived raw material, diesel, and freight costs higher, well above what we anticipated in our July outlook," he said. "As in prior inflationary cycles, pricing lags cost, which drove the year-over-year decline in adjusted EBITDA margin. We view this as a timing issue, not a structural one."

Carlisle said freight surcharges and broad price increases kept building through the quarter, and that it has not seen a material change in customer demand.

Segment results

Carlisle Construction Materials grew revenue 8%, or 9% organically, to $1.1 billion, on volume gains from strategic initiatives, including growing traction in data centers, plus solid re-roofing demand and pricing. Adjusted EBITDA rose 1% to $306 million, but the segment's margin slipped 200 basis points to 28.2%. Soft commercial new construction tempered growth.

Carlisle Weatherproofing Technologies grew revenue 9%, or 10% organically, to $379 million, as share gains and weather-driven demand for roof coatings offset weak residential and non-residential construction. Operating income jumped 31% to $39 million, and adjusted EBITDA rose 13% to $68 million, with margin up 60 basis points to 18.0%.

Buybacks continue

Carlisle repurchased $350 million of shares in the quarter and said it remains on track for its $1.2 billion share repurchase target for 2026. Through nine months, it returned $990 million to shareholders, including $850 million of buybacks and $140 million of dividends. Free cash flow from continuing operations totaled $407 million year to date.

The company ended September with $547 million in cash and $1.0 billion available under its revolving credit facility.

Fourth-quarter outlook

Carlisle expects fourth-quarter revenue to grow by a high-single-digit percentage, with adjusted EBITDA margin flat from a year earlier. The outlook does not assume a near-term recovery in new construction.

Koch said the company expects pricing benefits to keep building into 2027 and margin expansion to resume as raw material costs normalize, and he reiterated confidence in its Vision 2030 path to $40 of adjusted EPS and return on invested capital of 25% or more.

Sources

1. Carlisle Companies Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0000790051-26-000048)

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