Carlisle Companies Releases Vision 2030 Strategy and Financial Targets

By: Carlisle Companies Incorporated via Business Wire

December 07, 2023 at 07:00 AM EST

Outlines strategy to unlock the full potential of its pure play building products portfolio
2030 financial targets include Adjusted EPS of $40+ and ROIC of 25%+
Leverages mega trends around energy efficiency, labor savings and the re-roofing cycle
Above market growth driven by innovation, the Carlisle Experience and COS

Carlisle Companies Incorporated (NYSE: CSL), a leading supplier of innovative building products and solutions, today released a video and presentation featuring its Vision 2030 strategy and financial targets. Vision 2030 outlines the next phase of profitable growth and superior returns following the pivot of Carlisle’s portfolio of general industrial businesses to a pure play building products company and the successful achievement of its key Vision 2025 objectives three years ahead of plan.

“Vision 2030 presents a new chapter in Carlisle’s now 106 year journey as a company, focused on unleashing the full potential of our pure play building products portfolio with best-in-class returns,” commented Chris Koch, Chair, President and Chief Executive Officer. “Our exceptional and resilient margins have demonstrated the power of our differentiated products and solutions that we deliver through the Carlisle Experience, a compelling value proposition that resonates across end users, contractors, and distributors. As we embrace the future under Vision 2030, we are again leading the charge to upgrade our industry standards, drive above-market growth and earn a premium in the marketplace by placing even greater emphasis on innovation. Our focus on innovative, energy-efficient, and labor-saving solutions not only meets the increasing demand for green buildings but also ensures a more attractive outlook for our Company.

“We believe our track record of unlocking value in Carlisle is only just beginning to be realized by investors. We are introducing what we consider to be highly attractive and achievable financial targets through our Vision 2030 plan. Combined with a commitment to our talented team, sustainability, and a robust capital deployment approach, we have a clear path to deliver exceptional returns and firmly establish Carlisle as a preeminent investment opportunity in the building products sector.”

The Vision 2030 Value Creation Journey:

Builds on Carlisle’s record of success and strategic pivot to a pure play building products portfolio
Leverages mega trends around energy efficiency, labor savings and the re-roofing cycle that are expanding Carlisle’s market opportunity
Drives innovation by investing in and enhancing the significant technical infrastructure in place to help deliver above market growth and additional price for value
Continues to deliver a strong Adjusted EBITDA margin that has demonstrated resilience through cycles
Produces strong cash flow to drive superior returns on invested capital

Introducing Vision 2030 Financial Targets (from Base Year 2023E):

Adjusted EPS growing at mid-teen CAGR to over $40
ROIC remaining in excess of 25%
Organic revenue CAGR of over 5%
Adjusted EBITDA margin increasing to over 25%
Free Cash Flow to Sales ratio remaining above 15%

Vision 2030 Video and Presentation

The Vision 2030 pdf presentation and approximately 50-minute Vision 2030 video are both available on the Investors section of the Company’s website at www.carlisle.com. Visitors to the site can register to view the video.

About Carlisle Companies Incorporated

Carlisle Companies Incorporated is a leading supplier of innovative building envelope products and solutions for more energy efficient buildings. Through its building products businesses – Carlisle Construction Materials (“CCM”) and Carlisle Weatherproofing Technologies (“CWT”) – and family of leading brands, Carlisle delivers innovative, labor-reducing and environmentally responsible products and solutions to customers through the Carlisle Experience. Carlisle is committed to generating superior shareholder returns and maintaining a balanced capital deployment approach, including investments in our businesses, strategic acquisitions, share repurchases and continued dividend increases. Leveraging its culture of continuous improvement as embodied in the Carlisle Operating System (“COS”), Carlisle has committed to achieving net-zero greenhouse gas emissions by 2050.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally use words such as "expect," "foresee," "anticipate," "believe," "project," "should," "estimate," "will," "plans," "intends," "forecast," and similar expressions, and reflect our expectations concerning the future. Such statements are made based on known events and circumstances at the time of publication and, as such, are subject in the future to unforeseen risks and uncertainties. It is possible that our future performance may differ materially from current expectations expressed in these forward-looking statements, due to a variety of factors such as: increasing price and product/service competition by foreign and domestic competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; our mix of products/services; increases in raw material costs that cannot be recovered in product pricing; domestic and foreign governmental and public policy changes including environmental and industry regulations; the ability to meet our goals relating to our intended reduction of greenhouse gas emissions, including our net zero commitments; threats associated with and efforts to combat terrorism; protection and validity of patent and other intellectual property rights; the identification of strategic acquisition targets and our successful completion of any transaction and integration of our strategic acquisitions; our successful completion of strategic dispositions; the cyclical nature of our businesses; the impact of information technology, cybersecurity or data security breaches at our businesses or third parties; the outcome of pending and future litigation and governmental proceedings; the emergence or continuation of widespread health emergencies such as the COVID-19 pandemic, including, for example, expectations regarding their impact on our businesses, including on customer demand, supply chains and distribution systems, production, our ability to maintain appropriate labor levels, our ability to ship products to our customers, our future results, or our full-year financial outlook; and the other factors discussed in the reports we file with or furnish to the Securities and Exchange Commission from time to time. In addition, such statements could be affected by general industry and market conditions and growth rates, the condition of the financial and credit markets and general domestic and international economic conditions, including inflation and interest rate and currency exchange rate fluctuations. Further, any conflict in the international arena, including the Russian invasion of Ukraine and war in the Middle East, may adversely affect general market conditions and our future performance. Any forward-looking statement speaks only as of the date on which that statement is made, and we undertake no duty to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date on which that statement is made, unless otherwise required by law. New factors emerge from time to time and it is not possible for management to predict all of those factors, nor can it assess the impact of each of those factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

Non-GAAP Disclosure

Carlisle reports its financial results in accordance with the U.S. generally accepted accounting principles (GAAP). This press release refers to certain forward-looking non-GAAP financial measures, including adjusted EPS, ROIC, organic revenue, adjusted EBITDA, and free cash flow to sales ratio. Carlisle’s definitions of these non-GAAP financial measures can be found in the Vision 2030 pdf presentation in the Investors section of Carlise’s website at www.carlisle.com. Carlisle believes that providing these non-GAAP financial measures enhances Carlisle’s and investors’ understanding of Carlisle’s and its segments’ financial performance. Non-GAAP financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Carlisle’s definitions of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Carlisle is not providing reconciliations because Carlisle does not provide GAAP financial measures on a forward-looking basis as Carlisle is unable to predict with reasonable certainty the ultimate outcome of adjusted items without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Carlisle’s financial results computed in accordance with GAAP.