A maker of single-ply roofing membranes (EPDM, TPO, and PVC), polyiso insulation, and architectural metal systems, Carlisle keeps U.S. commercial buildings dry and energy-efficient, while its weatherproofing arm supplies waterproofing, spray foam, and air/vapor barriers through North American distributors. Founded in 1917 as the Carlisle Tire and Rubber Company in Carlisle, Pennsylvania, it got its start making bicycle inner tubes. In a lucky twist, its rubber irrigation piping for farmers was repurposed as a waterproof roofing membrane—kicking off the roofing business that defines it today.
Carlisle's Q2 revenue rose 8% on re-roofing demand and pre-buying, but raw material inflation compressed margins.
Carlisle's construction businesses saw a volume rebound in Q2, but rising costs ate into the gains. rose 8.3% to $1.57 billion, driven by re-roofing demand and customer pre-buying ahead of price increases, yet fell 1.1 points to 36.2% as petrochemical and freight inflation outpaced pricing. The company is growing the top line again, but margin recovery depends on its ability to pass through costs that are now rising faster than its prices.
Key takeaways
Consolidated rose 8.3% to $1,570.3 million, a clear acceleration from the 4.0% decline in Q1, as both segments returned to volume growth.
fell 1.1 points to 36.2%, with management attributing the compression to petrochemical-based raw material and freight cost inflation from Middle East conflict that outpaced the company's own price increases.
rose 7.8% to $1.18 billion on solid re-roofing demand and customer pre-buying, but its contracted 1.0 point to 28.6% as the cost inflation hit the .
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 8% to $1.57B on volume growth and pre-buying, but margins compressed as raw material and freight inflation outpaced pricing.
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Consolidated grew 8.3% to $1.57B, driven by volume increases at both and from strategic initiatives and solid re-roofing demand.
grew 9.9% to $389 million, a sharp reversal from the organic declines that had persisted for multiple quarters, though its still fell 1.3 points to 10.7%.
rose 5.2% to $352.5 million, a slower pace than as selling and administrative expenses grew 1.2% on higher incentive compensation and commissions.
The company raised its full-year 2026 outlook to mid-single-digit growth and increased its target to $1.2 billion, deploying $250 million in buybacks during the quarter.
What changed
The Q1 2026 filing flagged CCM's 5.1% organic decline as a weather-related question mark; Q2 answered it with a 7.8% increase, confirming the Q1 softness was temporary and re-roofing demand remains intact.
CWT's , which had been watched for signs of a sustainable recovery after the 5.9% Q1 level, improved to 10.7% in Q2 — still well below the 12.0% of a year ago, but moving in the right direction as volumes returned.
The margin story flipped: earlier filings had tracked pressure from lower volumes, but Q2 introduces a new — raw material and freight inflation that is now outpricing the company's own price increases, compressing even as volumes recover.
The full-year target was raised to $1.2 billion from the $1.0 billion pace discussed in prior quarters, signaling management's continued prioritization of buybacks over debt reduction despite of $2,884.9 million.
What to watch
Q3 2026 against the 36.2% Q2 level, to see whether the raw material and freight inflation that compressed margins this quarter persists or if price actions begin to close the gap.
CWT in Q3 2026 after the 9.9% reported growth in Q2, to determine how much of the rebound was sustainable volume recovery versus one-time pre-buying ahead of price increases.
Full-year 2026 conversion, given the $197.1 million year-to-date result that includes a $125 million tax credit settlement and trails the prior year's pace.
The trade name carrying value of $219.0 million, flagged as a critical audit matter in the FY 2025 10-K, and whether CWT's improved trajectory reduces or merely postpones risk.
fell 110 to 36.2% as petrochemical-based raw material and freight cost inflation from Middle East conflict outpaced price increases.
rose 7.8% to $1.18B with down 100 to 28.6%; revenue grew 9.9% to $389M with operating margin down 130 bps to 10.7%.
Selling and administrative expenses rose 1.2% to $199.3M on higher incentive compensation and commissions, partially offset by lower acquisition-related costs.
Full-year 2026 outlook raised to mid-single-digit growth with operating and margins approximately flat, assuming no near-term recovery in new construction.
Share repurchases totaled $250M in Q2, with full-year target increased to $1.2B; declined to $197.1M YTD due to a $125M tax credit settlement.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in the Company’s market risk for the six months ended June 30, 2026. For additional information, refer to "PART II—Item 7A. Quantitative and Qualitative Disclosures About Market Risk" of the Company’s Annual Report on Form 10-K for the year en…
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There have been no material changes in the Company’s market risk for the six months ended June 30, 2026. For additional information, refer to "PART II—Item 7A. Quantitative and Qualitative Disclosures About Market Risk" of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 ("2025 Annual Report on Form 10-K").
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