Carlisle Companies Q3 2026: Record EPS But Margin Squeezed 210 Basis Points
As seen on the 24/7 Wall St. homepage on October 28, 2026.
Both lines beat expectations, yet the stock sold off because adjusted EBITDA margin compressed 210 basis points as petroleum-based raw material, diesel and freight costs ran ahead of pricing. Management calls it timing, guiding to flat margin in Q4 as price increases build, and raised the dividend for a 50th straight year.
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Carlisle Companies posted a record adjusted EPS of $5.92 for the third quarter of 2026, beating expectations, with revenue growth in the high-single-digit range across both operating segments.
The complication that sent shares lower was margin compression: consolidated adjusted EBITDA margin contracted 210 basis points, as renewed escalation of conflict in the Middle East pushed petroleum-derived raw material, diesel, and freight costs well above what management anticipated in its July outlook.
CEO Chris Koch called the pressure a timing issue, arguing that pricing lags cost in inflationary cycles and that freight surcharges and broad-based price increases are already building. For Q4 2026, Carlisle is guiding to high-single-digit revenue growth in both segments with consolidated adjusted EBITDA margin roughly flat year over year.
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On the capital return front, Carlisle raised its quarterly dividend by 14% to $1.25 per share, marking its 50th consecutive annual dividend increase and cementing its status as a Dividend King. A lower diluted share count, helped by buybacks during the quarter, was a meaningful contributor to the record EPS figure.
Management kept its Vision 2030 targets intact, including $40.00 in adjusted EPS, and is expanding into data center roofing as an incremental growth avenue. Investors keeping an eye on the stock will want to monitor whether Q4 pricing actions close the gap with raw material costs, or whether inflation persists into 2027 and forces a guidance reset.
Mentioned: CSL