Carlisle Companies (CSL) 6 Feb 242023 Q4 Earnings call transcript

Good afternoon. My name is J.P. and I will be your conference operator today. At this time, I would like to welcome everyone to the Carlisle Companies Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] I would like to turn the call over to Mr. President Relations. Vice Carlisle's Patel, of Investor Mehul Mehul, ahead. please go

for good everyone. you, call website. Relations Patel, Carlisle's results our today, Relations both XXXX Fourth today's can press full Thank quarter Head We to of and section fourth Investor and Mehul Quarter afternoon, for financial I'm Investor release Welcome our and and in year presentation released the Call. XXXX of find you Carlisle. our Earnings the

are will Chris and CEO; provide our on today performance our Chris. the Board Zdimal, will and XXXX. me On for our accomplishments outlook call will President Koch, along who financial Kevin, and our provide Chair, with an results He by of highlights CFO. begin an update Kevin followed our with overview Today's call with on

we questions. Following open our prepared remarks, line up the for will

Slide please differ which to statements note of will uncertainties, are comments begin, today SEC refer we risks release our filings. a expectations. discussed Before results and of current to we where statements press and our due that from these on Actual forward-looking presentation, include number X in based materially could

between As our are press information, financial provides provided and our website. appendix we on our available Carlisle measures non-GAAP presentation in release reconciliations the non-GAAP in which and GAAP of materials,

With that, I will turn the call over to Chris.

joining Carlisle's Fourth on us Quarter Mehul. you, for Call. and afternoon, Good Earnings you Thank thank everyone, XXXX

during X XXXX helping commitment by over to drive our my years past members executing all like Turning appreciation X. value progress their our and to start extending for in would to and strategy creation significant and I Slide XXXX. Vision the team of sincere dedication to

a Carlisle. year challenging for year and dynamic represented past The

by those constraints in the This quarter half return order year many of pattern markets building challenges, in normalized resulted ours including to half was by the in chain of challenges increasingly Despite was related XXXX a more products, first continued first our The that second momentum. in beginning third for marked markets began driven by supply the half destocking of the XXXX. XXXX. and a positive impacted

successful to history. pivot In finished the XXX-year the of of Carlisle a XXXX our XXXX Vision the builds The of and our innovation, most achievement further strategic and record such pure-play with a which much portfolio. of on our potential goals that completion our events businesses was emphasis of significant quarter, diversified industrial building under in as key pivot building release as well-communicated XXXX addition full company. one Vision a unlocks from XXXX to Vision anticipated pure-play the products portfolio Accompanying increased of delivering new initiatives strategy, our fourth on an products

to uncertain we very the through finished year. conditions have note pleased the We dynamic market XXXX a are record despite and very on experienced

results surpassed fourth increase communicated which better-than-expected fourth better last largely we and record October, adjusted $X.XX, Our the achieved expectations profitability of driven by was on CCM year-over-year. CWT. We quarter our in of XX% in an earnings EPS quarter call sales

points year-over-year basis X% our demonstrating EBITDA maintain ability Our our on cycles. to economic XXX by through an sales, improved of lower XX.X% impressive margin clearly margins

experience pivot. In solid value are despite display lower financials operating power segment CCM conditions, favorable strength volumes continue weather our to stronger from with deliver building efficiencies and to in continue the we The to backlogs, produce businesses. the fully and more CWT unmasked our quarter, fourth contractor of benefited industry-leading the price margin creation. consistent Carlisle favorable and value of and the to and EBITDA results now on products drive

margin we in an XX%. a decline EBITDA XX% full maintained sales, at year our despite Looking of XXXX excess sales, in

X headwinds we months mainly rate-driven of project the Importantly, first delays XXXX. were destocking, channel predominantly to volumes of weather attributable most the and interest in lower experienced

testament for are CWT. focused our under execution XXXX by is ability and pleased stated per reinforced achieved at to of create which positive compelling Experience entering stellar us to of products Carlisle System, Carlisle exceeding The a momentum. Operating Furthermore, very our ROIC proposition. behind the with Vision derived we year daily XXXX the This and XX% a and year. our value efficiencies and value innovative with they an aligned performance a We goal with note positive delivering CCM for our price the our on to destocking the be customers, with through XX%, is consistent

Now let's turn to X X. and Slide

were pivot to December, sale sell best-in-class segment's over The and portfolio late a strategic of historical of announce in our important reached final the be of record CIT our an clearly milestone that of in we represents Following Vision This track strategy products release in business we our from seen. XXXX $X to billion. successful businesses showcases January industrial our products growth CIT a pure-play to financials returns our building diversified the step to allows just and pleased general is sale agreement building in an premier company. Amphenol to it that

that all value the drive Carlisle System, ultimately, of investing the earnings, with to driving making to being acquisitions, through With percent contemplated talented on In shareholders. combined leveraging the base capital Vision our with we allocation we growth, synergistic in XXXX. provides X-plus journey superior to flexibility shareholders capital in stronger cash capital people, expected allocators, the highest on margin, for even proceeds XXXX, Vision exceptional Operating and our have and now from efficiencies XXXX plus our growth that creating free flow investments seeking capital priorities organic embarked into execute returning supports our the XX% goal an CIT sale, our while returning

of we free to increased the decision returning those and over XXXX, of our we Furthermore, to per cash XXXX ahead our building businesses. nearly our be our the commitment have in $XX in years building doubled plan. a made segments highest demonstrate desire XXXX, flow capital portfolio allocator, further of During the share products products X pivot target over Vision Since superior introduction EBITDA doubled by XXX%. than to revenue our Vision earnings our we to segment, our more in exceeded

are proud which actions milestones an demonstrate of as the X capital to and strategy. over And validate significant our We last commitment allocation view accomplishments, clearly ROIC-focused we strategies our years. these that

time. to strong of as and labor-saving innovation One success specifically simply focus our ability proposition with delivering energy and our to our customers. to place offer right the key that other delivers the drivers solutions. complement of Carlisle efficient at the right what value call Experience be right Experience a is on compelling on In can The words, a we Carlisle Carlisle our defined commitments through product the getting We innovation Experience.

the through aligned This and customers to address site constraints the increasing for of well labor reduce increasing GHG buildings emissions productivity. and need green demand focus conserve significant has products, customers for to forecasted energy and improved to with the our the need job

attention move on XXXX businesses. building we our on As our success products of emphasis turn portfolio the to from now of Vision Vision we and our XXXX,

last continue As we foundational December, produce Vision that in XXXX. stated deliver results to in positive Vision our such strategies XXXX years to under few these released we our on video plan

additional innovative levels secular of on with and this include attracting emphasis important and talent our in are building of pillars of above-market a enhanced Vision next value Carlisle's synergistic The retaining growth holding key major XXXX committed for driving delivering steadfast commitments. Coupled innovation, unlocking phase envelope to shareholders tailwinds, top continued journey. M&A, we growth solutions, to and sustainability

will higher lever we margins our a XXXX, fulfilling be increased our innovation. key commitments look pursuit in As to of under spending on Vision

sales of efficiency. solutions such, sustainability, itself investing drive of that As creation products with and labor through is Carlisle goal X% new differentiating value advancements to in of the add a and energy

customers unified enhanced CCM. and pricing, and mobile continue provides with our tracking success customer customer continued advancing including access our exemplified recently relationships mobile-friendly Carlisle communication and Additionally, we digital teams. Experience. portal with at our investments in includes for our This platform a through the real-time engagement, catalogs, customers released aim personalized to by for operations customer status, delivery and This enhance to Carlisle product experience service is order portal to

we finish note. XXXX, on extremely historically delivered exited the maintained margins year to Overall, our and a strong an strong positive

a strategy company. and now is simplified Vision and building in place, products Our we are XXXX focused

motivated drive cycles demonstrate superior and innovation resiliency deliver through the margin growth. leverage to to economic trends, are EPS industry mega ROIC We and compounding

strong place, are in foundation achieving team set confident under we our With goals and XXXX. a our in solid Vision

the are commercial past for about As year, us, XXXX, inventory over in in the we headwinds setting optimistic buying profile end The markets. positive stage destocking our largely now begin more faced the we a normalized XXXX. behind in are roofing we building momentum

collectively to backlog ahead. of benefits from mitigate destocking the the and customer in to tailwind combined risks due of constrained expect prior in projects labor part reroofing strong We potential year year a

Vision that growth have As we strategic achievable fully believe is by XXXX such, positive reasonable we our objectives. and XXXX a for outlook supported

Kevin on and will XXXX call. expectations further touch later outlook in growth our the

greenhouse manufacturing access gas drive their energy-efficient first efficiency please and our pillar, in value Under to Now chain as diverting core landfills. value environment provide is that the X-pillar end for our focus our through I to sustainability share with positively end-of-life minimizing some materials X Slide solutions from We The users products, on while emissions to organization. a strategy. are: we progress updates and for impact our X turn initiatives. stakeholders sustainability Sustainability pillars our energy waste Carlisle's creating all seek our buildings.

inch As owners adding the foot XX,XXX over can as Polyiso insulation a life energy save the in roof X costs service as building an of much example, of building. avoided to square $XXX,XXX

reduce chain Our environmental and the Carlisle value emissions second our reducing our pillar, and operational carbon impacts. helps negative footprint

foam We HFC As compelling spray friendly of metric take of greenhouse agents formulation to the to over our XXX,XXX legacy operations. XX% over gas in a a year is our achievement. avoided, amounting blowing an finished let's converting example, environmentally tons spray our foam more products

to ISO carbon-intensive are Carlisle also our HFCs X total XX. XXXXX bringing through reminder, a certifications As XXXX, obtained enterprise-wide X,XXXx additional than more HFOs.

polyol Additionally, our Polyiso pivotal recently extend mass the MDI to clearing This and approach. plant Carlisle's to Montgomery a a the Polyiso bio-based run is ISCC+ of and its on bio-based in manufacture ability customers. balanced plant certification, credits to achievement obtained

Lastly, entering on of construction the landfills. our third pillar waste reduction focuses

or takeoff million insulation reclaimed materials square As XXX membrane an metric and XXXX. throughout update diverted tons of here, over landfills from Carlisle's rooftop program feet X

this reducing minimizing expedite our operating incentives Carlisle's and in customers. to sustainability efficiently, ingrained further I waste culture and believe spanning and will growth have program, to been personally we to empower end in essential great XXX solutions and for also success commitment offering the future. expanded users energy consumption will pride be has over take our We legacy amongst Carlisle's adoption which years. our in the

as Kevin turn to provide outlook. financial I'll additional XXXX over to it Kevin? our that, with And as details well

Thank you, Chris.

decline XX% X.X% XXX adjusted a Looking fourth at Despite quarter EBITDA our on with expand fourth record $X.XX, revenue, able margins our to we basis by an year-over-year. achieved of results increase XX.X%. were of in points quarter X. an Slide to we Furthermore, EPS earnings

Looking starting XXXX. of million, at CCM our segment Slide the from fourth highlights, CCM X. quarter quarter delivered up revenues X.X% of fourth $XXX on with

was of margin through weather costs increased driven end This a savings XX% return XX.X%. growth, Carlisle of System. including cost leveraging in input EBITDA CCM increase patterns, points driven combination was favorable with EBITDA The favorable basis realizing by of Operating channel. volume to the by and higher normalization order the up and the XXX the to to destocking million, $XXX

demand a at due of to X. year-over-year, first residential business and in XXXX. XX% Moving decreased to CWT of Slide the exit primarily well-known noncore the in Revenues the quarter declines

However, able XXXX. from the expanding to strategic restructuring from at efficiencies an million. of Henry fourth EBITDA were sourcing the acquisition. synergies drive revenue realization bolstered EBITDA an growth gained basis decline, targeted impressive of through by $XX The actions, of margin XX% of XXX points we and represented margin was improvement to XX.X%, quarter the despite the This operational

now exceed $XX deal fourth your adjusted above model EPS significantly million, reference. year-over-year estimate provides our million. $XX bridge of quarter XX a for Slide Synergies items

under availability facility. XXXX operations ended million with through of million $X flow had continuing of revolving billion We billion cash in We Moving Carlisle $XXX on XX. to fourth $XXX from the quarter our XX $X cash hand. generated and capital expenditures. operating invested of credit of Slides

long-term and XXXX, net Our year in our to a with Xx below of target. comfortably X ended X.Xx, solid free cash XX% the flow margin was leverage we

of capital excess allocation focused delivering XX%. framework disciplined Our in remains ROIC on

XXth $XXX repurchases and in As our continue and year to a capital paid opportunities straight building in we products million acquisitions on that attractive represented investing allocator being focus million stated for shares deliver valuation. deployed creation repurchasing XXXX, ROIC in dividends. This significant given We $XXX our towards value making synergistic increases. by Vision superior our of during high XXXX share businesses, dividend

share to million available of on under have from us program. expected flexibility and fourth and additional pristine with our execute profile and quarter, believe we to high-returning we repurchase XXXX our the CIT positions conservative of repurchases value beyond. our end proceeds capital fund leverage Overall, the share billion additional and provides the ample sale repurchases dollars further share X.X liquidity Expanding $X at in Notably, balance shares the priorities. allocation us creation sheet, drive

Turn to full see our XX year outlook. Slide financial to XXXX

costs EBITDA greater by efficiencies We pricing we continuous as remain basis XXXX margins our increase approximately and expect manage to expand XX revenues disciplined points. through versus by effectively efforts. to We leverage improvement focused X% XXXX and on operational

of ROIC margins XX% to excess we XX%. Additionally, flow cash expect of and in deliver free

EPS the first double-digit This our and a XXXX $XX-plus a towards in step growth XXXX. Vision outlined expect we aligned such, objectives in is positive target. EPS with directly strategy As

the Looking components at outlook. of the

expect CCM, patterns destocking. are primary X% XXXX. For was the due in absent grow drivers XXXX that year-over-year normalization to during we in approximately from order to revenue return to The the tailwinds

than to growth initiatives expect on markets. sales more grow and stronger trends by in offset posed nonresidential we revenue year-over-year residential XXXX. CWT, X% Strong For in headwinds key any approximately execution should

it turn remarks. Chris closing I that, over With for to

I throughout and closing, Kevin. am was hard the Thanks, work that Carlisle's In employees dedication for grateful of XXXX. demonstrated

also difficult many to have specifically entire to significant Berlin team resilience, our I delivering would out their in to teams the a they in the and and demonstrated their a of and at John like environment. past, thank call commitment value perseverance for CIT and excellence contributions As years Carlisle.

become and and assets our in and tenets CIT Amphenol XXXX. owned acquisition of was operations unique Carlisle began acquisitions, the Through the a creation innovation, as CIT the value family. synergistic longest portfolio industry-leading We to Carlisle. one of of part the key commitment team wish best combination the and organic they entire the a growth of in John embodied Tensolite with at the Company of

Turning to XXXX.

the a recently in goals entered outlined year focus strategy. launched Vision have XXXX We positive with and on our growth momentum clear the significant

results. solutions a well the to expected with sale concludes focus value That that cash ROIC We and questions. of our now efficiency us puts building XX%. improved CIT to creation The the flow drive ability from for another return, confident by positioned a and financial are engine robust us simplified right achieve are comments. for in significant and on energy our superior excess the industry-leading our innovate profitability products to Operator, above-market labor-saving growth leave on deliver proceeds we path shareholders of formal year in ready of and drive portfolio, free

[Operator Instructions]

Your first Tim Baird. the from question of comes Wojs line from

on way on start of to Is to growth. there just revenue some maybe a underlying Maybe the assumptions CCM. bridge X% the

the volume And be you underlying growth is? or in pricing interested well. what of the would of really of then lapping kind how for kind on kind about much implied kind roof of are of What just kind sell-through? as the how So baking destocking in thinking you're of

Tim. Yes,

about overall, CCM up So in expecting to X% be XXXX.

about the destock X% also X%. a and benefit. expect We pricing, That's overall and benefit have to XXXX, then market -- X% down which from down about really -- to about end then from X%. was XX% the the And be carryover we to

Okay.

you said assume how kind it. on then just stands think price. guess that on of there? pricing which Good. stabilized, the pricing, comments I of stands. heard industry mixed anecdotes I kind of just Okay. kind guess have mean, pricing where you carryover would your we've things where maybe I of And see on curious but around curious you do kind I'm

Yes.

CAM got given ], Tim, I I When couple it pricing the the think, too. we some components roofing. we We've but most the year, We've [ the declines, significant Europe a mix. in up we've thought we back, thought of sales got well. and look we've through XXXX, would of held got core stable. really there we've was fluctuated, say got it got

I going as was this January. X% QX. about it thing X%. Kevin and And I'd will the the It's so same as year, talking to stable think, pretty to be what much But again, it's it's it overall, characterize I early. think with

the last and think others definitely, of there in value I held I pricing providing. But and providing maybe the given gets declines year, we're all what to some pricing to are thought and that this

Okay.

into that contract around through think your the you that dynamics. about guess, I owner kind reroofing kind with backlog the Okay. do kind that to pushed underlying you 'XX. then on how on think how a But of just a kind of Good. reroofing, year just reroofing building of trying would of go based ability the I'm walk And side? on, just of a as into to kind of or visibility you other visibility and

-- it's think a constraints. cooking to backlog. there, at tend got construction new we look backlog. labor some still macro was We've at We Obviously, I the a Well, when had there's good level. it

but think We've years. gone We coming know roof we what's We a market on warranties it the based warranted, those know the I we through roof upon be is years our average, there roofs is share our that with mean looking warranties. could of when when have are that in you chart coming industry are about XX-year average longer and can due. back buy, also it XX the XX due. the

track all we So that.

the and talking is there got will a can delay And pallet of in you're patch you thing dispersed may very demand people early. and States Others this I functions. United a reroofing. place some you've repair think variety where things entire about some the is across the

surveys last surveys. try obviously, there year sense about markets Reddy [ XXX out contractors we X and Steve their get And talking what Shar did them. every are then a ], was with ] But sales their through the to I to We talked happening in about overall, about day around country. talking we think Frank [ teams

pretty visibility think we So good. the is

down. pinning things those think some in other it I difficulty just create

So tailwind go as the said, we in, looking XX% Kevin we're on from destocking. as that at

And we between up we're the that and construction, historically, in digits look combination back we've at been industry at the if that think general, holding we is new reroofing reroofing and I think mid-single at well.

Okay.

should and flat volumes upsell reroofing have be in high confirm, X%, then your of I like to mix, something new down just on to the you then if down just probably construction mean, to X% based or that? So and single then digits kind

yes. Yes,

I from in backlogs construction A think the then going reroofing, economy pressure we're the that's Yes, it. interest thinking the little that year, how rates up and exactly. new on with about and picking

next Oppenheimer. question Bryan comes of from the from Your Blair line

Nice year. finish the to

thanks. Bryan,

walk the the guidance it's if And be how level comps about Your as given and QX thinking the margins some coming you're those us you've that would a in you helpful. us set touch sales certainty to of certainly speak segment, the asked, cadence that year. strikes the have momentum fine. you to leading knowing framework, of can and through especially upside throughout the But conservative, extremely the through maybe but early is on by dynamics

Yes.

is sales. And So has our looking let's at what with been. really seasonality start we're historical sales

So on you sales go back X-year CCM. pre-COVID, at if the average

about XX%. second about than quarter typically The the sales of is is full XX% year first quarter

those the Third think CCM and be averages, were quarter more we're that's in quarter side. XX%. historical normal expecting and XX% 'XX and what was we going was to And is the a on fourth year, the

bit same sales then first we've Then about CWT And first is -- through CCM, where the only would drop a the the overall, XX% at much based pretty incrementals. quarter on that half sales about you of it's the in the second the incrementals stronger and talked the really difference margin, the The the then as expect of XX% they're so quarterly. of EBITDA has same quarter, sales. look about to if numbers year was XX% on those second CWT, CCM. in the For half at of been we historically little year, the the

incrementals. quarter CWT the out, are in CWT, one of and low Only playing if to of is of look that you couple that difference at how just mid-XXs should the a points all for numbers hundred increase CWT on just a QX. basis first based

talked up So of the And carryover about. that's from what in the they that really one exception is picked improvement synergies to I that all 'XX. just

remains and you that the Okay. CWT Appreciate is the the that just have How from price then good guys and XX normalized simple all about incrementals does running on a well math, And but the in come that assume growth a we coming exclusively that cost to helpful. Carlisle certainly take lever detail. points And basis you XXXX? of guy story. the suspect into very CCM seems That's guidance baked out what drop typically front? even based thinking into just it's and in referenced, the through, year, a growth I for you price/cost for for

cost curious just how with price but [indiscernible]. thinking starting about you're how that, So

Yes.

XXXX, million we a the and was the end had third $XX full came CCM where million the range that's year, For -- the range benefit. benefit for year we of we top for $XX for in CWT quarter, in full at that hit given

said, a were maybe conservative. get numbers we you as into of the little XXXX As

one be that that's is right, X%, segments. for at X% X% where we're flat This raws to price pretty both And much to price down. offsetting looking

number. there's a obviously, benefit a the raws of So take flat that

staying revolutionary to of kind [ curious come perhaps and terms for Okay. are the time year? We the ]. on R&D you of And clarification. this the the focus step-up margin more the the phased expense development how for about time? that kind more the product X% for last team. medium target in? to of one, long How's Understood. over a Just And in then what's Appreciate of it's the that in focus term. much evolutionary near-term sale conclusion We've being being bridge, in know factoring

Yes.

a double basis from R&D to overall and dropped XXXX. the of can Everyone operator So looking was is in we're as the percent that points nearly hear call. XX expense about sales,

please So and if patient, have momentarily. operator questions resume we're issue can you just to waiting the rejoin hear, be will [indiscernible] we we'll get then this the and -- so resolve

next Saree Jefferies. of line question your Boroditsky comes And from from the

issue we Glad got fix. technical a

to So almost in I about bit a billion want $X you're receive proceeds. talk to little about cash,

a -- thinking then optimal and the you capital just did but repurchases? seeing lot an share M&A about are perspective, you appetite already, of for ultimately, So pipeline business? buybacks you the what's year what are And how share from this structure for your

Yes.

do So quarter. debt from of piece one million the fourth $XXX coming cash, we XXXX in is due have the in

So there. of we'll use some cash the

expenditures, dividends, about put have of R&D then that's We $XXX And in that the and capital capital invest $XXX million. million $XXX we'll to out some million. the expenditures, at point, we

then share been put it also proceeds versus the year in share to to $XXX is doing CIT buybacks of We've expect half allocating to towards million acquisitions. do about buybacks. that now And that share down this buybacks comes about We'd we're a plus year. right

to. you you about if I want to get things repurchases. the We can pipeline, talk there. the about X more want any share Did ask

need sure and pause get everything just maybe think you I share repurchases. you make on

good. would that's next pipeline great. No, be M&A

Yes. a been little structure. M&A The Yes. think, And all pipeline slow. way the around get capital optimal I we'll has this bit, then

seeing a see the free rates I deals. interest bit. little businesses. probably little year for We great things hopefully, see are up you're great and think that not we pattern just here, 'XX everyone same spring a not else bit We'd But M&A as gets more, the year for seeing change of kind people more like with to was a following selling a their we're

products we XXXX, envelope. we're some mean, still we're Vision add So that Henry. have can but asset there are to them. and a that things synergies sales ] building We the want the reminder, [ in plant savings to had as like just there for as have for, to we We story we're really with going not Really, hope hurdles buying. things and there that real like make want optimistic I of specific the out organic portfolio did be said raw we and are growth we we material sure an within with hard Henry, are synergies savings to really

good the past picks get a And management up I has of the type bat estimated that that is -- acquisition of one to right management heard want to don't synergies Henry just coming we the the with the if it, playbook, the which is in had And have really they recently, million and integration think hardest in team. then Henry #X. we team in We with is the with been run but this we get that Henry off deal. I know $XX that you've the

Now $XX we've exceeded million.

And a they pause to acquired. lot that team, were is now playbook of that integration great that great management really and once

do capital with great there and I on, we're on what want So the example structure. just but we M&A, when Kevin things those a is more layer pick out like to harder then will think I find. little to you a think bit there picky are most, that, than Henry more of up I And think

debt And like if Xx that to net like X Henry Yes, to Xx. the pay X we back and to plan to capital structure, then in it's to of times above ratio. the back acquisition, right that have we're EBITDA that with net looking get range debt-to-EBITDA our at us within did XX is looks XX to in months

interest interest kind of net of to your But is, given M&A on on about where $XX your about to expecting of realize given income some you these think And interest you the within not guidance? income you should that that? expense. million within buyback about of hold proceeds have you so guidance, proceeds, cash you're do some the for earnings And half guess, pipeline I talked how

Yes.

And So interest we yes, of about interest $XX then $XX expense income. is million. million around have

million then million. So $XX net $XX million, $XX the and

from Capital. Your from Loop the next of question comes Garik Shmois line

Great.

down bit be if to side up you of X repair that could could Just digits new CCM is I around the new that flat be more so. and you that a to upside wondering appreciate you're you just But or the add market market your little slightly assessing single risk in more of seeing curious can down the view the the outlook. where would maybe points. X or speak how repair view being outlook, to versus variance high downside into are some this market anything as it just to or

Yes.

I this I for been we're into that that year. we're this idea me in unique we've think, thing interest environment going idea the facing biggest the is not economy, in Garik, this rate the that mean,

that's to hear to we're X going First, okay, pull that. super there's rate now, cuts, interest we Then We we back be that. going hear on positive. like

came I think said talk that. too out, [indiscernible] maybe to soon and said [indiscernible] about it's

the So economy we've on got got other We've everybody things about is that. that obviously, and with, employment needles and like pins that.

think I us sales for January, hard and trying season do to be is in overall quarter, is which first construction forecast sit we going mentioned, as is be and that in sitting spring the to the here, with XX% So the our to real summer. lightest, to Kevin thing the in of as

our telling are we the of video that expect looking us so as and relatively right pipeline. historical and -- moving market, they're we're project from at we're things So are averages, what get in on really saying, seeing along stable what now, we XXXX what did sales the teams as kind we we're

[indiscernible]. your and all like do things and account. pulse read kind those to into and you reports. get also checks take actually of your things We We your When surveys

to economy -- all But when we it then thing biggest the be for feels optimistic looking specifically. at biggest right granularity, verticals. continued, say, on to that. one the would call that we at think now, to look pressure down is out the But into we get that look warehouses. we So be to us warehouses, specifically the at And of see decliner seems I'm and variable. I probably you some be 'XX, I'd like And the when just biggest

Dodge has low forecast Education think XXs I somewhere pretty in teens, 'XX. for the it high good. looks

think X% aging Dodge more a be 'XX. seems building. health in which manufacturing, I last then to with the be stores, was to And of trend care, population There medical. get is lot money that there. seems think a And really still be around then seems Retail estimated happening in long-term the good. X And care. reshoring office the see there's to we'll we we somewhere of Medical think

from and we're deal tall the we that the Citicorp in a lot there office and X, that's think buildings, pretty we good. buildings been don't good work home, we X-story there was the with have more of buildings suburban had low on distress but So and

we of that's So the verticals see then. how kind

I reroofing in that. think top of we just on layer the

on that's the optimistic obviously, 'XX. dependent less little so again, the and a more age vertical And -- dependent bit of about

-- a April which winter destocking, that been the in had say we see the the good result this typically period, return have was the frame. X really years we to before in load-in haven't would specifically, is, if time we in fact I are of March, or think X be restocking, but the a back as ago spring there's that COVID, that perform to economy get a and continue year especially I could -- the it couple do forward, cuts with we a going pretty

So to economy there if around of look turns may that things some and good. -- be the

just CWT, curious maybe that a than prior Or question coming maybe stabilization, what is occurred to appreciate CWT you XQ, from some residential. more on is on of more in indicated project in has that some the pacing just touched address wondering delays I and but some certainly in those you of the similar, the specifically and But continued? plug. sounds seeing if maybe delays could of some you're you fourth things you quarter. anticipated commercial on down just it, the side there I project the But were CWT, follow-up these answer. guess than

Yes. Garik, one. it's I'll that take here. Mehul

dynamic point, the of the in very delays what That's your was project XXXX stabilized. environment. impacted the XXXX. challenging, given it nature to we basically macro now, overall, it's way So The see

less, what what's I think is interest of with the rates economy is higher going around on it nonresidential. and more kind or

focused I'd side, And So specifically and education characterize around as stable. we're commercial the on mainly overall, institutions, it medical, then side, being the government. on the CWT

to little well. more So bit be those stable tend a as

David Research. the Your MacGregor comes from of next from question line Longbow

Yes.

to start the with sense in have what any represented may extended to one a quick off December -- the Just days quarter? of benefit

days positive about think up of it X picked weather. we Yes, probably

days. Okay. X

won you share CCM. wanted share. in pandemic, to guys I market ask clearly, you during Secondly, And the about

guess prepared that it context maybe XXXX. expect to I price they is question market within so you the what you the can terms then share and the they're And get that do if want now CCM of in back, likely share And you to market is, stabilizing, defend answer, in how use that it? talk of just about

Yes.

get we of a know, the there share. market a were out, into maybe captured that would when share, built don't I we were we came it. for might recall, had say if when COVID, in you actually I inventory contentious. would declining. we don't of to to And lot going I first phases I came when during phase say want think couple And out, I COVID others

demand to provide. belief So a we of to part Carlisle right? the providing And attributed our had right of contractors, there -- weren't was the right product, at experience, that our right able value was to others place, time, lot

contractor we So up way. we sales Or We techniques approach get then. to Then out time things. think of may others a the are through direct their And share is distribution you're implemented be on. had They that sell types to and to went did I picked get market they different? different different and to in funded handle into the right.

was one we distributors, I our And bit our we our could all say, a make little to of didn't contract was we distributors in think we better program, felt of all customers funding decision call it long-standing survive. would some to that approach so sure it the As decisions. path got because the a more chose put democratic that with under, be made everybody we eggs biggest I MSP we

suffered So little we may there. bit have a

there think as guide, acerbated the gain back. But a pricing And things we've so year through very things already the quarter was attempts share first ultimately, in stable then could came which I in some the we to first the that -- was quarter year, that of destocking. pricing into 'XX, came out as some for touched on, it

with that on look relatively specifying is now Mahul and flows say I But a talks in There's to I different when overall whole, us specific to reasons as and and segment TPOs market as relatively than COO which is one stays really, I of is 'XX, different have ebbs each remained the the shares whole things think so stable at I've specifications, viewing would a time a stable. been distributors system, XXXX for EPDM PBC. than And EPDM. these lot this the thing then well. the and of is it network our what Henry architect about great warranty very

This a idea that system. we're having specified

will think any don't be I 'XX different. So

be will 'XX buckets membranes, and in [ The our I way will ] probably share roofing X the think big the play the ESI relatively similar around accessories market of a and out of at insulation, seals that. business. consistent

extent normally last -- you then levels? backlog with question And And that about And your so you in us? are to backlog Can regard would for the to how that? on was what Great. had it thinking the for above remarks. -- in that are just size referenced be roof you normalized I [indiscernible] prepared and you you what

or I much, of it's ABI, to a would I more -- public would -- I figure. and back guess think want I share too don't go -- think. without maybe And to I I

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that's we've X.X. was while. last X.X, the it's few I think, below think Contractor years. really for Kevin dipped X.X referenced steady is there pretty -- that seen so what for don't similar a to I

demand relatively about talked I but what healthy remained labor which that constraints consistent, there. kind backlog aren't So with people a there's of of we is paying backlog has think resume,

comes Adam Zelman. Baumgarten the of next from question from Your line

that or given margin the is across it at looking company than total is XX the relatively businesses guidance, CWT the the margin balanced Just bps starters, year? for weighted a at higher -- the stronger EBITDA both overall expanding bit more

balanced Yes, it's across CWT. CCM both and relatively

maybe you're kind more I Okay. CapEx, you weather spending of guys it. on And noted specifics and amount, in know of just XQ also some And that good ago you up positive investments. on headwind was January? in you Got One, just CapEx? others. incremental couple a then the growth a just weather coming perhaps moment mentioned a then some a give where Can

areas. Yes, CapEx continue is in to couple of there. One, and invest We're going the to innovation doing R&D. expansion going the be key a to

like of investments but growth. lines our that, have, will those enhance reduction with COS, additional not through growth be programs, And whether also types overall. There there's future We investments. it's of we certainly automation that anything some cost some and always for capacity, new will or

And notable. if January the Okay. just that was on or anything

division. that not Not we've say the really. from I heard would

and in be obviously, that up. a CWT once Frank the those know that things California, and they appear River stocked lot I team side. rain tends atmospheric on think one thing this things is this and the like in to do there something I about. talk kind leaks retail that, hit, that of gets

bit February get So probably impact further. we of have here as more a into an little

further no questions are time. Please this at There continue.

and much. Well, the the soon. Thanks everyone interest, concludes I that 'XX questions to call. our operator. all forward talking very appreciate Thanks, quarter and fourth conference we to look

your Thank gentlemen, call. you conference participation. and today's Ladies for concludes this

now may disconnect. You