Updated 2/25/26
Carlisle Companies (CSL), a century-old manufacturer based in Arizona, has steadily evolved into a focused leader in building products. Its core operations now revolve around roofing systems, insulation, and weatherproofing technologies, which are critical components in the non-residential construction space. Backed by consistent free cash flow, low payout ratios, and nearly five decades of dividend growth, CSL has built a compelling case for long-term income investors.
With an experienced management team, a forward-looking acquisition strategy, and a sharp focus on margin expansion, the company continues positioning itself for sustainable performance. Trading near $394 with a P/E of 22.93 and a growing dividend that now stands at $4.30 annually, Carlisle offers a durable blend of income, stability, and operational discipline.
Recent Events
Carlisle Companies has been active on several fronts as it moves through fiscal 2026. The company recently paid its latest quarterly dividend of $1.10 per share on February 17, 2026, marking the continuation of a dividend that was raised during the second half of 2025 when management lifted the quarterly payment from $1.00 to $1.10, a 10% increase. That move reflected ongoing confidence in the company’s cash generation and its long-term commitment to returning capital to shareholders.
On the strategic side, Carlisle has continued to build out its position in the commercial roofing and building envelope space following the acquisitions of MTL, Plasti-Fab, and ThermaFoam in 2024. Management has focused heavily on integrating those businesses and realizing synergies, which has been a consistent theme in recent communications with investors. The company’s Vision 2030 framework continues to serve as the operational and financial roadmap, with mid-single-digit revenue growth and ongoing margin improvement as the stated targets. Construction activity in the re-roofing segment, which has been a reliable demand driver for Carlisle, remains a key area of focus as the company heads further into 2026.
Key Dividend Metrics
📈 Forward Dividend Yield: 1.03%
💸 Annual Dividend Rate: $4.30 per share
📆 Last Dividend Payment: February 17, 2026 ($1.10/share)
🧾 Payout Ratio: 24.48%
📊 5-Year Average Yield: 1.10%
🏗️ Dividend Growth Streak: 48 years and counting
💼 Free Cash Flow (TTM): $749.6 million
💰 Operating Cash Flow (TTM): $1.10 billion
Dividend Overview
Carlisle’s dividend yield sits just above 1%, which is unlikely to catch the eye of investors hunting for maximum income. But the yield alone misses the point of owning this stock. What matters here is the consistency of increases, the safety of the payout, and the trajectory of dividend growth over time.
With only about 24% of earnings being paid out as dividends, Carlisle retains enormous flexibility. This payout ratio reflects a management team that has never stretched the dividend beyond what the business can comfortably support. Even in years when earnings moderate, the cushion is substantial enough to keep the streak alive. Operating cash flow of $1.10 billion and free cash flow of $749.6 million dwarf the dividend obligation by a wide margin, which means the $4.30 annual payout is covered many times over. For income investors who prioritize safety above yield, that kind of coverage is exactly what they are looking for.
Return on equity of 34.87% and a profit margin of nearly 15% further underscore that Carlisle is generating real, high-quality earnings that support its capital return program. The dividend is not a stretch. It is a byproduct of a genuinely well-run business.
Dividend Growth and Safety
Carlisle now sits at 48 consecutive years of dividend increases, placing it firmly in the conversation around elite dividend growth credentials. The most recent raise came in the second half of 2025, when the quarterly dividend moved from $1.00 to $1.10 per share, lifting the annualized rate from $4.00 to $4.40 and the currently reported annual figure of $4.30 reflects the blend of payments across the trailing period. That 10% quarterly increase is consistent with the company’s historical pace of raises in the 8% to 10% range.
Looking at the recent dividend history, the pattern is clear. The quarterly payment was $0.75 in mid-2023, moved to $0.85 by late 2023, then stepped up to $1.00 in August 2024, and most recently reached $1.10 in August 2025. That progression represents a near doubling of the quarterly payment in just over two years, which is exceptional for a company that was already considered a mature dividend grower. The 5-year average yield of 1.10% reflects how the stock price has generally kept pace with the rising dividend, but long-term holders have seen meaningful income growth in absolute dollar terms.
Dividend safety here rests on multiple pillars. The payout ratio of 24.48% leaves room to absorb an earnings decline without threatening the streak. Free cash flow of $749.6 million provides more than enough coverage. And management’s track record across nearly five decades of increases, through recessions, construction downturns, and multiple economic cycles, speaks to a philosophy that places the dividend at the center of the capital allocation framework.
Chart Analysis
CSL’s price action over the past year tells a story of meaningful recovery and renewed momentum. The stock carved out a 52-week low of $294.62 before staging a sustained rally that has carried it to the current price of $393.73, a gain of roughly 33.6% from that trough. That kind of rebound off a multi-month low is encouraging for long-term holders, and the fact that the stock now sits within striking distance of its 52-week high of $431.17 suggests the underlying buying interest has been persistent rather than speculative. The remaining gap to that high is approximately 8.7%, which gives dividend investors a reasonable sense of where near-term resistance may come into play.
The moving average picture is constructive. CSL is trading above both its 50-day moving average of $359.78 and its 200-day moving average of $358.91, and the 50-day has crossed above the 200-day to form what technical analysts call a golden cross. This configuration is generally interpreted as a sign that shorter-term price momentum is reinforcing the longer-term uptrend rather than working against it. The proximity of the two moving averages to each other, both sitting near $359, also means they are converging into a fairly solid zone of technical support roughly 8% to 9% below the current price, which provides a reasonable floor reference for investors managing position sizing or adding on pullbacks.
The current RSI reading of 49.61 sits almost exactly at the midpoint of the 0 to 100 scale, indicating that CSL is neither overbought nor oversold at this moment. For dividend growth investors, a neutral RSI like this is actually a comfortable place to be. It suggests the recent price appreciation has not stretched valuations to a point where a sharp technical correction is imminent, while also confirming that the stock is not in distressed or heavily sold territory. Momentum is essentially in equilibrium, which often precedes a directional move as new fundamental catalysts emerge.
Taken together, the technical setup for CSL reads as broadly favorable for income-oriented investors with a medium to long-term horizon. The trend structure is positive, the moving averages are aligned in a bullish formation, and the RSI leaves room for further upside without flashing warning signs. Investors looking to establish or add to a position may find the current level reasonable given the technical support nearby, though those with existing holdings will want to watch the $431 area closely as a test of whether the stock can clear its prior high and extend the recovery into new ground.
Cash Flow Statement
CSL’s cash generation has been consistently strong enough to support its dividend program without strain. Operating cash flow climbed from $1.00 billion in fiscal 2022 to a peak of $1.20 billion in 2023, then settled back into a $1.03 to $1.10 billion range through 2024 and 2025. Free cash flow followed a similar arc, reaching $1.06 billion in 2023 before moderating to $917.0 million in 2024 and $970.6 million in 2025. The TTM free cash flow figure of $749.6 million reflects elevated capital spending in recent quarters, which bears watching, but the underlying operating cash flow of $1.10 billion on a TTM basis confirms that the core business continues to convert earnings into real cash at a healthy rate. For dividend investors, a company generating north of $1 billion in annual operating cash flow has substantial room to fund and grow its payout even as it invests in the business.
Stepping back across the full four-year window, CSL has produced cumulative operating cash flow well above $4 billion, which speaks to the durability of its cash generation across varying business conditions. The spread between operating and free cash flow has widened on a TTM basis, compressing free cash flow by roughly $352 million relative to operating cash flow, a signal that capital expenditure intensity has increased. That kind of investment typically reflects capacity expansion or infrastructure upgrades rather than business deterioration, and in CSL’s case it aligns with ongoing industrial growth initiatives. Capital efficiency remains solid when measured against the revenue base the company is building toward, and shareholders benefit from a management team that has demonstrated a preference for reinvesting in high-return assets while still maintaining a growing dividend. As long as operating cash flow holds above the $1 billion threshold, the dividend coverage picture remains comfortable.
Analyst Ratings
The analyst community maintains a buy consensus on Carlisle Companies, with 8 analysts currently covering the stock. The average price target sits at $389.75, which is essentially in line with the current trading price of $393.73, suggesting that analysts as a group view the stock as fairly valued at current levels rather than significantly discounted or overvalued. The low end of the target range stands at $340, while the most optimistic forecast reaches $442, implying modest upside potential for investors who believe the more bullish case plays out.
The fact that the average target is slightly below the current price is worth contextualizing. CSL has moved higher in recent months, and the stock is now trading closer to the upper half of its 52-week range of $293.43 to $435.92. Some price targets may not have been refreshed to reflect the latest move, which is common when a stock appreciates quickly. The buy consensus itself remains intact, reflecting underlying confidence in Carlisle’s cash flow generation, disciplined capital allocation, and long-term positioning in the commercial roofing and building envelope markets. Analysts covering this name generally cite the consistent dividend growth, strong free cash flow, and Vision 2030 execution as the core investment thesis. The high target of $442 represents a potential gain of roughly 12% from current levels, which is a reasonable expectation for a business growing at a mid-single-digit pace with ongoing margin improvement.
Earnings Report Summary
A Strong Finish to 2024
Carlisle Companies wrapped up 2024 with what could best be described as a quietly impressive performance. Adjusted earnings per share came in at $20.20 for the year, up a solid 30% from the previous year. Revenue hit the $5 billion mark, which was about a 9% jump year-over-year. Even more telling was the company’s ability to maintain strong profitability, closing the year with an adjusted EBITDA margin of 26.6%.
In the fourth quarter specifically, revenue landed at $1.12 billion, which was just a tick below the prior year, down about 0.4%. Despite that slight dip, earnings remained strong. Adjusted EPS for the quarter rose to $4.47, a 7% increase, which highlighted Carlisle’s ability to stay steady even in the face of broader headwinds like elevated interest rates and some tough weather conditions that affected project timing.
Segment Highlights and Strategy Shifts
The Carlisle Construction Materials division continued to do the heavy lifting. Revenue in that segment climbed 2.2% in the fourth quarter, thanks to ongoing strength in re-roofing demand. On the flip side, the Weatherproofing Technologies segment saw a 7% decline, largely tied to softness in the residential construction market. That was not a huge surprise given the broader slowdown in housing-related activity.
Margins for the quarter held at just under 20%, which is still a healthy level, though it reflects some of the cost pressures that many companies are navigating. Behind the scenes, 2024 was a significant year in terms of Carlisle’s long-term strategy. The company completed its move into a focused building products business by divesting its Interconnect Technologies segment, while adding new capabilities with the acquisitions of MTL, Plasti-Fab, and ThermaFoam, each expanding Carlisle’s reach in the building envelope space. Carlisle also returned $1.6 billion to shareholders through buybacks during the year, underscoring how much confidence leadership has in the business and its long-term trajectory.
Leadership’s Outlook
CEO Chris Koch has spoken positively about the path forward, citing expectations for mid-single-digit revenue growth and ongoing margin improvement as the company works toward its Vision 2030 targets. Demand for re-roofing projects has remained a reliable tailwind, and the recent acquisitions are expected to make a more meaningful contribution to results as integration matures. The trailing 12-month figures, including revenue of just over $5 billion, net income of $741 million, and operating cash flow of $1.10 billion, reflect a business that is generating real cash and executing with discipline. For shareholders focused on the long run, that is the kind of quiet operational strength that tends to compound well over time.
Management Team
Carlisle Companies is led by Chair, President, and CEO D. Christian Koch, who has been instrumental in shaping the company’s transformation over the past several years. His focus on streamlining operations and narrowing the company’s focus toward high-margin, less cyclical building products businesses has defined his tenure. Under Koch’s leadership, Carlisle has completed key divestitures, added strategic acquisitions, and maintained a disciplined capital allocation strategy that prioritizes shareholder returns while preserving balance sheet strength.
Supporting Koch is Kevin P. Zdimal, serving as Vice President and Chief Financial Officer. Zdimal brings financial discipline and transparency to the executive function, keeping the balance sheet in good health while enabling the company to pursue growth initiatives. The team is rounded out by experienced leaders including Scott C. Selbach as General Counsel and Susan Wallace as Chief Human Resources Officer. Together, this group has built a focused, performance-driven culture at Carlisle, with a clear vision toward long-term operational and shareholder value that has been consistently reflected in the company’s dividend growth record and capital allocation decisions.
Valuation and Stock Performance
Carlisle’s stock is trading near $393.73 as of late February 2026, placing its market cap at approximately $16.5 billion. The stock has recovered meaningfully from the lows it saw earlier in the 52-week range, which bottomed near $293, and it now sits in the upper portion of its $293 to $436 range. That recovery reflects renewed investor confidence in Carlisle’s earnings power and cash generation, even as the construction environment has remained uneven.
At a P/E of 22.93 and a price-to-book of 8.97, the stock is not cheap in absolute terms. But the valuation needs to be considered in the context of what Carlisle delivers. A 34.87% return on equity, a 14.75% profit margin, and nearly 48 years of consecutive dividend growth are not characteristics of an average industrial business. Investors are paying a modest premium for a company with high returns on capital and a proven ability to grow earnings and dividends through varying economic conditions.
Over the longer term, the stock has compounded well for patient shareholders, driven by earnings growth, margin expansion, and significant share repurchase activity that has reduced the float over time. Beta of 0.94 reflects a business that moves roughly in line with the broader market, offering equity-like participation without dramatic volatility. For dividend growth investors, the current setup, with a safe payout, a growing yield on cost over time, and a management team with a clear long-term plan, remains an attractive proposition even at current prices.
Risks and Considerations
Carlisle’s revenue base is meaningfully tied to the construction cycle, particularly non-residential re-roofing and commercial building projects. A prolonged slowdown in construction spending driven by elevated interest rates, tighter credit conditions, or a broader economic contraction could weigh on demand and compress results. While re-roofing activity tends to be more resilient than new construction because existing roofs eventually need replacement regardless of the economic climate, it is not entirely immune to delays and project deferrals.
Raw material costs present another ongoing consideration. Carlisle’s products rely heavily on petroleum-based inputs, and when commodity prices move higher, margins can come under pressure if the company cannot pass those costs through to customers quickly enough. While Carlisle has shown pricing power in the past, that dynamic can shift in competitive or softening demand environments.
Execution risk tied to the recent acquisition program is also worth monitoring. Integrating MTL, Plasti-Fab, and ThermaFoam while maintaining margins and preserving operational focus is a real challenge, particularly in a market environment where input costs and labor availability remain variable. Finally, regulatory and sustainability requirements continue to evolve in the construction materials space, and meeting those standards will require ongoing investment. Carlisle has been proactive on this front, but the compliance landscape adds a layer of cost and complexity that investors should keep in mind.
Final Thoughts
Carlisle Companies has spent decades building a reputation for operational discipline, strategic clarity, and a steady approach to rewarding shareholders. Its transformation into a focused building products business has sharpened the business model, and the management team has demonstrated the ability to execute through multiple cycles without sacrificing the dividend growth record that now spans 48 consecutive years.
The current setup is not without its challenges. Valuation has moved up from the lows, and analyst price targets suggest the stock is trading near fair value by consensus estimates. The construction backdrop remains uneven, and integration of recent acquisitions will take time to fully reflect in reported results. But Carlisle has earned the benefit of the doubt through consistent execution, and the underlying cash flow supports continued dividend growth, buybacks, and strategic investment simultaneously.
For long-term dividend growth investors, CSL remains a business that understands where it is going and how to get there, steadily and with a clear eye on compounding shareholder value over time.