VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★

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Sunday, December 28, 2025

Carlisle Companies Incorporated

CSL · New York Stock Exchange

Market cap (USD)$13.8B
SectorIndustrials
CountryUS
Data as of
Moat score
61/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

Carlisle Companies Incorporated is a building envelope-focused manufacturer with two continuing reportable segments: Carlisle Construction Materials (commercial single-ply roofing systems, insulation, and architectural metals) and Carlisle Weatherproofing Technologies (waterproofing, air/vapor barriers, spray foam/coatings, and insulation solutions). CCM operates in an oligopolistic single-ply roofing market and emphasizes warranties, system selling, and broad channel coverage, supporting moderate pricing power. CWT participates in more fragmented markets but seeks differentiation via system/bundle selling, warranties, and customer service; both segments highlight COS-driven continuous improvement as a recurring profit lever.

Primary segment

Carlisle Construction Materials (CCM)

Market structure

Oligopoly

Market share

HHI:

Coverage

2 segments · 8 tags

Updated 2025-12-27

Segments

Carlisle Construction Materials (CCM)

Commercial roofing systems (single-ply membranes, insulation, accessories) and architectural metal roofing/wall systems

Revenue

74%

Structure

Oligopoly

Pricing

moderate

Share

Peers

BRK.BHOLN.SWOCSIKA.SW

Carlisle Weatherproofing Technologies (CWT)

Waterproofing, moisture protection, air/vapor barriers, underlayments, spray polyurethane foam/coatings, and insulation products for the building envelope

Revenue

26%

Structure

Competitive

Pricing

weak

Share

Peers

HOLN.SWOCRPMSGO.PA+1

Moat Claims

Carlisle Construction Materials (CCM)

Commercial roofing systems (single-ply membranes, insulation, accessories) and architectural metal roofing/wall systems

FY2024 revenue $3,704.3m and segment operating income $1,084.3m; shares computed from company-reported segment financials (Form 10-K Note 2).

Oligopoly

Switching Costs General

Demand

Strength: 4/5 · Durability: medium · Confidence: 4/5 · 2 evidence

Warranted roofing systems and extended warranty offerings (up to 40 years) can reduce switching on reroof/repair decisions and support preference for proven vendors.

Erosion risks

  • Competitors match warranties and service levels
  • Installation quality issues increasing warranty claims
  • Distributors steering volume to alternatives

Leading indicators

  • Warranty reserves / claim frequency trend
  • Price realization vs raw-material inflation
  • Re-roofing vs new construction mix

Counterarguments

  • Roofing products are commonly bid per project; switching can occur job-to-job
  • Warranties are common across major manufacturers, limiting differentiation

Suite Bundling

Demand

Strength: 3/5 · Durability: medium · Confidence: 4/5 · 1 evidence

System selling (membranes + insulation/accessories) in warranted configurations can increase share-of-project and discourage mixing-and-matching components.

Erosion risks

  • Customers unbundle toward lowest-cost component suppliers
  • Specifiers allow multi-source equivalency

Leading indicators

  • Attachment rate of insulation/accessories per membrane sale
  • Gross margin by product mix

Counterarguments

  • Large projects can specify commodity-equivalent components from multiple vendors
  • Distributors may stock competing bundles and push alternatives

Distribution Control

Supply

Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence

Broad channel coverage via authorized sales reps and distributors supports reach and service levels, though bargaining power can be constrained by customer concentration.

Erosion risks

  • Customer concentration (distributor bargaining power)
  • Channel consolidation reducing routes-to-market

Leading indicators

  • Top-customer revenue share trend
  • Distributor inventory destocking/restocking cycles

Counterarguments

  • Independent distributors can multi-source and shift volume quickly
  • Large customers can demand price concessions and promotional support

Operational Excellence

Supply

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence

Carlisle Operating System (COS) is positioned as an enterprise-wide continuous improvement program supporting efficiency, service, and margin resilience.

Erosion risks

  • Lean benefits competed away via price competition
  • Talent/retention issues reducing execution quality

Leading indicators

  • Adjusted EBITDA margin trend
  • On-time-in-full delivery metrics
  • Manufacturing yield/scrap rates

Counterarguments

  • Competitors also run mature lean programs; process advantage may narrow over time
  • Construction demand cyclicality can overwhelm internal efficiency gains

Carlisle Weatherproofing Technologies (CWT)

Waterproofing, moisture protection, air/vapor barriers, underlayments, spray polyurethane foam/coatings, and insulation products for the building envelope

FY2024 revenue $1,299.3m and segment operating income $173.6m; shares computed from company-reported segment financials (Form 10-K Note 2).

Competitive

Suite Bundling

Demand

Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence

CWT strategy emphasizes system and bundle sales across building envelope adjacencies, leveraging broader product breadth to win projects.

Erosion risks

  • Customers unbundle to lowest-cost suppliers in fragmented categories
  • Channel partners prioritize high-turn, lower-priced alternatives

Leading indicators

  • Cross-sell attach rate across CWT categories
  • New product introductions and adoption rates

Counterarguments

  • Many CWT categories are locally competitive and price-sensitive, limiting bundle stickiness
  • Specification often varies regionally, weakening standardization benefits

Switching Costs General

Demand

Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence

Long-term warranties and customer service are cited competitive levers, supporting trust and preference in higher-performance building envelope applications.

Erosion risks

  • Competitors replicate warranty terms
  • Product commoditization in certain lines
  • Installation quality issues impacting warranty economics

Leading indicators

  • Warranty claim rates / reserves
  • Price realization vs raw material costs

Counterarguments

  • CWT faces numerous local and regional competitors, which can cap pricing and reduce switching frictions
  • Retail channels can intensify price competition and private-label substitution

Distribution Control

Supply

Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence

Selling primarily through distribution and retail outlets supports breadth and availability, but also creates exposure to channel pricing pressure.

Erosion risks

  • Retail/private-label substitution
  • Distributor consolidation increasing bargaining power

Leading indicators

  • Channel mix shift toward retail vs specialty distribution
  • Gross margin trend by channel

Counterarguments

  • Distribution and retail are generally non-exclusive; competitors can access the same channels
  • Channel partners may switch shelf/stocking priorities rapidly

Operational Excellence

Supply

Strength: 3/5 · Durability: durable · Confidence: 4/5 · 1 evidence

CWT explicitly targets margin expansion via COS and factory investments, suggesting execution advantage is a key profit lever in competitive end-markets.

Erosion risks

  • Cost improvements competed away in pricing
  • Input cost volatility (asphalt/chemicals) outweighing internal efficiency

Leading indicators

  • Adjusted EBITDA margin trend
  • Manufacturing productivity and yield metrics

Counterarguments

  • In fragmented categories, operational gains can be passed through to customers via lower prices
  • New entrants and regional players can undercut pricing despite lower efficiency

Evidence

sec_filing
Carlisle Companies Incorporated Form 10-K (FY ended 2024-12-31) — Item 1 (CCM Market Factors)

As one of four major manufacturers in the single-ply industry, CCM competes through innovative products, long-term warranties and customer service.

Explicitly cites long-term warranties as a competitive lever and indicates concentrated industry structure.

sec_filing
Carlisle Companies Incorporated Form 10-K (FY ended 2024-12-31) — Item 1 (CCM Market Factors)

CCM offers separately priced extended warranty contracts ... ranging from five to 40 years.

Extended warranty duration supports a switching-cost / trust-based differentiation mechanism.

sec_filing
Carlisle Companies Incorporated Form 10-K (FY ended 2024-12-31) — Item 1 (CCM Products)

EPDM, TPO and PVC membrane and polyiso insulation are sold together in warranted systems or separately in non-warranted systems.

Direct support for system (bundle) selling as part of the go-to-market model.

sec_filing
Carlisle Companies Incorporated Form 10-K (FY ended 2024-12-31) — Item 1 (CCM Products)

The majority of CCM’s products are sold through a network of authorized sales representatives and distributors.

Supports the channel model as a capability and potential moat mechanism (coverage/service).

sec_filing
Carlisle Companies Incorporated Form 10-K (FY ended 2024-12-31) — Item 1 (CCM Market Factors)

In 2024 CCM's two largest customers represented 33.7% of the Company’s consolidated revenues.

Highlights a key counterpoint: concentrated customers can reduce channel leverage and increase pricing pressure.

Showing 5 of 10 sources.

Risks & Indicators

Erosion risks

  • Competitors match warranties and service levels
  • Installation quality issues increasing warranty claims
  • Distributors steering volume to alternatives
  • Customers unbundle toward lowest-cost component suppliers
  • Specifiers allow multi-source equivalency
  • Customer concentration (distributor bargaining power)

Leading indicators

  • Warranty reserves / claim frequency trend
  • Price realization vs raw-material inflation
  • Re-roofing vs new construction mix
  • Attachment rate of insulation/accessories per membrane sale
  • Gross margin by product mix
  • Top-customer revenue share trend
Created 2025-12-27
Updated 2025-12-27

Curation & Accuracy

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