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
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
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
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).
Switching Costs General
Demand
Switching Costs General
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
Suite Bundling
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
Distribution Control
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
Operational Excellence
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).
Suite Bundling
Demand
Suite Bundling
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
Switching Costs General
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
Distribution Control
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
Operational Excellence
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
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.
CCM offers separately priced extended warranty contracts ... ranging from five to 40 years.
Extended warranty duration supports a switching-cost / trust-based differentiation mechanism.
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.
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).
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
Curation & Accuracy
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