Tom Sano

Tomo Sano asked Lucian Boldea about his first 100+ days as CEO, focusing on his approach to identifying organizational transformation opportunities and areas for improvement. He also inquired about the drivers of strong Q4 free cash flow and the focus areas for achieving the $350 million free cash flow target in 2026.

Answer

Lucian Boldea, President and CEO, described his first 100+ days as focusing on factory visits to understand operations and competitive advantages, identifying opportunities to translate best practices across the enterprise. He is working on a disciplined operating model based on transparency and accountability. Mike Discenza, CFO, attributed strong Q4 free cash flow to excellent working capital management (improved AR, reduced days) on top of earnings. For 2026, the $350 million target relies on improved earnings and CapEx at the lower end of the typical range, along with continued working capital performance.

Tomo Sano asked Lucian Boldea about his first 100+ days as CEO, specifically the processes and activities undertaken to identify organizational transformation opportunities, and areas with the greatest potential for improvement. He also inquired about the major drivers behind the strong Q4 2025 free cash flow and the focus areas for achieving the $350 million free cash flow target in 2026, including any potential upside.

Answer

Lucian Boldea (President and CEO) described his first 100+ days as visiting factories to understand operations and business processes, identifying opportunities to translate best practices across the enterprise. The current focus is on developing a disciplined operating model based on transparency, accountability, and lean metrics to operate efficiently and with agility. Mike Discenza (CFO) attributed strong Q4 2025 free cash flow to excellent working capital management (AR, reduced days) on top of earnings. For 2026, the $350 million target is based on improved earnings and CapEx in the low 3.5% range, with a focus on continued working capital performance and leveraging earnings.

Tom Sano asked about CCM demand trends, the sustainability of reroofing demand, signs of recovery in new construction, and Carlisle's pricing and overall strategies, referencing recent customer surveys and distributor feedback.

Answer

Chris Koch, Chairman, President, and CEO, Carlisle, expressed confidence in CCM's position, targeting 30%+ EBITDA margins. He noted new construction is not as vibrant but expects recovery, especially with infrastructure investments and residential market rebound. Pricing has been relatively good, with new technology embedding value-driven price increases. Kevin Zdimal, CFO, Carlisle, added that Q1 2026 revenue is expected to be down low single digits, with Q2 flat, and full-year revenue up low single digits.

Tom Sano asked about CCM demand trends and U.S. strategies, specifically regarding the sustainability of reroofing demand, signs of recovery in new construction, and pricing strategies, based on recent customer surveys and distributor feedback.

Answer

Chris Koch, Chairman, President, and CEO, stated that CCM is in a very good position, targeting 30%+ EBITDA margins. He noted that new construction is not as vibrant but is expected to return, especially with infrastructure investments and residential housing recovery influencing non-residential. Pricing has been relatively good, and new technology investments are expected to drive further pricing power. Kevin Zdimal, CFO, added that Q1 2026 revenue is expected to be down low single digits, Q2 flat, with a strong second half leading to low single-digit full-year growth.