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Carrier Reports Strong Second Quarter 2025 Results
Net sales up 3%; organic sales up 6% GAAP EPS of $0.70 up 56% and adjusted EPS of $0.92 up 26% GAAP operating margin up 260 bps; adjusted operating margin up 130 bps Net cash flows from operating activities were $649 million and free cash flow was $568 million Reaffirming full-year 2025 guidance for sales, adjusted operating margin, adjusted EPS and free cash flow* PALM BEACH GARDENS, Fla., July 29, 2025 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported strong financial results for the second quarter of 2025 and reaffirmed its full year guidance. "We delivered another quarter of strong financial performance," said Carrier Chairman & CEO David Gitlin. "Organic sales growth of 6% was driven by strong results in our Climate Solutions Americas segment, with Commercial1 sales up 45% and total company aftermarket sales up 13%. Adjusted operating margins expanded 130 basis points driven by strong organic growth and productivity, leading to over 25% adjusted EPS growth. With a strong first half, we remain committed to accelerating growth driven by differentiated products, aftermarket offerings and system solutions. We are maintaining our full-year outlook for sales, adjusted operating margin expansion and adjusted EPS, representing about 20% adjusted EPS growth at the midpoint." 1. Excludes NORESCO Second Quarter 2025 Results Total Company (Unaudited)Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 6,113 $ 5,934 3 % Organic sales 6 % Operating profit $ 903 $ 724 25 % Operating margin 14.8 % 12.2 % 260 bps Adjusted operating profit $ 1,166 $ 1,056 10 % Adjusted operating margin 19.1 % 17.8 % 130 bps Diluted earnings per share:Continuing operations $ 0.70 $ 0.45 56 % Continuing operations - Adjusted $ 0.92 $ 0.73 26 % Carrier's second quarter sales of $6.1 billion increased 3% compared to the prior year. Organic sales growth of 6% was offset by a 4% headwind from net acquisitions and divestitures, driven by the sale of Commercial Refrigeration in Q4 2024. Foreign currency translation was a 1% tailwind to sales growth. GAAP operating profit in the quarter of $903 million was up 25% from last year driven by strong operational performance, the absence of backlog and inventory step-up amortization and a decrease in acquisition and divestiture-related costs. Adjusted operating profit of $1,166 million was up 10%, largely driven by strong organic growth and productivity. Net earnings from continuing operations were $608 million and adjusted net earnings from continuing operations was $796 million. GAAP EPS from continuing operations was $0.70 and adjusted EPS from continuing operations was $0.92 driven by higher operating profit, lower net interest expense and benefits of a lower share count. Climate Solutions Americas (CSA)(Unaudited)Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 3,252 $ 2,865 14 % Organic sales 14 % Segment operating profit $ 879 $ 713 23 % Segment operating margin 27.0 % 24.9 % 210 bps CSA segment sales increased 14%. Organic sales were up 14%, driven by continued strength in Commercial1 up 45% and Residential up over 10%, partially offset by a decline in Light Commercial. Segment operating margin increased 210 basis points driven by strong organic sales growth and productivity. Climate Solutions Europe (CSE)(Unaudited)Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 1,253 $ 1,194 5 % Organic sales — % Segment operating profit $ 99 $ 93 6 % Segment operating margin 7.9 % 7.8 % 10 bps CSE segment sales increased 5%. Organic sales were flat, with Commercial up low-single digits while Residential and Light Commercial was about flat. Segment operating margin increased 10 basis points, driven by productivity including cost synergies, partially offset by geographic and product mix. 1. Excludes NORESCO Climate Solutions Asia Pacific, Middle East & Africa (CSAME)(Unaudited)Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 882 $ 902 (2) % Organic sales (4) % Segment operating profit $ 135 $ 157 (14) % Segment operating margin 15.3 % 17.4 % (210) bps CSAME segment sales declined 2%. Organic sales were down 4%, mainly driven by Residential Light Commercial in China, partially offset by strength in India, Japan and the Middle East. Segment operating margin decreased 210 basis points with strong productivity more than offset by a prior year favorable currency impact and lower volume. Climate Solutions Transportation (CST)(Unaudited)Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 726 $ 973 (25) % Organic sales (1) % Segment operating profit $ 128 $ 138 (7) % Segment operating margin 17.6 % 14.2 % 340 bps CST sales declined 25% driven by the impact from the divestiture of Commercial Refrigeration. Organic sales growth declined 1% with mid-single digit growth in Container and low-single digit growth in North America Truck and Trailer more than offset by declines in Europe and Asia Truck and Trailer. Segment operating margin increased 340 basis points largely due to the Commercial Refrigeration exit during Q4 2024. Cash Flow (Unaudited)(Unaudited) Three Months Ended June 30,Six Months Ended June 30, (In millions)2025202420252024 Net cash flows provided by operating activities$ 649$ 660$ 1,132$ 700 Less: Capital expenditures - continuing operations(81)(108)(144)(210) Less: Capital expenditures - discontinued operations—(3)—(5) Free cash flow$ 568$ 549$ 988$ 485 Net cash flows generated from operating activities were $649 million and capital expenditures were $81 million, resulting in free cash flow of $568 million. Full-Year 2025 Guidance**Current Guidance** No change vs. prior guidance Prior Guidance Sales ~$23 billion ~$750 million revenue headwind from CCR exit Organic* up MSD FX 1% Acquisitions 0% Divestitures (3%) ~$23 billion ~$750 million revenue headwind from CCR exit Organic* up MSD FX 1% Acquisitions 0% Divestitures (3%) Adjusted Operating Margin* 16.5% – 17.0% + ~100 bps Y/Y 16.5% – 17.0% + ~100 bps Y/Y Adjusted EPS* $3.00 – $3.10 ~17-21% Y/Y $3.00 – $3.10 ~17-21% Y/Y Free Cash Flow* $2.4 – $2.6 billion Includes the expected results of continuing and discontinued operations $2.4 – $2.6 billion Includes the expected results of continuing and discontinued operations *Note: When the company provides expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See "Use and Definitions of Non-GAAP Financial Measures" below for additional information. **As of July 29, 2025 Conference Call Carrier will host a webcast of its earnings conference call today, Tuesday, July 29, 2025, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at or to listen to the earnings call by phone, participants must pre-register at Carrier Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing access to the live call. Cautionary StatementThis communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, Carrier's guidance for full-year 2025, Carrier's plans with respect to our indebtedness and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation, those described below and under the section titled "Risk Factors" in our most recent Annual Report on Form 10-K and in subsequent reports that we file with the SEC: the effect of economic conditions in the industries and markets in which Carrier and our businesses operate in the U.S. and globally and any changes therein, including financial market conditions, inflationary cost pressures, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction, the impact of weather conditions, pandemic health issues, natural disasters and the financial condition of our customers and suppliers; challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; future levels of capital spending and research and development spending; future availability of credit and factors that may affect such availability, including credit market conditions and Carrier's capital structure and credit ratings; the timing and scope of future repurchases of Carrier's common stock, including market conditions and the level of other investing activities and uses of cash; delays and disruption in the delivery of materials and services from suppliers; cost reduction efforts and restructuring costs and savings and other consequences thereof; new business and investment opportunities; the outcome of legal proceedings, investigations and other contingencies; the impact of pension plan assumptions on future cash contributions and earnings; the impact of the negotiation of collective bargaining agreements and labor disputes; the effect of changes in political conditions in the U.S. and other countries in which Carrier and our businesses operate, including the effect of ongoing uncertainty and/or changes in U.S. trade policies, on general market conditions, global trade policies, the imposition of tariffs, and currency exchange rates in the near term and beyond; the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which we and our businesses operate; the ability of Carrier to retain and hire key personnel; the scope, nature, impact or timing of acquisition and divestiture activity, such as our portfolio transformation transactions, including among other things integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; a determination by the IRS and other tax authorities that the distribution of Carrier from RTX Corporation (f/k/a United Technologies Corporation or certain related transactions should be treated as taxable transactions; and risks associated with current and future indebtedness, as well as our ability to reduce indebtedness and the timing thereof. The forward-looking statements speak only as of the date of this communication. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements is disclosed from time to time in our other filings with the SEC. About CarrierCarrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating innovations that bring comfort, safety and sustainability to life. Through cutting-edge advancements in climate solutions such as temperature control, air quality and transportation, we improve lives, empower critical industries and ensure the safe transport of food, life-saving medicines and more. Since inventing modern air conditioning in 1902, we lead with purpose: enhancing the lives we live and the world we share. We continue to lead because of our world-class, inclusive workforce that puts the customer at the center of everything we do. For more information, visit or follow Carrier on social media at @Carrier. Carrier. For the World We Share. CARR-IR Contact: Investor RelationsMichael Rednor561-365-2020InvestorRelations@ InquiriesJason SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS Following are tables that present selected financial data of Carrier Global Corporation ("Carrier"). Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures. As a result of Carrier's portfolio transformation, Carrier revised its reportable segments during the first quarter of 2025 to better reflect its business strategy, align its management reporting and increase transparency for investors. In connection with the revised structure, the Chief Operating Decision Maker changed the measure used to evaluate segment profitability from Operating profit to Segment operating profit. It represents operating profit (a GAAP measure) adjusted to exclude restructuring costs, amortization of acquired intangible assets and other significant items of a nonoperational nature. All prior period comparative information has been recast to reflect the revised segment structure. Use and Definitions of Non-GAAP Financial MeasuresCarrier reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures. Organic sales, adjusted operating profit, adjusted operating margin, adjusted net income, adjusted earnings per share ("EPS"), adjusted effective tax rate and net debt are non-GAAP financial measures and are associated with Carrier's continuing operations unless specifically noted. Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a nonoperational nature (hereinafter referred to as "other significant items"). Adjusted operating profit represents consolidated operating profit (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of consolidated net sales (a GAAP measure). Adjusted net income represents net income attributable to common shareowners (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure). Free cash flow is a non-GAAP financial measure that represents net cash flows provided by continuing operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Carrier's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of Carrier's common stock and distribution of earnings to shareowners. Orders are contractual commitments with customers to provide specified goods or services for an agreed upon price and may not be subject to penalty if cancelled. When Carrier provides our expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted effective tax rate, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. Carrier Global Corporation Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended June 30,Six Months Ended June 30, (In millions, except per share amounts)2025202420252024 Net sales Product sales$ 5,477$ 5,311$ 10,129$ 10,153 Service sales6366231,2021,201 Total Net sales6,1135,93411,33111,354 Costs and expenses Cost of products sold(3,867)(3,867)(7,225)(7,449) Cost of services sold(477)(492)(892)(945) Research and development(161)(160)(314)(352) Selling, general and administrative(813)(789)(1,542)(1,596) Total Costs and expenses(5,318)(5,308)(9,973)(10,342) Equity method investment net earnings7890122121 Other income (expense), net30852(24) Operating profit9037241,5321,109 Non-service pension (expense) benefit——1— Interest (expense) income, net(91)(157)(173)(298) Earnings before income taxes8125671,360811 Income tax (expense) benefit(162)(120)(273)(167) Earnings from continuing operations6504471,087644 Discontinued operations, net of tax(17)1,922(17)2,014 Net earnings (loss)6332,3691,0702,658 Less: Non-controlling interest in subsidiaries'42326752 Net earnings (loss) attributable to common shareowners$ 591$ 2,337$ 1,003$ 2,606 Amounts attributable to common shareowners: Continuing operations$ 608$ 415$ 1,020$ 592 Discontinued operations(17)1,922(17)2,014 Net earnings (loss) attributable to common shareowners$ 591$ 2,337$ 1,003$ 2,606 Earnings per share Basic: Continuing operations$ 0.71$ 0.46$ 1.18$ 0.66 Discontinued operations(0.02)2.13(0.01)2.24 Net earnings (loss)$ 0.69$ 2.59$ 1.17$ 2.90 Diluted: Continuing operations$ 0.70$ 0.45$ 1.17$ 0.65 Discontinued operations(0.02)2.10(0.02)2.20 Net earnings (loss)$ 0.68$ 2.55$ 1.15$ 2.85 Weighted-average number of shares outstanding Basic854.9902.4860.8900.2 Diluted866.3915.3872.3913.6 Carrier Global Corporation Condensed Consolidated Balance Sheet (Unaudited) (In millions)June 30, 2025December 31, 2024 Assets Cash and cash equivalents$ 1,797$ 3,969 Accounts receivable, net3,3732,651 Inventories, net2,8882,299 Other current assets1,073972 Total current assets9,1319,891 Future income tax benefits1,2201,131 Fixed assets, net3,1822,999 Operating lease right-of-use assets575554 Intangible assets, net6,7706,432 Goodwill15,67214,601 Pension and post-retirement assets5043 Equity method investments1,3531,194 Other assets540558 Total Assets$ 38,493$ 37,403 Liabilities and Equity Accounts payable$ 3,214$ 2,458 Accrued liabilities4,5084,182 Current portion of long-term debt1071,252 Total current liabilities7,8297,892 Long-term debt11,33611,026 Future pension and post-retirement obligations221214 Future income tax obligations2,0872,015 Operating lease liabilities444432 Other long-term liabilities1,5621,429 Total Liabilities23,47923,008 Equity Common stock99 Treasury stock(5,522)(3,915) Additional paid-in capital8,3388,610 Retained earnings12,29411,483 Accumulated other comprehensive loss(413)(2,106) Non-controlling interest308314 Total Equity15,01414,395 Total Liabilities and Equity$ 38,493$ 37,403 Carrier Global Corporation Condensed Consolidated Statement of Cash Flows (Unaudited) Six Months Ended June 30, (In millions)20252024 Operating Activities Net earnings (loss)$ 1,070$ 2,658 Discontinued operations, net of tax17(2,014) Adjustments for non-cash items, net: Depreciation and amortization620602 Deferred income tax provision(158)(231) Stock-based compensation costs4440 Equity method investment net earnings(122)(121) (Gain) loss on sale of investments(17)— Changes in operating assets and liabilities Accounts receivable, net(702)(232) Inventories, net(412)7 Accounts payable and accrued liabilities3782 Distributions from equity method investments8112 Other operating activities, net(47)(114) Net cash flows provided by (used in) continuing operating activities752609 Net cash flows provided by (used in) discontinued operating activities38091 Net cash flows provided by (used in) operating activities1,132700 Investing Activities Capital expenditures(144)(210) Investment in businesses, net of cash acquired(61)(10,779) Dispositions of businesses8— Settlement of derivative contracts, net87(185) Other investing activities, net(3)27 Net cash flows provided by (used in) continuing investing activities(113)(11,147) Net cash flows provided by (used in) discontinued investing activities354,874 Net cash flows provided by (used in) investing activities(78)(6,273) Financing Activities Increase (decrease) in short-term borrowings, net(57)7 Issuance of long-term debt152,555 Repayment of long-term debt(1,208)(3,542) Repurchases of common stock(1,628)— Dividends paid on common stock(390)(330) Dividends paid to non-controlling interest(9)(67) Other financing activities, net(17)(14) Net cash flows provided by (used in) continuing financing activities(3,294)(1,391) Net cash flows provided by (used in) discontinued financing activities—(15) Net cash flows provided by (used in) financing activities(3,294)(1,406) Effect of foreign exchange rate changes on cash and cash equivalents68(82) Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale(2,172)(7,061) Less: Change in cash balances classified as assets held for sale—34 Net increase (decrease) in cash and cash equivalents and restricted cash(2,172)(7,095) Cash, cash equivalents and restricted cash, beginning of period3,9729,853 Cash, cash equivalents and restricted cash, end of period1,8002,758 Less: restricted cash32 Cash and cash equivalents, end of period$ 1,797$ 2,756 Carrier Global Corporation Segment Summary (Unaudited)Three Months Ended June 30,Six Months Ended June 30, (In millions) 2025202420252024 Segment net sales Climate Solutions Americas$ 3,252... $ 2,865$ 5,824$ 5,225 Climate Solutions Europe1,2531,1942,4222,486 Climate Solutions Asia Pacific, Middle East & Africa8829021,7081,786 Climate Solutions Transportation7269731,3771,857 Segment net sales$ 6,113$ 5,934$ 11,331$ 11,354 Segment operating profit Climate Solutions Americas$ 879$ 713$ 1,449$ 1,138 Climate Solutions Europe9993204260 Climate Solutions Asia Pacific, Middle East & Africa135157256265 Climate Solutions Transportation128138225251 Segment operating profit$ 1,241$ 1,101$ 2,134$ 1,914 Segment operating margin Climate Solutions Americas27.0 %24.9 %24.9 %21.8 % Climate Solutions Europe7.9 %7.8 %8.4 %10.5 % Climate Solutions Asia Pacific, Middle East & Africa15.3 %17.4 %15.0 %14.8 % Climate Solutions Transportation17.6 %14.2 %16.3 %13.5 % Components of Changes in Net Sales Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024 (Unaudited)Factors Contributing to Total % change in Net SalesOrganicFXTranslationAcquisitions /Divestitures, netOtherTotal Climate Solutions Americas 14 %— %— %— %14 % Climate Solutions Europe — %5 %— %— %5 % Climate Solutions Asia Pacific, Middle East & Africa (4) %2 %— %— %(2) % Climate Solutions Transportation (1) %1 %(25) %— %(25) % Consolidated 6 %1 %(4) %— %3 % Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024 (Unaudited)Factors Contributing to Total % change in Net SalesOrganicFXTranslationAcquisitions /Divestitures, netOtherTotal Climate Solutions Americas 11 %— %— %— %11 % Climate Solutions Europe (4) %1 %— %— %(3) % Climate Solutions Asia Pacific, Middle East & Africa (5) %1 %— %— %(4) % Climate Solutions Transportation — %— %(26) %— %(26) % Consolidated 4 %— %(4) %— %— % Carrier Global Corporation Reconciliations (Unaudited) Three Months Ended June 30,Six Months Ended June 30, (In millions)2025202420252024 Reconciliation to Earnings before income taxes Segment operating profit$ 1,241$ 1,101$ 2,134$ 1,914Corporate and other(75)(45)(120)(94) Restructuring costs(47)(29)(55)(37) Amortization of acquired intangibles(214)(170)(415)(342) Acquisition step-up amortization—(109)—(220) Acquisition/divestiture-related costs(9)(24)(19)(72) CCR gain7—7— Viessmann-related hedges———(86) Gain on liability adjustment ———46 Non-service pension (expense) benefit——1— Interest (expense) income, net(91)(157)(173)(298) Earnings before income taxes$ 812$ 567$ 1,360$ 811 (Unaudited) Three Months Ended June 30,Six Months Ended June 30, (In millions)2025202420252024 Reconciliation of Segment operating profit to Adjusted operating profit Climate Solutions Americas$ 879$ 713$ 1,449$ 1,138 Climate Solutions Europe9993204260 Climate Solutions Asia Pacific, Middle East & Africa135157256265 Climate Solutions Transportation128138225251 Segment operating profit$ 1,241$ 1,101$ 2,134$ 1,914 Corporate and other(75)(45)(120)(94) Adjusted operating profit$ 1,166$ 1,056$ 2,014$ 1,820 Carrier Global Corporation Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share and Effective Tax Rate (Unaudited)Three Months Ended June 30, 2025Six Months Ended June 30, 2025 (In millions, except per share amounts) ReportedAdjustmentsAdjustedReportedAdjustmentsAdjusted Net sales $ 6,113$ —$ 6,113$ 11,331$ —$ 11,331 Operating profit $ 903263 a $ 1,166$ 1,532482 a $ 2,014 Operating margin 14.8 %19.1 %13.5 %17.8 % Earnings before income taxes $ 812263 a $ 1,075$ 1,360482 a,b $ 1,842 Income tax (expense) benefit $ (162)(75) c $ (237)$ (273)(133) c $ (406) Effective tax rate 20.0 %22.1 %20.1 %22.1 % Earnings from continuing operations attributable to common shareowners $ 608$ 188$ 796$ 1,020$ 349$ 1,369 Summary of Adjustments:Amortization of acquired intangibles $ 214 a $ 415 aRestructuring costs 47 a 55 aAcquisition/divestiture-related costs 9 a 19 aCCR gain (7) a (7) aTotal adjustments $ 263$ 482 Tax effect on adjustments above $ (69)$ (127) Tax specific adjustments (6)(6) Total tax adjustments $ (75) c $ (133) c Diluted shares outstanding 866.3866.3872.3872.3 Diluted earnings per share:Continuing operations $ 0.70$ 0.92$ 1.17$ 1.57 Carrier Global Corporation Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share and Effective Tax Rate (Unaudited)Three Months Ended June 30, 2024Six Months Ended June 30, 2024 (In millions, except per share amounts) ReportedAdjustmentsAdjustedReportedAdjustmentsAdjusted Net sales $ 5,934$ —$ 5,934$ 11,354$ —$ 11,354 Operating profit $ 724332 a $ 1,056$ 1,109711 a $ 1,820 Operating margin 12.2 %17.8 %9.8 %16.0 % Earnings before income taxes $ 567344 a,b $ 911$ 811723 a,b $ 1,534 Income tax (expense) benefit $ (120)(87) c $ (207)$ (167)(173) c $ (340) Effective tax rate 21.2 %22.7 %20.6 %22.2 % Earnings from continuing operations attributable to common shareowners $ 415$ 257$ 672$ 592$ 550$ 1,142 Summary of Adjustments:Amortization of acquired intangibles $ 170 a $ 342 aRestructuring costs 29 a 37 aAcquisition/divestiture-related costs 24 a 72 aAcquisition step-up amortization (1) 109 a 220 aViessmann-related hedges — a 86 aGain on liability adjustment (2) — a (46) aDebt prepayment costs $ 12 b $ 12 bTotal adjustments $ 344$ 723 Tax effect on adjustments above $ (87)$ (173) Total tax adjustments $ (87) c $ (173) c Diluted shares outstanding 915.3915.3913.6913.6 Diluted earnings per share:Continuing operations $ 0.45$ 0.73$ 0.65$ 1.25 (1) Amortization of the step-up to fair value of acquired inventory and backlog. (2) Gain associated with an adjustment to our tax-related liability owed to UTC. Free Cash Flow Reconciliation (Unaudited) Three Months Ended June 30,Six Months Ended June 30, (In millions)2025202420252024 Net cash flows provided by operating activities$ 649$ 660$ 1,132$ 700 Less: Capital expenditures - continuing operations(81)(108)(144)(210) Less: Capital expenditures - discontinued operations—(3)—(5) Free cash flow$ 568$ 549$ 988$ 485 Net Debt Reconciliation (Unaudited) (In millions)June 30, 2025December 31, 2024 Long-term debt$ 11,336$ 11,026 Current portion of long-term debt1071,252 Less: Cash and cash equivalents1,7973,969 Net debt$ 9,646$ 8,309 View original content to download multimedia: SOURCE Carrier Global Corporation Sign in to access your portfolio
Forbes
14-07-2025
- Business
- Forbes
How AI Virtual Reality Gaming Is Solving The Factory Worker Shortage
MADRID, SPAIN - JUNE 16: A man wears virtual reality glasses during the meeting 'The digital ... More revolution of employment', in the Auditorium of Espacio Fundacion Telefonica, on 16 June, 2023 in Madrid, Spain. This meeting addresses the role of training and digital talent in the digital transformation of three of the key productive sectors: construction, transport and agri-food and horticulture. The conference is part of 'Professionals 4.0', a project of Fundacion Telefonica together with CEOE that, in collaboration with Fundacion Laboral en la Construccion, Astic, Confebus and FEPEX, aims to promote training in digital skills of more than 36,000 professionals in these three sectors through the 'Nanograds 4.0'. (Photo By Marta Fernandez Jara/Europa Press via Getty Images) The United States is facing an unprecedented shortage of factory workers. There is one qualified worker for every 20 open factory jobs, David Gitlin, CEO of Carrier, an HVAC equipment maker, told The New York Times. And this is before we see the effects of President Trump's tariff policy, which has a stated goal of bringing even more manufacturing jobs to the are many reasons for the shortage. Blue collar workers are hitting retirement age, and a trend in recent years toward pushing more students to attend college means that fewer of them are participating in apprenticeship programs or going directly to learn on the job. There is now a glut of young, college educated workers who are unemployed, but their skills can't easily transfer to manufacturing jobs. Far from the image some might have of factory work being easy or repetitive, most current manufacturing jobs are technical and complex, requiring extensive training and a high degree of isn't going to be solved overnight, but two emerging technologies could provide a solution that speeds up the process. Virtual reality training, which has been adopted by companies like Walmart and Exxon to train workers in a variety of skills, could be deployed at scale to reach new workers and upskill them this training benefits everyone, it is especially useful for younger audiences, who are used to interactive content and video games. Headsets are still seen as a differentiating factor, and could be a useful tool for recruitment. Making job training a game, as opposed to a slog, could go a long way to getting young people interested in factory training has been shown to be 30% faster than traditional training at reaching skill proficiency, not to mention increasing employee engagement by 40% and reducing error rates by 20%. It has the added benefit of allowing trainees to fail safely — if someone is training on an expensive piece of equipment and makes a mistake, it could result in injury, or at least a costly repair and downtime. If they make a mistake in a virtual reality training program, all they need to do is restart the training also allows companies to train large numbers of people at scale, and lets them train on their own time. In-person training has built-in limits — only a certain number of people could use a machine or fit in a room at once, but training in a virtual environment means that a near infinite number of people can be in the program at the same time. Additionally, human trainers need to go home at the end of the day, whereas a VR training program can be used any time, and as many times as the user needs to get it have been put off by the high cost of creating training programs, but artificial intelligence provides a solution. There are several programs in the market that allow users to create scenarios by inputting and refining prompts. Engage, for example, lets people build digital twins of their environments and add 3D objects by using voice commands. Other companies, like Connexions, let you create virtual humans and have interactive conversations powered by AI. While Connexions is focused on the healthcare space, the technology could be used in any industry. After all, factories don't just need frontline workers; they need managers who can successfully motivate instances where AI content might not work, factory workers can use 360 cameras to capture environments and no-code programs like Uptale to add interactivity to the scenarios. 360 cameras are relatively affordable, usually a few hundred dollars, and once workers are trained to use them and use a no-code tool, they can start creating training at training for these jobs accessible will go a long way toward revitalizing communities and getting people who might have fallen on hard times or left the labor force back into the job market. It will also assure that American manufacturing continues to thrive and provide good jobs and growth opportunities.
Yahoo
26-06-2025
- Business
- Yahoo
5 Insightful Analyst Questions From Carrier Global's Q1 Earnings Call
Carrier Global's first quarter results drew a positive market reaction, with management highlighting robust growth in Climate Solutions Americas and steady aftermarket gains. CEO David Gitlin credited stronger-than-expected orders—particularly in residential and commercial segments in the Americas—and improved productivity for supporting margin expansion. The company also cited progress in aftermarket attachment rates and successful mitigation of tariff-related cost pressures as key contributors to the quarter's performance. Is now the time to buy CARR? Find out in our full research report (it's free). Revenue: $5.22 billion vs analyst estimates of $5.2 billion (3.7% year-on-year decline, in line) Adjusted EPS: $0.65 vs analyst estimates of $0.58 (11.3% beat) Adjusted EBITDA: $1.15 billion vs analyst estimates of $1.06 billion (22% margin, 7.7% beat) The company lifted its revenue guidance for the full year to $23 billion at the midpoint from $22.75 billion, a 1.1% increase Management raised its full-year Adjusted EPS guidance to $3.05 at the midpoint, a 1.7% increase Operating Margin: 12.1%, up from 7.1% in the same quarter last year Organic Revenue rose 1.6% year on year, in line with the same quarter last year Market Capitalization: $61.79 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Nigel Coe (Wolfe Research) asked how mid-single-digit organic growth would be distributed across segments. CFO Patrick Goris explained Americas would lead with high single-digit growth, while Europe and Asia would see low single digits. Julian Mitchell (Barclays) questioned margin seasonality in Americas. Goris clarified that margins would peak mid-year, reflecting tariff headwinds, with full-year averages tempered by lower second-half volumes. Andy Kaplowitz (Citigroup) inquired about Viessmann's growth and margin outlook. CEO David Gitlin said mix improvements in heat pumps should offset lower boiler volumes, supporting flat growth and higher margins for the year. Joe Ritchie (Goldman Sachs) asked about the impact of the refrigerant transition (454B) on residential channel inventory. Gitlin stated inventory levels are elevated but manageable, and that the company expects normalized movement as the year progresses. Tommy Moll (Stephens) requested details on the Google partnership's scope. Gitlin described the early-stage collaboration as focused on integrating Carrier's home energy management with Google's AI and analytics to optimize grid demand. Looking ahead, the StockStory team will watch (1) the pace of data center cooling adoption and its impact on commercial HVAC growth, (2) progress in Viessmann integration and margin improvement in European operations, and (3) Carrier's ability to execute pricing strategies to offset tariffs without eroding demand. The rollout of advanced digital service tools and further policy developments in Europe will also be important indicators. Carrier Global currently trades at $72.75, up from $62.48 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
17-06-2025
- Business
- Yahoo
Business Roundtable Launches New Workforce Initiative to Strengthen Talent Pipelines for Skilled Trades
Large Employers to Focus on Closing Talent Gaps and Expanding Access to Career Opportunities Across Sectors that Power America's Industrial Base WASHINGTON, June 17, 2025--(BUSINESS WIRE)--Business Roundtable today launched a new initiative to address worker shortages in skilled trades by strengthening talent pipelines. The new workforce initiative, which was announced during the Roundtable's CEO Workforce Forum, will be co-championed by the CEOs of Lowe's and Carrier Global Corporation. Skilled trades workers power American industry, yet there is an estimated imbalance of 20 job openings for every one net new employee. The Business Roundtable Skilled Trades Initiative will collaborate with companies, outside experts and non-profit groups on developing resources, training and other tools to help close the talent gap in these trades. "Business Roundtable launched the Skilled Trades Initiative to raise public awareness, highlight the importance of these roles to the economy and support employers' commitment to grow the pipeline of workers," said Marvin Ellison, Chairman and Chief Executive Officer of Lowe's. "While technology continues to evolve, it cannot replace plumbers, electricians, construction workers, maintenance and repair pros, or other tradespeople. Investing in skilled trades is vital to address America's workforce shortage." "Business Roundtable CEOs do not just want to compete for the same limited talent pool. We want to work together across industries to make real progress in closing talent gaps and expanding opportunity for more workers — whether they are service technicians, welders, electricians or line-workers — across these in-demand fields," said David Gitlin, Chairman & Chief Executive Officer of Carrier Global Corporation. "I want to reiterate the importance of this initiative for businesses in every sector and of all sizes that will benefit from a strong pipeline of skilled trades professionals." The new initiative will focus on trades most closely associated with the growth of America's production economy that emphasize the use of tools and materials to build, move or repair products and structures. This includes but is not limited to the following roles: Industrial and Manufacturing Trades: Welder, machinist, millwright, metal fabricator, tool and die maker, mechatronics technician, boilermaker. Construction and Building Trades: Carpenter, electrician, plumber, steamfitter, pipefitter, mason, painter, residential construction laborer/remodeler. Maintenance and Repair Trades: Heavy equipment technician, HVAC technician, engine repair, facilities maintenance. Energy Trades: Lineworker, solar photovoltaic installer, transmission and distribution technician, power plant technician. Through the initiative, Business Roundtable member companies will have access to: Forums to highlight innovative best practices and other shared learning opportunities, including peers and external partners such as community colleges. Tools to support specific company needs, including outlining ways to engage effectively with K-12 schools on skilled trades. Workgroups to develop a shared skills taxonomy that will outline career pathways across skilled trades roles, supporting company talent pipeline development and worker mobility. Connections with professional associations for skilled trades workers with strong training programs and a track record of partnership with companies. The Skilled Trades Initiative is the latest of Business Roundtable's Corporate Initiatives — work that involves over 150 companies representing millions of employees nationwide. These companies are working together at scale to ensure that employees have the skills they need to succeed in a rapidly changing economy, expand economic opportunity to more Americans and maintain America's competitive edge. Learn more at View source version on Contacts Media Contact: Jennifer Cummings, jcummings@ 202-496-3249
Business Wire
17-06-2025
- Business
- Business Wire
Business Roundtable Launches New Workforce Initiative to Strengthen Talent Pipelines for Skilled Trades
WASHINGTON--(BUSINESS WIRE)--Business Roundtable today launched a new initiative to address worker shortages in skilled trades by strengthening talent pipelines. The new workforce initiative, which was announced during the Roundtable's CEO Workforce Forum, will be co-championed by the CEOs of Lowe's and Carrier Global Corporation. Skilled trades workers power American industry, yet there is an estimated imbalance of 20 job openings for every one net new employee. The Business Roundtable Skilled Trades Initiative will collaborate with companies, outside experts and non-profit groups on developing resources, training and other tools to help close the talent gap in these trades. 'Business Roundtable launched the Skilled Trades Initiative to raise public awareness, highlight the importance of these roles to the economy and support employers' commitment to grow the pipeline of workers,' said Marvin Ellison, Chairman and Chief Executive Officer of Lowe's. 'While technology continues to evolve, it cannot replace plumbers, electricians, construction workers, maintenance and repair pros, or other tradespeople. Investing in skilled trades is vital to address America's workforce shortage.' 'Business Roundtable CEOs do not just want to compete for the same limited talent pool. We want to work together across industries to make real progress in closing talent gaps and expanding opportunity for more workers — whether they are service technicians, welders, electricians or line-workers — across these in-demand fields,' said David Gitlin, Chairman & Chief Executive Officer of Carrier Global Corporation. 'I want to reiterate the importance of this initiative for businesses in every sector and of all sizes that will benefit from a strong pipeline of skilled trades professionals.' The new initiative will focus on trades most closely associated with the growth of America's production economy that emphasize the use of tools and materials to build, move or repair products and structures. This includes but is not limited to the following roles: Industrial and Manufacturing Trades: Welder, machinist, millwright, metal fabricator, tool and die maker, mechatronics technician, boilermaker. Construction and Building Trades: Carpenter, electrician, plumber, steamfitter, pipefitter, mason, painter, residential construction laborer/remodeler. Maintenance and Repair Trades: Heavy equipment technician, HVAC technician, engine repair, facilities maintenance. Energy Trades: Lineworker, solar photovoltaic installer, transmission and distribution technician, power plant technician. Through the initiative, Business Roundtable member companies will have access to: Forums to highlight innovative best practices and other shared learning opportunities, including peers and external partners such as community colleges. Tools to support specific company needs, including outlining ways to engage effectively with K-12 schools on skilled trades. Workgroups to develop a shared skills taxonomy that will outline career pathways across skilled trades roles, supporting company talent pipeline development and worker mobility. Connections with professional associations for skilled trades workers with strong training programs and a track record of partnership with companies. The Skilled Trades Initiative is the latest of Business Roundtable's Corporate Initiatives — work that involves over 150 companies representing millions of employees nationwide. These companies are working together at scale to ensure that employees have the skills they need to succeed in a rapidly changing economy, expand economic opportunity to more Americans and maintain America's competitive edge. Learn more at .
