Carrier Global Corporation【CARR】株式ニュース

Carrier Reports First Quarter 2026 ResultsApril 30, 2026 6:00 AM
PR Newswire (US)

Data center orders up over 500%; backlog fully covers expected 2026 data center salesTotal company orders1 up 11%; Commercial HVAC1 up 35%Net sales up 2%; organic sales down 1%GAAP EPS of $0.28 and adjusted EPS of $0.57Net cash flows from operating activities of $79 million and free cash flow of ($15) millionReturned ~$500 million to shareholders through dividends and repurchasesReaffirms full year outlookPALM BEACH GARDENS, Fla., April 30, 2026 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported financial results for the first quarter of 2026.

"We started the year with better-than-expected sales performance across the portfolio," said Carrier Chairman & CEO David Gitlin. "Orders in our global Commercial HVAC1 business increased 35%, helped by data centers which were up over 500% in the quarter. The strong double-digit sequential increase in Commercial HVAC backlog gives us the confidence to drive our sixth consecutive year of double-digit growth in this business. CSA Light Commercial and CSE Residential both delivered growth, while CSA Residential came in better than expected. I am pleased with the team's performance in the first quarter, and we are reaffirming our full-year outlook."
1 Excludes NORESCOFirst Quarter 2026 ResultsTotal Company
(Unaudited)
Three Months Ended March 31,(In millions)20262025ChangeNet sales$    5,341$    5,2182 %Organic sales(1) %

Operating profit$      259$      629(59) %Operating margin4.8 %12.1 %(730) bpsAdjusted operating profit $      594$      848(30) %Adjusted operating margin11.1 %16.3 %(520) bps

Diluted earnings per share:

Continuing operations$     0.28$     0.47(40) %Continuing operations - Adjusted$     0.57$     0.65(12) %Carrier's first-quarter sales of $5.3 billion increased 2% compared to the prior year. Organic sales declined 1%, more than offset by a 3% tailwind from foreign currency translation.GAAP operating profit of $259 million in the quarter declined 59% from last year, driven by the CSA, CSE and CSAME segments. Adjusted operating profit of $594 million was down 30% from last year, predominantly due to lower sales in our CSA Residential business and continued headwinds in China Residential and Light Commercial (RLC).Net earnings from continuing operations were $239 million and adjusted net earnings from continuing operations were $482 million. GAAP EPS from continuing operations was $0.28 and adjusted EPS was $0.57, down 40% and 12% year-over-year, respectively. The declines were primarily driven by lower operating profit, partially offset by a lower tax rate and benefits of a lower share count.Climate Solutions Americas (CSA)
(Unaudited)
Three Months Ended March 31,(In millions)20262025ChangeNet sales$    2,501$    2,572(3) %Organic sales(3) %

Segment operating profit $      373$      570(35) %Segment operating margin14.9 %22.2 %(730) bpsCSA segment sales declined 3%. Organic sales were down 3% driven by Residential, down about 12%, partially offset by strength in Light Commercial and Commercial1, up 9% and 1% respectively.Segment operating margin decreased 730 basis points largely reflecting lower Residential sales and associated factory under-absorption.
1 Excludes NORESCOClimate Solutions Europe (CSE)
(Unaudited)
Three Months Ended March 31,(In millions)20262025ChangeNet sales$    1,293$    1,16911 %Organic sales— %

Segment operating profit $ 89$ 105(15) %Segment operating margin6.9 %9.0 %(210) bpsCSE segment sales increased 11%. Organic sales were flat with RLC up low-single digits and Commercial down mid-single digits.Segment operating margin decreased 210 basis points driven by lower Commercial volume and higher promotions partially offset by RLC volume growth and strong productivity.Climate Solutions Asia Pacific, Middle East & Africa (CSAME)
(Unaudited)
Three Months Ended March 31,(In millions)20262025ChangeNet sales$      834$      8261 %Organic sales(1) %

Segment operating profit $ 81$      121(33) %Segment operating margin9.7 %14.6 %(490) bpsCSAME segment sales increased 1%. Organic sales were down 1% mainly driven by RLC in China, partially offset by strong Commercial growth outside of China, particularly in India and Australia.Segment operating margin decreased 490 basis points as expected, driven mainly by China RLC.Climate Solutions Transportation (CST)
(Unaudited)
Three Months Ended March 31,(In millions)20262025ChangeNet sales$      713$      65110 %Organic sales5 %

Segment operating profit $      101$ 974 %Segment operating margin14.2 %14.9 %(70) bpsCST sales increased 10% driven by strong growth in Container. Organic sales increased 5% with 38% growth in Container, partially offset by a decline in Global Truck and Trailer, down high-single digits.Segment operating margin declined 70 basis points, due to unfavorable mix. Cash Flow

(Unaudited)

Three Months Ended March 31,(In millions)
2026
2025Net cash flows provided by operating activities
$         79
$       483Less: Capital expenditures
(94)
(63)Free cash flow
$        (15)
$       420Net cash flows generated from operating activities were $79 million and capital expenditures were $94 million, resulting in free cash flow of ($15) million.Full-Year 2026 Guidance**
Current Guidance**Prior GuidanceSales~$22 billion~$250 million revenue headwind from Riello exitOrganic* flat to up LSDFX 1%Net, Acquisitions / Divestitures (1%)~$22 billion~$350 million revenue headwind from Riello exitOrganic* flat to up LSDFX 1%Net, Acquisitions / Divestitures (1%)

Adjusted Operating Profit*~$3.4 billion~$3.4 billion

Adjusted EPS*~$2.80~$2.80

Free Cash Flow*~$2 billion~$2 billion
Riello divestiture expected to close by the end of Q2 2026; prior guidance assumed the divestiture closed by the end of Q1 2026.
*Note: When the company provides expectations for organic sales, adjusted operating profit, 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 April 30, 2026Conference CallCarrier will host a webcast of its earnings conference call today, Thursday, April 30, 2026, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at ir.carrier.com/news-and-events/events-and-presentations. For alternative dial-in information, please contact Carrier Investor Relations at InvestorRelations@Carrier.com.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, expectations relating to our sales backlog, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, market conditions including with respect to residential end-markets, data center and otherwise, growth prospects for 2026 and beyond, expectations concerning the mitigation and net impact of tariffs during 2026, Carrier's guidance for full-year 2026, 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 Carrier
Carrier 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 www.carrier.com or follow Carrier on social media at @Carrier.Carrier. For the World We ShareCARR-IRContact:

Investor Relations
Michael Rednor
561-365-2020
InvestorRelations@Carrier.com

Media Inquiries
Rob Six
561-281-2362
Robert.Six@Carrier.comSELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONSFollowing 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.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 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 intangible assets and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of consolidated net sales (a GAAP measure). Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure).Segment operating profit is the measure of profit and loss that the Chief Operating Decision Maker uses to evaluate segment profitability. Segment operating profit represents operating profit (a GAAP measure) adjusted to exclude restructuring costs, amortization of acquired intangible assets and other significant items of a nonoperational nature.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 (including on a segment basis), adjusted operating margin (including on a segment basis), adjusted effective tax rate, adjusted EPS, free cash flow, and interest expense, net 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 CorporationCondensed Consolidated Statement of Operations

(Unaudited)

Three Months Ended March 31,(In millions, except per share amounts)
2026
2025Net sales

Product sales
$     4,667
$     4,652Service sales
674
566Total Net sales
5,341
5,218Costs and expenses

Cost of products sold
(3,591)
(3,358)Cost of services sold
(506)
(415)Research and development
(143)
(153)Selling, general and administrative
(861)
(729)Total Costs and expenses
(5,101)
(4,655)Equity method investment net earnings
31
44Other income (expense), net
(12)
22Operating profit
259
629Non-service pension benefit (expense)
1
1Interest (expense) income, net
(90)
(82)Earnings before income taxes
170
548Income tax (expense) benefit
96
(111)Earnings from continuing operations
266
437Discontinued operations, net of tax
(1)
—Net earnings (loss)
265
437Less: Non-controlling interest in subsidiaries'
27
25Net earnings (loss) attributable to common shareowners
$       238
$       412Amounts attributable to common shareowners:

Continuing operations
$       239
$       412Discontinued operations
(1)
—Net earnings (loss) attributable to common shareowners
$       238
$       412Earnings per share

Basic:

Continuing operations
$       0.29
$       0.47Discontinued operations
—
—Net earnings (loss)
$       0.29
$       0.47Diluted:

Continuing operations
$       0.28
$       0.47Discontinued operations
—
—Net earnings (loss)
$       0.28
$       0.47Weighted-average number of shares outstanding

Basic
835.0
866.9Diluted
842.8
878.3 Carrier Global CorporationCondensed Consolidated Balance Sheet

(Unaudited)(In millions)
March 31, 2026
December 31, 2025Assets

Cash and cash equivalents
$            1,371
$              1,555Accounts receivable, net
3,130
2,639Inventories, net
2,581
2,483Assets held for sale
621
592Other current assets
1,315
1,264Total current assets
9,018
8,533Future income tax benefits
1,137
1,074Fixed assets, net
3,122
3,165Operating lease right-of-use assets
551
546Intangible assets, net
5,987
6,326Goodwill
15,313
15,501Pension and post-retirement assets
58
56Equity method investments
1,331
1,321Other assets
669
668Total Assets
$           37,186
$             37,190

Liabilities and Equity

Accounts payable
$            2,979
$              2,702Accrued liabilities
3,700
3,774Liabilities held for sale
170
170Short-term borrowings and current portion of long-term debt
1,736
468Total current liabilities
8,585
7,114Long-term debt
10,422
11,365Future pension and post-retirement obligations
188
192Future income tax obligations
1,688
1,833Operating lease liabilities
415
418Other long-term liabilities
2,087
2,140Total Liabilities
23,385
23,062

Equity

Common stock
10
10Treasury stock
(7,104)
(6,795)Additional paid-in capital
8,675
8,665Retained earnings
12,431
12,193Accumulated other comprehensive income (loss)
(560)
(269)Non-controlling interest
349
324Total Equity
13,801
14,128Total Liabilities and Equity
$           37,186
$             37,190 Carrier Global CorporationCondensed Consolidated Statement of Cash Flows (Unaudited)

Three Months EndedMarch 31,(In millions)
2026
2025Operating Activities

Net earnings (loss)
$       265
$       437Discontinued operations, net of tax
1
—Adjustments for non-cash items, net:

Depreciation and amortization
315
303Deferred income tax provision
(179)
(69)Stock-based compensation costs
21
23Equity method investment net earnings
(31)
(44)(Gain) loss on sale of investments
(3)
(5)Changes in operating assets and liabilities

Accounts receivable, net
(509)
(362)Inventories, net
(138)
(301)Accounts payable and accrued liabilities
351
481Distributions from equity method investments
12
77Other operating activities, net
(39)
(52)Net cash flows provided by (used in) continuing operating activities
66
488Net cash flows provided by (used in) discontinued operating activities
13
(5)Net cash flows provided by (used in) operating activities
79
483Investing Activities

Capital expenditures
(94)
(63)Investment in businesses, net of cash acquired
(23)
(12)Dispositions of businesses
8
8Settlement of derivative contracts, net
35
36Other investing activities, net
9
1Net cash flows provided by (used in) continuing investing activities
(65)
(30)Net cash flows provided by (used in) discontinued investing activities
—
7Net cash flows provided by (used in) investing activities
(65)
(23)Financing Activities

Increase (decrease) in short-term borrowings, net
371
(49)Issuance of long-term debt
22
9Repayment of long-term debt
(16)
(1,205)Repurchases of common stock
(306)
(1,288)Dividends paid on common stock
(201)
(198)Dividends paid to non-controlling interest
(1)
—Other financing activities, net
(10)
(16)Net cash flows provided by (used in) continuing financing activities
(141)
(2,747)Net cash flows provided by (used in) discontinued financing activities
—
—Net cash flows provided by (used in) financing activities
(141)
(2,747)Effect of foreign exchange rate changes on cash and cash equivalents
(13)
17Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in
current assets held for sale
(140)
(2,270)Less: Change in cash balances classified as assets held for sale
43
—Net increase (decrease) in cash and cash equivalents and restricted cash
(183)
(2,270)Cash, cash equivalents and restricted cash, beginning of period
1,557
3,972Cash, cash equivalents and restricted cash, end of period
1,374
1,702Less: restricted cash
3
4Cash and cash equivalents, end of period
$     1,371
$     1,698 Carrier Global CorporationSegment Summary

(Unaudited)
Three Months Ended March 31,(In millions)2026
2025Segment net sales

Climate Solutions Americas
$   2,501
$   2,572Climate Solutions Europe
1,293
1,169Climate Solutions Asia Pacific, Middle East & Africa
834
826Climate Solutions Transportation
713
651Segment net sales
$   5,341
$   5,218

Segment operating profit

Climate Solutions Americas
$     373
$     570Climate Solutions Europe
89
105Climate Solutions Asia Pacific, Middle East & Africa
81
121Climate Solutions Transportation
101
97Segment operating profit
$     644
$     893

Segment operating margin

Climate Solutions Americas
14.9 %
22.2 %Climate Solutions Europe
6.9 %
9.0 %Climate Solutions Asia Pacific, Middle East & Africa
9.7 %
14.6 %Climate Solutions Transportation
14.2 %
14.9 % Components of Changes in Net Sales
Three Months Ended March 31, 2026, Compared withThree Months Ended March 31, 2025

(Unaudited)
Factors Contributing to Total % change in Net Sales
Organic
FX
Translation
Acquisitions /
Divestitures, net
Other
TotalClimate Solutions Americas(3) %
— %
— %
— %
(3) %Climate Solutions Europe— %
11 %
— %
— %
11 %Climate Solutions Asia Pacific, Middle East & Africa(1) %
2 %
— %
— %
1 %Climate Solutions Transportation5 %
5 %
— %
— %
10 %Consolidated(1) %
3 %
— %
— %
2 % Carrier Global CorporationReconciliations

(Unaudited)

Three Months Ended March 31,(In millions)
2026
2025Reconciliation to Earnings before income taxes

Segment operating profit
$       644
$       893

Corporate and other
(50)
(45)Restructuring costs
(108)
(8)Amortization of acquired intangible assets
(213)
(201)Acquisition/divestiture-related costs
(14)
(10)Non-service pension (expense) benefit
1
1Interest (expense) income, net
(90)
(82)

Earnings before income taxes
$       170
$       548

(Unaudited)

Three Months Ended March 31,(In millions)
2026
2025Reconciliation of Segment operating profit to Adjusted operating profit

Climate Solutions Americas
$       373
$       570Climate Solutions Europe
89
105Climate Solutions Asia Pacific, Middle East & Africa
81
121Climate Solutions Transportation
101
97Segment operating profit
$       644
$       893Corporate and other
(50)
(45)Adjusted operating profit
$       594
$       848 Carrier Global Corporation Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) ResultsNet Income, Earnings Per Share and Effective Tax Rate

(Unaudited)
Three Months Ended March 31, 2026(In millions, except per share amounts)Reported
Adjustments
AdjustedNet sales$   5,341
$          —
$   5,341

Operating profit$ 259
335a$ 594Operating margin4.8 %

11.1 %

Earnings before income taxes$ 170
335a$ 505Income tax (expense) benefit$ 96
(92)b$ 4Effective tax rate(56.5) %

(0.8) %

Earnings from continuing operations attributable to common shareowners$ 239
$         243
$ 482

Summary of Adjustments:

Restructuring costs

$         108a
Amortization of acquired intangible assets

213a
Acquisition/divestiture-related costs

14a
Total adjustments

$         335

Tax effect on adjustments above

$ (92)

Total tax adjustments

$ (92)b

Diluted shares outstanding842.8

842.8

Diluted earnings per share:

Continuing operations$    0.28

$    0.57 Carrier Global CorporationReconciliation of Reported (GAAP) to Adjusted (Non-GAAP) ResultsNet Income, Earnings Per Share and Effective Tax Rate

(Unaudited)
Three Months Ended March 31, 2025(In millions, except per share amounts)Reported
Adjustments
AdjustedNet sales$   5,218
$          —
$   5,218

Operating profit$ 629
219a$ 848Operating margin12.1 %

16.3 %

Earnings before income taxes$ 548
219a$ 767Income tax (expense) benefit$ (111)
(58)b$ (169)Effective tax rate20.3 %

22.0 %

Earnings from continuing operations attributable to common shareowners$ 412
$         161
$ 573

Summary of Adjustments:

Restructuring costs

$ 8a
Amortization of acquired intangible assets

201a
Acquisition/divestiture-related costs

10a
Total adjustments

$ 219

Tax effect on adjustments above

$         (58)

Total tax adjustments

$         (58)b

Diluted shares outstanding878.3

878.3

Diluted earnings per share:

Continuing operations$    0.47

$    0.65 Free Cash Flow Reconciliation

(Unaudited)

Three Months Ended March 31,(In millions)
2026
2025Net cash flows provided by operating activities
$         79
$       483Less: Capital expenditures
(94)
(63)Free cash flow
$        (15)
$       420 Net Debt Reconciliation

(Unaudited)(In millions)
March 31, 2026
December 31, 2025Long-term debt
$             10,422
$             11,365Short-term borrowings and current portion of long-term debt
1,736
468Less: Cash and cash equivalents
1,371
1,555Net debt
$             10,787
$             10,278

View original content to download multimedia:https://www.prnewswire.com/news-releases/carrier-reports-first-quarter-2026-results-302758617.htmlSOURCE Carrier Global Corporation

Original: Carrier Reports First Quarter 2026 Results

Carrier Reports 2025 Results and Announces 2026 OutlookFebruary 5, 2026 6:00 AM
PR Newswire (US)

Fourth Quarter 2025 ResultsNet sales down 6%; organic sales down 9%GAAP EPS from continuing operations of $0.03 and adjusted EPS of $0.34Net cash flows from operating activities were $1,040 million and free cash flow was $909 millionFull Year 2025 ResultsSales of $21.75 billion, down 3% compared to 2024, organic sales down 1%Global commercial HVAC1 and aftermarket1 up double-digitsGAAP EPS from continuing operations of $1.69 and adjusted EPS of $2.59Operating margin of 10.0% and adjusted operating margin of 15.1%Returned ~$3.7 billion to shareholders, including ~$0.8 billion in dividends and ~$2.9 billion in share repurchasesPALM BEACH GARDENS, Fla., Feb. 5, 2026 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported financial results for the fourth quarter and full year of 2025.

"We continue to drive outsized growth in commercial HVAC1 with Q4 orders up nearly 50% driven by key data center wins and are well positioned to drive our sixth consecutive year of double-digit growth in this business in 2026. Our aftermarket1 playbook also continues to yield results, reflected in our fifth consecutive year of double-digit growth. We continue to control the controllables, reducing discretionary costs and building backlog in our long-cycle businesses to mitigate residential market challenges," said Carrier Chairman & CEO David Gitlin.1 Excludes NORESCOFourth Quarter 2025 ResultsTotal Company
(Unaudited)
Three Months Ended December 31(In millions)20252024ChangeNet sales$       4,837$ 5,148(6) %Organic sales(9) %

Operating profit$          101$ 774(87) %Operating margin2.1 %15.0 %(1,290) bpsAdjusted operating profit $          455$ 678(33) %Adjusted operating margin9.4 %13.2 %(380) bps

Diluted earnings per share:

Continuing operations$         0.03$       (0.05)(160) %Continuing operations - Adjusted$         0.34$ 0.54(37) %Carrier's fourth quarter sales of $4.8 billion decreased 6% versus the prior year, with organic sales down 9%, partially offset by a 3% tailwind from foreign currency translation.GAAP operating profit of $101 million in the quarter declined 87% from last year reflecting the prior year gain from the sale of our commercial refrigeration business, weaker residential end-markets and distributor destocking in the Americas. This was partially offset by the continued strength in our global commercial HVAC and aftermarket businesses and operating efficiencies.Adjusted operating profit of $455 million was down 33% primarily due to lower volume in our Climate Solutions Americas residential business, partially offset by profit growth in Climate Solutions Europe and Climate Solutions Transportation. Net earnings from continued operations were $28 million and adjusted net earnings from continuing operations were $285 million. GAAP EPS from continuing operations was $0.03 and adjusted EPS was $0.34. The declines versus the prior year were primarily driven by lower operating profit, partially offset by the benefit of a lower share count.Climate Solutions Americas (CSA)
(Unaudited)
Three Months Ended December 31,(In millions)20252024ChangeNet sales$       1,935$       2,341(17) %Organic sales(17) %

Segment operating profit $          168$          435(61) %Segment operating margin8.7 %18.6 %(990) bpsCSA segment sales declined 17%. Organic sales were down 17% with continued strength in Commercial1, up double digits, more than offset by lower volumes in Residential, down 38%, and Light Commercial down 20%.Segment operating margin declined 10 points, reflecting the significant volume decline in the Residential and Light Commercial businesses.Climate Solutions Europe (CSE)
(Unaudited)
Three Months Ended December 31,(In millions)20252024ChangeNet sales$       1,332$       1,2526 %Organic sales(2) %

Segment operating profit $          120$            8050 %Segment operating margin9.0 %6.4 %260 bpsCSE segment sales increased 6%. Organic sales were down 2% with Commercial up mid-single digits and Residential and Light Commercial down mid-single digits.Segment operating margin increased over 250 basis points driven by strong productivity, including cost synergies, partially offset by lower organic sales and mix.1 Excludes NORESCOClimate Solutions Asia Pacific, Middle East & Africa (CSAME)
(Unaudited)
Three Months Ended December 31,(In millions)20252024ChangeNet sales$          798$          874(9) %Organic sales(9) %

Segment operating profit $            95$            95— %Segment operating margin11.9 %10.9 %100 bpsCSAME segment sales declined 9%. Organic sales were down 9% mainly driven by Residential and Light Commercial (RLC) in China, partially offset by modest growth in the rest of Asia.Segment operating margin increased 100 basis points driven by strong productivity partially offset by lower sales.Climate Solutions Transportation (CST)
(Unaudited)
Three Months Ended December 31,(In millions)20252024ChangeNet sales$          772$          68113 %Organic sales10 %

Segment operating profit $          112$            9715 %Segment operating margin14.5 %14.2 %30 bpsCST sales increased 13%. Organic sales increased 10% with nearly 50% growth in Container and Global Truck and Trailer flat.Segment operating margin increased 30 basis points largely due to organic growth and productivity, offset by business mix.Cash Flow

(Unaudited)
(Unaudited)

Three Months Ended December 31,
Year Ended December 31,(In millions)
2025
2024
2025
2024Net cash flows provided by operating activities
$         1,040
$            132
$         2,513
$            563Less: Capital expenditures - continuing operations
(131)
(217)
(392)
(519)Less: Capital expenditures - discontinued operations
—
(4)
—
(14)Free cash flow
$            909
$            (89)
$         2,121
$              30Net cash flows generated from operating activities were $1,040 million and capital expenditures were $131 million, resulting in free cash flow of $909 million.Full-Year 2026 GuidanceCarrier expects continued double-digit growth in global commercial HVAC1 and aftermarket1 with continued weakness in our Residential and Light Commercial businesses, particularly in the Americas. The full year guidance assumes the divestiture of Riello to conclude by the end of 1Q 20262, reflecting a year-over-year headwind of ~$350 million sales and ~$0.03 adjusted EPS.Flat to low-single-digit organic* growth; Reported sales flat to up LSDAdjusted operating profit* of ~$3.4 billionAdjusted EPS* of ~$2.80Free cash flow* of ~$2 billion~$1.5 billion in share repurchases1 Excludes NORESCO
2 The closure of Riello is subject to regulatory approvals

2026 GuidanceSales~$22 billion ~$350 million revenue headwind from Riello exitOrganic* flat to up LSDFX 1%Net, Acquisitions / Divestitures (1%)Adjusted Operating Profit*~$3.4 billionAdjusted EPS*~$2.80Free Cash Flow*~$2 billion
*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.Conference CallCarrier will host a webcast of its earnings conference call today, Thursday, Feb. 5, 2026, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at ir.carrier.com/news-and-events/events-and-presentations. For alternative dial-in information, please contact Carrier Investor Relations at InvestorRelations@Carrier.com. Cautionary Statement
This 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 including the recent increase in Carrier's share repurchase authorization, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, cost optimization actions, market conditions including with respect to residential end-markets, data center and otherwise, growth prospects for 2026 and beyond, pending dispositions, Carrier's guidance for full-year 2026, future revenues including relating to digitally-enabled products, 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 Carrier
Carrier 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 www.carrier.com or follow Carrier on social media at @Carrier.CARR-IRContact:

Investor Relations
Michael Rednor
561-365-2020
Investor.Relations@Carrier.com

Media Inquiries
Rob Six
561-281-2362
Robert.Six@Carrier.com SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONSFollowing are tables that present selected financial data of Carrier Global Corporation ("Carrier").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 measure prepared in accordance with accounting principles generally accepted in the United States ("GAAP")) 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 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 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 (including on a segment basis), adjusted operating margin (including on a segment basis), adjusted effective tax rate, adjusted EPS, free cash flow, and interest expense, net 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 CorporationConsolidated Statement of Operations

(Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,(In millions, except per share amounts)2025
2024
2025
2024Net sales

Product sales$             4,138
$             4,530
$          19,173
$          19,990Service sales699
618
2,574
2,496Total Net sales4,837
5,148
21,747
22,486Costs and expenses

Cost of products sold(3,351)
(3,335)
(14,232)
(14,580)Cost of services sold(525)
(469)
(1,891)
(1,925)Research and development(160)
(162)
(625)
(686)Selling, general and administrative(747)
(803)
(3,092)
(3,197)Total Costs and expenses(4,783)
(4,769)
(19,840)
(20,388)Equity method investment net earnings47
44
229
231Other income (expense), net—
351
36
317Operating profit101
774
2,172
2,646Non-service pension benefit (expense)(2)
—
(10)
(1)Interest (expense) income, net(94)
(81)
(364)
(371)Earnings before income taxes5
693
1,798
2,274Income tax (expense) benefit32
(723)
(240)
(1,062)Earnings from continuing operations37
(30)
1,558
1,212Discontinued operations, net of tax25
2,599
29
4,496Net earnings (loss)62
2,569
1,587
5,708Less: Non-controlling interest in subsidiaries'9
18
103
104Net earnings (loss) attributable to common shareowners$                  53
$             2,551
$            1,484
$            5,604Amounts attributable to common shareowners:

Continuing operations$                  28
$                (48)
$            1,455
$            1,108Discontinued operations25
2,599
29
4,496Net earnings (loss) attributable to common shareowners$                  53
$             2,551
$            1,484
$            5,604Earnings per share

Basic:

Continuing operations$               0.03
$             (0.05)
$              1.71
$              1.23Discontinued operations0.03
2.92
0.03
5.01Net earnings (loss)$               0.06
$               2.87
$              1.74
$              6.24Diluted:

Continuing operations$               0.03
$ (0.05)
$              1.69
$              1.22Discontinued operations0.03
2.87
0.03
4.93Net earnings (loss)$               0.06
$               2.82
$              1.72
$              6.15Weighted-average number of shares outstanding

Basic839.2
890.1
852.4
898.2Diluted846.7
903.4
862.4
911.7

Carrier Global CorporationConsolidated Balance Sheet

(Unaudited)
As of December 31,(In millions)2025
2024Assets

Cash and cash equivalents$        1,555
$            3,969Accounts receivable, net2,639
2,651Inventories, net2,483
2,299Assets held for sale592
—Other assets, current1,264
972Total current assets8,533
9,891Future income tax benefits1,074
1,131Fixed assets, net3,165
2,999Operating lease right-of-use assets546
554Intangible assets, net6,326
6,432Goodwill15,501
14,601Pension and post-retirement assets56
43Equity method investments1,321
1,194Other assets668
558Total Assets$      37,190
$          37,403Liabilities and Equity

Accounts payable$        2,702
$            2,458Accrued liabilities3,774
4,098Liabilities held for sale170
—Short-term borrowings and current portion of long-term debt468
1,336Total current liabilities7,114
7,892Long-term debt11,365
11,026Future pension and post-retirement obligations192
214Future income tax obligations1,833
2,015Operating lease liabilities418
432Other long-term liabilities2,140
1,429Total Liabilities23,062
23,008

Equity

Common stock, par value $0.01; 4,000,000,000 shares authorized; 950,633,287 and 948,068,772 shares
issued; 836,141,122 and 878,337,677 outstanding as of December 31, 2025 and 2024, respectively10
9Treasury stock(6,795)
(3,915)Additional paid-in capital8,665
8,610Retained earnings12,193
11,483Accumulated other comprehensive loss(269)
(2,106)Non-controlling interest324
314Total Equity14,128
14,395Total Liabilities and Equity$      37,190
$          37,403 Carrier Global CorporationConsolidated Statement of Cash Flows

(Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,(In millions)2025
2024
2025
2024Operating Activities

Net earnings (loss)$                 62
$            2,569
$           1,587
$           5,708Discontinued operations, net of tax(25)
(2,599)
(29)
(4,496)Adjustments for non-cash items, net:

Depreciation and amortization329
318
1,274
1,232Deferred income tax provision(85)
(56)
(401)
(352)Stock-based compensation cost19
21
74
86Equity method investment net earnings(47)
(44)
(229)
(231)(Gain) loss on extinguishment of debt—
6
—
(82)(Gain) loss on sale of investments / deconsolidation(15)
(320)
(32)
(322)Changes in operating assets and liabilities

Accounts receivable, net392
95
(98)
(40)Inventories, net447
216
(81)
292Accounts payable and accrued liabilities(389)
345
(219)
87Distributions from equity method investments96
10
201
46Other operating activities, net229
(198)
42
(357)Net cash flows provided by (used in) continuing operating activities1,013
363
2,089
1,571Net cash flows provided by (used in) discontinued operating activities27
(231)
424
(1,008)Net cash flows provided by (used in) operating activities1,040
132
2,513
563Investing Activities

Capital expenditures(131)
(217)
(392)
(519)Investment in businesses, net of cash acquired(15)
(17)
(107)
(10,890)Dispositions of businesses19
634
27
634Settlement of derivative contracts, net(15)
(77)
105
(264)Other investing activities, net31
(17)
24
14Net cash flows provided by (used in) continuing investing activities(111)
306
(343)
(11,025)Net cash flows provided by (used in) discontinued investing activities1
2,783
36
9,000Net cash flows provided by (used in) investing activities(110)
3,089
(307)
(2,025)Financing Activities

(Decrease) increase in short-term borrowings, net(112)
13
275
50Issuance of long-term debt16
826
48
3,412Repayment of long-term debt(3)
(815)
(1,212)
(5,345)Repurchases of common stock(479)
(1,513)
(2,892)
(1,944)Dividends paid on common stock(189)
(156)
(772)
(670)Dividends paid to non-controlling interest(20)
(12)
(101)
(84)Other financing activities, net—
(15)
(18)
(30)Net cash flows provided by (used in) continuing financing activities(787)
(1,672)
(4,672)
(4,611)Net cash flows provided by (used in) discontinued financing activities—
(14)
—
(25)Net cash flows provided by (used in) financing activities(787)
(1,686)
(4,672)
(4,636)Effect of foreign exchange rate changes on cash and cash equivalents13
(85)
76
(103)Net increase (decrease) in cash and cash equivalents and restricted
cash, including cash classified in current assets held for sale156
1,450
(2,390)
(6,201)Less: Change in cash balances classified as assets held for sale25
(284)
25
(320)Net increase (decrease) in cash and cash equivalents and restricted cash 131
1,734
(2,415)
(5,881)Cash, cash equivalents and restricted cash, beginning of period1,426
2,238
3,972
9,853Cash, cash equivalents and restricted cash, end of period1,557
3,972
1,557
3,972Less: restricted cash2
3
2
3Cash and cash equivalents, end of period$            1,555
$            3,969
$           1,555
$           3,969 Carrier Global CorporationSegment Summary

(Unaudited)

Three Months Ended
December 31,
Year Ended
December 31,(In millions)
2025
2024
2025
2024Segment net sales

Climate Solutions Americas
$       1,935
$       2,341
$     10,470
$     10,527Climate Solutions Europe
1,332
1,252
5,044
4,984Climate Solutions Asia Pacific, Middle East & Africa
798
874
3,339
3,500Climate Solutions Transportation
772
681
2,894
3,475Segment net sales
$       4,837
$       5,148
$     21,747
$     22,486

Segment operating profit

Climate Solutions Americas
$          168
$          435
$       2,150
$       2,323Climate Solutions Europe
120
80
444
469Climate Solutions Asia Pacific, Middle East & Africa
95
95
448
466Climate Solutions Transportation
112
97
452
485Segment operating profit
$          495
$          707
$       3,494
$       3,743

Segment operating margin

Climate Solutions Americas
8.7 %
18.6 %
20.5 %
22.1 %Climate Solutions Europe
9.0 %
6.4 %
8.8 %
9.4 %Climate Solutions Asia Pacific, Middle East & Africa
11.9 %
10.9 %
13.4 %
13.3 %Climate Solutions Transportation
14.5 %
14.2 %
15.6 %
14.0 % Carrier Global CorporationReconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results
Components of Changes in Net Sales
Three Months Ended December 31, 2025 Compared with Three Months Ended December 31, 2024

(Unaudited)
Factors Contributing to Total % change in Net Sales
Organic
FX
Translation
Acquisitions /
Divestitures, net
Other
TotalClimate Solutions Americas(17) %
— %
— %
— %
(17) %Climate Solutions Europe(2) %
8 %
— %
— %
6 %Climate Solutions Asia Pacific, Middle East & Africa(9) %
— %
— %
— %
(9) %Climate Solutions Transportation10 %
3 %
— %
— %
13 %Consolidated(9) %
3 %
— %
— %
(6) %
Year Ended December 31, 2025 Compared with Year Ended December 31, 2024

(Unaudited)
Factors Contributing to Total % change in Net Sales
Organic
FX
Translation
Acquisitions /
Divestitures, net
Other
TotalClimate Solutions Americas(1) %
— %
— %
— %
(1) %Climate Solutions Europe(3) %
4 %
— %
— %
1 %Climate Solutions Asia Pacific, Middle East & Africa(5) %
— %
— %
— %
(5) %Climate Solutions Transportation4 %
1 %
(22) %
— %
(17) %Consolidated(1) %
1 %
(3) %
— %
(3) % Carrier Global CorporationReconciliations

(Unaudited)

Three Months Ended
December 31,
Year Ended
December 31,(In millions)
2025
2024
2025
2024Reconciliation to Earnings before income taxes

Segment operating profit
$            495
$            707
$         3,494
$         3,743

Corporate and other
(40)
(29)
(202)
(201)Restructuring costs
(73)
(11)
(178)
(108)Amortization of acquired intangibles
(220)
(172)
(856)
(689)Acquisition step-up amortization
—
(31)
—
(282)Acquisition/divestiture-related costs
(23)
(8)
(55)
(95)Viessmann-related hedges
—
—
—
(86)CCR gain
—
318
7
318VCS pre-acquisition product replacement cost
(38)
—
(38)
—Gain on liability adjustment
—
—
—
46Non-service pension (expense) benefit
(2)
—
(10)
(1)Interest (expense) income, net
(94)
(81)
(364)
(371)

Earnings before income taxes
$                5
$            693
$         1,798
$         2,274

(Unaudited)

Three Months Ended
December 31,
Year Ended
December 31,(In millions)
2025
2024
2025
2024Reconciliation of Segment operating profit to Adjusted operating profit

Climate Solutions Americas
$            168
$            435
$         2,150
$         2,323Climate Solutions Europe
120
80
444
469Climate Solutions Asia Pacific, Middle East & Africa
95
95
448
466Climate Solutions Transportation
112
97
452
485Segment operating profit
$            495
$            707
$         3,494
$         3,743Corporate and other
(40)
(29)
(202)
(201)Adjusted operating profit
$            455
$            678
$         3,292
$         3,542 Carrier Global Corporation Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) ResultsNet Earnings (Loss), Earnings Per Share, and Effective Tax Rate

(Unaudited)
Three Months Ended December 31, 2025
Year Ended December 31, 2025(In millions, except per share amounts)Reported
Adjustments
Adjusted
Reported
Adjustments
AdjustedNet sales$    4,837
$                —
$     4,837
$ 21,747
$                —
$ 21,747

Operating profit$       101
354a$        455
$   2,172
1,120a$   3,292Operating margin2.1 %

9.4 %
10.0 %

15.1 %

Earnings before income taxes$           5
354a,b$        359
$   1,798
1,131a,b$   2,929Income tax (expense) benefit$         32
(97)c$ (65)
$ (240)
(356)c$ (596)Effective tax rate(741.2) %

18.1 %
13.4 %

20.4 %

Earnings from continuing operations
attributable to common shareowners$         28
$              257
$        285
$   1,455
$              775
$   2,230

Summary of Adjustments:

Restructuring costs

$                73a

$              178a
Amortization of acquired intangibles

220a

856a
Acquisition/divestiture-related costs

23a

55a
CCR gain

—a

(7)a
VCS pre-acquisition product replacement cost

38a

38a
Defined benefit pension settlement

—b

11b
Total adjustments

$              354

$           1,131

Tax effect on adjustments above

$              (97)

$            (301)

Tax specific adjustments

—

(55)

Total tax adjustments

$              (97)c

$            (356)c

Diluted shares outstanding846.7

846.7
862.4

862.4

Diluted earnings per share:

Continuing operations$      0.03

$       0.34
$     1.69

$     2.59 Carrier Global CorporationReconciliation of Reported (GAAP) to Adjusted (Non-GAAP) ResultsNet Earnings (Loss), Earnings Per Share, and Effective Tax Rate

(Unaudited)
Three Months Ended December 31, 2024
Year Ended December 31, 2024(In millions, except per share amounts)Reported
Adjustments
Adjusted
Reported
Adjustments
AdjustedNet sales$    5,148
$                —
$      5,148
$ 22,486
$                —
$ 22,486

Operating profit$       774
(96)a$         678
$    2,646
896a$    3,542Operating margin15.0 %

13.2 %
11.8 %

15.8 %

Earnings before income taxes$       693
(87)a,b$         606
$    2,274
831a,b$    3,105Income tax (expense) benefit$ (723)
627c$ (96)
$ (1,062)
400c$ (662)Effective tax rate104.3 %

15.8 %
46.7 %

21.3 %

Earnings from continuing operations
attributable to common shareowners$ (48)
$              540
$         492
$    1,108
$           1,231
$    2,339

Summary of Adjustments:

Restructuring costs

$                11a

$              108a
Amortization of acquired intangibles

172a

689a
Acquisition step-up amortization (1)

31a

282a
Acquisition/divestiture-related costs

8a

95a
CCR gain

(318)a

(318)a
Viessmann-related hedges

—a

86a
Gain on liability adjustment (2)

—a

(46)a
Debt extinguishment (gain)

—b

(97)b
Debt prepayment costs

9b

32b
Total adjustments

$              (87)

$              831

Tax effect on adjustments above

$              (35)

$            (262)

Tax specific adjustments (3)

662

662

Total tax adjustments

$              627c

$              400c

Diluted shares outstanding903.4

903.4
911.7

911.7

Diluted earnings per share:

Continuing operations$    (0.05)

$        0.54
$      1.22

$      2.56(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.(3) Tax expense associated with the integration of the Viessmann and Carrier legal entity structure. Free Cash Flow Reconciliation

(Unaudited)

Three Months Ended December 31,
Year Ended December 31,(In millions)
2025
2024
2025
2024Net cash flows provided by operating activities
$                 1,040
$                    132
$                 2,513
$                    563Less: Capital expenditures - continuing operations
(131)
(217)
(392)
(519)Less: Capital expenditures - discontinued operations
—
(4)
—
(14)Free cash flow
$                    909
$                    (89)
$                 2,121
$                      30 Net Debt Reconciliation

(Unaudited)

As of December 31,(In millions)
2025
2024Long-term debt
$                    11,365
$                    11,026Short-term borrowings and current portion of long-term debt
468
1,336Less: Cash and cash equivalents
1,555
3,969Net debt
$                    10,278
$                      8,393

View original content to download multimedia:https://www.prnewswire.com/news-releases/carrier-reports-2025-results-and-announces-2026-outlook-302680038.htmlSOURCE Carrier Global Corporation

Original: Carrier Reports 2025 Results and Announces 2026 Outlook