#USA #Carrier Global #Palm Beach Gardens #Climate Solutions #EPS Results

Carrier Global Reports Third Quarter 2025 Results

Carrier Global Corporation, a prominent player in climate and energy solutions, has announced its financial performance for the third quarter of 2025. The results reveal a decrease in net sales and operating profit, though the company shows resilience in specific areas of its business.

Financial Overview

In the third quarter, Carrier recorded net sales of $5.6 billion, reflecting a 7% decline compared to the same period last year. Organic sales specifically saw a 4% drop, attributed primarily to weaker demand in the residential market. Despite this downturn, the company registered considerable progress in aftermarket sales, which experienced double-digit growth. Notably, commercial HVAC systems in the Americas surged by 30%, offset by the anticipated challenges faced by the residential sector, which saw a decline of around 30%.

Carrier’s operations yielded an operating profit of $539 million, down 29% from the same quarter last year. The adjusted operating profit was noted at $823 million, falling by 21% as well, stemming from lower volumes within the company’s residential segment. This continues to emphasize the company’s struggle with the shifting market dynamics affecting residential sales.

Earnings Per Share

The diluted earnings per share (EPS) for continuing operations also showcased a decline. The GAAP EPS stood at $0.47, a 24% decrease year-over-year, while the adjusted EPS was reported at $0.67, down 13% from the prior year. This decline in earnings reflects the correlating drop in sales and operating profit.

Cash Flow and Shareholder Return

On a more optimistic note, Carrier generated $341 million in net cash flows from operating activities, with a free cash flow amounting to $224 million. The company’s commitment to shareholder return remains strong, with approximately $3 billion returned to investors year-to-date through share repurchases, including a recently announced $5 billion share buyback program. This move is seen as a testament to Carrier's strategy and confidence in overcoming current market challenges.

Future Guidance

Looking ahead, Carrier maintains a cautious yet optimistic outlook, projecting full-year 2025 sales to hover around $22 billion with an adjusted EPS estimate of approximately $2.65. The company anticipates potential recovery in earnings, buoyed by ongoing strength in its data center segment and planned cost reduction measures.

Segment Performance Highlights

- Climate Solutions Americas: Sales declined 8% with organic sales reflecting the same trend. The strength in the commercial business was unable to balance out the losses from the residential market.
- Climate Solutions Europe: A 4% increase in sales, although organic sales were down slightly, indicating mixed performance across different customer segments.
- Climate Solutions Asia Pacific, Middle East & Africa: Exhibited a slight decline, primarily driven by a drop in residential sales in key markets like China.
- Transportation Solutions: Despite a significant sales drop of 20% linked to divestitures, the segment saw organic sales growth of 6%, particularly in container solutions, showcasing some resilience in specified areas.

Conclusion

In conclusion, Carrier Global Corporation finds itself at a crossroads as it navigates through declining sales while leveraging strengths in certain segments. The upcoming quarters will be crucial as the company aims to regain momentum in its residential sales and utilize the robust commercial sector to its advantage. With a strong share repurchase plan and strategic initiatives in place, Carrier remains focused on delivering value to its shareholders while adapting to the evolving market landscape.