#None #earnings report #Carrier Global #HVAC

Carrier Global Corporation's Performance Overview for 2025

Carrier Global Corporation has recently disclosed its financial results for the fourth quarter and full year of 2025. The company's net sales showcased a notable dip, falling by 6% to $4.84 billion in the last quarter of 2025 compared to the previous year, with a 9% decline in organic sales. These figures reflect the struggles in residential and light commercial markets, leading to a challenging environment for the company.

In terms of earnings, Carrier reported a GAAP earnings per share (EPS) of $0.03 from continuing operations, improving from a loss of $0.05 in the same quarter last year. The adjusted EPS stood at $0.34, down from $0.54 in Q4 2024. Furthermore, the total cash flows from operating activities reached $1,040 million, leading to a free cash flow of $909 million for the quarter.

Full-Year Summary
For the entire year of 2025, Carrier reported total sales of $21.75 billion, a decrease of 3% from 2024. This decline was predominantly influenced by the softening of the residential and light commercial segments. Despite these challenges, the commercial HVAC sector exhibited strength, achieving significant double-digit growth. Adjusted EPS for the year clocked in at $2.59, and an operating margin of 15.1% was achieved.

Carrier has actively focused on returning value to shareholders, with approximately $3.7 billion returned through dividends and share repurchases, including an impressive $2.9 billion in buybacks.

CEO's Insights
Carrier's Chairman and CEO David Gitlin expressed confidence in the company's direction, emphasizing the ongoing growth and success in commercial HVAC sectors. He noted that the order volume for Q4 surged by nearly 50%, driven primarily by critical data center victories, positioning them well for another year of double-digit growth in 2026.

With these positive indicators, Carrier maintains its strategic focus on cost reduction while building order backlogs, hoping to navigate the adverse market conditions more effectively.

Looking Ahead: 2026 Forecast

As Carrier sets its sights on 2026, the company anticipates continued robust growth, especially in the global commercial HVAC market and its aftermarket services. The projections for the upcoming year include:

• - Sales target: Approximately $22 billion
• - Adjusted EPS expected: About $2.80
• - Anticipated free cash flow: Around $2 billion
• - An ongoing commitment to buy back shares worth $1.5 billion

However, the company also expects a headwind of $350 million in sales due to the anticipated divestiture of Riello by the end of the first quarter of 2026, which will also impact adjusted EPS by about $0.03.

Despite the challenges observed in 2025, Carrier aims for a balanced growth strategy moving forward, with operational efficiencies and a commitment to innovation at the core of its approach. The firm continues to position itself as a leader in intelligent climate and energy solutions with advancements in their service offerings aimed at enhancing customer experiences.

As the company moves forward, investors and analysts will be keenly watching how these strategies unfold and whether they will yield fruitful results in what is anticipated to be a pivotal year ahead.