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Carrier Global Corporation Reports First Quarter 2026 Results

Carrier Global Corporation (NYSE: CARR), a leading innovator in intelligent climate and energy solutions, today announced its financial performance for the first quarter ending March 31, 2026. The company recorded a total of $5.34 billion in sales, reflecting a 2% increase compared to the same quarter last year. Notably, the Commercial HVAC segment achieved a remarkable 35% surge in order volume, largely propelled by a staggering growth of over 500% in data center-related orders.

Financial Highlights

David Gitlin, the Chairman and CEO of Carrier, stated, “Our performance in the first quarter exceeded expectations, primarily driven by robust demand in our Commercial HVAC business.” He expressed confidence in the company's trajectory, emphasizing that the solid growth in backlog positions the firm for its sixth consecutive year of double-digit growth in the Commercial HVAC sector.

Despite the overall positive trend in sales and performance, the company reported a slight decline in organic sales by 1%. This drop was compensated to some extent by favorable currency fluctuations that contributed an additional 3% to net sales.

2026 Q1 Key Statistics:

• - Net Sales: $5.34 billion (up 2% year-over-year)
• - Net Earnings: $239 million; adjusted net earnings were $482 million.
• - GAAP Earnings Per Share (EPS): $0.28, with adjusted EPS at $0.57.
• - Operating Profit: $259 million, showing a decline of 59% from last year, with adjusted operating profit at $594 million (a 30% decrease).

The decline in operating profit was attributed to challenges faced in various segments, particularly in the CSA Residential, China Residential, and Light Commercial (RLC) markets. However, segments such as Climate Solutions Europe and Climate Solutions Transportation demonstrated strong growth, with their sales increasing by 11% and 10%, respectively.

Segment Breakdown

• - Climate Solutions Americas (CSA): Reported net sales of $2.50 billion (down 3%), with a significant drop in organic sales attributable to residential market challenges.
• - Climate Solutions Europe (CSE): Sales increased to $1.29 billion, up 11% from the previous year, while the organic sales remained flat.
• - Climate Solutions Asia Pacific, Middle East Africa (CSAME): Achieved net sales of $834 million (up 1%), attributed to strong commercial performance, particularly in India and Australia.
• - Climate Solutions Transportation (CST): Recorded net sales of $713 million, driven by substantial growth in the Container business.

Cash Flow and Shareholder Returns

During the quarter, Carrier generated net cash flows of $79 million from operating activities. The company noted capital expenditures of $94 million, leading to a free cash flow of $(15) million. In terms of shareholder returns, Carrier returned about $500 million through dividends and stock repurchases, reflecting its commitment to delivering value to investors.

Looking Ahead

Carrier is reaffirming its full-year outlook for 2026, indicating anticipated sales of approximately $22 billion, with expectations of flat organic growth. The company's leadership is optimistic despite external challenges, including the repercussions from divestiture and market volatility, as they continue to adapt their strategies accordingly. Gitlin concluded, “We are poised for remarkable growth, focusing on innovative solutions that enhance climate and energy efficiency.”

As the year progresses, Carrier remains dedicated to leveraging its technological advancements to tackle global climate challenges and improve the quality of life through its innovative offerings. For more information on Carrier and its products, please visit www.carrier.com.