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Carrier Global Reports Impressive Second Quarter Results

Company Overview
Carrier Global Corporation, a recognized leader in intelligent climate and energy solutions, has released its financial results for the second quarter of 2026. The company demonstrated strong performance across its various business segments, exceeding initial expectations and prompting an optimistic revision of their full-year outlook.

Financial Highlights

In the second quarter of 2026, Carrier observed a remarkable increase in total company orders, up by approximately 40%, with the Commercial HVAC segment surging by around 65%. The demand for data center solutions outstripped all projections, skyrocketing by over 300%.

Net sales for the quarter amounted to $6.351 billion, representing a 4% increase compared to $6.113 billion in the same quarter of the previous year. Organic sales rose by 3%, while foreign exchange contributed approximately 1% to this growth. Despite this positive sales trajectory, GAAP operating profit saw a decline, falling to $825 million, which is a 9% decrease year-on-year. The adjusted operating profit was noted at $1.095 billion, reflecting a 6% drop from the previous year's $1.166 billion.

The diluted earnings per share (EPS) from continuing operations stood at $0.60, while the adjusted EPS was $0.86, albeit down 14% and 7% from the corresponding periods in 2025, respectively. This contraction in earnings was primarily instigated by reductions in operating profit and a raised effective tax rate.

Strategic Developments

Chairman and CEO David Gitlin remarked on the premature return to growth in organic sales and the overall impactful demand driving orders globally. The company is navigating a record backlog, bolstered by strong performance in its Climate Solutions Americas (CSA) and Climate Solutions Europe (CSE) segments. The positive market outlook led the company to revise its full-year sales forecast to approximately $23 billion, with anticipated adjusted operating profit reaching $3.5 billion and an adjusted EPS of around $2.90.

Segment Performance

Let’s delve deeper into the segment performances:

Climate Solutions Americas (CSA)

In the CSA segment, net sales totaled $3.372 billion, marking a 4% increase year-over-year. The residential and light commercial sectors reflected robust gains, growing by 9% and 10%, though the commercial segment experienced a decline of 8%, primarily due to delivery timing issues. The segment's operating profit decreased to $823 million compared to $879 million in 2025, with an operating margin contraction of 260 basis points.

Climate Solutions Europe (CSE)

The CSE segment reported net sales of $1.324 billion and a 6% increase in sales. Its organic growth stood at 3%, driven by high-single-digit jumps in both residential and light commercial markets. Operating profit here decreased moderately to $95 million. The operating margin showed a slight decline of 70 basis points.

Climate Solutions Asia Pacific, Middle East, and Africa (CSAME)

This segment’s sales increased to $917 million, reflecting a 4% growth attributed to the double-digit expansion in markets like India and the Middle East. However, operating profit fell to $108 million, showcasing a profit margin squeeze of 350 basis points.

Climate Solutions Transportation (CST)

The CST segment saw a modest sales increase of 2%, totaling $738 million. The superior growth of approximately 40% in container solutions somewhat mitigated the declines faced in global truck and trailer solutions. Operating profit experienced a decrease to $118 million.

Cash Flow and Returns

Carrier reported impressive net cash flows from operating activities amounting to $927 million, complemented by free cash flow of $810 million. The company maintained a commitment to return value to its shareholders, delivering about $640 million through dividends and repurchase activities.

Future Outlook

In light of the current year-to-date performance and the robust global demand across its divisions, Carrier's leadership is confident in its prospects for the remainder of the fiscal year. The revisions to the sales outlook coupled with positive segment performances depict a resilient and adaptive business model positioned to capitalize on future opportunities in intelligent climate solutions.

For more updates, including future earnings call details and other significant announcements, stakeholders can tune into the Carrier Investor Relations communications platform.

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