Carrier Reports Second Quarter 2026 Results

Rhea-AI Summary

Carrier (NYSE:CARR) reported Q2 2026 net sales of $6.35 billion, up 4% year over year, with organic sales up 3% and total company orders up about 40%, including ~65% growth in Commercial HVAC orders and data center orders up over 300%.

GAAP operating profit fell 9% to $825 million and adjusted operating profit declined 6%, with adjusted operating margin down 190 bps to 17.2%. GAAP EPS from continuing operations was $0.60 and adjusted EPS $0.86, down 14% and 7%, respectively. Free cash flow rose to $810 million, and Carrier returned roughly $640 million to shareholders via dividends and buybacks.

Carrier raised its full-year 2026 outlook to about $23 billion in sales, ~$3.5 billion in adjusted operating profit and ~$2.90 adjusted EPS, including an approximate ($0.05) adjusted EPS headwind from the NORESCO exit and new U.S. factory costs, and expects about $2 billion of free cash flow.

Positive

• Net sales +4% YoY to $6.35 billion; organic +3%
• Total orders up ~40%; Commercial HVAC ~65%, data centers >300%
• Free cash flow $810 million vs $568 million a year earlier
• Raised 2026 sales outlook to ~ billion from ~$22 billion
• Raised 2026 adjusted EPS guidance to ~$2.90 from ~$2.80
• Returned about $640 million to shareholders in Q2 via dividends and buybacks

Negative

• GAAP operating profit -9% YoY to $825 million
• Adjusted operating margin down 190 bps to 17.2%
• GAAP EPS from continuing operations -14% YoY to $0.60
• Adjusted EPS -7% YoY to $0.86
• CSA segment margin down 260 bps to 24.4%
• CSAME segment margin down 350 bps to 11.8%

News Explained

At June 30, Carrier reported $1,344 million cash, $1,638 million current debt and $10,314 million long-term debt.

Carrier reported second-quarter results and raised its 2026 outlook; the Riello divestiture was completed on July 1, 2026, while the NORESCO divestiture remained announced, creating stated year-over-year revenue headwinds of $225 million and $125 million, respectively.

As of June 30, 2026, the balance sheet reported $1,344 million of cash and equivalents, alongside $1,638 million of current debt and $10,314 million of long-term debt.

The raised $2 billion free-cash-flow outlook is a forward-looking expectation, not cash already held at quarter-end.

Market Context

Across five tag-matched events, the average move was 2.17%. That record places this quarter's raised...

Analysis

Across five tag-matched events, the average move was 2.17%. That record places this quarter's raised outlook alongside lower margins and EPS, while the resale shelf and net-selling insider record remain watch items.

Key Figures

Total company orders: ~40% Net sales: $6,351 million GAAP EPS: $0.60 +5 more

8 metrics

Total company orders ~40% Q2 2026 year-over-year increase

Net sales $6,351 million Q2 2026, up 4% year over year

GAAP EPS $0.60 Q2 2026 continuing operations, down 14% year over year

Adjusted EPS $0.86 Q2 2026 continuing operations, down 7% year over year

Free cash flow $810 million Q2 2026, versus $568 million in Q2 2025

Returned to shareholders ~$640 million Q2 2026 through dividends and repurchases

Full-year sales outlook ~$23 billion Raised 2026 guidance from ~$22 billion

Full-year adjusted EPS outlook ~$2.90 Raised 2026 guidance from ~$2.80

Previous Earnings Reports

5 past events · Latest: Jul 07 (Neutral)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 07	Earnings advisory	Neutral	-2.8%	Scheduled second-quarter earnings release and conference call for July 28
Apr 30	First-quarter earnings	Positive	+8.8%	First-quarter results included stronger orders and reaffirmed full-year guidance
Apr 09	Earnings advisory	Neutral	+3.1%	Scheduled first-quarter earnings release and conference call for April 30
Oct 28	Third-quarter earnings	Negative	+0.8%	Third-quarter sales and organic sales declined year over year
Oct 07	Earnings advisory	Neutral	+1.1%	Scheduled third-quarter earnings release and conference call for October 28

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-matched earnings reactions were mixed, with one strong positive result, one modest positive result and one negative result despite generally positive or mixed announcements.

Key Terms

organic sales, adjusted operating margin, free cash flow, non-gaap financial measures

4 terms

organic sales financial

"Total company orders1 up ~40%; Commercial HVAC1 up ~65%; data centers up >300%Net sales up 4%; organic sales up 3%"

Organic sales are the change in a company’s revenue that comes from its existing business operations, excluding effects of acquisitions, divestitures, and currency swings. Think of it like measuring how much a garden grows from the plants you already tended, rather than adding new pots; investors use organic sales to judge whether demand and core business performance are genuinely improving or if growth is driven by one‑time deals or accounting shifts.

adjusted operating margin financial

"Adjusted operating margin of 17.2% was down 190 basis points from last year"

Adjusted operating margin shows how much profit a company makes from its core business activities, after removing unusual or one-time costs and income. It helps investors see the company's true profitability by providing a clearer picture, similar to removing unexpected expenses to understand the regular performance. This metric is useful for comparing companies or tracking performance over time, as it highlights consistent earning power.

free cash flow financial

"Net cash flows generated from operating activities were $927 million and capital expenditures were $117 million, resulting in free cash flow of $810 million."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

non-gaap financial measures financial

"Use and Definitions of Non-GAAP Financial MeasuresCarrier reports its financial results"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Increases Full-year Outlook for Sales, Adj. Op. Profit and Adj. EPS

• Total company orders¹ up ~40%; Commercial HVAC¹ up ~65%; data centers up >300%
• Net sales up 4%; organic sales up 3%
• GAAP EPS of $0.60 and adjusted EPS of $0.86
• Net cash flows from operating activities of $927 million and free cash flow of $810 million
• Returned ~$640 million to shareholders through dividends and repurchases
• Raises full year outlook to ~$23B sales, ~$3.5B adj. op. profit and ~$2.90 adj. EPS
  • Includes ~($0.05) adj. EPS impact from NORESCO exit and new U.S. factory costs

PALM BEACH GARDENS, Fla., July 28, 2026 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported better than expected financial results for the second quarter of 2026.

"We ended the first half with a stronger than expected second quarter, including better sales, adjusted EPS and free cash flow," said Chairman & CEO David Gitlin. "Organic sales returned to growth earlier than expected, up 3%, driven by strong performance in our CSA segment. Improving Residential and Light Commercial markets in CSA and CSE are encouraging. Orders were very strong globally in the second quarter supported by continued data center demand. Given record backlog levels and our year-to-date performance, we are raising our full-year outlook and now expect sales of about $23 billion and adjusted EPS of ~$2.90."

1 Excludes NORESCO (exit announced) and Riello (exit completed on July 1, 2026)

Second Quarter 2026 Results

Total Company

	(Unaudited)
	Three Months Ended June 30
(In millions)	2026	2025	Change
Net sales	$    6,351	$    6,113	4 %
Organic sales	3 %
Operating profit	$       825	$       903	(9) %
Operating margin	13.0 %	14.8 %	(180) bps
Adjusted operating profit	$    1,095	$    1,166	(6) %
Adjusted operating margin	17.2 %	19.1 %	(190) bps
Diluted earnings per share:
Continuing operations	$      0.60	$      0.70	(14) %
Continuing operations - Adjusted	$      0.86	$      0.92	(7) %

Carrier's second-quarter sales of $6.4 billion increased 4% compared to the prior year. Organic sales increased 3% and foreign currency translation was a tailwind of 1%.

GAAP operating profit of $825 million in the quarter declined 9% from last year, driven primarily by the Climate Solutions Americas (CSA) and Climate Solutions Asia Pacific, Middle East and Africa segments (CSAME).           

Adjusted operating margin of 17.2% was down 190 basis points from last year, predominantly due to favorable volume and productivity more than offset by the impact of increased input costs and unfavorable business mix. 

Net earnings from continuing operations were $501 million and adjusted net earnings from continuing operations were $721 million. GAAP EPS from continuing operations was $0.60 and adjusted EPS was $0.86, down 14% and 7% year-over-year, respectively. The declines were primarily driven by lower operating profit and a higher effective tax rate, partially offset by the benefit of a lower share count.

Climate Solutions Americas (CSA)

	(Unaudited)
	Three Months Ended June 30
(In millions)	2026	2025	Change
Net sales	$    3,372	$    3,252	4 %
Organic sales	4 %
Segment operating profit	$       823	$       879	(6) %
Segment operating margin	24.4 %	27.0 %	(260) bps

CSA segment sales grew 4%. Organic sales were up 4% driven by Residential and Light Commercial (RLC), up 9% and 10% respectively, partially offset by Commercial¹, down 8% due to the timing of customer deliveries.

Segment operating margin decreased 260 basis points as revenue growth mainly related to price which was more than offset by unfavorable mix and input costs.

Climate Solutions Europe (CSE)

	(Unaudited)
	Three Months Ended June 30
(In millions)	2026	2025	Change
Net sales	$    1,324	$    1,253	6 %
Organic sales	3 %
Segment operating profit	$         95	$         99	(4) %
Segment operating margin	7.2 %	7.9 %	(70) bps

CSE segment sales increased 6%. Organic sales were up 3% with RLC up high-single digits and Commercial down mid-single digits.

Segment operating margin decreased 70 basis points driven by volume growth and favorable price / cost more than offset by unfavorable mix and selling investments.

1 Excludes NORESCO

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

	(Unaudited)
	Three Months Ended June 30
(In millions)	2026	2025	Change
Net sales	$      917	$      882	4 %
Organic sales	4 %
Segment operating profit	$      108	$      135	(20) %
Segment operating margin	11.8 %	15.3 %	(350) bps

CSAME segment sales increased 4%. Organic sales were up 4% driven by double-digit growth in India, the Middle East, Southeast Asia and Australia partially offset by continued pressure in RLC in China.

Segment operating margin decreased 350 basis points driven by volume growth and productivity more than offset by unfavorable mix and lower JV income due to the impacts from the Middle East conflict.

Climate Solutions Transportation (CST)

	(Unaudited)
	Three Months Ended June 30
(In millions)	2026	2025	Change
Net sales	$      738	$      726	2 %
Organic sales	— %
Segment operating profit	$      118	$      128	(8) %
Segment operating margin	16.0 %	17.6 %	(160) bps

CST sales increased 2% driven by strong growth in Container. Organic sales were flat as strong Container growth of ~40% was offset by low-teens declines in Global Truck and Trailer.

Segment operating margin declined 160 basis points, due to unfavorable mix from lower Global Truck and Trailer volume offset by higher Container volume. 

Cash Flow

		(Unaudited)				(Unaudited)
		Three Months Ended  June 30,				Six Months Ended June 30,
(In millions)		2026		2025		2026		2025
Net cash flows provided by operating activities		$       927		$       649		$     1,006		$     1,132
Less: Capital expenditures		(117)		(81)		(211)		(144)
Free cash flow		$       810		$       568		$        795		$        988

Net cash flows generated from operating activities were $927 million and capital expenditures were $117 million, resulting in free cash flow of $810 million.

Full-Year 2026 Guidance**

	Current Guidance**	Prior Guidance
Sales	~$23 billion Organic* up ~M-HSD FX 1% Net, Acquisitions / Divestitures (2%) ~$225 million and ~$125 million year-over- year revenue headwind from Riello and NORESCO exits, respectively	~$22 billion Organic* flat to up LSD FX 1% Net, Acquisitions / Divestitures (1%) ~$250 million year-over-year revenue headwind from Riello exit
Adjusted Operating Profit*	~$3.5 billion	~$3.4 billion
Adjusted EPS*	~$2.90	~$2.80
Free Cash Flow*	~$2 billion	~$2 billion

Riello divestiture completed on July 1st. NORESCO divestiture announced.

*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 July 28, 2026

Conference Call

Carrier will host a webcast of its earnings conference call today, Tuesday, July 28, 2026, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site. 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, 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 acquisition of the VCS business and 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 carrier.com or follow Carrier on social media at @Carrier.

Carrier. For the World We Share

CARR-IR

Contact:	Investor Relations
	Michael Rednor
	561-365-2020
	InvestorRelations@Carrier.com
	Media Inquiries
	Kristina Pantelides
	561-236-4241
	Kristina.Pantelides@Carrier.com

SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS

Following 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 Measures

Carrier 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.

Price/cost represents the combined impact of realized pricing, cost inflation and productivity actions, including manufacturing efficiencies, sourcing initiatives and certain productivity measures.

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 Corporation Condensed Consolidated Statement of Operations
		(Unaudited)
		Three Months Ended  June 30,				Six Months Ended June 30,
(In millions, except per share amounts)		2026		2025		2026		2025
Net sales
Product sales		$     5,634		$     5,477		$    10,301		$    10,129
Service sales		717		636		1,391		1,202
Total Net sales		6,351		6,113		11,692		11,331
Costs and expenses
Cost of products sold		(4,081)		(3,867)		(7,672)		(7,225)
Cost of services sold		(542)		(477)		(1,048)		(892)
Research and development		(148)		(161)		(291)		(314)
Selling, general and administrative		(810)		(813)		(1,672)		(1,542)
Total Costs and expenses		(5,581)		(5,318)		(10,683)		(9,973)
Equity method investment net earnings		58		78		89		122
Other income (expense), net		(3)		30		(15)		52
Operating profit		825		903		1,083		1,532
Non-service pension benefit (expense)		1		—		2		1
Interest (expense) income, net		(105)		(91)		(195)		(173)
Earnings before income taxes		721		812		890		1,360
Income tax (expense) benefit		(180)		(162)		(84)		(273)
Earnings from continuing operations		541		650		806		1,087
Discontinued operations, net of tax		—		(17)		—		(17)
Net earnings (loss)		541		633		806		1,070
Less: Non-controlling interest in subsidiaries'		40		42		67		67
Net earnings (loss) attributable to common shareowners		$        501		$        591		$         739		$      1,003
Amounts attributable to common shareowners:
Continuing operations		$        501		$        608		$         739		$      1,020
Discontinued operations		—		(17)		—		(17)
Net earnings (loss) attributable to common shareowners		$        501		$        591		$         739		$      1,003
Earnings per share
Basic:
Continuing operations		$       0.61		$       0.71		$        0.89		$        1.18
Discontinued operations		—		(0.02)		—		(0.01)
Net earnings (loss)		$       0.61		$       0.69		$        0.89		$        1.17
Diluted:
Continuing operations		$       0.60		$       0.70		$        0.88		$        1.17
Discontinued operations		—		(0.02)		—		(0.02)
Net earnings (loss)		$       0.60		$       0.68		$        0.88		$        1.15
Weighted-average number of shares outstanding
Basic		828.1		854.9		831.5		860.8
Diluted		836.5		866.3		839.6		872.3

 

Carrier Global Corporation Condensed Consolidated Balance Sheet
		(Unaudited)
(In millions)		June 30, 2026		December 31, 2025
Assets
Cash and cash equivalents		$            1,344		$              1,555
Accounts receivable, net		3,246		2,639
Inventories, net		2,759		2,483
Assets held for sale		815		592
Other current assets		1,250		1,264
Total current assets		9,414		8,533
Future income tax benefits		1,126		1,074
Fixed assets, net		3,162		3,165
Operating lease right-of-use assets		568		546
Intangible assets, net		5,756		6,326
Goodwill		15,267		15,501
Pension and post-retirement assets		61		56
Equity method investments		1,341		1,321
Other assets		677		668
Total Assets		$          37,372		$            37,190
Liabilities and Equity
Accounts payable		$            3,216		$              2,702
Accrued liabilities		3,963		3,774
Liabilities held for sale		414		170
Short-term borrowings and current portion of long-term debt		1,638		468
Total current liabilities		9,231		7,114
Long-term debt		10,314		11,365
Future pension and post-retirement obligations		185		192
Future income tax obligations		1,622		1,833
Operating lease liabilities		442		418
Other long-term liabilities		2,106		2,140
Total Liabilities		23,900		23,062
Equity
Common stock		10		10
Treasury stock		(7,550)		(6,795)
Additional paid-in capital		8,688		8,665
Retained earnings		12,536		12,193
Accumulated other comprehensive income (loss)		(537)		(269)
Non-controlling interest		325		324
Total Equity		13,472		14,128
Total Liabilities and Equity		$          37,372		$            37,190

 

Carrier Global Corporation Condensed Consolidated Statement of Cash Flows (Unaudited)
		Three Months Ended  June 30,				Six Months Ended June 30,
(In millions)		2026		2025		2026		2025
Operating Activities
Net earnings (loss)		$        541		$        633		$        806		$     1,070
Discontinued operations, net of tax		—		17		—		17
Adjustments for non-cash items, net:
Depreciation and amortization		314		317		629		620
Deferred income tax provision		(63)		(89)		(242)		(158)
Stock-based compensation costs		12		21		33		44
Equity method investment net earnings		(58)		(78)		(89)		(122)
(Gain) loss on sale of investments and impairments, net		40		(12)		37		(17)
Changes in operating assets and liabilities
Accounts receivable, net		(142)		(340)		(651)		(702)
Inventories, net		(197)		(111)		(335)		(412)
Accounts payable and accrued liabilities		280		(103)		631		378
Distributions from equity method investments		39		4		51		81
Other operating activities, net		122		5		83		(47)
Net cash flows provided by (used in) continuing operating activities		888		264		953		752
Net cash flows provided by (used in) discontinued operating activities		39		385		53		380
Net cash flows provided by (used in) operating activities		927		649		1,006		1,132
Investing Activities
Capital expenditures		(117)		(81)		(211)		(144)
Investment in businesses, net of cash acquired		(31)		(49)		(54)		(61)
Dispositions of businesses		7		—		15		8
Settlement of derivative contracts, net		(29)		51		6		87
Other investing activities, net		—		(4)		9		(3)
Net cash flows provided by (used in) continuing investing activities		(170)		(83)		(235)		(113)
Net cash flows provided by (used in) discontinued investing activities		—		28		—		35
Net cash flows provided by (used in) investing activities		(170)		(55)		(235)		(78)
Financing Activities
Increase (decrease) in short-term borrowings, net		(10)		(8)		361		(57)
Issuance of long-term debt		17		6		39		15
Repayment of long-term debt		(41)		(3)		(57)		(1,208)
Repurchases of common stock		(439)		(340)		(745)		(1,628)
Dividends paid on common stock		(199)		(192)		(400)		(390)
Dividends paid to non-controlling interest		(64)		(9)		(65)		(9)
Other financing activities, net		(24)		(1)		(34)		(17)
Net cash flows provided by (used in) continuing financing activities		(760)		(547)		(901)		(3,294)
Net cash flows provided by (used in) discontinued financing activities		—		—		—		—
Net cash flows provided by (used in) financing activities		(760)		(547)		(901)		(3,294)
Effect of foreign exchange rate changes on cash and cash equivalents		3		51		(10)		68
Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale		—		98		(140)		(2,172)
Less: Change in cash balances classified as assets held for sale		27		—		70		—
Net increase (decrease) in cash and cash equivalents and restricted cash		(27)		98		(210)		(2,172)
Cash, cash equivalents and restricted cash, beginning of period		1,374		1,702		1,557		3,972
Cash, cash equivalents and restricted cash, end of period		1,347		1,800		1,347		1,800
Less: restricted cash		3		3		3		3
Cash and cash equivalents, end of period		$     1,344		$     1,797		$     1,344		$     1,797

 

Carrier Global Corporation Segment Summary
	(Unaudited)
	Three Months Ended  June 30,					Six Months Ended June 30,
(In millions)	2026			2025		2026		2025
Segment net sales
Climate Solutions Americas		$   3,372		$   3,252		$   5,873		$   5,824
Climate Solutions Europe		1,324		1,253		2,617		2,422
Climate Solutions Asia Pacific, Middle East & Africa		917		882		1,751		1,708
Climate Solutions Transportation		738		726		1,451		1,377
Segment net sales		$   6,351		$   6,113		$ 11,692		$ 11,331
Segment operating profit
Climate Solutions Americas		$    823		$    879		$   1,196		$   1,449
Climate Solutions Europe		95		99		184		204
Climate Solutions Asia Pacific, Middle East & Africa		108		135		189		256
Climate Solutions Transportation		118		128		219		225
Segment operating profit		$   1,144		$   1,241		$   1,788		$   2,134
Segment operating margin
Climate Solutions Americas		24.4 %		27.0 %		20.4 %		24.9 %
Climate Solutions Europe		7.2 %		7.9 %		7.0 %		8.4 %
Climate Solutions Asia Pacific, Middle East & Africa		11.8 %		15.3 %		10.8 %		15.0 %
Climate Solutions Transportation		16.0 %		17.6 %		15.1 %		16.3 %

 

Components of Changes in Net Sales
Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025
	(Unaudited)
	Factors Contributing to Total % change in Net Sales
	Organic		FX Translation		Acquisitions / Divestitures, net		Other		Total
Climate Solutions Americas	4 %		— %		— %		— %		4 %
Climate Solutions Europe	3 %		3 %		— %		— %		6 %
Climate Solutions Asia Pacific, Middle East & Africa	4 %		— %		— %		— %		4 %
Climate Solutions Transportation	— %		2 %		— %		— %		2 %
Consolidated	3 %		1 %		— %		— %		4 %
Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025
	(Unaudited)
	Factors Contributing to Total % change in Net Sales
	Organic		FX Translation		Acquisitions / Divestitures, net		Other		Total
Climate Solutions Americas	1 %		— %		— %		— %		1 %
Climate Solutions Europe	1 %		7 %		— %		— %		8 %
Climate Solutions Asia Pacific, Middle East & Africa	1 %		1 %		1 %		— %		3 %
Climate Solutions Transportation	2 %		3 %		— %		— %		5 %
Consolidated	1 %		2 %		— %		— %		3 %

 

Carrier Global Corporation Reconciliations
		(Unaudited)
		Three Months Ended  June 30,				Six Months Ended June 30,
(In millions)		2026		2025		2026		2025
Reconciliation to Earnings before income taxes
Segment operating profit		$     1,144		$     1,241		$     1,788		$     2,134
Corporate and other		(49)		(75)		(99)		(120)
Restructuring costs		(8)		(47)		(116)		(55)
Amortization of acquired intangible assets		(213)		(214)		(426)		(415)
Acquisition/divestiture-related costs		(8)		(6)		(18)		(11)
Riello impairment		(46)		—		(46)		—
CCR gain		—		7		—		7
Other		5		(3)		—		(8)
Non-service pension (expense) benefit		1		—		2		1
Interest (expense) income, net		(105)		(91)		(195)		(173)
Earnings before income taxes		$        721		$        812		$        890		$     1,360
		(Unaudited)
		Three Months Ended  June 30,				Six Months Ended June 30,
(In millions)		2026		2025		2026		2025
Reconciliation of Segment operating profit to Adjusted operating profit
Climate Solutions Americas		$        823		$        879		$     1,196		$     1,449
Climate Solutions Europe		95		99		184		204
Climate Solutions Asia Pacific, Middle East & Africa		108		135		189		256
Climate Solutions Transportation		118		128		219		225
Segment operating profit		$     1,144		$     1,241		$     1,788		$     2,134
Corporate and other		(49)		(75)		(99)		(120)
Adjusted operating profit		$     1,095		$     1,166		$     1,689		$     2,014

 

Carrier Global Corporation  Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share and Effective Tax Rate
	(Unaudited)
	Three Months Ended June 30, 2026						Six Months Ended June 30, 2026
(In millions, except per share amounts)	Reported		Adjustments		Adjusted		Reported		Adjustments		Adjusted
Net sales	$  6,351		$        —		$  6,351		$ 11,692		$         —		$ 11,692
Operating profit	$     825		270	a	$  1,095		$   1,083		606	a	$   1,689
Operating margin	13.0 %				17.2 %		9.3 %				14.4 %
Earnings before income taxes	$     721		270	a	$     991		$      890		606	a	$   1,496
Income tax (expense) benefit	$    (180)		(50)	b	$    (230)		$       (84)		(142)	b	$     (226)
Effective tax rate	25.0 %				23.2 %		9.4 %				15.1 %
Earnings from continuing operations attributable to common shareowners	$     501		$      220		$     721		$      739		$       464		$   1,203
Summary of Adjustments:
Restructuring costs			$          8	a					$       116	a
Amortization of acquired intangible assets			213	a					426	a
Acquisition/divestiture-related costs			8	a					18	a
Riello impairment			46	a					46	a
Other			(5)	a					—	a
Total adjustments			$       270						$       606
Tax effect on adjustments above			$        (50)						$      (142)
Total tax adjustments			$        (50)	b					$      (142)	b
Diluted shares outstanding	836.5				836.5		839.6				839.6
Diluted earnings per share:
Continuing operations	$    0.60				$    0.86		$     0.88				$     1.43

 

Carrier Global Corporation Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share and Effective Tax Rate
	(Unaudited)
	Three Months Ended June 30, 2025						Six Months Ended June 30, 2025
(In millions, except per share amounts)	Reported		Adjustments		Adjusted		Reported		Adjustments		Adjusted
Net sales	$  6,113		$        —		$  6,113		$ 11,331		$          —		$ 11,331
Operating profit	$     903		263	a	$  1,166		$   1,532		482	a	$   2,014
Operating margin	14.8 %				19.1 %		13.5 %				17.8 %
Earnings before income taxes	$     812		263	a	$  1,075		$   1,360		482	a	$   1,842
Income tax (expense) benefit	$    (162)		(75)	b	$    (237)		$     (273)		(133)	b	$     (406)
Effective tax rate	20.0 %				22.1 %		20.1 %				22.1 %
Earnings from continuing operations attributable to common shareowners	$     608		$      188		$     796		$   1,020		$        349		$   1,369
Summary of Adjustments:
Restructuring costs			$         47	a					55	a
Amortization of acquired intangible assets			214	a					$        415	a
Acquisition/divestiture-related costs			6	a					11	a
CCR gain			(7)	a					(7)	a
Other			3	a					8	a
Total adjustments			$       263						$        482
Tax effect on adjustments above			$        (69)						$       (127)
Tax specific adjustments			(6)						(6)
Total tax adjustments			$        (75)	b					$       (133)	b
Diluted shares outstanding	866.3				866.3		872.3				872.3
Diluted earnings per share:
Continuing operations	$    0.70				$    0.92		$     1.17				$     1.57

 

Free Cash Flow Reconciliation
		(Unaudited)
		Three Months Ended  June 30,				Six Months Ended June 30,
(In millions)		2026		2025		2026		2025
Net cash flows provided by operating activities		$       927		$       649		$     1,006		$     1,132
Less: Capital expenditures		(117)		(81)		(211)		(144)
Free cash flow		$       810		$       568		$        795		$        988

 

Net Debt Reconciliation
		(Unaudited)
(In millions)		June 30, 2026		December 31, 2025
Long-term debt		$             10,314		$             11,365
Short-term borrowings and current portion of long-term debt		1,638		468
Less: Cash and cash equivalents		1,344		1,555
Net debt		$             10,608		$             10,278

 

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SOURCE Carrier Global Corporation

FAQ

What were Carrier (NYSE:CARR) Q2 2026 earnings and revenue?

Carrier reported Q2 2026 net sales of $6.35 billion and GAAP EPS from continuing operations of $0.60, with adjusted EPS of $0.86. According to Carrier, sales grew 4% year over year and organic sales increased 3%, while EPS declined versus 2025.

Why did Carrier (CARR) raise its full-year 2026 outlook and what are the new targets?

Carrier raised its 2026 outlook after stronger first-half performance and record backlog. According to Carrier, it now expects about $23 billion in sales, ~$3.5 billion adjusted operating profit, ~$2.90 adjusted EPS and roughly $2 billion in free cash flow for the year.

How strong were Carrier’s orders and data center demand in Q2 2026 (CARR)?

Carrier’s total company orders rose about 40% in Q2 2026, with Commercial HVAC orders up roughly 65% and data center-related orders increasing over 300%. According to Carrier, this order strength contributed to record backlog levels and supported the upgraded 2026 outlook.

How did Carrier’s segment margins perform in Q2 2026 for CARR investors?

Carrier reported lower margins across major segments in Q2 2026. According to Carrier, CSA margin fell 260 bps to 24.4%, CSE margin declined 70 bps to 7.2%, CSAME margin dropped 350 bps to 11.8%, and CST margin decreased 160 bps to 16.0%.

What was Carrier’s Q2 2026 free cash flow and shareholder returns (NYSE:CARR)?

Carrier generated Q2 2026 free cash flow of $810 million, based on $927 million operating cash flow and $117 million capital expenditures. According to Carrier, the company returned approximately $640 million to shareholders during the quarter through dividends and share repurchases.

How do the Riello and NORESCO exits affect Carrier’s 2026 guidance (CARR)?

Carrier expects about $225 million year-over-year revenue headwind from the Riello exit and roughly $125 million from the NORESCO exit in 2026. According to Carrier, its adjusted EPS outlook of ~$2.90 already includes an estimated ($0.05) impact from NORESCO and new U.S. factory costs.