Carrier Reports Strong Second Quarter 2025 Results

Rhea-AI Summary

Carrier (NYSE:CARR) reported strong Q2 2025 financial results, with net sales up 3% to $6.1 billion and organic sales growth of 6%. The company achieved significant earnings growth with GAAP EPS up 56% to $0.70 and adjusted EPS up 26% to $0.92. Operating margins showed substantial improvement, with GAAP operating margin increasing 260 basis points to 14.8% and adjusted operating margin up 130 basis points to 19.1%.

Notable segment performance included Climate Solutions Americas with 14% organic sales growth, driven by Commercial sales up 45%. The company generated strong free cash flow of $568 million and reaffirmed its full-year 2025 guidance, projecting adjusted EPS growth of 17-21% year-over-year to $3.00-$3.10.

Positive

• Organic sales growth of 6% driven by strong commercial performance
• GAAP EPS increased 56% to $0.70; adjusted EPS up 26% to $0.92
• Operating margin expanded significantly: GAAP up 260bps, adjusted up 130bps
• Climate Solutions Americas segment showed exceptional growth with Commercial sales up 45%
• Strong free cash flow generation of $568 million
• Company reaffirmed full-year guidance projecting 17-21% adjusted EPS growth

Negative

• Climate Solutions Asia Pacific segment saw organic sales decline of 4%
• Climate Solutions Transportation organic sales declined 1%
• Net sales impacted by 4% headwind from net acquisitions and divestitures
• Decline in Light Commercial sales in Climate Solutions Americas

Insights

Financial Analyst

Carrier delivered strong Q2 results with impressive margin expansion and maintained its full-year outlook despite mixed segment performance.

Carrier's Q2 2025 results demonstrate solid execution in a transforming portfolio. The company achieved 6% organic sales growth, primarily driven by exceptional performance in the Climate Solutions Americas segment, where Commercial sales surged 45% and total aftermarket sales grew 13%. This robust growth translated to a 130 basis point expansion in adjusted operating margin to 19.1%, leading to an impressive 26% increase in adjusted EPS to $0.92.

Looking at segment performance reveals distinct regional trends. Climate Solutions Americas was the standout performer with 14% organic growth and a 210 basis point margin improvement. Commercial Refrigeration's divestiture in Q4 2024 created a 25% revenue headwind for the Climate Solutions Transportation segment, though the segment's margins improved by 340 basis points following this portfolio reshaping. Meanwhile, Climate Solutions Asia Pacific, Middle East & Africa faced challenges with a 4% organic sales decline and 210 basis point margin contraction, primarily due to weakness in China's residential market.

The company's financial position remains healthy with $568 million in free cash flow for the quarter and $988 million for the first half, representing significant year-over-year improvement. Management has reaffirmed full-year 2025 guidance, projecting mid-single-digit organic growth, ~100 basis points of margin expansion, and 17-21% adjusted EPS growth.

These results reinforce Carrier's strategic transformation toward higher-margin business segments while navigating regional market variations. The strong Commercial performance and aftermarket growth demonstrate the company's focus on more resilient revenue streams, though geographic challenges in China highlight ongoing market uncertainties in certain regions.

• Net sales up 3%; organic sales up 6%
• GAAP EPS of $0.70 up 56% and adjusted EPS of $0.92 up 26%
• GAAP operating margin up 260 bps; adjusted operating margin up 130 bps
• Net cash flows from operating activities were $649 million and free cash flow was $568 million
• Reaffirming full-year 2025 guidance for sales, adjusted operating margin, adjusted EPS and free cash flow*

PALM BEACH GARDENS, Fla., July 29, 2025 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported strong financial results for the second quarter of 2025 and reaffirmed its full year guidance.

"We delivered another quarter of strong financial performance," said Carrier Chairman & CEO David Gitlin. "Organic sales growth of 6% was driven by strong results in our Climate Solutions Americas segment, with Commercial¹ sales up 45% and total company aftermarket sales up 13%. Adjusted operating margins expanded 130 basis points driven by strong organic growth and productivity, leading to over 25% adjusted EPS growth. With a strong first half, we remain committed to accelerating growth driven by differentiated products, aftermarket offerings and system solutions. We are maintaining our full-year outlook for sales, adjusted operating margin expansion and adjusted EPS, representing about 20% adjusted EPS growth at the midpoint."

1.      Excludes NORESCO

Second Quarter 2025 Results

Total Company

	(Unaudited)
	Three Months Ended June 30
(In millions)	2025	2024	Change
Net sales	$       6,113	$       5,934	3 %
Organic sales	6 %
Operating profit	$          903	$          724	25 %
Operating margin	14.8 %	12.2 %	260 bps
Adjusted operating profit	$       1,166	$       1,056	10 %
Adjusted operating margin	19.1 %	17.8 %	130 bps
		‌
Diluted earnings per share:
Continuing operations	$         0.70	$         0.45	56 %
Continuing operations - Adjusted	$         0.92	$         0.73	26 %

Carrier's second quarter sales of $6.1 billion increased 3% compared to the prior year. Organic sales growth of 6% was offset by a 4% headwind from net acquisitions and divestitures, driven by the sale of Commercial Refrigeration in Q4 2024. Foreign currency translation was a 1% tailwind to sales growth.

GAAP operating profit in the quarter of $903 million was up 25% from last year driven by strong operational performance, the absence of backlog and inventory step-up amortization and a decrease in acquisition and divestiture-related costs. Adjusted operating profit of $1,166 million was up 10%, largely driven by strong organic growth and productivity. Net earnings from continuing operations were $608 million and adjusted net earnings from continuing operations was $796 million. GAAP EPS from continuing operations was $0.70 and adjusted EPS from continuing operations was $0.92 driven by higher operating profit, lower net interest expense and benefits of a lower share count.

Climate Solutions Americas (CSA)

	(Unaudited)
	Three Months Ended June 30
(In millions)	2025	2024	Change
Net sales	$       3,252	$       2,865	14 %
Organic sales	14 %
‌
Segment operating profit	$          879	$          713	23 %
Segment operating margin	27.0 %	24.9 %	210 bps

CSA segment sales increased 14%. Organic sales were up 14%, driven by continued strength in Commercial¹ up 45% and Residential up over 10%, partially offset by  a decline in Light Commercial.

Segment operating margin increased 210 basis points driven by strong organic sales growth and productivity.

Climate Solutions Europe (CSE)

	(Unaudited)
	Three Months Ended June 30
(In millions)	2025	2024	Change
Net sales	$       1,253	$       1,194	5 %
Organic sales	— %
‌
Segment operating profit	$            99	$            93	6 %
Segment operating margin	7.9 %	7.8 %	10 bps

           

CSE segment sales increased 5%. Organic sales were flat, with Commercial up low-single digits while Residential and Light Commercial was about flat.

Segment operating margin increased 10 basis points, driven by productivity including cost synergies, partially offset by geographic and product mix.

1.      Excludes NORESCO

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

	(Unaudited)
	Three Months Ended June 30
(In millions)	2025	2024	Change
Net sales	$          882	$          902	(2) %
Organic sales	(4) %
	‌
Segment operating profit	$          135	$          157	(14) %
Segment operating margin	15.3 %	17.4 %	(210) bps

CSAME segment sales declined 2%. Organic sales were down 4%, mainly driven by Residential Light Commercial in China, partially offset by strength in India, Japan and the Middle East.

Segment operating margin decreased 210 basis points with strong productivity more than offset by a prior year favorable currency impact and lower volume.

Climate Solutions Transportation (CST)

	(Unaudited)
	Three Months Ended June 30
(In millions)	2025	2024	Change
Net sales	$          726	$          973	(25) %
Organic sales	(1) %
‌
Segment operating profit	$          128	$          138	(7) %
Segment operating margin	17.6 %	14.2 %	340 bps

CST sales declined 25% driven by the impact from the divestiture of Commercial Refrigeration. Organic sales growth declined 1% with mid-single digit growth in Container and low-single digit growth in North America Truck and Trailer more than offset by declines in Europe and Asia Truck and Trailer.

Segment operating margin increased 340 basis points largely due to the Commercial Refrigeration exit during Q4 2024.

Cash Flow

		(Unaudited)				(Unaudited)
		Three Months Ended  June 30,				Six Months Ended June 30,
(In millions)		2025		2024		2025		2024
Net cash flows provided by operating activities		$            649		$            660		$         1,132		$            700
Less: Capital expenditures - continuing operations		(81)		(108)		(144)		(210)
Less: Capital expenditures - discontinued operations		—		(3)		—		(5)
Free cash flow		$            568		$            549		$            988		$            485

Net cash flows generated from operating activities were $649 million and capital expenditures were $81 million, resulting in free cash flow of $568 million.

Full-Year 2025 Guidance**

	Current Guidance** No change vs. prior guidance	Prior Guidance
Sales	~$23 billion ~$750 million revenue headwind from CCR exit Organic* up MSD FX 1% Acquisitions 0% Divestitures (3%)	~$23 billion ~$750 million revenue headwind from CCR exit Organic* up MSD FX 1% Acquisitions 0% Divestitures (3%)
‌
Adjusted Operating Margin*	16.5% – 17.0% + ~100 bps Y/Y	16.5% – 17.0% + ~100 bps Y/Y
‌
Adjusted EPS*	$3.00 – $3.10 ~17-21% Y/Y	$3.00 – $3.10 ~17-21% Y/Y
‌
Free Cash Flow*	$2.4 – $2.6 billion Includes the expected results of continuing and discontinued operations	$2.4 – $2.6 billion Includes the expected results of continuing and discontinued operations

‌

*Note: When the company provides expectations for organic sales, adjusted operating profit, adjusted operating margin, 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 29, 2025

Conference Call

Carrier will host a webcast of its earnings conference call today, Tuesday, July 29, 2025, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at ir.carrier.com/news-and-events/events-and-presentations or to listen to the earnings call by phone, participants must pre-register at Carrier Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing access to the live call.

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, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, Carrier's guidance for full-year 2025, 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 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 corporate.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
	Jason Shockley
	561-542-0207
	Jason.Shockley@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.

As a result of Carrier's portfolio transformation, Carrier revised its reportable segments during the first quarter of 2025 to better reflect its business strategy, align its management reporting and increase transparency for investors. In connection with the revised structure, the Chief Operating Decision Maker changed the measure used to evaluate segment profitability from Operating profit to Segment operating profit. It represents operating profit (a GAAP measure) adjusted to exclude restructuring costs, amortization of acquired intangible assets and other significant items of a nonoperational nature. All prior period comparative information has been recast to reflect the revised segment structure.

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 net income, 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 intangibles and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of consolidated net sales (a GAAP measure). Adjusted net income represents net income attributable to common shareowners (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure).

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.

When Carrier provides our expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted effective tax rate, 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 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)		2025		2024		2025		2024
Net sales
Product sales		$         5,477		$         5,311		$       10,129		$       10,153
Service sales		636		623		1,202		1,201
Total Net sales		6,113		5,934		11,331		11,354
Costs and expenses
Cost of products sold		(3,867)		(3,867)		(7,225)		(7,449)
Cost of services sold		(477)		(492)		(892)		(945)
Research and development		(161)		(160)		(314)		(352)
Selling, general and administrative		(813)		(789)		(1,542)		(1,596)
Total Costs and expenses		(5,318)		(5,308)		(9,973)		(10,342)
Equity method investment net earnings		78		90		122		121
Other income (expense), net		30		8		52		(24)
Operating profit		903		724		1,532		1,109
Non-service pension (expense) benefit		—		—		1		—
Interest (expense) income, net		(91)		(157)		(173)		(298)
Earnings before income taxes		812		567		1,360		811
Income tax (expense) benefit		(162)		(120)		(273)		(167)
Earnings from continuing operations		650		447		1,087		644
Discontinued operations, net of tax		(17)		1,922		(17)		2,014
Net earnings (loss)		633		2,369		1,070		2,658
Less: Non-controlling interest in subsidiaries'		42		32		67		52
Net earnings (loss) attributable to common shareowners		$            591		$         2,337		$         1,003		$         2,606
Amounts attributable to common shareowners:
Continuing operations		$            608		$            415		$         1,020		$            592
Discontinued operations		(17)		1,922		(17)		2,014
Net earnings (loss) attributable to common shareowners		$            591		$         2,337		$         1,003		$         2,606
Earnings per share
Basic:
Continuing operations		$           0.71		$           0.46		$           1.18		$           0.66
Discontinued operations		(0.02)		2.13		(0.01)		2.24
Net earnings (loss)		$           0.69		$           2.59		$           1.17		$           2.90
Diluted:
Continuing operations		$           0.70		$           0.45		$           1.17		$           0.65
Discontinued operations		(0.02)		2.10		(0.02)		2.20
Net earnings (loss)		$           0.68		$           2.55		$           1.15		$           2.85
Weighted-average number of shares outstanding
Basic		854.9		902.4		860.8		900.2
Diluted		866.3		915.3		872.3		913.6

 

Carrier Global Corporation Condensed Consolidated Balance Sheet
‌
		(Unaudited)
(In millions)		June 30, 2025		December 31, 2024
Assets
Cash and cash equivalents		$                   1,797		$                      3,969
Accounts receivable, net		3,373		2,651
Inventories, net		2,888		2,299
Other current assets		1,073		972
Total current assets		9,131		9,891
Future income tax benefits		1,220		1,131
Fixed assets, net		3,182		2,999
Operating lease right-of-use assets		575		554
Intangible assets, net		6,770		6,432
Goodwill		15,672		14,601
Pension and post-retirement assets		50		43
Equity method investments		1,353		1,194
Other assets		540		558
Total Assets		$                 38,493		$                    37,403
‌
Liabilities and Equity
Accounts payable		$                   3,214		$                      2,458
Accrued liabilities		4,508		4,182
Current portion of long-term debt		107		1,252
Total current liabilities		7,829		7,892
Long-term debt		11,336		11,026
Future pension and post-retirement obligations		221		214
Future income tax obligations		2,087		2,015
Operating lease liabilities		444		432
Other long-term liabilities		1,562		1,429
Total Liabilities		23,479		23,008
‌
Equity
Common stock		9		9
Treasury stock		(5,522)		(3,915)
Additional paid-in capital		8,338		8,610
Retained earnings		12,294		11,483
Accumulated other comprehensive loss		(413)		(2,106)
Non-controlling interest		308		314
Total Equity		15,014		14,395
Total Liabilities and Equity		$                 38,493		$                    37,403

 

Carrier Global Corporation Condensed Consolidated Statement of Cash Flows (Unaudited)
‌
		Six Months Ended June 30,
(In millions)		2025		2024
Operating Activities
Net earnings (loss)		$         1,070		$         2,658
Discontinued operations, net of tax		17		(2,014)
Adjustments for non-cash items, net:
Depreciation and amortization		620		602
Deferred income tax provision		(158)		(231)
Stock-based compensation costs		44		40
Equity method investment net earnings		(122)		(121)
(Gain) loss on sale of investments		(17)		—
Changes in operating assets and liabilities
Accounts receivable, net		(702)		(232)
Inventories, net		(412)		7
Accounts payable and accrued liabilities		378		2
Distributions from equity method investments		81		12
Other operating activities, net		(47)		(114)
Net cash flows provided by (used in) continuing operating activities		752		609
Net cash flows provided by (used in) discontinued operating activities		380		91
Net cash flows provided by (used in) operating activities		1,132		700
Investing Activities
Capital expenditures		(144)		(210)
Investment in businesses, net of cash acquired		(61)		(10,779)
Dispositions of businesses		8		—
Settlement of derivative contracts, net		87		(185)
Other investing activities, net		(3)		27
Net cash flows provided by (used in) continuing investing activities		(113)		(11,147)
Net cash flows provided by (used in) discontinued investing activities		35		4,874
Net cash flows provided by (used in) investing activities		(78)		(6,273)
Financing Activities
Increase (decrease) in short-term borrowings, net		(57)		7
Issuance of long-term debt		15		2,555
Repayment of long-term debt		(1,208)		(3,542)
Repurchases of common stock		(1,628)		—
Dividends paid on common stock		(390)		(330)
Dividends paid to non-controlling interest		(9)		(67)
Other financing activities, net		(17)		(14)
Net cash flows provided by (used in) continuing financing activities		(3,294)		(1,391)
Net cash flows provided by (used in) discontinued financing activities		—		(15)
Net cash flows provided by (used in) financing activities		(3,294)		(1,406)
Effect of foreign exchange rate changes on cash and cash equivalents		68		(82)
Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale		(2,172)		(7,061)
Less: Change in cash balances classified as assets held for sale		—		34
Net increase (decrease) in cash and cash equivalents and restricted cash		(2,172)		(7,095)
Cash, cash equivalents and restricted cash, beginning of period		3,972		9,853
Cash, cash equivalents and restricted cash, end of period		1,800		2,758
Less: restricted cash		3		2
Cash and cash equivalents, end of period		$         1,797		$         2,756

 

Carrier Global Corporation Segment Summary
‌
	(Unaudited)
	Three Months Ended  June 30,					Six Months Ended June 30,
(In millions)	2025			2024		2025		2024
Segment net sales
Climate Solutions Americas		$     3,252		$     2,865		$     5,824		$     5,225
Climate Solutions Europe		1,253		1,194		2,422		2,486
Climate Solutions Asia Pacific, Middle East & Africa		882		902		1,708		1,786
Climate Solutions Transportation		726		973		1,377		1,857
Segment net sales		$     6,113		$     5,934		$   11,331		$   11,354
‌
Segment operating profit
Climate Solutions Americas		$        879		$        713		$     1,449		$     1,138
Climate Solutions Europe		99		93		204		260
Climate Solutions Asia Pacific, Middle East & Africa		135		157		256		265
Climate Solutions Transportation		128		138		225		251
Segment operating profit		$     1,241		$     1,101		$     2,134		$     1,914
‌
Segment operating margin
Climate Solutions Americas		27.0 %		24.9 %		24.9 %		21.8 %
Climate Solutions Europe		7.9 %		7.8 %		8.4 %		10.5 %
Climate Solutions Asia Pacific, Middle East & Africa		15.3 %		17.4 %		15.0 %		14.8 %
Climate Solutions Transportation		17.6 %		14.2 %		16.3 %		13.5 %

 

Components of Changes in Net Sales
‌
Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024
‌
	(Unaudited)
	Factors Contributing to Total % change in Net Sales
	Organic		FX Translation		Acquisitions / Divestitures, net		Other		Total
Climate Solutions Americas	14 %		— %		— %		— %		14 %
Climate Solutions Europe	— %		5 %		— %		— %		5 %
Climate Solutions Asia Pacific, Middle East & Africa	(4) %		2 %		— %		— %		(2) %
Climate Solutions Transportation	(1) %		1 %		(25) %		— %		(25) %
Consolidated	6 %		1 %		(4) %		— %		3 %
‌
Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024
‌
	(Unaudited)
	Factors Contributing to Total % change in Net Sales
	Organic		FX Translation		Acquisitions / Divestitures, net		Other		Total
Climate Solutions Americas	11 %		— %		— %		— %		11 %
Climate Solutions Europe	(4) %		1 %		— %		— %		(3) %
Climate Solutions Asia Pacific, Middle East & Africa	(5) %		1 %		— %		— %		(4) %
Climate Solutions Transportation	— %		— %		(26) %		— %		(26) %
Consolidated	4 %		— %		(4) %		— %		— %

 

Carrier Global Corporation Reconciliations
‌
		(Unaudited)
		Three Months Ended  June 30,				Six Months Ended June 30,
(In millions)		2025		2024		2025		2024
Reconciliation to Earnings before income taxes
Segment operating profit		$         1,241		$         1,101		$         2,134		$         1,914
Corporate and other		(75)		(45)		(120)		(94)
Restructuring costs		(47)		(29)		(55)		(37)
Amortization of acquired intangibles		(214)		(170)		(415)		(342)
Acquisition step-up amortization		—		(109)		—		(220)
Acquisition/divestiture-related costs		(9)		(24)		(19)		(72)
CCR gain		7		—		7		—
Viessmann-related hedges		—		—		—		(86)
Gain on liability adjustment		—		—		—		46
Non-service pension (expense) benefit		—		—		1		—
Interest (expense) income, net		(91)		(157)		(173)		(298)
‌
Earnings before income taxes		$            812		$            567		$         1,360		$            811
‌
		(Unaudited)
		Three Months Ended  June 30,				Six Months Ended June 30,
(In millions)		2025		2024		2025		2024
Reconciliation of Segment operating profit to Adjusted operating profit
Climate Solutions Americas		$            879		$            713		$         1,449		$         1,138
Climate Solutions Europe		99		93		204		260
Climate Solutions Asia Pacific, Middle East & Africa		135		157		256		265
Climate Solutions Transportation		128		138		225		251
Segment operating profit		$         1,241		$         1,101		$         2,134		$         1,914
Corporate and other		(75)		(45)		(120)		(94)
Adjusted operating profit		$         1,166		$         1,056		$         2,014		$         1,820

 

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,b	$    1,842
Income tax (expense) benefit	$      (162)		(75)	c	$      (237)		$      (273)		(133)	c	$      (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:
Amortization of acquired intangibles			$              214	a					$              415	a
Restructuring costs			47	a					55	a
Acquisition/divestiture-related costs			9	a					19	a
CCR gain			(7)	a					(7)	a
Total adjustments			$              263						$              482
Tax effect on adjustments above			$               (69)						$             (127)
Tax specific adjustments			(6)						(6)
Total tax adjustments			$               (75)	c					$             (133)	c
‌
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

 

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, 2024						Six Months Ended June 30, 2024
(In millions, except per share amounts)	Reported		Adjustments		Adjusted		Reported		Adjustments		Adjusted
Net sales	$    5,934		$                —		$    5,934		$  11,354		$                —		$  11,354
‌
Operating profit	$       724		332	a	$    1,056		$    1,109		711	a	$    1,820
Operating margin	12.2 %				17.8 %		9.8 %				16.0 %
‌
Earnings before income taxes	$       567		344	a,b	$       911		$       811		723	a,b	$    1,534
Income tax (expense) benefit	$      (120)		(87)	c	$      (207)		$      (167)		(173)	c	$      (340)
Effective tax rate	21.2 %				22.7 %		20.6 %				22.2 %
‌
Earnings from continuing operations attributable to common shareowners	$       415		$              257		$       672		$       592		$              550		$    1,142
‌
Summary of Adjustments:
Amortization of acquired intangibles			$              170	a					$              342	a
Restructuring costs			29	a					37	a
Acquisition/divestiture-related costs			24	a					72	a
Acquisition step-up amortization (1)			109	a					220	a
Viessmann-related hedges			—	a					86	a
Gain on liability adjustment (2)			—	a					(46)	a
Debt prepayment costs			$                12	b					$                12	b
Total adjustments			$              344						$              723
‌
Tax effect on adjustments above			$               (87)						$             (173)
Total tax adjustments			$               (87)	c					$             (173)	c
‌
Diluted shares outstanding	915.3				915.3		913.6				913.6
‌
Diluted earnings per share:
Continuing operations	$      0.45				$      0.73		$      0.65				$      1.25

‌

(1) Amortization of the step-up to fair value of acquired inventory and backlog.

(2) Gain associated with an adjustment to our tax-related liability owed to UTC.

 

Free Cash Flow Reconciliation
‌
		(Unaudited)
		Three Months Ended  June 30,				Six Months Ended June 30,
(In millions)		2025		2024		2025		2024
Net cash flows provided by operating activities		$            649		$            660		$         1,132		$            700
Less: Capital expenditures - continuing operations		(81)		(108)		(144)		(210)
Less: Capital expenditures - discontinued operations		—		(3)		—		(5)
Free cash flow		$            568		$            549		$            988		$            485

 

Net Debt Reconciliation
‌
		(Unaudited)
(In millions)		June 30, 2025		December 31, 2024
Long-term debt		$                     11,336		$                     11,026
Current portion of long-term debt		107		1,252
Less: Cash and cash equivalents		1,797		3,969
Net debt		$                       9,646		$                       8,309

 

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SOURCE Carrier Global Corporation

FAQ

What were Carrier's (CARR) Q2 2025 earnings results?

Carrier reported Q2 2025 net sales of $6.1 billion (up 3%), with adjusted EPS of $0.92 (up 26%) and GAAP EPS of $0.70 (up 56%).

How much did Carrier's operating margins improve in Q2 2025?

Carrier's GAAP operating margin improved by 260 basis points to 14.8%, while adjusted operating margin increased by 130 basis points to 19.1%.

What is Carrier's earnings guidance for full-year 2025?

Carrier reaffirmed its full-year 2025 guidance with adjusted EPS of $3.00-$3.10, representing approximately 17-21% growth year-over-year.

How much free cash flow did Carrier generate in Q2 2025?

Carrier generated $568 million in free cash flow during Q2 2025, with net cash flows from operating activities of $649 million.

Which was Carrier's best-performing segment in Q2 2025?

Climate Solutions Americas was the best-performing segment with 14% organic sales growth, driven by Commercial sales up 45% and Residential up over 10%.