Carrier Reports Third Quarter 2026 Results

Long-term agreements add minimum volume commitments beyond backlog, while a $3.1 billion European goodwill impairment weighs on reported earnings.

Rhea-AI Summary

Carrier (NYSE: CARR) reported third-quarter 2026 sales of $6.263 billion, with growth across most segments and a goodwill impairment driving losses. Sales rose 12% year over year; organic sales, excluding currency and portfolio changes, rose 15%. A $3.1 billion non-cash goodwill impairment in Europe contributed to a $3.16 loss per share from continuing operations, versus earnings of $0.47. Adjusted EPS rose 30% to $0.87, including approximately $0.10 from tariff refunds after non-controlling interests.

Orders excluding NORESCO rose approximately 35%, and backlog exceeded $8.5 billion, up 60%. Signed long-term agreements worth multiple billions of dollars carry minimum volume commitments additional to backlog. Operating cash flow reached $813 million. Carrier now expects 2026 sales of $23.8–$24.0 billion, versus approximately $23 billion previously, and adjusted EPS of $2.85–$2.90, versus approximately $2.90.

30 points · 1 major

PositiveiHow this balance works

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How the balance worksHow Sentiment works

2 major · 13 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.2026 sales guidance increased to $23.8–$24.0 billion, with approximately 10% organic growth.
• Moderate pointThird-quarter sales rose 12% to $6.263 billion; organic sales increased 15% year over year.
• Moderate pointOrders excluding NORESCO increased approximately 35%, with Commercial HVAC orders up approximately 60%.
• Moderate pointBacklog exceeded $8.5 billion, up 60% versus last year.
• Moderate pointSigned long-term agreements worth multiple billions of dollars include minimum volume commitments additional to backlog.
• Moderate pointAdjusted EPS rose 30% to $0.87 from $0.67 a year earlier.
• Moderate pointAdjusted operating profit increased 33% to $1.091 billion in the third quarter.
• Moderate pointAdjusted operating margin expanded 260 basis points to 17.4%, helped by volume and pricing.
• Moderate pointThird-quarter operating cash flow increased to $813 million from $341 million a year earlier.
• Moderate pointThird-quarter free cash flow increased to $674 million from $224 million a year earlier.

20 minor points

• Minor pointData center orders increased approximately 300% in the third quarter.
• Minor pointTariff refunds added approximately $130 million to operating profit and approximately $0.10 to adjusted EPS after non-controlling interests.
• Minor pointAmericas sales increased 24% to $3.354 billion; organic sales grew 25%.
• Minor pointAmericas Residential and Commercial organic sales grew over 30% and 25%, respectively; Commercial excludes NORESCO.
• Minor pointAmericas operating profit rose 40% to $745 million; margin increased 250 basis points to 22.2%.
• Minor pointEurope sales increased 3% to $1.335 billion; organic sales rose 12%.
• Minor pointEurope residential heat pump and air conditioning sales each rose approximately 35%.
• Minor pointEurope Residential and Light Commercial sales grew low-teens; Commercial sales grew high-single digits.
• Minor pointEurope operating profit increased 40% to $168 million; margin expanded 330 basis points to 12.6%.
• Minor pointEurope margin included an approximately 100-basis-point net benefit from a prior-period correction offset by inventory reserves.
• Minor pointAsia Pacific, Middle East & Africa sales rose 2% to $848 million; organic sales increased 3%.
• Minor pointAsia Pacific, Middle East & Africa Commercial organic sales increased 10%.
• Minor pointAsia Pacific, Middle East & Africa operating profit rose 6% to $103 million; margin increased 50 basis points to 12.1%.
• Minor pointTransportation operating profit rose 2% to $117 million; margin increased 70 basis points to 16.1%.
• Minor pointNine-month operating cash flow reached $1.819 billion, versus $1.473 billion in 2025.
• Minor pointNine-month free cash flow reached $1.469 billion, versus $1.212 billion in 2025.
• Minor pointApproximately $600 million returned to shareholders through third-quarter dividends and repurchases.
• Minor point. Forward-looking: it has not happened yet and may not happen.Carrier expects approximately $2.3 billion in shareholder returns through dividends and repurchases in 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Carrier maintained approximately $3.5 billion adjusted operating profit guidance for 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Carrier maintained approximately $2 billion free cash flow guidance for 2026.

Negative

• Major pointEurope goodwill impairment totaled $3.1 billion, a non-cash charge recorded in the third quarter. 6.7% of market cap
• Major point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EPS guidance is $2.85–$2.90, versus approximately $2.90 previously.
• Minor pointThird-quarter operating loss was $2.273 billion, versus $539 million operating profit a year earlier.
• Minor pointContinuing-operations EPS fell to a $3.16 loss from earnings of $0.47 a year earlier.
• Minor pointDivestitures reduced third-quarter sales growth by 3%.

8 minor points

• Minor pointHigher input costs and tariffs partially offset third-quarter adjusted operating margin gains.
• Minor pointA higher effective tax rate and higher non-controlling interests partially offset adjusted EPS growth.
• Minor pointEurope sales faced 7% divestiture and 2% currency headwinds in the third quarter.
• Minor pointEurope boiler sales declined high-single digits in the third quarter.
• Minor pointAsia Pacific, Middle East & Africa Residential and Light Commercial organic sales declined mid-single digits.
• Minor pointTransportation sales declined 3% to $726 million, as Truck and Trailer outweighed Container growth.
• Minor pointThird-quarter capital expenditures increased to $139 million from $117 million a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Riello and NORESCO exits carry approximately $225 million and $125 million year-over-year revenue headwinds, respectively.

News Explained

Carrier reports it has returned about $600 million to shareowners through dividends and repurchases, and expects to return about $2.3 billion through those channels in 2026; the first amount is reported as returned, while the second remains a full-year expectation.

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Market move: CARR -4.32% vs previous close. 3Q26 earnings report

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Key Figures

Net sales: $6,263 million; up 12% Organic sales: Up 15% GAAP EPS: ($3.16) +5 more

Net sales

$6,263 million; up 12%

Q3 2026, year over year

Organic sales

Up 15%

Q3 2026

GAAP EPS

($3.16)

Q3 2026, continuing operations

Adjusted EPS

$0.87; up 30%

Q3 2026, year over year

Free cash flow

$674 million

Q3 2026

Goodwill impairment charge

$3.1 billion

Q3 2026, Climate Solutions Europe reporting unit

Backlog

More than $8.5 billion

Record backlog; LTA minimums are additive

Full-year sales guidance

$23.8 billion to $24.0 billion

2026 current guidance

Previous Earnings Reports

2 past events · Latest: Jul 28

Same Type 2 events

1. Jul 28

   Quarterly earnings

   24h Move

   -8.9%

   Sales and orders increased, while adjusted operating profit and adjusted EPS declined.

2. Apr 30

   Quarterly earnings

   24h Move

   +8.8%

   Sales and orders grew, but operating profit declined and free cash flow was negative.

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

Key Terms

gaap, eps, free cash flow, goodwill impairment, +1 more

5 terms

gaap financial

"GAAP EPS of ($3.16)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

eps financial

"adjusted EPS2 of $0.87"

Earnings per share (EPS) measures how much profit a company makes for each outstanding share of its stock by dividing the company’s profit after expenses by the number of shares. It matters to investors because it shows how much of the company’s “pie” each share represents—higher EPS usually signals greater profitability per share, helps compare companies of different sizes, and influences stock valuations and investor decisions.

View in glossary

free cash flow financial

"resulting in free cash flow of $674 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

goodwill impairment financial

"a non-cash goodwill impairment charge of $3.1 billion"

Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.

non-gaap financial

"non-GAAP financial measures"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

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Signed LTAs valued at multiple billions of dollars with minimum volume commitments

• Total company orders¹ up ~35%; Commercial HVAC¹ up ~60%; data centers up ~300%
• Record >$8.5B backlog; LTA minimums additive to backlog 
• Net sales up 12%; organic sales up 15%
• GAAP EPS² of ($3.16); adjusted EPS² of $0.87    
• Net cash flows from operating activities of $813 million and free cash flow of $674 million
• Returned ~$600 million to shareowners through dividends and repurchases

PALM BEACH GARDENS, Fla., Oct. 29, 2026 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported financial results for the third quarter of 2026.

"We delivered strong third quarter performance, with orders, sales and adjusted EPS all up between 15% and 35%, with very strong free cash flow," said Chairman & CEO David Gitlin. "Organic orders were up ~35%, with data center orders up ~300%, resulting in over $8.5 billion of backlog, up 60% versus last year, reflecting continued strong demand for our differentiated solutions. We expect to deliver double-digit organic sales and adjusted EPS growth in 2026, while record backlog levels give us confidence to sustain this momentum into 2027 and beyond."

1	Excludes NORESCO
2	GAAP results include a goodwill impairment charge and IEEPA refunds; Adjusted EPS includes a ~$0.10 benefit from IEEPA refunds net of ~($0.02) NCI impact

Third Quarter 2026 Results

Total Company

	(Unaudited)
	Three Months Ended September 30,
(In millions)	2026	2025	Change
Net sales	$    6,263	$    5,579	12 %
Organic sales	15 %
Operating profit (loss)	$   (2,273)	$      539	n.m.
Operating margin	(36.3) %	9.7 %	n.m.
Adjusted operating profit	$    1,091	$      823	33 %
Adjusted operating margin	17.4 %	14.8 %	260 bps
Diluted earnings (loss) per share:
Continuing operations	$    (3.16)	$     0.47	n.m.
Continuing operations – Adjusted	$     0.87	$     0.67	30 %
n.m. = not meaningful

Carrier's third quarter sales of $6.3 billion increased 12% compared to the prior year. Organic sales increased 15%, and divestitures were a headwind of 3%.

GAAP operating loss of ($2,273) million in the quarter decreased from last year, with growth in all segments offset by a goodwill impairment charge.

Adjusted operating profit of $1,091 million in the quarter increased 33% with growth in all segments.

Adjusted operating margin of 17.4% was up 260 basis points from last year, predominantly due to favorable volume and price partially offset by the impact of increased input costs and tariffs.

The company recorded approximately $130 million of operating profit benefit from IEEPA refunds.

Net loss from continuing operations was ($2,593) million and adjusted net earnings from continuing operations were $713 million. GAAP EPS from continuing operations was ($3.16) and adjusted EPS was $0.87. The increase in adjusted EPS was primarily driven by higher operating profit and the benefits of a lower share count, partially offset by a higher effective tax rate and higher non-controlling interest related to the IEEPA refunds.

Climate Solutions Americas (CSA)

	(Unaudited)
	Three Months Ended September 30,
(In millions)	2026	2025	Change
Net sales	$    3,354	$    2,711	24 %
Organic sales	25 %
Segment operating profit	$      745	$      533	40 %
Segment operating margin	22.2 %	19.7 %	250 bps

CSA segment sales grew 24%. Organic sales were up 25%, driven by strong Residential and Commercial¹ performance, up over 30% and 25%, respectively.

Segment operating margin expanded 250 basis points from the benefit of ~$120 million of IEEPA refunds and organic growth, partially offset by increased input costs and tariffs.

1	Excludes NORESCO

Climate Solutions Europe (CSE)

	(Unaudited)
	Three Months Ended September 30,
(In millions)	2026	2025	Change
Net sales	$    1,335	$    1,290	3 %
Organic sales	12 %
Segment operating profit	$      168	$      120	40 %
Segment operating margin	12.6 %	9.3 %	330 bps

CSE segment sales increased 3% with strong organic sales growth of 12% offset by a 7% net headwind from divestitures and a 2% headwind from currency. Residential and Light Commercial (RLC) sales increased low-teens and Commercial grew high-single digits. Strong demand in residential heat pumps and air conditioning continued, with sales up ~35% each, more than offsetting high-single digit declines in boilers.

Segment operating margin increased 330 basis points with strong organic revenue growth and a ~100 basis point net benefit from the correction of a prior period item offset by increases in inventory-related reserves.

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

	(Unaudited)
	Three Months Ended September 30,
(In millions)	2026	2025	Change
Net sales	$      848	$      833	2 %
Organic sales	3 %
Segment operating profit	$      103	$       97	6 %
Segment operating margin	12.1 %	11.6 %	50 bps

CSAME segment sales increased 2%. Organic sales were up 3% driven by strong growth in Commercial, up 10%, partially offset by a mid-single-digit decline in RLC.

Segment operating margin increased 50 basis points.

Climate Solutions Transportation (CST)

	(Unaudited)
	Three Months Ended September 30,
(In millions)	2026	2025	Change
Net sales	$      726	$      745	(3) %
Organic sales	(3) %
Segment operating profit	$      117	$      115	2 %
Segment operating margin	16.1 %	15.4 %	70 bps

CST sales decreased 3% as continued growth in Container was more than offset by Truck and Trailer.

Segment operating margin increased 70 basis points driven by the benefits from IEEPA refunds partially offset by lower volumes.  

Cash Flow

		(Unaudited)				(Unaudited)
		Three Months Ended  September 30,				Nine Months Ended September 30,
(In millions)		2026		2025		2026		2025
Net cash flows provided by operating activities		$       813		$       341		$     1,819		$     1,473
Less: Capital expenditures		(139)		(117)		(350)		(261)
Free cash flow		$       674		$       224		$     1,469		$     1,212

Net cash flows generated from operating activities were $813 million, and capital expenditures were $139 million, resulting in free cash flow of $674 million.

Goodwill

During Q3, the company recorded a non-cash goodwill impairment charge of $3.1 billion related to its Climate Solutions Europe reporting unit.

Full-Year 2026 Guidance**

Supported by a differentiated product portfolio, record backlog, minimum volume commitments under long-term agreements, and continued recovery in RLC end markets, Carrier now expects sales of nearly $24 billion, with organic growth of approximately 10%. The company remains vigilant in navigating industry-wide macro pressures, including tariffs and increasing input costs, and expects to return to shareowners approximately $2.3 billion through dividends and share repurchases.

	Current Guidance**	Prior Guidance
Sales	$23.8 to $24.0 billion Organic* up ~10% FX 1% Net, Acquisitions / Divestitures (2%)	~$23 billion Organic* up ~M-HSD FX 1% Net, Acquisitions / Divestitures (2%)
Adjusted Operating Profit*	~$3.5 billion	~$3.5 billion
Adjusted EPS*	$2.85 to $2.90	~$2.90
Free Cash Flow*	~$2 billion	~$2 billion

Riello divestiture completed on July 1. NORESCO divestiture completed on August 3.

~$225 million and ~$125 million year-over-year revenue headwind from Riello and NORESCO exits, respectively.

*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 October 29, 2026

Conference Call

Carrier will host a webcast of its earnings conference call today, Thursday, Oct. 29, 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, commitments by us and our customers under long-term agreements, 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  September 30,				Nine Months Ended September 30,
(In millions, except per share amounts)		2026		2025		2026		2025
Net sales
Product sales		$     5,585		$     4,906		$    15,886		$    15,035
Service sales		678		673		2,069		1,875
Total Net sales		6,263		5,579		17,955		16,910
Costs and expenses
Cost of products sold		(4,083)		(3,656)		(11,755)		(10,881)
Cost of services sold		(497)		(474)		(1,545)		(1,366)
Research and development		(154)		(151)		(445)		(465)
Selling, general and administrative		(758)		(803)		(2,430)		(2,345)
Total Costs and expenses		(5,492)		(5,084)		(16,175)		(15,057)
Goodwill impairment		(3,100)		—		(3,100)		—
Equity method investment net earnings		57		60		146		182
Other income (expense), net		(1)		(16)		(16)		36
Operating profit (loss)		(2,273)		539		(1,190)		2,071
Non-service pension benefit (expense)		3		(9)		5		(8)
Interest (expense) income, net		(93)		(97)		(288)		(270)
Earnings (loss) before income taxes		(2,363)		433		(1,473)		1,793
Income tax (expense) benefit		(177)		1		(261)		(272)
Earnings (loss) from continuing operations		(2,540)		434		(1,734)		1,521
Discontinued operations, net of tax		—		21		—		4
Net earnings (loss)		(2,540)		455		(1,734)		1,525
Less: Non-controlling interest in subsidiaries'		53		27		120		94
Net earnings (loss) attributable to common shareowners		$    (2,593)		$       428		$    (1,854)		$     1,431
Amounts attributable to common shareowners:
Continuing operations		$    (2,593)		$       407		$    (1,854)		$     1,427
Discontinued operations		—		21		—		4
Net earnings (loss) attributable to common shareowners		$    (2,593)		$       428		$    (1,854)		$     1,431
Earnings (loss) per share
Basic:
Continuing operations		$     (3.16)		$      0.48		$     (2.24)		$      1.67
Discontinued operations		—		0.02		—		—
Net earnings (loss)		$     (3.16)		$      0.50		$     (2.24)		$      1.67
Diluted:
Continuing operations		$     (3.16)		$      0.47		$     (2.24)		$      1.64
Discontinued operations		—		0.03		—		0.01
Net earnings (loss)		$     (3.16)		$      0.50		$     (2.24)		$      1.65
Weighted-average number of shares outstanding
Basic		821.8		848.8		828.3		856.8
Diluted		821.8		858.6		828.3		867.7

 

Carrier Global Corporation Condensed Consolidated Balance Sheet
		(Unaudited)
(In millions)		September 30, 2026		December 31, 2025
Assets
Cash and cash equivalents		$            1,354		$              1,555
Accounts receivable, net		3,499		2,639
Inventories, net		2,842		2,483
Assets held for sale		—		592
Other current assets		1,187		1,264
Total current assets		8,882		8,533
Future income tax benefits		1,190		1,074
Fixed assets, net		3,153		3,165
Operating lease right-of-use assets		532		546
Intangible assets, net		5,536		6,326
Goodwill		12,209		15,501
Pension and post-retirement assets		65		56
Equity method investments		1,390		1,321
Other assets		637		668
Total Assets		$          33,594		$            37,190
Liabilities and Equity
Accounts payable		$            3,269		$              2,702
Accrued liabilities		4,155		3,774
Liabilities held for sale		—		170
Short-term borrowings and current portion of long-term debt		1,482		468
Total current liabilities		8,906		7,114
Long-term debt		9,992		11,365
Future pension and post-retirement obligations		184		192
Future income tax obligations		1,584		1,833
Operating lease liabilities		402		418
Other long-term liabilities		2,105		2,140
Total Liabilities		23,173		23,062
Equity
Common stock		10		10
Treasury stock		(7,953)		(6,795)
Additional paid-in capital		8,694		8,665
Retained earnings		9,942		12,193
Accumulated other comprehensive income (loss)		(639)		(269)
Non-controlling interest		367		324
Total Equity		10,421		14,128
Total Liabilities and Equity		$          33,594		$            37,190

 

Carrier Global Corporation Condensed Consolidated Statement of Cash Flows (Unaudited)
		Three Months Ended  September 30,				Nine Months Ended September 30,
(In millions)		2026		2025		2026		2025
Operating Activities
Net earnings (loss)		$    (2,540)		$       455		$    (1,734)		$     1,525
Discontinued operations, net of tax		—		(21)		—		(4)
Adjustments for non-cash items, net:
Depreciation and amortization		324		325		953		945
Deferred income tax provision		(105)		(158)		(347)		(316)
Stock-based compensation costs		7		11		40		55
Equity method investment net earnings		(57)		(60)		(146)		(182)
(Gain) loss on sale of investments and impairments, net		8		—		45		(17)
Goodwill impairment		3,100		—		3,100		—
Changes in operating assets and liabilities
Accounts receivable, net		(320)		212		(971)		(490)
Inventories, net		(68)		(116)		(403)		(528)
Accounts payable and accrued liabilities		275		(208)		906		170
Distributions from equity method investments		16		24		67		105
Other operating activities, net		112		(140)		195		(187)
Net cash flows provided by (used in) continuing operating activities		752		324		1,705		1,076
Net cash flows provided by (used in) discontinued operating activities		61		17		114		397
Net cash flows provided by (used in) operating activities		813		341		1,819		1,473
Investing Activities
Capital expenditures		(139)		(117)		(350)		(261)
Investment in businesses, net of cash acquired		(64)		(31)		(118)		(92)
Dispositions of businesses		395		—		410		8
Settlement of derivative contracts, net		10		33		16		120
Other investing activities, net		19		(4)		28		(7)
Net cash flows provided by (used in) continuing investing activities		221		(119)		(14)		(232)
Net cash flows provided by (used in) discontinued investing activities		—		—		—		35
Net cash flows provided by (used in) investing activities		221		(119)		(14)		(197)
Financing Activities
Increase (decrease) in short-term borrowings, net		(500)		444		(139)		387
Issuance of long-term debt		14		17		53		32
Repayment of long-term debt		(3)		(1)		(60)		(1,209)
Repurchases of common stock		(399)		(785)		(1,144)		(2,413)
Dividends paid on common stock		(198)		(193)		(598)		(583)
Dividends paid to non-controlling interest		(11)		(72)		(76)		(81)
Other financing activities, net		(1)		(1)		(35)		(18)
Net cash flows provided by (used in) continuing financing activities		(1,098)		(591)		(1,999)		(3,885)
Net cash flows provided by (used in) discontinued financing activities		—		—		—		—
Net cash flows provided by (used in) financing activities		(1,098)		(591)		(1,999)		(3,885)
Effect of foreign exchange rate changes on cash and cash equivalents		3		(5)		(7)		63
Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale		(61)		(374)		(201)		(2,546)
Less: Change in cash balances classified as assets held for sale		(95)		—		(25)		—
Net increase (decrease) in cash and cash equivalents and restricted cash		34		(374)		(176)		(2,546)
Cash, cash equivalents and restricted cash, beginning of period		1,347		1,800		1,557		3,972
Cash, cash equivalents and restricted cash, end of period		1,381		1,426		1,381		1,426
Less: restricted cash		27		3		27		3
Cash and cash equivalents, end of period		$     1,354		$     1,423		$     1,354		$     1,423

 

Carrier Global Corporation Segment Summary
	(Unaudited)
	Three Months Ended  September 30,					Nine Months Ended September 30,
(In millions)	2026			2025		2026		2025
Segment net sales
Climate Solutions Americas		$    3,354		$    2,711		$    9,227		$    8,535
Climate Solutions Europe		1,335		1,290		3,952		3,712
Climate Solutions Asia Pacific, Middle East & Africa		848		833		2,599		2,541
Climate Solutions Transportation		726		745		2,177		2,122
Segment net sales		$    6,263		$    5,579		$   17,955		$   16,910
Segment operating profit
Climate Solutions Americas		$      745		$      533		$    1,941		$    1,982
Climate Solutions Europe		168		120		352		324
Climate Solutions Asia Pacific, Middle East & Africa		103		97		292		353
Climate Solutions Transportation		117		115		336		340
Segment operating profit		$    1,133		$      865		$    2,921		$    2,999
Segment operating margin
Climate Solutions Americas		22.2 %		19.7 %		21.0 %		23.2 %
Climate Solutions Europe		12.6 %		9.3 %		8.9 %		8.7 %
Climate Solutions Asia Pacific, Middle East & Africa		12.1 %		11.6 %		11.2 %		13.9 %
Climate Solutions Transportation		16.1 %		15.4 %		15.4 %		16.0 %

 

Components of Changes in Net Sales
Three Months Ended September 30, 2026, Compared with Three Months Ended September 30, 2025
	(Unaudited)
	Factors Contributing to Total % change in Net Sales
	Organic		FX Translation		Acquisitions / Divestitures, net		Other		Total
Climate Solutions Americas	25 %		— %		(1) %		— %		24 %
Climate Solutions Europe	12 %		(2) %		(7) %		— %		3 %
Climate Solutions Asia Pacific, Middle East & Africa	3 %		— %		(1) %		— %		2 %
Climate Solutions Transportation	(3) %		— %		— %		— %		(3) %
Consolidated	15 %		— %		(3) %		— %		12 %
Nine Months Ended September 30, 2026, Compared with Nine Months Ended September 30, 2025
	(Unaudited)
	Factors Contributing to Total % change in Net Sales
	Organic		FX Translation		Acquisitions / Divestitures, net		Other		Total
Climate Solutions Americas	8 %		— %		— %		— %		8 %
Climate Solutions Europe	5 %		4 %		(3) %		— %		6 %
Climate Solutions Asia Pacific, Middle East & Africa	2 %		— %		— %		— %		2 %
Climate Solutions Transportation	1 %		2 %		— %		— %		3 %
Consolidated	6 %		1 %		(1) %		— %		6 %

 

Carrier Global Corporation Reconciliations
		(Unaudited)
		Three Months Ended  September 30,				Nine Months Ended September 30,
(In millions)		2026		2025		2026		2025
Reconciliation to Earnings before income taxes
Segment operating profit		$     1,133		$       865		$     2,921		$     2,999
Corporate and other		(42)		(42)		(141)		(162)
Restructuring costs		(45)		(50)		(161)		(105)
Amortization of acquired intangible assets		(210)		(221)		(636)		(636)
Acquisition/divestiture-related costs		(2)		(10)		(20)		(21)
Riello impairment and loss		(2)		—		(48)		—
Goodwill impairment		(3,100)		—		(3,100)		—
CCR gain		—		—		—		7
Other		(5)		(3)		(5)		(11)
Non-service pension (expense) benefit		3		(9)		5		(8)
Interest (expense) income, net		(93)		(97)		(288)		(270)
Earnings (loss) before income taxes		$    (2,363)		$       433		$    (1,473)		$     1,793
		(Unaudited)
		Three Months Ended  September 30,				Nine Months Ended September 30,
(In millions)		2026		2025		2026		2025
Reconciliation of Segment operating profit to Adjusted operating profit
Climate Solutions Americas		$       745		$       533		$     1,941		$     1,982
Climate Solutions Europe		168		120		352		324
Climate Solutions Asia Pacific, Middle East & Africa		103		97		292		353
Climate Solutions Transportation		117		115		336		340
Segment operating profit		$     1,133		$       865		$     2,921		$     2,999
Corporate and other		(42)		(42)		(141)		(162)
Adjusted operating profit		$     1,091		$       823		$     2,780		$     2,837

 

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 September 30, 2026						Nine Months Ended September 30, 2026
(In millions, except per share amounts)	Reported		Adjustments		Adjusted		Reported		Adjustments		Adjusted
Net sales	$  6,263		$         —		$  6,263		$ 17,955		$         —		$ 17,955
Operating profit (loss)	$ (2,273)		3,364	a	$  1,091		$ (1,190)		3,970	a	$  2,780
Operating margin	(36.3) %				17.4 %		(6.6) %				15.5 %
Earnings (loss) before income taxes	$ (2,363)		3,364	a	$  1,001		$ (1,473)		3,970	a	$  2,497
Income tax (expense) benefit	$   (177)		(58)	b	$   (235)		$   (261)		(200)	b	$   (461)
Effective tax rate	(7.5) %				23.5 %		(17.7) %				18.5 %
Earnings (loss) from continuing operations attributable to common shareowners	$ (2,593)		$      3,306		$    713		$ (1,854)		$      3,770		$  1,916
Summary of Adjustments:
Restructuring costs			$          45	a					$        161	a
Amortization of acquired intangible assets			210	a					636	a
Acquisition/divestiture-related costs			2	a					20	a
Riello impairment and loss			2	a					48	a
Goodwill impairment			3,100	a					3,100	a
Other			5	a					5	a
Total adjustments			$      3,364						$      3,970
Tax effect on adjustments above			$        (58)						$       (200)
Tax specific adjustments			—						—
Total tax adjustments			$        (58)	b					$       (200)	b
Diluted shares outstanding (1)	821.8				821.8		828.3				828.3
Diluted earnings (loss) per share:
Continuing operations	$  (3.16)				$   0.87		$  (2.24)				$   2.31

(1) During the three and nine months ended September 30, 2026, Carrier reported a net loss from continuing operations attributable to common shareowners. As a result, potentially dilutive shares were excluded from the computation of diluted loss per share because their inclusion would have reduced the loss per share. The inclusion of dilutive shares does not have a significant impact on adjusted diluted earnings per share.

 

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 September 30, 2025						Nine Months Ended September 30, 2025
(In millions, except per share amounts)	Reported		Adjustments		Adjusted		Reported		Adjustments		Adjusted
Net sales	$  5,579		$         —		$  5,579		$ 16,910		$         —		$ 16,910
Operating profit (loss)	$    539		284	a	$    823		$  2,071		766	a	$  2,837
Operating margin	9.7 %				14.8 %		12.2 %				16.8 %
Earnings (loss) before income taxes	$    433		295	a,b	$    728		$  1,793		777	a,b	$  2,570
Income tax (expense) benefit	$       1		(126)	c	$   (125)		$   (272)		(259)	c	$   (531)
Effective tax rate	(0.2) %				17.2 %		15.2 %				20.7 %
Earnings (loss) from continuing operations attributable to common shareowners	$    407		$        169		$    576		$  1,427		$        518		$  1,945
Summary of Adjustments:
Restructuring costs			$          50	a					$        105	a
Amortization of acquired intangible assets			221	a					636	a
Acquisition/divestiture-related costs			10	a					21	a
CCR gain			—	a					(7)	a
Other			3	a					11	a
Defined benefit pension settlement			11	b					11	b
Total adjustments			$        295						$        777
Tax effect on adjustments above			$        (77)						$       (204)
Tax specific adjustments			(49)						(55)
Total tax adjustments			$       (126)	c					$       (259)	c
Diluted shares outstanding	858.6				858.6		867.7				867.7
Diluted earnings per share:
Continuing operations	$   0.47				$   0.67		$   1.64				$   2.24

 

Free Cash Flow Reconciliation
		(Unaudited)
		Three Months Ended  September 30,				Nine Months Ended September 30,
(In millions)		2026		2025		2026		2025
Net cash flows provided by operating activities		$       813		$       341		$     1,819		$     1,473
Less: Capital expenditures		(139)		(117)		(350)		(261)
Free cash flow		$       674		$       224		$     1,469		$     1,212

 

Net Debt Reconciliation
		(Unaudited)
(In millions)		September 30, 2026		December 31, 2025
Long-term debt		$              9,992		$             11,365
Short-term borrowings and current portion of long-term debt		1,482		468
Less: Cash and cash equivalents		1,354		1,555
Net debt		$             10,120		$             10,278

 

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SOURCE Carrier Global Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Carrier's third-quarter 2026 earnings per share?

Carrier reported a $3.16 loss per share from continuing operations, compared with earnings of $0.47 a year earlier. Adjusted EPS increased 30% to $0.87 from $0.67. The quarter included a $3.1 billion non-cash goodwill impairment related to the Climate Solutions Europe reporting unit.

What is Carrier's updated full-year 2026 guidance?

Carrier expects sales of $23.8–$24.0 billion, approximately 10% organic sales growth and adjusted EPS of $2.85–$2.90. Previous guidance was approximately $23 billion in sales and approximately $2.90 in adjusted EPS. Guidance for adjusted operating profit and free cash flow remains approximately $3.5 billion and approximately $2 billion, respectively.

Can customers cancel orders included in Carrier's reported orders?

Carrier's orders may not be subject to a penalty if cancelled. Orders are contractual customer commitments to purchase specified goods or services at an agreed price.

When did Carrier complete the Riello and NORESCO divestitures?

Carrier completed the Riello divestiture on July 1, 2026, and the NORESCO divestiture on August 3, 2026. The exits carry approximately $225 million and approximately $125 million in year-over-year revenue headwinds, respectively.