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Carrier Global (NYSE: CARR) lifts 2026 forecast on Q2 orders surge

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Carrier Global Corporation reported second-quarter 2026 results with net sales of $6.35 billion, up 4% year-over-year, including 3% organic growth and a 1% foreign-exchange tailwind. Total company orders rose about 40%, with Commercial HVAC up ~65% and data center orders up more than 300%. GAAP operating profit was $825 million, down 9%, and adjusted operating margin declined 190 basis points to 17.2%. GAAP diluted EPS from continuing operations was $0.60 and adjusted EPS was $0.86, down 14% and 7% respectively versus 2025.

By segment, sales grew 4% in Climate Solutions Americas, 6% in Europe, 4% in Asia Pacific, Middle East & Africa, and 2% in Transportation, though all segments experienced margin compression. Net cash flows from operating activities were $927 million and free cash flow was $810 million. The company returned approximately $640 million to shareowners through dividends and repurchases. Carrier raised its full-year 2026 outlook to about $23 billion in sales, around $3.5 billion in adjusted operating profit and roughly $2.90 in adjusted EPS, while expecting revenue headwinds from the Riello divestiture (completed July 1) and the announced NORESCO exit.

Positive

  • Total company orders increased about 40%, with Commercial HVAC up ~65% and data center orders up more than 300%, signaling strong demand in key end markets despite modest reported sales growth.
  • Full-year 2026 guidance was raised to approximately $23 billion in sales, ~$3.5 billion adjusted operating profit and ~$2.90 adjusted EPS, reflecting stronger year-to-date performance and record backlog.

Negative

  • GAAP EPS from continuing operations declined 14% year-over-year to $0.60, and adjusted EPS fell 7% to $0.86, as lower operating profit and a higher effective tax rate outweighed the benefit of a lower share count.
  • Margins compressed across the portfolio, with adjusted operating margin down 190 basis points to 17.2% and CSAME segment operating margin falling 350 basis points, partly due to unfavorable mix and lower joint venture income.

Filing Explained

June 30 net debt stood at $10,608 million versus $10,278 million at December 31, alongside $1,344 million of cash.

The July 28, 2026 Form 8-K reports Carrier Global Corporation’s second-quarter results under Item 2.02; its earnings release is furnished rather than filed, and the release identifies Riello’s divestiture as completed while the NORESCO divestiture remains announced.

At June 30, 2026, the filing reported $1,344 million of cash and $10,608 million of net debt, compared with $10,278 million of net debt at December 31, 2025. The disclosed period-end capital position therefore shows higher net debt than at year-end alongside the reported cash balance.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net sales $6,351 million Q2 2026 consolidated net sales, a 4% increase versus Q2 2025
Organic sales growth 3% Q2 2026 organic sales increase compared with Q2 2025
GAAP diluted EPS (continuing operations) $0.60 Q2 2026, 14% lower than $0.70 in Q2 2025
Adjusted diluted EPS (continuing operations) $0.86 Q2 2026, 7% lower than $0.92 in Q2 2025
Free cash flow $810 million Q2 2026 net cash from operating activities of $927 million less $117 million capital expenditures
2026 sales guidance ~$23 billion Updated full-year 2026 sales outlook, raised from prior ~$22 billion
Adjusted operating profit guidance ~$3.5 billion Full-year 2026 adjusted operating profit guidance, up from ~$3.4 billion
Net debt $10,608 million Net debt at June 30, 2026, based on long- and short-term debt minus cash and cash equivalents
organic sales financial
"Net sales up 4%; <b>organic sales</b> 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 profit financial
"Raises full year outlook to ~$23B sales, ~$3.5B <b>adj. op. profit</b>"
Adjusted operating profit is a measure of a company’s routine profit from its core business activities after removing one‑time events, unusual costs or non‑cash items so the result reflects ongoing operations. Think of it like judging a car’s normal fuel efficiency after ignoring a single visit to the body shop; investors use it to compare underlying profitability across periods or peers and to judge whether the business is sustainably earning money, but the specific exclusions can be subjective.
free cash flow financial
"Net cash flows from operating activities of $927 million and <b>free cash flow</b> 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.
segment operating margin financial
"CSA <b>segment operating margin</b> decreased 260 basis points"
Segment operating margin measures how much profit a specific part of a company keeps from its sales after paying the costs to run that part, expressed as a percentage. Investors use it like a slice-size indicator to compare which divisions are more efficient at turning revenue into operating profit, helping spot strengths, weaknesses, and where management might focus resources or improvements.
basis points financial
"Adjusted operating margin 17.2% was down 190 <b>basis points</b> from last year"
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.
net debt financial
"<b>Net debt</b> | $ 10,608 | | | $ 10,278"
Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.
Net sales $6,351 million 4% increase vs Q2 2025
GAAP diluted EPS from continuing operations $0.60 14% decrease vs $0.70 in Q2 2025
Adjusted diluted EPS from continuing operations $0.86 7% decrease vs $0.92 in Q2 2025
Operating profit $825 million 9% decrease vs $903 million in Q2 2025
Adjusted operating profit $1,095 million 6% decrease vs $1,166 million in Q2 2025
Free cash flow $810 million compared with $568 million in Q2 2025
Guidance

For full-year 2026, the company now expects sales of about $23 billion, adjusted operating profit of about $3.5 billion, adjusted EPS of about $2.90 and free cash flow of about $2 billion.

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FAQ

What were Carrier Global (CARR) Q2 2026 sales and earnings?
Carrier Global reported Q2 2026 net sales of $6.35 billion, up 4% year-over-year, with organic sales up 3%. GAAP diluted EPS from continuing operations was $0.60, while adjusted EPS from continuing operations was $0.86, both lower than in Q2 2025.

How did Carrier Global (CARR) business segments perform in Q2 2026?
In Q2 2026, Carrier’s CSA segment sales rose 4%, CSE 6%, CSAME 4%, and CST 2%. All segments saw lower operating margins, with CSAME margin down 350 basis points, reflecting unfavorable mix, higher input costs and reduced joint venture income in certain regions.

What cash flow did Carrier Global (CARR) generate in Q2 2026?
Carrier generated $927 million of net cash flows from operating activities in Q2 2026 and spent $117 million on capital expenditures. This produced free cash flow of $810 million, and the company returned approximately $640 million to shareowners via dividends and share repurchases.

How did Carrier Global (CARR) change its full-year 2026 outlook?
Carrier increased its 2026 outlook to ~$23 billion in sales, ~$3.5 billion adjusted operating profit, and ~$2.90 adjusted EPS, versus prior guidance of ~$22 billion sales, ~$3.4 billion adjusted operating profit and ~$2.80 adjusted EPS, while maintaining free cash flow guidance of about $2 billion.

What is Carrier Global’s (CARR) balance sheet and net debt position as of June 30, 2026?
As of June 30, 2026, Carrier reported total assets of $37.37 billion and cash and cash equivalents of $1.34 billion. Long-term and short-term debt totaled $11.95 billion, resulting in net debt of $10.61 billion based on the company’s reconciliation.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 28, 2026

CARRIER GLOBAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
001-39220
83-4051582
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
13995 Pasteur Boulevard
Palm Beach Gardens
Florida
33418
(Address of principal executive offices, including zip code)
(561)
365-2000
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock ($0.01 par value)CARRNew York Stock Exchange
4.125% Notes due 2028CARR28New York Stock Exchange
4.500% Notes due 2032CARR32New York Stock Exchange
3.625% Notes due 2037CARR37New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



Section 2—Financial Information

Item 2.02. Results of Operations and Financial Condition.

On July 28, 2026, Carrier Global Corporation (the “Company”) issued a press release announcing its second quarter 2026 results.

The press release issued July 28, 2026, is furnished herewith as Exhibit No. 99 to this Report, and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Section 9—Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
Exhibit
Number
Exhibit Description
99
Press release, dated July 28, 2026, issued by Carrier Global Corporation (Earnings).
104
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CARRIER GLOBAL CORPORATION
(Registrant)
Date: July 28, 2026
By:
/S/ PATRICK GORIS
Patrick Goris
Executive Vice President, Chief Financial & Strategy Officer



Exhibit 99
carrierlogo100a.gif

Carrier Reports Second Quarter 2026 Results
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 – 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)

1

Second Quarter 2026 Results
Total Company
(Unaudited)
Three Months Ended
June 30
(In millions)20262025Change
Net sales$6,351 $6,113 4 %
Organic sales3 %
Operating profit$825 $903 (9)%
Operating margin13.0 %14.8 %(180) bps
Adjusted operating profit $1,095 $1,166 (6)%
Adjusted operating margin17.2 %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.


2

Climate Solutions Americas (CSA)
(Unaudited)
Three Months Ended
June 30
(In millions)20262025Change
Net sales$3,372 $3,252 4 %
Organic sales4 %
Segment operating profit $823 $879 (6)%
Segment operating margin24.4 %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)20262025Change
Net sales$1,324 $1,253 6 %
Organic sales3 %
Segment operating profit $95 $99 (4)%
Segment operating margin7.2 %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

3

Climate Solutions Asia Pacific, Middle East & Africa (CSAME)
(Unaudited)
Three Months Ended
June 30
(In millions)20262025Change
Net sales$917 $882 4 %
Organic sales4 %
Segment operating profit $108 $135 (20)%
Segment operating margin11.8 %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)20262025Change
Net sales$738 $726 2 %
Organic sales— %
Segment operating profit $118 $128 (8)%
Segment operating margin16.0 %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.

4

Cash Flow
(Unaudited)(Unaudited)
Three Months Ended
 June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
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.


5

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 at ir.carrier.com/news-and-events/events-and-presentations. For alternative dial-in information, please contact Carrier investor relations at InvestorRelations@Carrier.com.

6


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

7

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 www.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

8


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.

9


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)2026202520262025
Net sales
Product sales$5,634 $5,477 $10,301 $10,129 
Service sales717 636 1,391 1,202 
Total Net sales6,351 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 earnings58 78 89 122 
Other income (expense), net(3)30 (15)52 
Operating profit825 903 1,083 1,532 
Non-service pension benefit (expense)1 — 2 1 
Interest (expense) income, net(105)(91)(195)(173)
Earnings before income taxes721 812 890 1,360 
Income tax (expense) benefit(180)(162)(84)(273)
Earnings from continuing operations541 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
Basic828.1 854.9 831.5 860.8 
Diluted836.5 866.3 839.6 872.3 

10

Carrier Global Corporation
Condensed Consolidated Balance Sheet
(Unaudited)
(In millions)June 30, 2026December 31, 2025
Assets
Cash and cash equivalents$1,344 $1,555 
Accounts receivable, net3,246 2,639 
Inventories, net2,759 2,483 
Assets held for sale815 592 
Other current assets1,250 1,264 
Total current assets9,414 8,533 
Future income tax benefits1,126 1,074 
Fixed assets, net3,162 3,165 
Operating lease right-of-use assets568 546 
Intangible assets, net5,756 6,326 
Goodwill15,267 15,501 
Pension and post-retirement assets61 56 
Equity method investments1,341 1,321 
Other assets677 668 
Total Assets$37,372 $37,190 
Liabilities and Equity
Accounts payable$3,216 $2,702 
Accrued liabilities3,963 3,774 
Liabilities held for sale414 170 
Short-term borrowings and current portion of long-term debt1,638 468 
Total current liabilities9,231 7,114 
Long-term debt10,314 11,365 
Future pension and post-retirement obligations185 192 
Future income tax obligations1,622 1,833 
Operating lease liabilities442 418 
Other long-term liabilities2,106 2,140 
Total Liabilities23,900 23,062 
Equity
Common stock10 10 
Treasury stock(7,550)(6,795)
Additional paid-in capital8,688 8,665 
Retained earnings12,536 12,193 
Accumulated other comprehensive income (loss)(537)(269)
Non-controlling interest325 324 
Total Equity13,472 14,128 
Total Liabilities and Equity$37,372 $37,190 
11

Carrier Global Corporation
Condensed Consolidated Statement of Cash Flows
(Unaudited)
Three Months Ended
 June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
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 amortization314 317 629 620 
Deferred income tax provision(63)(89)(242)(158)
Stock-based compensation costs12 21 33 44 
Equity method investment net earnings(58)(78)(89)(122)
(Gain) loss on sale of investments and impairments, net40 (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 liabilities280 (103)631 378 
Distributions from equity method investments39 4 51 81 
Other operating activities, net122 5 83 (47)
Net cash flows provided by (used in) continuing operating activities888 264 953 752 
Net cash flows provided by (used in) discontinued operating activities39 385 53 380 
Net cash flows provided by (used in) operating activities927 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 businesses7 — 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 debt17 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 equivalents3 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 sale27 — 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 period1,374 1,702 1,557 3,972 
Cash, cash equivalents and restricted cash, end of period1,347 1,800 1,347 1,800 
Less: restricted cash3 3 3 3 
Cash and cash equivalents, end of period$1,344 $1,797 $1,344 $1,797 
12

Carrier Global Corporation
Segment Summary

(Unaudited)
Three Months Ended
 June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
Segment net sales
Climate Solutions Americas$3,372$3,252$5,873$5,824
Climate Solutions Europe1,3241,2532,6172,422
Climate Solutions Asia Pacific, Middle East & Africa9178821,7511,708
Climate Solutions Transportation7387261,4511,377
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 Europe9599184204
Climate Solutions Asia Pacific, Middle East & Africa108135189256
Climate Solutions Transportation118128219225
Segment operating profit$1,144$1,241$1,788$2,134
Segment operating margin
Climate Solutions Americas24.4 %27.0 %20.4 %24.9 %
Climate Solutions Europe7.2 %7.9 %7.0 %8.4 %
Climate Solutions Asia Pacific, Middle East & Africa11.8 %15.3 %10.8 %15.0 %
Climate Solutions Transportation16.0 %17.6 %15.1 %16.3 %

13

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
OrganicFX TranslationAcquisitions / Divestitures, netOtherTotal
Climate Solutions Americas4 %— %— %— %4 %
Climate Solutions Europe3 %3 %— %— %6 %
Climate Solutions Asia Pacific, Middle East & Africa4 %— %— %— %4 %
Climate Solutions Transportation— %2 %— %— %2 %
Consolidated3 %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
OrganicFX TranslationAcquisitions / Divestitures, netOtherTotal
Climate Solutions Americas1 %— %— %— %1 %
Climate Solutions Europe1 %7 %— %— %8 %
Climate Solutions Asia Pacific, Middle East & Africa1 %1 %1 %— %3 %
Climate Solutions Transportation2 %3 %— %— %5 %
Consolidated1 %2 %— %— %3 %
14

Carrier Global Corporation
Reconciliations
(Unaudited)
Three Months Ended
 June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
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 
Other5 (3)— (8)
Non-service pension (expense) benefit1 — 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)2026202520262025
Reconciliation of Segment operating profit to Adjusted operating profit
Climate Solutions Americas$823 $879 $1,196 $1,449 
Climate Solutions Europe95 99 184 204 
Climate Solutions Asia Pacific, Middle East & Africa108 135 189 256 
Climate Solutions Transportation118 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 
15

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, 2026Six Months Ended June 30, 2026
(In millions, except per share amounts)ReportedAdjustmentsAdjustedReportedAdjustmentsAdjusted
Net sales$6,351 $— $6,351 $11,692 $— $11,692 
Operating profit$825 270 a$1,095 $1,083 606 a$1,689 
Operating margin13.0 %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 rate25.0 %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 assets213 a426 a
Acquisition/divestiture-related costs8 a18 a
Riello impairment46 a46 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 outstanding836.5 836.5 839.6 839.6 
Diluted earnings per share:
Continuing operations$0.60 $0.86 $0.88 $1.43 

16

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, 2025Six Months Ended June 30, 2025
(In millions, except per share amounts)ReportedAdjustmentsAdjustedReportedAdjustmentsAdjusted
Net sales$6,113 $— $6,113 $11,331 $— $11,331 
Operating profit$903 263 a$1,166 $1,532 482 a$2,014 
Operating margin14.8 %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 rate20.0 %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 a55 a
Amortization of acquired intangible assets214 a$415 a
Acquisition/divestiture-related costs6 a11 a
CCR gain(7)a(7)a
Other3 a8 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 outstanding866.3 866.3 872.3 872.3 
Diluted earnings per share:
Continuing operations$0.70 $0.92 $1.17 $1.57 

17

Free Cash Flow Reconciliation

(Unaudited)
Three Months Ended
 June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
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, 2026December 31, 2025
Long-term debt$10,314 $11,365 
Short-term borrowings and current portion of long-term debt1,638 468 
Less: Cash and cash equivalents1,344 1,555 
Net debt$10,608 $10,278 

18

Source: View Original Filing on SEC EDGAR

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