Carrier Global

CARR Q1 2025 Earnings

Reported May 1, 2025 at 6:52 AM ET · SEC Source

Q1 25 EPS

$0.65

BEAT +11.28%

Est. $0.58

Q1 25 Revenue

$5.22B

BEAT +0.60%

Est. $5.19B

vs S&P Since Q1 25

-22.2%

TRAILING MARKET

CARR +9.1% vs S&P +31.3%

Market Reaction

Did CARR Beat Earnings? Q1 2025 Results

Carrier Global kicked off 2025 with a convincing first quarter, posting adjusted EPS of $0.65 against a consensus estimate of $0.58, an 11.28% beat, while revenue of $5.22 billion edged past the $5.19 billion estimate despite a 3.7% year-over-year de… Read more Carrier Global kicked off 2025 with a convincing first quarter, posting adjusted EPS of $0.65 against a consensus estimate of $0.58, an 11.28% beat, while revenue of $5.22 billion edged past the $5.19 billion estimate despite a 3.7% year-over-year decline tied to the late-2024 divestiture of its Commercial Refrigeration business. The standout driver was strength in Climate Solutions Americas, where both Commercial and Residential businesses each grew roughly 20%, helping lift adjusted operating margin 210 basis points to 16.2%. Total orders rose high-single-digits and backlog climbed over 15% sequentially, signaling durable demand momentum rooted in rising global temperatures and accelerating heat pump adoption. Free cash flow swung sharply to $420 million from negative $64 million a year ago, enabling Carrier to return $1.5 billion to shareholders, through repurchases and a consistent dividend program, while paying down $1.2 billion in debt. Management raised full-year adjusted EPS guidance to $3.00–$3.10, representing 17–21% growth, and increased its sales outlook to approximately $23 billion, noting it is fully mitigating current tariff impacts.

Key Takeaways

  • Commercial and Residential businesses within Climate Solutions Americas each up about 20%
  • Organic sales growth of 2% driven by strong productivity and price
  • Adjusted operating margin expansion of 210 basis points
  • Container business up 20% in Climate Solutions Transportation
  • Total company orders up high-single-digits
  • Backlogs increased over 15% sequentially and approximately 10% year-over-year
  • Lower net interest expense and benefits of lower share count boosted adjusted EPS
  • Absence of prior year VCS backlog and inventory step-up amortization
  • Free cash flow improvement driven by higher net income, working capital improvements, and lower capex
24/7 Wall St

CARR YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

CARR Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We delivered another quarter of strong financial performance. Adjusted EPS grew 27% with adjusted operating margins expanding 210 basis points on 2% organic sales growth. Sales for the Commercial and Residential businesses within Climate Solutions Americas were each up about 20%. Total company orders were up high-single-digits, backlogs increased over 15% sequentially and about 10% year-over-year, positioning us for accelerated growth further fueled by differentiated products, aftermarket offerings and system solutions. We are increasing our full-year commitments as we proactively manage this dynamic environment.”

— David Gitlin, Q1 2025 Earnings Press Release