Carrier Global (CARR) Q1 2025 Earnings
How Did CARR Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.74%.
Did CARR Beat Earnings? Q1 2025 Results
Yes. Carrier Global reported Q1 2025 earnings of $0.65 a share on May 1, 2025, beating the $0.58 consensus estimate by 11.3%. Revenue was $5.2B against a $5.2B estimate.
Carrier Global kicked off 2025 with a convincing first quarter, posting adjusted EPS of $0.65 against a consensus estimate of $0.5841 — 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 <a href="https://247wallst.com/investing/2026/02/14/carrier-globals-quiet-dividend-strategy-deserves-attention/">consistent dividend program</a> — 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.
- 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
“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.”
Carrier Global CEO, on the earnings call
What Was Carrier Global's Outlook in Q1 2025?
Carrier raised its full-year 2025 guidance. Sales are now expected to be approximately $23 billion (up from $22.5-$23.0 billion), with organic sales up mid-single-digits, a ~$750 million revenue headwind from the Commercial Refrigeration exit, FX of 1%, acquisitions 0%, and divestitures of -3%. Adjusted operating margin is expected to be 16.5%-17.0%, representing approximately 100 basis points of year-over-year expansion. Adjusted EPS guidance was increased to $3.00-$3.10 (up from $2.95-$3.05), representing 17-21% year-over-year growth. Free cash flow is expected to be $2.4-$2.6 billion. The company stated it is fully mitigating the impact of tariffs currently in effect.
CARR YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $5.2B | $5.4B | −3.7% |
| Gross Profit | $1.4B | $1.5B | −3.9% |
| Operating Income | $629.0M | $385.0M | +63.4% |
| Net Income | $412.0M | $269.0M | +53.2% |
CARR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.