Carrier Global Corp
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
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 $0.5841 — 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
Forward Guidance & Outlook
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
CARR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.