Carrier Global Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.15%.
Did CARR Beat Earnings? Q2 2025 Results
Carrier Global posted a confident second quarter, with adjusted EPS of $0.92 edging past the $0.90 consensus estimate by 1.98% and revenue of $6.11 billion topping expectations by 0.27% while rising 3.0% year over year — a result that underscores the company's steady recovery following its portfolio reshaping. The headline driver was the Climate Solutions Americas segment, where Commercial sales excluding NORESCO surged 45% and total aftermarket sales climbed 13%, providing the organic momentum that lifted overall organic growth to 6% even as reported sales growth appeared more modest. Adjusted operating margin expanded 130 basis points to 19.1%, reflecting both pricing discipline and the absence of acquisition-related step-up charges that had pressured the prior-year period. With a <a href="https://247wallst.com/investing/2026/02/14/carrier-globals-quiet-dividend-strategy-deserves-attention/">shareholder-friendly capital allocation</a> approach on display — including $1.63 billion in buybacks during the first half — Carrier reaffirmed full-year 2025 guidance calling for roughly $23 billion in sales, adjusted EPS of $3.00–$3.10, and free cash flow of $2.4–$2.6 billion, signaling management's confidence in sustained momentum heading into the second half.
- Commercial sales (excluding NORESCO) up 45% in Climate Solutions Americas
- Total company aftermarket sales up 13%
- Residential Americas sales up over 10%
- Organic sales growth of 6% driven by strong Americas segment performance
- Adjusted operating margin expansion of 130 basis points from organic growth and productivity
- Lower net interest expense and benefits of lower share count boosted adjusted EPS
- Absence of prior-year backlog and inventory step-up amortization charges improved GAAP results
“We delivered another quarter of strong financial performance. Organic sales growth of 6% was driven by strong results in our Climate Solutions Americas segment, with Commercial sales up 45% and total company aftermarket sales up 13%. Adjusted operating margins expanded 130 basis points driven by strong organic growth and productivity, leading to over 25% adjusted EPS growth. With a strong first half, we remain committed to accelerating growth driven by differentiated products, aftermarket offerings and system solutions. We are maintaining our full-year outlook for sales, adjusted operating margin expansion and adjusted EPS, representing about 20% adjusted EPS growth at the midpoint.”
Carrier Global CEO, on the earnings call
Forward Guidance & Outlook
Carrier reaffirmed its full-year 2025 guidance with no changes from prior guidance: Sales of approximately $23 billion (with ~$750 million revenue headwind from the Commercial Refrigeration exit, organic sales up mid-single digits, FX tailwind of 1%, divestitures headwind of 3%); adjusted operating margin of 16.5%–17.0% (up ~100 bps year-over-year); adjusted EPS of $3.00–$3.10 (approximately 17–21% year-over-year growth); and free cash flow of $2.4–$2.6 billion including expected results of continuing and discontinued operations.
CARR YoY Financials
CARR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.