10-KPeriod: FY2022

CARRIER GLOBAL Corp Annual Report, Year Ended Dec 31, 2022

Filed February 7, 2023For Securities:CARR

Summary

Carrier Global Corporation reported fiscal year 2022 net sales of $20.4 billion, representing a slight 1% decrease from the prior year. Despite this marginal decline in reported sales, the company achieved an impressive 50% increase in operating profit for its HVAC segment and a significant 146% increase for its Fire & Security segment. This robust profit growth was driven by organic sales increases, primarily due to pricing improvements across segments that effectively offset inflationary pressures and supply chain challenges. The company's strategic focus on healthy, safe, sustainable, and intelligent building and cold chain solutions, supported by strong brands and innovation, positions it well to capitalize on favorable secular trends. Key strategic moves during the year included the acquisition of a majority stake in Toshiba Carrier Corporation (TCC) and the successful sale of its Chubb Fire and Security business. These actions, along with ongoing investments in digital capabilities and sustainability initiatives, underscore Carrier's commitment to long-term growth and shareholder value. The company also continued its share repurchase program, demonstrating confidence in its financial position and future prospects, while managing its debt effectively with a strong credit rating.

Financial Highlights

55 data points
Beta

Revenue

$17.29B

24.9% Gross Margin

Net Income

$3.58B

20.7% Net Margin

EPS (Diluted)

$4.10

Total Assets

$26.09B

Cash & Equivalents

$3.30B

Free Cash Flow

$1.74B

Financial Statements
Beta
Revenue$17.29B
Cost of Revenue$12.99B
Gross Profit$4.30B
R&D Expenses$416.00M
SG&A Expenses$1.98B
Operating Expenses$15.38B
Operating Income$3.98B
Interest Expense$238.00M
Net Income$3.58B
EPS (Basic)$4.19
EPS (Diluted)$4.10
Shares Outstanding (Basic)843.40M
Shares Outstanding (Diluted)861.20M

Key Highlights

  • 1Carrier Global Corporation reported net sales of $20.4 billion for fiscal year 2022, a 1% decrease year-over-year.
  • 2Operating profit saw significant year-over-year increases: HVAC segment up 50% and Fire & Security segment up 146%.
  • 3Organic sales grew by 8%, driven by pricing improvements across all segments that offset inflation and supply chain issues.
  • 4The company completed the acquisition of a majority stake in Toshiba Carrier Corporation (TCC) in August 2022, bolstering its HVAC segment.
  • 5Carrier successfully divested its Chubb Fire and Security business in January 2022, generating significant proceeds and a gain on sale.
  • 6The company returned capital to shareholders through dividends and share repurchases, repurchasing $1.4 billion in stock during 2022.
  • 7Despite supply chain challenges, Carrier maintained a strong focus on innovation, sustainability, and digital solutions.

Frequently Asked Questions

In 2022, Carrier Global reported net sales of $20.4 billion, a 1% decrease from 2021. However, operating profit saw substantial increases, with the HVAC segment growing by 50% and the Fire & Security segment by 146%, reflecting strong pricing power and operational efficiencies that offset inflationary pressures and supply chain challenges.

Carrier's major strategic moves in 2022 included the acquisition of a majority ownership interest in Toshiba Carrier Corporation (TCC) to strengthen its HVAC portfolio and the completion of the sale of its Chubb Fire and Security business, which generated significant proceeds and a gain on sale.

Carrier is implementing proactive steps to mitigate supply chain challenges and inflationary cost pressures. These include working closely with suppliers to ensure product availability, implementing cost-saving initiatives, investing in supply chain resilience through automation and dual sourcing, and utilizing pricing improvements to offset rising costs. These efforts have helped to mitigate negative impacts on sales and results of operations.

Carrier returned capital to shareholders through dividends and share repurchases. The company paid dividends totaling $509 million in 2022 and continued its share repurchase program, buying back $1.4 billion of its common stock during the year, with approximately $2.2 billion remaining under its authorization as of December 31, 2022.