01—Abstract
Summary
Summary of the 10-K filed February 11, 2025. Cited figures are marked; the original filing is the authoritative source.
Carrier Global Corporation's (CARR) 2024 Annual Report highlights a year of significant portfolio transformation and strategic growth.
The company successfully divested several businesses, including Access Solutions, Industrial Fire, Commercial Refrigeration, and Commercial and Residential Fire, generating substantial cash proceeds. Concurrently, Carrier completed the acquisition of the Viessmann Climate Solutions (VCS) business, strengthening its position in intelligent climate and energy solutions, particularly in Europe. Financially, Carrier reported net sales of $22.5 billiona, a 19% increase year-over-year, driven by the VCS acquisition and organic growth in its HVAC segment.
The company is focused on innovation, digital solutions, and expanding its energy management offerings, aligning with secular trends like urbanization and energy efficiency. Despite increased interest expenses due to debt financing for the VCS acquisition, the company's overall financial performance shows resilience, with a significant increase in net earnings attributable to common shareholders.
02—Key points
Key Highlights
- Carrier completed a significant portfolio transformation in 2024, divesting four businesses (Access Solutions, Industrial Fire, Commercial Refrigeration, and Commercial & Residential Fire) while acquiring the Viessmann Climate Solutions (VCS) business.
- Net sales increased by 19% to $22.5 billion for the year ended December 31, 2024, primarily driven by the VCS acquisition and organic growth in the HVAC segment.
- Operating profit saw a 23% increase to $2.6 billion, reflecting pricing improvements, productivity initiatives, and benefits from the VCS business.
- The company generated substantial cash proceeds from divestitures totaling over $9.9 billion, which are planned for debt repayment, growth initiatives, and shareholder returns.
- Carrier is strategically investing in innovation, digital solutions, and energy management, positioning itself to benefit from favorable secular trends in climate and energy.
- Despite increased debt, the company's credit ratings remain investment grade, with positive outlooks from major agencies.
- Net earnings attributable to common shareholders surged by 315% to $5.6 billion, significantly impacted by gains from divestitures.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Carrier Global Corp kept $0.25.
- Revenue$22.49B100.0%
- Cost of revenue−$16.50B73.4%
- Gross profit$5.98B26.6%
- Operating costs−$3.33B14.8%
- Operating income$2.65B11.8%
- Interest, other & tax$2.96B13.2%
- Net income$5.60B24.9%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 11, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $22.49B$18.95B | +18.7% |
| Cost of Revenue | $16.50B$13.79B | +19.7% |
| Gross Profit | $5.98B$5.16B | +15.9% |
| R&D Expenses | $686.00M$493.00M | +39.1% |
| SG&A Expenses | $3.20B$2.61B | +22.6% |
| Operating Expenses | $20.39B$16.89B | +20.7% |
| Operating Income | $2.65B$2.16B | +22.5% |
| Interest Expense | $580.00M$306.00M | +89.5% |
| Net Income | $5.60B$1.35B | +315.4% |
| EPS (Basic) | $6.24$1.61 | +287.6% |
| EPS (Diluted) | $6.15$1.58 | +289.2% |
| Shares Outstanding (Basic) | 898.20M837.30M | +7.3% |
| Shares Outstanding (Diluted) | 911.70M853.00M | +6.9% |
05—Questions
Frequently Asked Questions
What were the main strategic moves made by Carrier in 2024?
In 2024, Carrier executed a major portfolio transformation. This involved divesting its Access Solutions, Industrial Fire, Commercial Refrigeration, and Commercial and Residential Fire businesses. Simultaneously, it acquired the Viessmann Climate Solutions (VCS) business, bolstering its presence in the European market and expanding its intelligent climate and energy solutions portfolio.
How did the company's financial performance change in 2024 compared to 2023?
Net sales increased by 19% to $22.5 billion, driven by the VCS acquisition and organic growth in the HVAC segment. Operating profit rose by 23% to $2.6 billion, attributed to pricing actions, productivity gains, and the contribution from VCS. Net earnings attributable to common shareholders saw a significant increase of 315% to $5.6 billion, largely due to substantial gains from the completed divestitures.
What is the company's strategy moving forward, especially regarding innovation and sustainability?
Carrier's strategy is centered on being a global leader in intelligent climate and energy solutions, emphasizing differentiated, digitally-enabled lifecycle solutions. The company is investing heavily in product and technology innovation, with a particular focus on electrification, energy-efficient solutions, environmentally friendly refrigerants, and connected ecosystems. Sustainability goals include investing over $4 billion by 2030 to develop solutions that reduce environmental impacts and avoiding over 1 gigaton of customer greenhouse gas emissions.
How has the acquisition of Viessmann Climate Solutions impacted Carrier's financial position?
The acquisition of VCS, completed in January 2024, contributed $3.3 billion in net sales for the year and added $7.6 billion in goodwill. This acquisition also led to increased debt levels, with total debt rising to $12.3 billion. While it increased interest expenses, the strategic rationale is to capture growth in key European markets and leverage combined technological capabilities. The company is working on integrating VCS and realizing anticipated synergies.
06—Continue