10-KPeriod: FY2025

CARRIER GLOBAL Corp Annual Report, Year Ended Dec 31, 2025

Filed February 5, 2026For Securities:CARR

Summary

Carrier Global Corporation (CARR) reported net sales of $21.7 billion for the fiscal year ended December 31, 2025, representing a 3% decrease from the prior year. This decline was primarily attributed to lower volumes across its Climate Solutions segments, particularly in the Americas and Asia Pacific, Middle East & Africa regions, impacted by reduced end-market demand and distributor destocking. The company continued its portfolio transformation in 2024 by acquiring the Viessmann Climate Solutions business and divesting several non-core operations. Operationally, the company faced headwinds from lower volumes, though this was partially offset by productivity initiatives and favorable pricing actions. Adjusted operating profit was $3.3 billion, a slight decrease from $3.5 billion in the prior year, reflecting the impact of lower volumes and ongoing strategic investments. Carrier's strategic focus remains on intelligent climate and energy solutions, emphasizing digital transformation and sustainability. The company is investing in innovation and new business models, such as Carrier Energy, to optimize home energy management and enhance digital customer connections. Despite macroeconomic challenges and specific segment weakness, Carrier is positioning itself for long-term growth by leveraging its strong brand portfolio and addressing secular trends like urbanization and digitalization. The company also announced the pending sale of its Riello business, further streamlining its operations.

Financial Highlights

53 data points
Beta

Revenue

$21.75B

Net Income

$1.48B

6.8% Net Margin

EPS (Diluted)

$1.72

Total Assets

$37.19B

Cash & Equivalents

$1.55B

Free Cash Flow

$2.51B

Financial Statements
Beta
Revenue$21.75B
R&D Expenses$625.00M
SG&A Expenses$3.09B
Operating Expenses$19.84B
Operating Income$2.17B
Interest Expense$458.00M
Net Income$1.48B
EPS (Basic)$1.74
EPS (Diluted)$1.72
Shares Outstanding (Basic)852.40M
Shares Outstanding (Diluted)862.40M

Key Highlights

  • 1Net sales for the fiscal year ended December 31, 2025, were $21.7 billion, a 3% decrease year-over-year, driven by volume reductions in climate solutions segments.
  • 2Adjusted operating profit was $3.3 billion, down from $3.5 billion in the prior year, reflecting operational challenges and strategic investments.
  • 3The company completed its portfolio transformation in 2024 with the acquisition of Viessmann Climate Solutions and strategic divestitures of non-core businesses.
  • 4Segment operating profit for Climate Solutions Americas decreased by 7% year-over-year due to volume reductions, while Climate Solutions Europe saw a 5% decrease.
  • 5Climate Solutions Transportation experienced a 17% decrease in net sales, partly due to the divestiture of its Commercial Refrigeration business, though organic sales saw a slight increase.
  • 6Carrier continues to invest in R&D and digital solutions, aiming to strengthen its leadership in intelligent climate and energy solutions.
  • 7The company announced the pending sale of its Riello business, expected to close in the first half of 2026.

Frequently Asked Questions

Carrier reported net sales of $21.7 billion for the fiscal year ended December 31, 2025, a 3% decrease compared to the prior year. This decline was primarily driven by lower volumes in its Climate Solutions segments. Adjusted operating profit was $3.3 billion, down from $3.5 billion in 2024, reflecting the challenging market conditions and ongoing strategic investments.

In 2024, Carrier completed its portfolio transformation by acquiring the Viessmann Climate Solutions business and divesting its Commercial and Residential Fire, Access Solutions, Industrial Fire, and Commercial Refrigeration businesses. In December 2025, the company entered into an agreement to sell its Riello business, a transaction expected to close in the first half of 2026.

The Climate Solutions Americas segment saw a 1% decrease in net sales, primarily due to volume reductions in residential and light commercial markets. Climate Solutions Europe experienced a 1% increase in net sales, but organic sales decreased by 3% due to weak end-market demand and cost pressures. Climate Solutions Asia Pacific, Middle East & Africa reported a 5% decrease in net sales, driven by volume reductions, particularly in China. The Climate Solutions Transportation segment's net sales decreased by 17%, largely due to divestitures, though organic sales saw a 4% increase driven by container business growth.

Carrier is navigating macroeconomic challenges through productivity initiatives, cost containment measures, and strategic pricing actions. The company is investing in product and technology innovation, including new business models like Carrier Energy, to drive profitable growth. It is also focused on leveraging its strong brand portfolio and addressing secular trends such as urbanization, population growth, and digitalization to enhance its market position.