Summary
Carrier Global Corporation reported a net sales decrease of 4% year-over-year to $5.2 billion for the first quarter of 2025. Despite the top-line decline, gross margin improved by 4% due to the absence of inventory step-up and backlog amortization from the prior year's acquisition, alongside pricing actions and productivity improvements. Operating profit saw a significant increase of 63% to $629 million, driven by reduced operating expenses, particularly SG&A, and a substantial recovery in equity method investment earnings. The company experienced mixed segment performance, with Climate Solutions Americas showing robust growth in net sales and operating profit. However, Climate Solutions Europe and Asia Pacific, Middle East & Africa saw sales declines, while Climate Solutions Transportation's sales also decreased, albeit with organic growth in certain areas. Significant debt reduction and substantial share repurchases highlight a strong focus on capital allocation and returning value to shareholders. The company also reported a notable increase in diluted earnings per share from $0.29 to $0.47.
Financial Highlights
49 data points| Revenue | $5.22B |
| R&D Expenses | $153.00M |
| SG&A Expenses | $729.00M |
| Operating Expenses | $4.66B |
| Operating Income | $629.00M |
| Net Income | $412.00M |
| EPS (Basic) | $0.47 |
| EPS (Diluted) | $0.47 |
| Shares Outstanding (Basic) | 866.90M |
| Shares Outstanding (Diluted) | 878.30M |
Key Highlights
- 1Net sales decreased by 4% to $5.2 billion, primarily impacted by weaker demand in Europe and Asia Pacific.
- 2Gross margin increased by 4% and as a percentage of net sales improved by 210 basis points to 27.7%, benefiting from the absence of prior year acquisition-related charges.
- 3Operating profit surged by 63% to $629 million, driven by a 10% decrease in SG&A expenses and a 42% increase in equity method investment net earnings.
- 4Diluted Earnings Per Share (EPS) grew significantly to $0.47 from $0.29 in the prior year period.
- 5Climate Solutions Americas segment demonstrated strong performance with a 9% increase in net sales and a 34% increase in segment operating profit.
- 6The company repurchased $1.3 billion of common stock during the quarter, continuing its aggressive share buyback program.
- 7Total debt decreased by $1.0 billion to $11.2 billion, reflecting a continued focus on deleveraging.