10-QPeriod: Q2 FY2025

CARRIER GLOBAL Corp Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 29, 2025For Securities:CARR

Summary

Carrier Global Corp. reported solid revenue growth for the second quarter of 2025, driven primarily by its Climate Solutions Americas segment. Total net sales increased by 3% year-over-year, reaching $6.1 billion, with organic sales up 6%. This growth was supported by strong volumes and pricing actions, which also contributed to a significant 12% increase in gross margin, expanding to 28.9% of net sales. Despite some headwinds in the Asia Pacific and Transportation segments, the company demonstrated operational resilience. Profitability saw a substantial improvement, with operating profit rising 25% to $903 million. This was bolstered by the favorable impact of the prior year's inventory step-up and backlog amortization from the Viessmann acquisition now being fully amortized. While net earnings attributable to common shareholders decreased by 75% due to the absence of significant gains from discontinued operations in the prior year, the core business demonstrated strong underlying performance. The company continues to focus on strategic portfolio management and operational efficiency, which is reflected in its robust adjusted operating profit.

Financial Highlights

50 data points
Beta

Revenue

$6.11B

Net Income

$591.00M

9.7% Net Margin

EPS (Diluted)

$0.68

Total Assets

$38.49B

Cash & Equivalents

$1.80B

Free Cash Flow

$649.00M

Financial Statements
Beta
Revenue$6.11B
R&D Expenses$161.00M
SG&A Expenses$813.00M
Operating Expenses$5.32B
Operating Income$903.00M
Net Income$591.00M
EPS (Basic)$0.69
EPS (Diluted)$0.68
Shares Outstanding (Basic)854.90M
Shares Outstanding (Diluted)866.30M

Key Highlights

  • 1Total net sales increased 3% to $6.1 billion for the second quarter of 2025 compared to the prior year, with organic sales growing 6%.
  • 2Gross margin improved significantly, increasing 12% to $1.8 billion, and expanded 240 basis points to 28.9% of net sales, benefiting from the full amortization of prior year acquisition-related costs and pricing initiatives.
  • 3Operating profit grew 25% to $903 million, reflecting strong sales performance and improved gross margins.
  • 4Net earnings attributable to common shareholders declined 75% to $591 million, primarily due to the significant gains from discontinued operations in the prior year's quarter.
  • 5The Climate Solutions Americas segment was a key driver of growth, with net sales up 14% and segment operating profit up 23% year-over-year.
  • 6The company maintained a strong liquidity position with $1.8 billion in cash and cash equivalents as of June 30, 2025, and no outstanding borrowings under its revolving credit facility.
  • 7Carrier Global announced a new $500 million Euro-denominated commercial paper program supported by its existing revolving credit facility.

Frequently Asked Questions

Net sales increased by 3% to $6.1 billion, driven by a 6% organic sales growth, largely attributable to strong volume increases and pricing actions in the Climate Solutions Americas segment. While other segments faced mixed demand, the overall performance reflects robust end-market demand in key regions.

Gross margin increased by 12% and expanded by 240 basis points to 28.9% of net sales, benefiting from the absence of prior year inventory step-up and backlog amortization related to the Viessmann acquisition, along with ongoing customer demand and productivity initiatives. Operating profit rose by 25% to $903 million. Net earnings attributable to common shareholders decreased by 75% to $591 million, mainly due to the lapping of substantial gains from discontinued operations in the prior year's quarter.

The Climate Solutions Americas segment showed strong performance with a 14% increase in net sales and a 23% rise in segment operating profit. Climate Solutions Europe saw a 5% net sales increase but flat organic sales, with segment operating profit up 6%. Climate Solutions Asia Pacific, Middle East & Africa experienced a 2% net sales decrease due to volume reductions, impacting segment operating profit negatively. Climate Solutions Transportation saw a significant 25% net sales decrease, primarily due to divestitures, with segment operating profit down 7%.

Carrier Global maintained a strong liquidity position with $1.8 billion in cash and cash equivalents as of June 30, 2025. The company has no outstanding borrowings under its $2.5 billion revolving credit facility and recently established a $500 million Euro-denominated commercial paper program. Significant debt repayments were made in the first half of 2025, contributing to a reduction in the net debt to net capitalization ratio.