01—Abstract
Summary
Summary of the 10-Q filed July 29, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 millionb. 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%c 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.
02—Key points
Key Highlights
- Total net sales increased 3% to $6.1 billion for the second quarter of 2025 compared to the prior year, with organic sales growing 6%.
- Gross 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.
- Operating profit grew 25% to $903 million, reflecting strong sales performance and improved gross margins.
- Net 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.
- The Climate Solutions Americas segment was a key driver of growth, with net sales up 14% and segment operating profit up 23% year-over-year.
- The 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.
- Carrier Global announced a new $500 million Euro-denominated commercial paper program supported by its existing revolving credit facility.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 29, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $6.11B$5.93B | +3.0% |
| R&D Expenses | $161.00M$160.00M | +0.6% |
| SG&A Expenses | $813.00M$789.00M | +3.0% |
| Operating Expenses | $5.32B$5.31B | +0.2% |
| Operating Income | $903.00M$724.00M | +24.7% |
| Net Income | $591.00M$2.34B | −74.7% |
| EPS (Basic) | $0.69$2.59 | −73.4% |
| EPS (Diluted) | $0.68$2.55 | −73.3% |
| Shares Outstanding (Basic) | 854.90M902.40M | −5.3% |
| Shares Outstanding (Diluted) | 866.30M915.30M | −5.4% |
05—Questions
Frequently Asked Questions
What drove the increase in Net Sales for the second quarter of 2025?
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.
How did the company's profitability change in the second quarter?
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.
What is the outlook for the Climate Solutions segments?
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%.
How is the company managing its debt and liquidity?
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.
06—Continue