Carrier's Q3 Sales Dip, Profit Mixed Amid Portfolio Reshuffle

TL;DR

**Carrier's sales are down, but their strategic pivot and share buybacks signal a focused, albeit expensive, bet on climate solutions that could pay off long-term.**

AI Summary

CARRIER GLOBAL Corp (CARR) reported a mixed financial performance for the three and nine months ended September 30, 2025. Total net sales decreased by 6.8% to $5,579 million for the three months ended September 30, 2025, compared to $5,984 million in the prior year, and by 2.5% to $16,910 million for the nine months ended September 30, 2025, from $17,338 million in 2024. Net earnings attributable to common shareowners saw a slight decrease of 4.3% to $428 million for the three-month period, down from $447 million, and a significant drop of 53.1% to $1,431 million for the nine-month period, compared to $3,053 million in 2024, largely due to the absence of the substantial discontinued operations gain seen in 2024. Operating profit, however, increased by 10.6% to $2,071 million for the nine months ended September 30, 2025, from $1,872 million in 2024. The company's portfolio transformation, including the acquisition of Viessmann's climate solutions business on January 2, 2024, and divestitures of Fire & Security and Commercial Refrigeration businesses, has reshaped its operational segments into a pure-play climate and energy solutions provider. Cash and cash equivalents decreased significantly from $3,969 million at December 31, 2024, to $1,423 million at September 30, 2025, primarily due to substantial share repurchases totaling $2,413 million during the nine-month period.

Why It Matters

For investors, Carrier's strategic pivot to a pure-play climate and energy solutions provider, highlighted by the Viessmann acquisition and divestitures, is a long-term play for market leadership in sustainable solutions. While net sales declined, the increase in nine-month operating profit suggests improved core business efficiency post-transformation. Employees may see shifts in focus and resource allocation towards HVAC and cold chain technologies. Customers benefit from a more focused product offering and potentially enhanced innovation in climate solutions. The broader market will observe how Carrier's streamlined portfolio competes against rivals like Trane Technologies and Johnson Controls in the rapidly evolving green building and energy efficiency sectors, setting a precedent for industry consolidation and specialization.

Risk Assessment

Risk Level: medium — The significant decrease in cash and cash equivalents from $3,969 million to $1,423 million, coupled with $2,413 million in share repurchases, indicates aggressive capital deployment which could limit financial flexibility. While operating profit for continuing operations increased, the overall net earnings decline for the nine-month period due to discontinued operations highlights the volatility associated with major portfolio transformations.

Analyst Insight

Investors should monitor Carrier's integration of the Viessmann business and its ability to generate organic growth in its new core segments. The aggressive share repurchase program suggests management confidence, but also scrutinize debt levels and cash flow generation to ensure sustainable returns. Consider this a long-term hold for exposure to climate solutions, but be aware of short-term integration and market risks.

Financial Highlights

revenue

$16,910 million

operating Margin

12.25%

net Income

$1,431 million

eps

$1.65

cash Position

$1,423 million

revenue Growth

-2.5%

Revenue Breakdown

Key Numbers

• $5.58B — Total Net Sales (Decreased 6.8% for the three months ended September 30, 2025, to $5,579 million from $5,984 million in 2024.)
• $16.91B — Total Net Sales (Decreased 2.5% for the nine months ended September 30, 2025, to $16,910 million from $17,338 million in 2024.)
• $428M — Net Earnings Attributable to Common Shareowners (Decreased 4.3% for the three months ended September 30, 2025, from $447 million in 2024.)
• $1.43B — Net Earnings Attributable to Common Shareowners (Decreased 53.1% for the nine months ended September 30, 2025, from $3,053 million in 2024, primarily due to discontinued operations.)
• $2.07B — Operating Profit (Increased 10.6% for the nine months ended September 30, 2025, from $1,872 million in 2024.)
• $1.42B — Cash and Cash Equivalents (Decreased from $3,969 million at December 31, 2024, to $1,423 million at September 30, 2025.)
• $2.41B — Repurchases of Common Stock (Total repurchases for the nine months ended September 30, 2025.)
• 842.2M — Shares of Common Stock Outstanding (As of October 15, 2025.)

Key Players & Entities

• CARRIER GLOBAL Corp (company) — registrant
• Viessmann Group GmbH & Co. KG (company) — acquired company
• United Technologies Corporation (company) — former parent company
• RTX Corporation (company) — renamed former parent company
• Otis Worldwide Corporation (company) — spin-off company
• SEC (regulator) — Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• $5,579 million (dollar_amount) — Total Net sales for three months ended September 30, 2025
• $1,423 million (dollar_amount) — Cash and cash equivalents as of September 30, 2025
• $2,413 million (dollar_amount) — Repurchases of common stock for nine months ended September 30, 2025

FAQ

Risk Factors

• Portfolio Transformation and Integration Risks [high — operational]: The company has undergone significant portfolio changes, including the acquisition of Viessmann's climate solutions business and divestitures of other segments. Integrating these new operations and realizing expected synergies presents operational challenges and risks. Failure to effectively manage these integrations could impact financial performance and strategic objectives.
• Market Demand and Competition in Climate Solutions [high — market]: The climate and energy solutions market is subject to evolving customer preferences, technological advancements, and intense competition. Changes in global demand for HVAC and refrigeration products, driven by economic conditions, regulatory mandates, and consumer trends, can significantly affect sales and profitability. The company faces competition from established players and new entrants.
• Environmental Regulations and Compliance [medium — regulatory]: The climate solutions industry is heavily influenced by environmental regulations related to energy efficiency, refrigerants, and emissions. Changes in these regulations, both domestically and internationally, can require significant product redesigns, increased compliance costs, and potential market access restrictions. Failure to adapt to new regulatory requirements could negatively impact the business.
• Impact of Share Repurchases on Liquidity [medium — financial]: Significant share repurchases totaling $2,413 million during the nine months ended September 30, 2025, led to a substantial decrease in cash and cash equivalents from $3,969 million to $1,423 million. While intended to return value to shareholders, this reduction in liquidity could limit financial flexibility for future investments or acquisitions, especially in a dynamic market.
• Interest Rate Sensitivity [medium — financial]: The company's net interest expense was $(270) million for the nine months ended September 30, 2025. Fluctuations in interest rates can impact the cost of borrowing and the company's overall profitability, particularly given the significant debt financing that may be associated with acquisitions and ongoing operations.

Industry Context

Carrier Global operates in the climate and energy solutions sector, a market driven by increasing demand for energy efficiency, sustainability, and smart building technologies. The industry is characterized by significant R&D investment, evolving regulatory landscapes (e.g., refrigerant phase-downs, energy standards), and intense competition from global players. The recent acquisition of Viessmann's climate solutions business positions Carrier as a leading pure-play entity in this evolving space.

Regulatory Implications

The company faces stringent environmental regulations globally concerning energy efficiency standards and the use of refrigerants. Compliance with these evolving mandates, such as the transition to lower global warming potential refrigerants, requires continuous product innovation and investment, posing potential compliance costs and market access risks if not managed effectively.

What Investors Should Do

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Key Dates

• 2024-01-02: Acquisition of Viessmann's climate solutions business — This strategic acquisition significantly reshaped Carrier's business, positioning it as a pure-play climate and energy solutions provider and impacting its revenue and operational structure.
• 2025-09-30: End of the nine-month reporting period — Key financial results for the period, including decreased net sales, a significant drop in net earnings (due to discontinued operations comparison), but an increase in operating profit, were reported.
• 2025-10-15: Shares of Common Stock Outstanding reported — As of this date, there were 842.2 million shares outstanding, reflecting the impact of share repurchase programs.

Glossary

Discontinued operations

Represents the results of business segments that have been divested or are held for sale. Their financial impact is reported separately from continuing operations. (The significant decrease in net earnings for the nine months ended September 30, 2025, compared to 2024, is largely attributed to the absence of a substantial gain from discontinued operations in the prior year.)

Operating profit

Profit generated from a company's normal business operations before interest and taxes. It reflects the core profitability of the business. (Operating profit increased by 10.6% to $2,071 million for the nine months ended September 30, 2025, indicating improved performance from ongoing business activities despite lower overall net sales.)

Equity method investment net earnings

The portion of net earnings from investments in other companies where the investor has significant influence but not control, recognized as income. (These earnings contributed positively, though slightly decreased, to the overall results for both the three and nine-month periods.)

Non-controlling interest

The portion of equity in a subsidiary that is not attributable to the parent company. It represents the ownership stake of outside shareholders. (This line item reflects the share of net earnings and comprehensive income attributable to other shareholders in consolidated subsidiaries.)

Weighted-average number of shares outstanding

The average number of shares of common stock outstanding during a period, adjusted for the timing of share issuances or repurchases. (This metric is crucial for calculating earnings per share (EPS) and shows a decrease from 901.2 million (basic) in the three months ended Sep 30, 2024, to 848.8 million in 2025, reflecting share repurchases.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Carrier Global Corp. reported a 2.5% decrease in total net sales, falling to $16,910 million from $17,338 million. While net earnings attributable to common shareowners saw a substantial 53.1% drop to $1,431 million (largely due to the prior year's gain from discontinued operations), operating profit demonstrated resilience, increasing by 10.6% to $2,071 million. Cash and cash equivalents have significantly decreased from $3,969 million at year-end 2024 to $1,423 million, primarily driven by aggressive share repurchases totaling $2,413 million.

Key Financial Figures

• $0.01 — ange on which registered Common Stock ($0.01 par value) CARR New York Stock Exchange

Filing Documents

• carr-20250930.htm (10-Q) — 2012KB
• q3202510-qexhibit311.htm (EX-31.1) — 10KB
• q3202510-qexhibit312.htm (EX-31.2) — 10KB
• q3202510-qexhibit313.htm (EX-31.3) — 10KB
• q3202510qexhibit32.htm (EX-32) — 8KB
• 0001783180-25-000066.txt ( ) — 10655KB
• carr-20250930.xsd (EX-101.SCH) — 57KB
• carr-20250930_cal.xml (EX-101.CAL) — 120KB
• carr-20250930_def.xml (EX-101.DEF) — 320KB
• carr-20250930_lab.xml (EX-101.LAB) — 739KB
• carr-20250930_pre.xml (EX-101.PRE) — 540KB
• carr-20250930_htm.xml (XML) — 1915KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements: 3 Condensed Consolidated Statement of Operations (Unaudited) 3 Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited) 4 Condensed Consolidated Balance Sheet (Unaudited) 5 Condensed Consolidated Statement of Changes in Equity (Unaudited) 6 Condensed Consolidated Statement of Cash Flows (Unaudited) 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 50

Controls and Procedures

Item 4. Controls and Procedures 50

– OTHER INFORMATION

PART II – OTHER INFORMATION 53

Legal Proceedings

Item 1. Legal Proceedings 53

Risk Factors

Item 1A. Risk Factors 53

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53

Other Information

Item 5. Other Information 53

Exhibits

Item 6. Exhibits 54

SIGNATURES

SIGNATURES 55 Carrier Global Corporation and its subsidiaries' names, abbreviations thereof, logos and product and service designators are all either the registered or unregistered trademarks or trade names of Carrier Global Corporation and its subsidiaries. Names, abbreviations of names, logos and products and service designators of other companies are either the registered or unregistered trademarks or trade names of their respective owners. As used herein, the terms "we," "us," "our," "the Company" or "Carrier," unless the context otherwise requires, mean Carrier Global Corporation and its subsidiaries. References to internet websites in this Form 10-Q are provided for convenience only. Information available through these websites is not incorporated by reference into this Form 10-Q. 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CARRIER GLOBAL CORPORATION CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share amounts) 2025 2024 2025 2024 Net sales Product sales $ 4,906 $ 5,307 $ 15,035 $ 15,460 Service sales 673 677 1,875 1,878 Total Net sales 5,579 5,984 16,910 17,338 Costs and expenses Cost of products sold ( 3,656 ) ( 3,796 ) ( 10,881 ) ( 11,245 ) Cost of services sold ( 474 ) ( 511 ) ( 1,366 ) ( 1,456 ) Research and development ( 151 ) ( 172 ) ( 465 ) ( 524 ) Selling, general and administrative ( 803 ) ( 799 ) ( 2,345 ) ( 2,394 ) Total Costs and expenses ( 5,084 ) ( 5,278 ) ( 15,057 ) ( 15,619 ) Equity method investment net earnings 60 66 182 187 Other income (expense), net ( 16 ) ( 9 ) 36 ( 34 ) Operating profit 539 763 2,071 1,872 Non-service pension (expense) benefit ( 9 ) ( 1 ) ( 8 ) ( 1 ) Interest (expense) income, net ( 97 ) 8 ( 270 ) ( 290 ) Earnings before income taxes 433 770 1,793 1,581 Income tax (expense) benefit 1 ( 172 ) ( 272 ) ( 339 ) Earnings from continuing operations 434 598 1,521 1,242 Discontinued operations, net of tax 21 ( 117 ) 4 1,897 Net earnings (loss) 455 481 1,525 3,139 Less: Non-controlling interest in subsidiaries' 27 34 94 86 Net earnings (loss) attributable to common shareowners $ 428 $ 447 $ 1,431 $ 3,053 Amounts attributable to common shareowners: Continuing operations $ 407 $ 564 $ 1,427 $ 1,156 Discontinued operations 21 ( 117 ) 4 1,897 Net earnings (loss) attributable to common shareowners $ 428 $ 447 $ 1,431 $ 3,053 Earnings per share Basic: Continuing operations $ 0.48 $ 0.63 $ 1.67 $ 1.28 Discontinued operations 0.02 ( 0.13 ) — 2.11 Net earnings (loss) $ 0.50 $ 0.50 $ 1.67 $ 3.39 Diluted: Continuing operations $ 0.47 $ 0.62 $ 1.64 $ 1.26 Discontinued operations 0.03 ( 0.13 ) 0.01 2.08 Net earnings (loss) $ 0.50 $ 0.49 $ 1.65 $ 3.34 Weighted-average number of shares outstanding