GICS Sector : Industrials
Carrier Global Corporation provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies worldwide.It operates through three segments: HVAC, Refrigeration, and Fire & Security.The HVAC segment provides products, controls, services, and solutions to meet the heating, cooling, and ventilation needs of residential and commercial customers.
Carrier's 2025 revenue was $22 billion, with organic sales down 1% due to weakness in short-cycle businesses, while commercial HVAC and aftermarket segments showed double-digit growth. The company's adjusted operating profit and free cash flow were not disclosed, but it distributed $3.7 billion to shareholders through buybacks and dividends. For 2026, Carrier expects flat to low mid-single-digit organic growth, with reported sales of approximately $22 billion and adjusted operating profit of about $3.4 billion. The company's Q1 2026 outlook indicates total revenue around $5 billion, with organic revenue down high single digits, and adjusted EPS of about $0.50.
Publication Date: Feb -08
In 2025, Carrier's segment performance varied, with CSA organic sales down 17% in Q4, while commercial HVAC grew 12%. CSE organic sales were down 2%, with commercial up mid-single digits. For 2026, the company expects CSA and CSE to be up low single digits, while CSAME and CST are expected to be about flat. David Gitlin noted that the guidance assumes industry conditions similar to last year, with a 30% decline in industry units, and a low single-digit benefit from pricing.
Carrier's CSA segment is expected to achieve margins of around 15% in Q1, driven by higher sales and improved performance. Patrick Goris stated that resi sales are expected to decline by 20-25% in Q1, less severe than the 40% decline in Q4. The company has taken out structural costs, including reducing 3,000 heads, and is using AI to drive productivity, targeting a $100 million increase in operating profit.
Analysts estimate next year's revenue growth at 4.7%. The current P/E Ratio is 35.93, indicating a relatively high valuation. The EV/EBITDA ratio is 23.17, suggesting that the company's enterprise value is about 23 times its EBITDA. The ROE is 10.5%, indicating a decent return on equity. The actual EPS came out at $0.34, relative to estimates at $0.3749, indicating a slight miss.
Carrier Global Corporation $CARR Shares Sold by Broderick Brian C
Feb -20
Ameritas Advisory Services LLC Decreases Stock Holdings in Carrier Global Corporation $CARR
Feb -20
Carrier Global Sees Unusually High Options Volume (NYSE:CARR)
Feb -20
Carrier Global Corporation (CARR) Presents at Citi's Global Industrial Tech & Mobility Conference 2026 Transcript
Feb -19
Carrier Global Corporation (CARR) Presents at Barclays 43rd Annual Industrial Select Conference Transcript
Feb -19
20,904 Shares in Carrier Global Corporation $CARR Purchased by Caprock Group LLC
Feb -15
Carrier Global’s Quiet Dividend Strategy Deserves Attention
Feb -14
Cibc World Market Inc. Boosts Holdings in Carrier Global Corporation $CARR
Feb -14
The HVAC segment is expected to grow at a rate higher than the global average due to increasing demand for energy-efficient systems, driven by government regulations and growing construction activities in emerging markets. The segment's diversified product portfolio and strong brand presence are expected to drive growth.
The Refrigeration segment is expected to grow at a rate slightly higher than the global average due to increasing demand for refrigeration solutions in emerging markets, driven by growing food retail and pharmaceutical industries. The segment's diversified product portfolio and strong brand presence are expected to drive growth.
The Eliminations and Other segment is expected to grow at the global average rate, as it is not directly related to the company's operational performance. The segment's results are expected to be stable, with minimal changes in the elimination of intercompany transactions and other miscellaneous items.
Carrier Global Corporation offers a wide range of HVAC systems for residential, commercial, and industrial applications, including air conditioners, heat pumps, furnaces, and boilers.
Carrier provides refrigeration systems for supermarkets, convenience stores, and restaurants, including display cases, walk-in coolers, and refrigeration units.
Carrier offers transport refrigeration systems for trucks, trailers, and containers, ensuring the safe transportation of perishable goods.
Carrier's cold chain monitoring solutions provide real-time temperature monitoring and tracking for perishable goods during transportation and storage.
Carrier's building automation systems integrate HVAC, lighting, and security systems to optimize energy efficiency and building performance.
Carrier offers fire detection and suppression systems, as well as security solutions, including access control and video surveillance.
Carrier Global Corporation's products and services have some substitutes, but they are not easily replaceable. The company's brand reputation and customer loyalty mitigate the threat of substitutes.
Carrier Global Corporation's customers have limited bargaining power due to the company's diversified product portfolio and strong brand presence.
Carrier Global Corporation's suppliers have some bargaining power due to the company's dependence on certain raw materials and components. However, the company's scale and diversification mitigate this threat.
The threat of new entrants is low due to the high barriers to entry in the HVAC and refrigeration industries, including significant capital requirements and regulatory hurdles.
The HVAC and refrigeration industries are highly competitive, with several established players competing for market share. Carrier Global Corporation must continuously innovate and improve its products and services to maintain its market position.
| Value | |
|---|---|
| Debt Weight | 62.86% |
| Debt Cost | 3.95% |
| Equity Weight | 37.14% |
| Equity Cost | 9.99% |
| WACC | 6.19% |
| Leverage | 169.23% |
Value: 2.0
Growth: 6.7
Quality: 7.1
Yield: 5.0
Momentum: 3.5
Volatility: 10.0
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Value: 2.8
Growth: 4.9
Quality: 6.5
Yield: 4.0
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Yield: 6.0
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Volatility: 9.3
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Value: 2.1
Growth: 9.0
Quality: 5.7
Yield: 2.0
Momentum: 7.0
Volatility: 4.3
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Value: 3.8
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Value: 3.9
Growth: 4.3
Quality: 5.8
Yield: 3.0
Momentum: 2.5
Volatility: 7.3
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