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 third-quarter 2025 financial performance was marked by a 4% decline in organic sales, a 21% decrease in adjusted operating profit, and a 13% decrease in adjusted EPS. The company's actual EPS came in at $0.67, beating estimates of $0.634. The revenue decline was largely attributed to North American residential softness, which created a $500 million sales challenge and a $0.20 to $0.25 adjusted EPS headwind. However, the commercial HVAC business in the Americas performed well, with a 30% increase in sales. The company's free cash flow was $225 million, and it revised its 2025 guidance, expecting $22 billion in sales.
Publication Date: Oct -29
The company's segment performance was mixed, with CSA organic sales declining 8%, driven by a 30% decline in residential sales, while commercial sales grew 30%. CSC organic sales were down low single digits, while CSAME declined 2%, and CST grew 6%. The company's data center business was a bright spot, with sales up about 250% and a backlog of $1 billion expected to be realized this year.
The company expects a difficult compare in the first half of 2026, particularly in CSA residential, but anticipates cost actions to provide a $0.10 carryover adjusted EPS tailwind and a 100 basis point benefit from a lower tax rate. For 2026, the company guides for low single-digit sales growth and a mid-single-digit price increase. Analysts estimate next year's revenue growth at 5.7%. The company's restructuring efforts focus on indirect headcount, aiming to remove 3,000 heads and maintain structural cost savings.
Carrier's current valuation metrics indicate a P/E Ratio of 12.52, P/B Ratio of 3.36, and EV/EBITDA of 19.65. The company's ROE is 27.71%, and its ROIC is 5.48%. The Net Debt / EBITDA ratio is 3.52. These metrics suggest that the market is pricing in a moderate growth outlook for the company.
The company has taken steps to balance production levels with labor reductions, aiming to meet expected demand in the first quarter of the year. Field inventory levels are expected to decrease by 30% year-over-year by the end of the year. The company has invested heavily in capacity, increasing its water-cooled chiller capacity by 4x and air-cooled chiller capacity by 3x in North America since 2023, enabling it to gain share in commercial HVAC, particularly in data centers.
Carrier Global Corporation (CARR) Presents at Goldman Sachs Industrials and Materials Conference 2025 Transcript
Dec -04
Carrier Board of Directors Announces Increase in Quarterly Dividend to $0.24 per Share
Dec -03
Market Today: Stocks Rise on Fed Cut Bets; Alphabet, Apple Hit Records
Nov -25
Bank Julius Baer & Co. Ltd Zurich Lowers Stock Position in Carrier Global Corporation $CARR
Nov -23
Bahl & Gaynor Inc. Acquires 317,920 Shares of Carrier Global Corporation $CARR
Nov -23
Carrier to Present at Goldman Sachs 2025 Industrials and Materials Conference
Nov -20
Carrier Global Corporation $CARR Shares Bought by AE Wealth Management LLC
Nov -14
ABN Amro Investment Solutions Makes New Investment in Carrier Global Corporation $CARR
Nov -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: 6.8
Quality: 7.2
Yield: 4.0
Momentum: 5.0
Volatility: 10.0
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Value: 2.5
Growth: 4.8
Quality: 6.4
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Volatility: 9.7
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Value: 2.9
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Value: 2.8
Growth: 5.1
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Yield: 6.0
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Value: 4.0
Growth: 8.0
Quality: 5.2
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Value: 3.8
Growth: 4.3
Quality: 5.6
Yield: 3.0
Momentum: 1.5
Volatility: 7.0
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