Carrier Global Corporation

What they do

Carrier designs, manufactures and services heating, cooling, ventilation and cold chain equipment under brands including Carrier, Viessmann, Toshiba, Automated Logic and Carrier Transicold. It sells products and controls, services and system solutions for residential, commercial, data center and transport applications, both directly to contractors and owners and through distributors, dealers and retail outlets. Services include audit, design, installation, system integration, repair, maintenance and monitoring. For 2025, new equipment was 72% of net sales and parts and service 28%, with international operations including U.S. exports at roughly 52% of net sales.

Revenue drivers

• Climate Solutions Americas (CSA) — Largest segment; Q2 2026 net sales of $3,372 million, 4% organic growth, with residential and light commercial up 9% and 10% but commercial down 8% on customer delivery timing. Segment operating margin was 24.4%.
• Climate Solutions Europe (CSE) — Q2 2026 net sales of $1,324 million, up 6% reported and 3% organic, with residential and light commercial up high-single digits and commercial down mid-single digits. Segment operating margin was 7.2%; includes the Viessmann climate solutions business acquired January 2, 2024.
• Climate Solutions Asia Pacific, Middle East & Africa (CSAME) — One of the three regional HVAC segments created in the May 2025 reorganization; it supplies heating, cooling and ventilation products, controls and services on a regional basis and was cited as a driver of the Q2 GAAP operating profit decline.
• Climate Solutions Transportation (CST) — Transport refrigeration segment selling under Carrier Transicold; the Commercial Refrigeration business historically reported in this segment was divested in 2024.

Recent performance

Second-quarter 2026 net sales were $6,351 million, up 4% with organic sales up 3%, and total company orders rose 40% with commercial HVAC orders up 65% and data center orders up 300%. GAAP operating profit fell 9% to $825 million and adjusted operating margin fell 190 basis points to 17.2%, mainly from higher input costs and unfavorable business mix. GAAP EPS from continuing operations was $0.60 and adjusted EPS $0.86, down 14% and 7% year over year on lower operating profit and a higher effective tax rate. Operating cash flow was $927 million and free cash flow $810 million, and the company returned $640 million to shareholders. Full-year 2025 net sales were $21,750 million with net income of $1,480 million and diluted EPS of $1.72.

Strategy

Carrier has repositioned itself as a pure-play climate and energy solutions provider, acquiring the Viessmann climate solutions business in January 2024 and divesting the Fire & Security businesses and Commercial Refrigeration during 2024. In May 2025 it reorganized into four segments: Climate Solutions Americas, Europe, Asia Pacific/Middle East/Africa and Transportation. It is investing in digital and lifecycle offerings, including the Carrier Energy business focused on home energy management, grid flexibility and aftermarket parts and service. It has agreed to sell the Riello business to Ariston Group for expected gross proceeds of about $430 million, a transaction expected to close in the first half of 2026, and announced an exit from NORESCO. It mitigated 2025 tariffs through supply-chain adjustments, productivity and roughly $200 million of incremental pricing.

Risks

• Input costs and tariffs — Q2 2026 adjusted operating margin fell 190 basis points largely on increased input costs, and management is deploying cost containment to limit future tariff exposure.
• International operations exposure — International operations including U.S. exports were about 52% of 2025 net sales, exposing results to currency, regional economic and trade policy shifts.
• Segment concentration and cyclical demand — CSA produced $3,372 million of Q2 2026 sales, and CSA commercial sales fell 8% on delivery timing, showing sensitivity to construction and customer spending cycles.
• Acquisition and divestiture execution — Carrier has undertaken large transactions including the Viessmann acquisition, the Fire & Security divestitures and the pending Riello sale, which carry integration and separation risk.

Outlook

Management raised its full-year 2026 outlook to about $23 billion of sales, $3.5 billion of adjusted operating profit and $2.90 of adjusted EPS, citing record backlog and year-to-date performance. The outlook includes a $0.05 adjusted EPS impact from the NORESCO exit and new U.S. factory costs. Management described improving residential and light commercial markets in CSA and CSE as encouraging and cited continued data center demand.