Carrier Reports Third Quarter 2026 Results
Signed LTAs valued at multiple billions of dollars with minimum volume commitments • Total company orders 1 up ~35%; Commercial HVAC 1 up ~60%; data centers up ~300%
• Net cash flows from operating activities of $813 million and free cash flow of $674 million
– Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported financial results for the third quarter of 2026.
“We delivered strong third quarter performance, with orders, sales and adjusted EPS all up between 15% and 35%, with very strong free cash flow,” said Chairman & CEO David Gitlin. "Organic orders were up ~35%, with data center orders up ~300%, resulting in over $8.5 billion of backlog, up 60% versus last year, reflecting continued strong demand for our differentiated solutions. W e expect to deliver double-digit organic sales and adjusted EPS growth in 2026, while record backlog levels give us confidence to sustain this momentum into 2027 and beyond." 1 Excludes NORESCO
2 GAAP results include a goodwill impairment charge and IEEPA refunds; Adjusted EPS includes a ~$0.10 benefit from IEEPA refunds net of ~($0.02) NCI impact 1
n.m. = not meaningful Carrier’s third quarter sales of $6.3 billion increased 12% compared to the prior year. Organic sales increased 15%, and divestitures were a headwind of 3%.
GAAP operating loss of ($2,273) million in the quarter decreased from last year, with growth in all segments offset by a goodwill impairment charge.
Adjusted operating profit of $1,091 million in the quarter increased 33% with growth in all segments.
Adjusted operating margin of 17.4% was up 260 basis points from last year, predominantly due to favorable volume and price partially offset by the impact of increased input costs and tariffs.
The company recorded approximately $130 million of operating profit benefit from IEEPA refunds.
Net loss from continuing operations was ($2,593) million and adjusted net earnings from continuing operations were $713 million. GAAP EPS from continuing operations was ($3.16) and adjusted EPS was $0.87. The increase in adjusted EPS was primarily driven by higher operating profit and the benefits of a lower share count, partially offset by a higher effective tax rate and higher non- controlling interest related to the IEEPA refunds. 2
CSA segment sales grew 24%. Organic sales were up 25%, driven by strong Residential and Commercial 1 performance, up over 30% and 25%, respectively.
Segment operating margin expanded 250 basis points from the benefit of ~$120 million of IEEPA refunds and organic growth, partially offset by increased input costs and tariffs.
CSE segment sales increased 3% with strong organic sales growth of 12% offset by a 7% net headwind from divestitures and a 2% headwind from currency. Residential and Light Commercial (RLC) sales increased low-teens and Commercial grew high- single digits. Strong demand in residential heat pumps and air conditioning continued, with sales up ~35% each, more than offsetting high-single digit declines in boilers. 1 Excludes NORESCO 3 Segment operating margin increased 330 basis points with strong organic revenue growth and a ~100 basis point net benefit from the correction of a prior period item offset by increases in inventory-related reserves.
CSAME segment sales increased 2%. Organic sales were up 3% driven by strong growth in Commercial, up 10%, partially offset by a mid-single digit decline in RLC.
CST sales decreased 3% as continued growth in Container was more than offset by Truck and Trailer.
Segment operating margin increased 70 basis points driven by the benefits from IEEPA refunds partially offset by lower volumes. 4
Net cash flows generated from operating activities were $813 million, and capital expenditures were $139 million, resulting in free cash flow of $674 million.
During Q3, the company recorded a non-cash goodwill impairment charge of $3.1 billion related to its Climate Solutions Europe reporting unit. 5
Supported by a differentiated product portfolio, record backlog, minimum volume commitments under long-term agreements, and continued recovery in RLC end markets, Carrier now expects sales of nearly $24 billion, with organic growth of approximately 10%. The company remains vigilant in navigating industry-wide macro pressures, including tariffs and increasing input costs, and expects to return to shareowners approximately $2.3 billion through dividends and share repurchases.
Current Guidance** Prior Guidance $23.8 to $24.0 billion ~$23 billion Organic* up ~10% Organic* up ~M-HSD Sales FX 1% FX 1% Net, Acquisitions / Net, Acquisitions / Divestitures (2%) Divestitures (2%) Adjusted Operating ~$3.5 billion ~$3.5 billion Profit* Adjusted EPS* $2.85 to $2.90 ~$2.90 Free Cash Flow* ~$2 billion ~$2 billion
Riello divestiture completed on July 1. NORESCO divestiture completed on August 3.
~$225 million and ~$125 million year-over-year revenue headwind from Riello and NORESCO exits, respectively.
*Note: When the company provides expectations for organic sales, adjusted operating profit, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See “Use and Definitions of Non-GAAP Financial Measures” below for additional information.
Carrier will host a webcast of its earnings conference call today, Thursday, October 29, 2026, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site. For alternative dial-in information, please contact Carrier investor relations at InvestorRelations@Carrier.com. 6
This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, expectations relating to our sales backlog, commitments by us and our customers under long-term agreements, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, market conditions including with respect to residential end-markets, data center and otherwise, growth prospects for 2026 and beyond, expectations concerning the mitigation and net impact of tariffs during 2026, Carrier's guidance for full-year 2026, Carrier's plans with respect to our indebtedness and other statements that are not historical facts. All forward- looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation, those described below and under the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and in subsequent reports that we file with the SEC: the effect of economic conditions in the industries and markets in which Carrier and our businesses operate in the U.S. and globally and any changes therein, including financial market conditions, inflationary cost pressures, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction, the impact of weather conditions, pandemic health issues, natural disasters and the financial condition of our customers and suppliers; challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; future levels of capital spending and research and development spending; future availability of credit and factors that may affect such availability, including credit market conditions and Carrier's capital structure and credit ratings; the timing and scope of future repurchases of Carrier's common stock, including market conditions and the level of other investing activities and uses of cash; delays and disruption in the delivery of materials and services from suppliers; cost reduction efforts and restructuring costs and savings and other consequences thereof; new business and investment opportunities; the outcome of legal proceedings, investigations and other contingencies; the impact of pension plan assumptions on future cash contributions and earnings; the impact of the negotiation of collective bargaining agreements and labor disputes; the effect of changes in political conditions in the U.S. and other countries in which Carrier and our businesses operate, including the effect of ongoing uncertainty and/or changes in U.S. trade policies, on general market conditions, global trade policies, the imposition of tariffs, and currency exchange rates in the near term and beyond; the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which we and our businesses operate; the ability of Carrier to retain and hire key personnel; the scope, nature, impact or timing of acquisition and divestiture activity, such as our acquisition of the VCS 7 business and our portfolio transformation transactions, including among other things integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; a determination by the IRS and other tax authorities that the distribution of Carrier from RTX Corporation (f/k/a United Technologies Corporation) or certain related transactions should be treated as taxable transactions; and risks associated with current and future indebtedness, as well as our ability to reduce indebtedness and the timing thereof. The forward-looking statements speak only as of the date of this communication. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements is disclosed from time to time in our other filings with the SEC.
Carrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating innovations that bring comfort, safety and sustainability to life. Through cutting-edge advancements in climate solutions such as temperature control, air quality and transportation, we improve lives, empower critical industries and ensure the safe transport of food, life-saving medicines and more. Since inventing modern air conditioning in 1902, we lead with purpose: enhancing the lives we live and the world we share. We continue to lead because of our world-class, inclusive workforce that puts the customer at the center of everything we do. For more information, visit carrier.com or follow Carrier on social media at @Carrier .
Kristina.Pantelides@Carrier.com 8 SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS
Following are tables that present selected financial data of Carrier Global Corporation (“Carrier”). Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures.
Carrier reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.
Organic sales, adjusted operating profit, adjusted operating margin, adjusted earnings per share (“EPS”), adjusted effective tax rate and net debt are non- GAAP financial measures and are associated with Carrier's continuing operations unless specifically noted.
Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a nonoperational nature (hereinafter referred to as “other significant items”). Adjusted operating profit represents consolidated operating profit (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of consolidated net sales (a GAAP measure). Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure).
Segment operating profit is the measure of profit and loss that the Chief Operating Decision Maker uses to evaluate segment profitability. Segment operating profit represents operating profit (a GAAP measure) adjusted to exclude restructuring costs, amortization of acquired intangible assets and other significant items of a nonoperational nature.
Free cash flow is a non-GAAP financial measure that represents net cash flows provided by continuing operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Carrier’s ability to fund its activities, including the financing of acquisitions, debt service, repurchases of Carrier's common stock and distribution of earnings to shareowners. Orders are contractual commitments with customers to provide specified goods or services for an agreed upon price and may not be subject to penalty if cancelled.
Price/cost represents the combined impact of realized pricing, cost inflation and productivity actions, including manufacturing efficiencies, sourcing initiatives and certain productivity measures.
When Carrier provides our expectations for organic sales, adjusted operating profit (including on a segment basis), adjusted operating margin (including on a segment basis), adjusted effective tax rate, adjusted EPS, free cash flow, and interest expense, net on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. 9
September 30, December 31, (In millions) (Unaudited) 2026 2025 ────────────────────────────────────────────────────────────────────────────── Assets Cash and cash $ 1,354 $ 1,555 equivalents Accounts receivable, 3,499 2,639 net Inventories, 2,842 2,483 net Assets held — 592 for sale Other current 1,187 1,264 assets Total current 8,882 8,533 assets Future income tax 1,190 1,074 benefits Fixed 3,153 3,165 assets, net Operating lease 532 546 right-of-use assets Intangible 5,536 6,326 assets, net Goodwill 12,209 15,501 Pension and post-retire… 65 56 assets Equity method 1,390 1,321 investments Other assets 637 668 Total Assets $ 33,594 $ 37,190 Liabilities and Equity Accounts $ 3,269 $ 2,702 payable Accrued 4,155 3,774 liabilities Liabilities held for — 170 sale Short-term borrowings and current 1,482 468 portion of long-term debt Total current 8,906 7,114 liabilities Long-term 9,992 11,365 debt Future pension and 184 192 post-retire… obligations Future income tax 1,584 1,833 obligations Operating lease 402 418 liabilities Other long-term 2,105 2,140 liabilities Total 23,173 23,062 Liabilities Equity Common stock 10 10 Treasury -7,953 -6,795 stock Additional paid-in 8,694 8,665 capital Retained 9,942 12,193 earnings Accumulated other comprehensi… -639 -269 income (loss) Non-control… 367 324 interest Total Equity 10,421 14,128 Total Liabilities $ 33,594 $ 37,190 and Equity
(1) During the three and nine months ended September 30, 2026, Carrier reported a net loss from continuing operations attributable to common shareowners. As a result, potentially dilutive shares were excluded from the computation of diluted loss per share because their inclusion would have reduced the loss per share. The inclusion of dilutive shares does not have a significant impact on adjusted diluted earnings per share. 16
Full text with the tables
Exhibit 99
Carrier Reports Third Quarter 2026 Results
Signed LTAs valued at multiple billions of dollars with minimum volume
commitments
• Total company orders 1 up ~35%; Commercial HVAC 1 up ~60%; data centers up
~300%
• Record >$8.5B backlog; LTA minimums additive to backlog
• Net sales up 12%; organic sales up 15%
• GAAP EPS 2 of ($3.16); adjusted EPS 2 of $0.87
• Net cash flows from operating activities of $813 million and free cash flow of
$674 million
• Returned ~$600 million to shareowners through dividends and repurchases
PALM BEACH GARDENS, Fla
.
, Oct. 29, 2026
– Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate
and energy solutions, today reported financial results for the third quarter of
2026.
“We delivered strong third quarter performance, with orders, sales and adjusted
EPS all up between 15% and 35%, with very strong free cash flow,” said Chairman
& CEO David Gitlin. "Organic orders were up ~35%, with data center orders up
~300%, resulting in over $8.5 billion of backlog, up 60% versus last year,
reflecting continued strong demand for our differentiated solutions. W e expect
to deliver double-digit organic sales and adjusted EPS growth in 2026, while
record backlog levels give us confidence to sustain this momentum into 2027 and
beyond."
1 Excludes NORESCO
2 GAAP results include a goodwill impairment charge and IEEPA refunds; Adjusted
EPS includes a ~$0.10 benefit from IEEPA refunds net of ~($0.02) NCI impact
1
Third Quarter 2026 Results
Total Company
(Unaudite…
Three
Months
Ended
(In September
millions) 30 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net sales $ 6,263 $ 5,579 12 %
Organic 15 %
sales
Operating
profit $ -2,273 $ 539 n.m.
(loss)
Operating -36.3 % 9.7 % n.m.
margin
Adjusted
operating $ 1,091 $ 823 33 %
profit
Adjusted
operating 17.4 % 14.8 % 260 bps
margin
Diluted
earnings
(loss)
per
share:
Continui… $ -3.16 $ 0.47 n.m.
operatio…
Continui…
operatio… $ 0.87 $ 0.67 30 %
-
Adjusted
n.m. = not meaningful
Carrier’s third quarter sales of $6.3 billion increased 12% compared to the
prior year. Organic sales increased 15%, and divestitures were a headwind of 3%.
GAAP operating loss of ($2,273) million in the quarter decreased from last year,
with growth in all segments offset by a goodwill impairment charge.
Adjusted operating profit of $1,091 million in the quarter increased 33% with
growth in all segments.
Adjusted operating margin of 17.4% was up 260 basis points from last year,
predominantly due to favorable volume and price partially offset by the impact
of increased input costs and tariffs.
The company recorded approximately $130 million of operating profit benefit from
IEEPA refunds.
Net loss from continuing operations was ($2,593) million and adjusted net
earnings from continuing operations were $713 million. GAAP EPS from continuing
operations was ($3.16) and adjusted EPS was $0.87. The increase in adjusted EPS
was primarily driven by higher operating profit and the benefits of a lower
share count, partially offset by a higher effective tax rate and higher non-
controlling interest related to the IEEPA refunds.
2
Climate Solutions Americas (CSA)
(Unaudite…
Three
Months
Ended
(In September
millions) 30 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net sales $ 3,354 $ 2,711 24 %
Organic 25 %
sales
Segment
operating $ 745 $ 533 40 %
profit
Segment
operating 22.2 % 19.7 % 250 bps
margin
CSA segment sales grew 24%. Organic sales were up 25%, driven by strong
Residential and Commercial 1 performance, up over 30% and 25%, respectively.
Segment operating margin expanded 250 basis points from the benefit of ~$120
million of IEEPA refunds and organic growth, partially offset by increased input
costs and tariffs.
Climate Solutions Europe (CSE)
(Unaudite…
Three
Months
Ended
(In September
millions) 30 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net sales $ 1,335 $ 1,290 3 %
Organic 12 %
sales
Segment
operating $ 168 $ 120 40 %
profit
Segment
operating 12.6 % 9.3 % 330 bps
margin
CSE segment sales increased 3% with strong organic sales growth of 12% offset by
a 7% net headwind from divestitures and a 2% headwind from currency. Residential
and Light Commercial (RLC) sales increased low-teens and Commercial grew high-
single digits. Strong demand in residential heat pumps and air conditioning
continued, with sales up ~35% each, more than offsetting high-single digit
declines in boilers.
1 Excludes NORESCO
3
Segment operating margin increased 330 basis points with strong organic revenue
growth and a ~100 basis point net benefit from the correction of a prior period
item offset by increases in inventory-related reserves.
Climate Solutions Asia Pacific, Middle East & Africa (CSAME)
(Unaudited)
Three Months
(In Ended
millions) September 30 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net sales $ 848 $ 833 2 %
Organic 3 %
sales
Segment
operating $ 103 $ 97 6 %
profit
Segment
operating 12.1 % 11.6 % 50 bps
margin
CSAME segment sales increased 2%. Organic sales were up 3% driven by strong
growth in Commercial, up 10%, partially offset by a mid-single digit decline in
RLC.
Segment operating margin increased 50 basis points.
Climate Solutions Transportation (CST)
(Unaudited)
Three Months
(In Ended
millions) September 30 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net sales $ 726 $ 745 -3 %
Organic -3 %
sales
Segment
operating $ 117 $ 115 2 %
profit
Segment
operating 16.1 % 15.4 % 70 bps
margin
CST sales decreased 3% as continued growth in Container was more than offset by
Truck and Trailer.
Segment operating margin increased 70 basis points driven by the benefits from
IEEPA refunds partially offset by lower volumes.
4
Cash Flow
Three Nine
Months Months
Ended Ended
(In (Unaud… Septem… (Unaud… Septemb…
milli… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
cash
flows
provi… $ 813 $ 341 $ 1,819 $ 1,473
by
opera…
activ…
Less:
Capit… -139 -117 -350 -261
expen…
Free
cash $ 674 $ 224 $ 1,469 $ 1,212
flow
Net cash flows generated from operating activities were $813 million, and
capital expenditures were $139 million, resulting in free cash flow of $674
million.
Goodwill
During Q3, the company recorded a non-cash goodwill impairment charge of $3.1
billion related to its Climate Solutions Europe reporting unit.
5
Full-Year 2026 Guidance**
Supported by a differentiated product portfolio, record backlog, minimum volume
commitments under long-term agreements, and continued recovery in RLC end
markets, Carrier now expects sales of nearly $24 billion, with organic growth of
approximately 10%. The company remains vigilant in navigating industry-wide
macro pressures, including tariffs and increasing input costs, and expects to
return to shareowners approximately $2.3 billion through dividends and share
repurchases.
Current Guidance** Prior Guidance
$23.8 to $24.0 billion ~$23 billion
Organic* up ~10% Organic* up ~M-HSD
Sales FX 1% FX 1%
Net, Acquisitions / Net, Acquisitions /
Divestitures (2%) Divestitures (2%)
Adjusted Operating ~$3.5 billion ~$3.5 billion
Profit*
Adjusted EPS* $2.85 to $2.90 ~$2.90
Free Cash Flow* ~$2 billion ~$2 billion
Riello divestiture completed on July 1. NORESCO divestiture completed on August
3.
~$225 million and ~$125 million year-over-year revenue headwind from Riello and
NORESCO exits, respectively.
*Note: When the company provides expectations for organic sales, adjusted
operating profit, adjusted EPS and free cash flow on a forward-looking basis, a
reconciliation of the differences between the non-GAAP expectations and the
corresponding GAAP measures generally is not available without unreasonable
effort. See “Use and Definitions of Non-GAAP Financial Measures” below for
additional information.
**As of October 29, 2026
Conference Call
Carrier will host a webcast of its earnings conference call today, Thursday,
October 29, 2026, at 7:30 a.m. ET. To access the webcast, visit the Events &
Presentations section of the Carrier Investor Relations site. For alternative
dial-in information, please contact Carrier investor relations at
InvestorRelations@Carrier.com.
6
Cautionary Statement
This communication contains statements which, to the extent they are not
statements of historical or present fact, constitute "forward-looking
statements" under the securities laws. From time to time, oral or written
forward-looking statements may also be included in other information released to
the public. These forward-looking statements are intended to provide
management’s current expectations or plans for our future operating and
financial performance, based on assumptions currently believed to be valid.
Forward-looking statements can be identified by the use of words such as
"believe," "expect," "expectations," "plans," "strategy," "prospects,"
"estimate," "project," "target," "anticipate," "will," "should," "see,"
"guidance," "outlook," "confident," "scenario" and other words of similar
meaning in connection with a discussion of future operating or financial
performance. Forward-looking statements may include, among other things,
statements relating to future sales, earnings, cash flow, results of operations,
uses of cash, expectations relating to our sales backlog, commitments by us and
our customers under long-term agreements, share repurchases, tax rates and other
measures of financial performance or potential future plans, strategies or
transactions of Carrier, market conditions including with respect to residential
end-markets, data center and otherwise, growth prospects for 2026 and beyond,
expectations concerning the mitigation and net impact of tariffs during 2026,
Carrier's guidance for full-year 2026, Carrier's plans with respect to our
indebtedness and other statements that are not historical facts. All forward-
looking statements involve risks, uncertainties and other factors that may cause
actual results to differ materially from those expressed or implied in the
forward-looking statements. For those statements, we claim the protection of the
safe harbor for forward-looking statements contained in the U.S. Private
Securities Litigation Reform Act of 1995. Such risks, uncertainties and other
factors include, without limitation, those described below and under the section
titled “Risk Factors” in our most recent Annual Report on Form 10-K and in
subsequent reports that we file with the SEC: the effect of economic conditions
in the industries and markets in which Carrier and our businesses operate in the
U.S. and globally and any changes therein, including financial market
conditions, inflationary cost pressures, fluctuations in commodity prices,
interest rates and foreign currency exchange rates, levels of end market demand
in construction, the impact of weather conditions, pandemic health issues,
natural disasters and the financial condition of our customers and suppliers;
challenges in the development, production, delivery, support, performance and
realization of the anticipated benefits of advanced technologies and new
products and services; future levels of capital spending and research and
development spending; future availability of credit and factors that may affect
such availability, including credit market conditions and Carrier's capital
structure and credit ratings; the timing and scope of future repurchases of
Carrier's common stock, including market conditions and the level of other
investing activities and uses of cash; delays and disruption in the delivery of
materials and services from suppliers; cost reduction efforts and restructuring
costs and savings and other consequences thereof; new business and investment
opportunities; the outcome of legal proceedings, investigations and other
contingencies; the impact of pension plan assumptions on future cash
contributions and earnings; the impact of the negotiation of collective
bargaining agreements and labor disputes; the effect of changes in political
conditions in the U.S. and other countries in which Carrier and our businesses
operate, including the effect of ongoing uncertainty and/or changes in U.S.
trade policies, on general market conditions, global trade policies, the
imposition of tariffs, and currency exchange rates in the near term and beyond;
the effect of changes in tax, environmental, regulatory (including among other
things import/export) and other laws and regulations in the U.S. and other
countries in which we and our businesses operate; the ability of Carrier to
retain and hire key personnel; the scope, nature, impact or timing of
acquisition and divestiture activity, such as our acquisition of the VCS
7
business and our portfolio transformation transactions, including among other
things integration of acquired businesses into existing businesses and
realization of synergies and opportunities for growth and innovation and
incurrence of related costs; a determination by the IRS and other tax
authorities that the distribution of Carrier from RTX Corporation (f/k/a United
Technologies Corporation) or certain related transactions should be treated as
taxable transactions; and risks associated with current and future indebtedness,
as well as our ability to reduce indebtedness and the timing thereof. The
forward-looking statements speak only as of the date of this communication. We
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise,
except as required by applicable law. Additional information as to factors that
may cause actual results to differ materially from those expressed or implied in
the forward-looking statements is disclosed from time to time in our other
filings with the SEC.
About Carrier
Carrier Global Corporation, global leader in intelligent climate and energy
solutions, is committed to creating innovations that bring comfort, safety and
sustainability to life. Through cutting-edge advancements in climate solutions
such as temperature control, air quality and transportation, we improve lives,
empower critical industries and ensure the safe transport of food, life-saving
medicines and more. Since inventing modern air conditioning in 1902, we lead
with purpose: enhancing the lives we live and the world we share. We continue to
lead because of our world-class, inclusive workforce that puts the customer at
the center of everything we do. For more information, visit carrier.com or
follow Carrier on social media at @Carrier .
Carrier. For the World We Share
CARR-IR
Contact:
Investor Relations
Michael Rednor
561-365-2020
InvestorRelations@Carrier.com
Media Inquiries
Kristina Pantelides
561-236-4241
Kristina.Pantelides@Carrier.com
8
SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS
Following are tables that present selected financial data of Carrier Global
Corporation (“Carrier”). Also included are reconciliations of non-GAAP measures
to their most comparable GAAP measures.
Use and Definitions of Non-GAAP Financial Measures
Carrier reports its financial results in accordance with accounting principles
generally accepted in the United States ("GAAP"). We supplement the reporting of
our financial information determined under GAAP with certain non-GAAP financial
information. The non-GAAP information presented provides investors with
additional useful information, but should not be considered in isolation or as
substitutes for the related GAAP measures. Moreover, other companies may define
non-GAAP measures differently, which limits the usefulness of these measures for
comparisons with such other companies. We encourage investors to review our
financial statements and publicly filed reports in their entirety and not to
rely on any single financial measure. A reconciliation of the non-GAAP measures
to the corresponding amounts prepared in accordance with GAAP appears in the
tables in this Appendix. The tables provide additional information as to the
items and amounts that have been excluded from the adjusted measures.
Organic sales, adjusted operating profit, adjusted operating margin, adjusted
earnings per share (“EPS”), adjusted effective tax rate and net debt are non-
GAAP financial measures and are associated with Carrier's continuing operations
unless specifically noted.
Organic sales represents consolidated net sales (a GAAP measure), excluding the
impact of foreign currency translation, acquisitions and divestitures completed
in the preceding twelve months and other significant items of a nonoperational
nature (hereinafter referred to as “other significant items”). Adjusted
operating profit represents consolidated operating profit (a GAAP measure),
excluding restructuring costs, amortization of acquired intangible assets and
other significant items. Adjusted operating margin represents adjusted operating
profit as a percentage of consolidated net sales (a GAAP measure). Adjusted EPS
represents diluted earnings per share (a GAAP measure), excluding restructuring
costs, amortization of acquired intangible assets and other significant items.
The adjusted effective tax rate represents the effective tax rate (a GAAP
measure), excluding restructuring costs, amortization of acquired intangible
assets and other significant items. Net debt represents long-term debt (a GAAP
measure) less cash and cash equivalents (a GAAP measure).
Segment operating profit is the measure of profit and loss that the Chief
Operating Decision Maker uses to evaluate segment profitability. Segment
operating profit represents operating profit (a GAAP measure) adjusted to
exclude restructuring costs, amortization of acquired intangible assets and
other significant items of a nonoperational nature.
Free cash flow is a non-GAAP financial measure that represents net cash flows
provided by continuing operating activities (a GAAP measure) less capital
expenditures. Management believes free cash flow is a useful measure of
liquidity and an additional basis for assessing Carrier’s ability to fund its
activities, including the financing of acquisitions, debt service, repurchases
of Carrier's common stock and distribution of earnings to shareowners. Orders
are contractual commitments with customers to provide specified goods or
services for an agreed upon price and may not be subject to penalty if
cancelled.
Price/cost represents the combined impact of realized pricing, cost inflation
and productivity actions, including manufacturing efficiencies, sourcing
initiatives and certain productivity measures.
When Carrier provides our expectations for organic sales, adjusted operating
profit (including on a segment basis), adjusted operating margin (including on a
segment basis), adjusted effective tax rate, adjusted EPS, free cash flow, and
interest expense, net on a forward-looking basis, a reconciliation of the
differences between the non-GAAP expectations and the corresponding GAAP
measures generally is not available without unreasonable effort due to
potentially high variability, complexity and low visibility as to the items that
would be excluded from the GAAP measure in the relevant future period, such as
unusual gains and losses, the ultimate outcome of pending litigation,
fluctuations in foreign currency exchange rates, the impact and timing of
potential acquisitions and divestitures, future restructuring costs, and other
structural changes or their probable significance. The variability of the
excluded items may have a significant, and potentially unpredictable, impact on
our future GAAP results.
9
Carrier Global Corporation
Condensed Consolidated Statement of Operations
(In
milli… (Unaud…
except Three Nine
per Months Months
share Ended Ended
amoun… Septem… Septe…
Net 30, 30,
sales 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Produ… $ 5,585 $ 4,906 $ 15,886 $ 15,035
sales
Servi… 678 673 2,069 1,875
sales
Total
Net 6,263 5,579 17,955 16,910
sales
Costs
and
expen…
Cost
of -4,083 -3,656 -11,755 -10,8…
produ…
sold
Cost
of -497 -474 -1,545 -1,366
servi…
sold
Resea…
and -154 -151 -445 -465
devel…
Selli…
gener… -758 -803 -2,430 -2,345
and
admin…
Total
Costs -5,492 -5,084 -16,175 -15,0…
and
expen…
Goodw… -3,100 — -3,100 —
impai…
Equity
method
inves… 57 60 146 182
net
earni…
Other
income -1 -16 -16 36
(expe…
net
Opera…
profit -2,273 539 -1,190 2,071
(loss)
Non-s…
pensi… 3 -9 5 -8
benef…
(expe…
Inter…
(expe… -93 -97 -288 -270
incom…
net
Earni…
(loss)
before -2,363 433 -1,473 1,793
income
taxes
Income
tax -177 1 -261 -272
(expe…
benef…
Earni…
(loss)
from -2,540 434 -1,734 1,521
conti…
opera…
Disco…
opera… — 21 — 4
net of
tax
Net
earni… -2,540 455 -1,734 1,525
(loss)
Less:
Non-c…
inter… 53 27 120 94
in
subsi…
Net
earni…
(loss)
attri… $ -2,593 $ 428 $ -1,854 $ 1,431
to
common
share…
Amoun…
attri…
to
common
share…
Conti… $ -2,593 $ 407 $ -1,854 $ 1,427
opera…
Disco… — 21 — 4
opera…
Net
earni…
(loss)
attri… $ -2,593 $ 428 $ -1,854 $ 1,431
to
common
share…
Earni…
(loss)
per
share
Basic:
Conti… $ -3.16 $ 0.48 $ -2.24 $ 1.67
opera…
Disco… — 0.02 — —
opera…
Net
earni… $ -3.16 $ 0.50 $ -2.24 $ 1.67
(loss)
Dilut…
Conti… $ -3.16 $ 0.47 $ -2.24 $ 1.64
opera…
Disco… — 0.03 — 0.01
opera…
Net
earni… $ -3.16 $ 0.50 $ -2.24 $ 1.65
(loss)
Weigh…
number
of
shares
outst…
Basic 821.8 848.8 828.3 856.8
Dilut… 821.8 858.6 828.3 867.7
10
Carrier Global Corporation
Condensed Consolidated Balance Sheet
September 30, December 31,
(In millions) (Unaudited) 2026 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Cash and
cash $ 1,354 $ 1,555
equivalents
Accounts
receivable, 3,499 2,639
net
Inventories, 2,842 2,483
net
Assets held — 592
for sale
Other
current 1,187 1,264
assets
Total
current 8,882 8,533
assets
Future
income tax 1,190 1,074
benefits
Fixed 3,153 3,165
assets, net
Operating
lease 532 546
right-of-use
assets
Intangible 5,536 6,326
assets, net
Goodwill 12,209 15,501
Pension and
post-retire… 65 56
assets
Equity
method 1,390 1,321
investments
Other assets 637 668
Total Assets $ 33,594 $ 37,190
Liabilities
and Equity
Accounts $ 3,269 $ 2,702
payable
Accrued 4,155 3,774
liabilities
Liabilities
held for — 170
sale
Short-term
borrowings
and current 1,482 468
portion of
long-term
debt
Total
current 8,906 7,114
liabilities
Long-term 9,992 11,365
debt
Future
pension and 184 192
post-retire…
obligations
Future
income tax 1,584 1,833
obligations
Operating
lease 402 418
liabilities
Other
long-term 2,105 2,140
liabilities
Total 23,173 23,062
Liabilities
Equity
Common stock 10 10
Treasury -7,953 -6,795
stock
Additional
paid-in 8,694 8,665
capital
Retained 9,942 12,193
earnings
Accumulated
other
comprehensi… -639 -269
income
(loss)
Non-control… 367 324
interest
Total Equity 10,421 14,128
Total
Liabilities $ 33,594 $ 37,190
and Equity
11
Carrier Global Corporation
Condensed Consolidated Statement of Cash Flows
(Unaudited)
Three Nine
Months Months
(In Ended Ended
milli… Septem… Septemb…
Opera… 30, 30,
Activ… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
earni… $ -2,540 $ 455 $ -1,734 $ 1,525
(loss)
Disco…
opera… — -21 — -4
net of
tax
Adjus…
for
non-c…
items,
net:
Depre…
and 324 325 953 945
amort…
Defer…
income -105 -158 -347 -316
tax
provi…
Stock…
compe… 7 11 40 55
costs
Equity
method
inves… -57 -60 -146 -182
net
earni…
(Gain)
loss
on
sale
of 8 — 45 -17
inves…
and
impai…
net
Goodw… 3,100 — 3,100 —
impai…
Chang…
in
opera…
assets
and
liabi…
Accou…
recei… -320 212 -971 -490
net
Inven… -68 -116 -403 -528
net
Accou…
payab…
and 275 -208 906 170
accru…
liabi…
Distr…
from
equity 16 24 67 105
method
inves…
Other
opera… 112 -140 195 -187
activ…
net
Net
cash
flows
provi…
by 752 324 1,705 1,076
(used
in)
conti…
opera…
activ…
Net
cash
flows
provi…
by 61 17 114 397
(used
in)
disco…
opera…
activ…
Net
cash
flows
provi…
by 813 341 1,819 1,473
(used
in)
opera…
activ…
Inves…
Activ…
Capit… -139 -117 -350 -261
expen…
Inves…
in
busin… -64 -31 -118 -92
net of
cash
acqui…
Dispo…
of 395 — 410 8
busin…
Settl…
of
deriv… 10 33 16 120
contr…
net
Other
inves… 19 -4 28 -7
activ…
net
Net
cash
flows
provi…
by 221 -119 -14 -232
(used
in)
conti…
inves…
activ…
Net
cash
flows
provi…
by — — — 35
(used
in)
disco…
inves…
activ…
Net
cash
flows
provi…
by 221 -119 -14 -197
(used
in)
inves…
activ…
Finan…
Activ…
Incre…
(decr…
in -500 444 -139 387
short…
borro…
net
Issua…
of 14 17 53 32
long-…
debt
Repay…
of -3 -1 -60 -1,209
long-…
debt
Repur…
of -399 -785 -1,144 -2,413
common
stock
Divid…
paid
on -198 -193 -598 -583
common
stock
Divid…
paid
to -11 -72 -76 -81
non-c…
inter…
Other
finan… -1 -1 -35 -18
activ…
net
Net
cash
flows
provi…
by -1,098 -591 -1,999 -3,885
(used
in)
conti…
finan…
activ…
Net
cash
flows
provi…
by — — — —
(used
in)
disco…
finan…
activ…
Net
cash
flows
provi…
by -1,098 -591 -1,999 -3,885
(used
in)
finan…
activ…
Effect
of
forei…
excha…
rate
chang… 3 -5 -7 63
on
cash
and
cash
equiv…
Net
incre…
(decr…
in
cash
and
cash
equiv…
and
restr… -61 -374 -201 -2,546
cash,
inclu…
cash
class…
in
curre…
assets
held
for
sale
Less:
Change
in
cash
balan…
class… -95 — -25 —
as
assets
held
for
sale
Net
incre…
(decr…
in
cash
and 34 -374 -176 -2,546
cash
equiv…
and
restr…
cash
Cash,
cash
equiv…
and
restr… 1,347 1,800 1,557 3,972
cash,
begin…
of
period
Cash,
cash
equiv…
and 1,381 1,426 1,381 1,426
restr…
cash,
end of
period
Less:
restr… 27 3 27 3
cash
Cash
and
cash $ 1,354 $ 1,423 $ 1,354 $ 1,423
equiv…
end of
period
12
Carrier Global Corporation
Segment Summary
(U…
Th… Ni…
(… Mo… Mo…
m… En… En…
S… Se… Se…
n… 30, 30,
s… 20… 20… 20… 20…
──────────────────────────────────────────────────────────────────────────────
C…
S… $ 3,… $ 2,… $ 9,… $ 8,…
A…
C…
S… 1,… 1,… 3,… 3,…
E…
C…
S…
A…
P… 848 833 2,… 2,…
M…
E…
&
A…
C…
S… 726 745 2,… 2,…
T…
S…
n… $ 6,… $ 5,… $ 17… $ 16…
s…
S…
o…
p…
C…
S… $ 745 $ 533 $ 1,… $ 1,…
A…
C…
S… 168 120 352 324
E…
C…
S…
A…
P… 103 97 292 353
M…
E…
&
A…
C…
S… 117 115 336 340
T…
S…
o… $ 1,… $ 865 $ 2,… $ 2,…
p…
S…
o…
m…
C…
S… 22… % 19… % 21… % 23.2 %
A…
C…
S… 12… % 9.3 % 8.9 % 8.7 %
E…
C…
S…
A…
P… 12… % 11… % 11… % 13.9 %
M…
E…
&
A…
C…
S… 16… % 15… % 15… % 16.0 %
T…
13
Components of Changes in Net Sales
Th…
Mo…
En…
Se…
30,
20…
Co…
wi…
Mo…
En…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
-Un…
Fac…
Con…
to
Tot…
%
cha…
in
Net
Sal…
Acq…
Org… FX / Ot… Tot…
Tra… Div…
net
Cl…
So… 25 % — % -1 % — % 24 %
Am…
Cl…
So… 12 % -2 % -7 % — % 3 %
Eu…
Cl…
So…
As…
Pa… 3 % — % -1 % — % 2 %
Mi…
Ea…
&
Af…
Cl…
So… -3 % — % — % — % -3 %
Tr…
Co… 15 % — % -3 % — % 12 %
Ni…
Mo…
En…
Se…
30,
20…
Co…
wi…
Ni…
Mo…
En…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
-Un…
Fac…
Con…
to
Tot…
%
cha…
in
Net
Sal…
Acq…
Org… FX / Other Tot…
Tran… Div…
net
Cl…
So… 8 % — % — % — % 8 %
Am…
Cl…
So… 5 % 4 % -3 % — % 6 %
Eu…
Cl…
So…
As…
Pa… 2 % — % — % — % 2 %
Mi…
Ea…
&
Af…
Cl…
So… 1 % 2 % — % — % 3 %
Tr…
Co… 6 % 1 % -1 % — % 6 %
14
Carrier Global Corporation
Reconciliations
(In
millio… (Unaudi…
Reconc… Three Nine
to Months Months
Earnin… Ended Ended
before Septemb… Septemb…
income 30, 30,
taxes 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Segment
operat… $ 1,133 $ 865 $ 2,921 $ 2,999
profit
Corpor…
and -42 -42 -141 -162
other
Restru… -45 -50 -161 -105
costs
Amorti…
of
acquir… -210 -221 -636 -636
intang…
assets
Acquis… -2 -10 -20 -21
costs
Riello
impair… -2 — -48 —
and
loss
Goodwi… -3,100 — -3,100 —
impair…
CCR — — — 7
gain
Other -5 -3 -5 -11
Non-se…
pension 3 -9 5 -8
(expen…
benefit
Intere…
(expen… -93 -97 -288 -270
income,
net
Earnin…
(loss)
before $ -2,363 $ 433 $ -1,473 $ 1,793
income
taxes
(In
million…
Reconci…
of
Segment (Unaudit…
operati… Three Nine
profit Months Months
to Ended Ended
Adjusted September September
operati… 30, 30,
profit 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Climate
Solutio… $ 745 $ 533 $ 1,941 $ 1,982
Americas
Climate
Solutio… 168 120 352 324
Europe
Climate
Solutio…
Asia
Pacific, 103 97 292 353
Middle
East &
Africa
Climate
Solutio… 117 115 336 340
Transpo…
Segment
operati… $ 1,133 $ 865 $ 2,921 $ 2,999
profit
Corpora…
and -42 -42 -141 -162
other
Adjusted
operati… $ 1,091 $ 823 $ 2,780 $ 2,837
profit
15
Carrier Global Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results
Net Income, Earnings Per Share and Effective Tax Rate
T… N…
M… M…
E… E…
S… S…
3… 3…
… 2… 2…
──────────────────────────────────────────────────────────────────────────────
… … … … … …
$ 6… $ — $ 6… $ 1… $ — $ 1…
$ -… 3… a $ 1… $ -… 3… a $ 2…
-… % 1… % -… % 1… %
$ -… 3… a $ 1… $ -… 3… a $ 2…
$ -… -… b $ -… $ -… -… b $ -…
-… % 2… % -… % 1… %
$ -… $ 3… $ 7… $ -… $ 3… $ 1…
$ 45 a $ 1… a
2… a 6… a
2 a 20 a
2 a 48 a
3… a 3… a
5 a 5 a
$ 3… $ 3…
$ -… $ -…
— —
$ -… b $ -… b
8… 8… 8… 8…
$ -… $ 0… $ -… $ 2…
(1) During the three and nine months ended September 30, 2026, Carrier reported
a net loss from continuing operations attributable to common shareowners. As a
result, potentially dilutive shares were excluded from the computation of
diluted loss per share because their inclusion would have reduced the loss per
share. The inclusion of dilutive shares does not have a significant impact on
adjusted diluted earnings per share.
16
Carrier Global Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results
Net Income, Earnings Per Share and Effective Tax Rate
… …
… …
… …
… …
… …
… … …
──────────────────────────────────────────────────────────────────────────────
… … A… R… A… …
$ … $ — $ … $ … $ — $ 1…
$ … 2… a $ … $ … … a $ 2…
… % … % … % 1… %
$ … 2… … $ … $ … … a… $ 2…
$ 1 -… c $ … $ … … c $ -…
… % … % … % 2… %
$ … $ 1… $ … $ … $ … $ 1…
$ 50 a $ … a
2… a … a
10 a … a
— a … a
3 a … a
11 b … b
$ 2… $ …
$ -… $ …
-… …
$ -… c $ … c
… … … 8…
$ … $ … $ … $ 2…
17
Free Cash Flow Reconciliation
Three Nine
Months Months
Ended Ended
(In (Unaudi… Septemb… Septemb…
millio… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
cash
flows
provid… $ 813 $ 341 $ 1,819 $ 1,473
by
operat…
activi…
Less:
Capital -139 -117 -350 -261
expend…
Free
cash $ 674 $ 224 $ 1,469 $ 1,212
flow
Net Debt Reconciliation
September 30, December 31,
(In millions) (Unaudited) 2026 2025
──────────────────────────────────────────────────────────────────────────────
Long-term $ 9,992 $ 11,365
debt
Short-term
borrowings
and current 1,482 468
portion of
long-term
debt
Less: Cash
and cash 1,354 1,555
equivalents
Net debt $ 10,120 $ 10,278
18