Core Insights - Carrier Global Corporation has launched Lynx FacTOR, a SaaS solution aimed at transforming product release processes in the pharmaceutical industry, focusing on automation and regulatory compliance [1][3][4] Industry Challenges - Pharmaceutical companies face significant challenges in maintaining product integrity during distribution, including manual processes, costly delays, and strict compliance requirements, which can lead to inefficiencies costing millions annually [2][3] Solution Features - Lynx FacTOR provides a single source of truth throughout the pharmaceutical distribution lifecycle, automating product viability evaluations and reducing assessment times from days to minutes, thereby enhancing decision-making and compliance [3][5] - The solution streamlines the product stability assessment process, improves regulatory compliance, and enhances accuracy across the supply chain [7] Operational Benefits - By digitizing workflows and automating complex analyses, Lynx FacTOR accelerates the distribution of critical medicines and improves overall operational efficiency [5][6] - The solution enables real-time insights and informed decision-making, minimizing risks associated with product viability and stability [7] Availability - Lynx FacTOR is available as a subscription through Sensitech, a Carrier company, and will be showcased at LogiPharma 2025 in Lyon, France [6]

Core Insights - Carrier has launched its first Environmental Product Declaration (EPD) for residential HVAC solutions in North America, emphasizing its commitment to sustainability and transparency in environmental performance [1][3] - The EPD is based on a rigorous life cycle assessment (LCA) methodology, detailing the environmental impacts of Carrier's Comfort™ Fan Coil and Performance™ Variable-Speed Compact Heat Pump, including metrics on carbon dioxide performance, energy consumption, and natural resource usage [2][3] - Carrier aims to invest $4 billion in innovative climate and energy solutions to reduce environmental impacts and help customers avoid over 1 gigaton of greenhouse gas emissions by 2030 [3] Company Initiatives - The publication of the EPD aligns with Carrier's strategy to meet increasing consumer demand for environmentally conscious HVAC products, providing detailed environmental impact information to empower customers [4] - Carrier has been recognized as a Green Builder Media 2024 Eco-Leader for its sustainability transparency, having published 48 EPDs for HVAC products globally [4] Industry Context - The EPD follows established international standards, including ISO 14025, enhancing the credibility and consistency of the environmental data provided [3] - The initiative supports green building efforts and reflects a broader trend in the HVAC industry towards sustainability and responsible environmental practices [4]

Group 1 - Carrier Global Corporation will participate in the Bank of America Global Industrials Conference on March 20, 2025, at 4:50 a.m. ET [1] - The event will feature Chairman & CEO David Gitlin and Senior Vice President & CFO Patrick Goris as speakers [1] - The conference will be broadcast live and a replay will be available on the company's website [1] Group 2 - Carrier Global Corporation is a global leader in intelligent climate and energy solutions [2] - The company is committed to creating impactful solutions for people and the planet for future generations [2] - Carrier has a diverse workforce focused on customer-centric innovation and technology development [2]

Core Insights - Carrier Global Corporation and Google Cloud are collaborating to enhance grid flexibility and support smarter energy management through an integrated Home Energy Management System (HEMS) that utilizes AI tools and WeatherNext AI models [1][2][3] Group 1: Partnership Overview - The initiative is led by Carrier Energy, integrating battery-enabled HVAC technology with Google Cloud's AI-powered analytics [2] - The collaboration aims to create intelligent, connected solutions for residential HVAC energy customers, optimizing energy usage and costs [2][3] Group 2: Market Context - Rising electricity demand in the U.S. due to factors like onshoring, electrification of transport, and AI adoption presents both opportunities and challenges for utilities and consumers [3] - The partnership seeks to balance supply and demand across the grid, allowing homeowners to store energy in batteries for use during peak demand periods [3] Group 3: Environmental Goals - The initiative supports Google's ambition for carbon-free energy solutions and Carrier's goal to help customers avoid over one gigaton of greenhouse gas emissions by 2030 [4] - The collaboration aims to unlock capacity and grid expansion in U.S. markets, contributing to a more sustainable energy ecosystem [4][6] Group 4: Technological Integration - Carrier's next-generation heat pump will feature battery storage and intelligent energy forecasting, enhancing energy efficiency and reducing demand peaks [5] - The integration of Carrier's HEMS technology with Google Cloud's AI tools will enable real-time energy flow management based on grid conditions and weather forecasts [5][6] Group 5: Future Outlook - The project will be rolled out in phases through 2027, focusing on scaling nationwide adoption thereafter [5] - The collaboration is positioned to create a smarter, more resilient energy future, benefiting homeowners and supporting the next generation of technology infrastructure [8]

Core Insights - Carrier Global Corporation will host its 2025 Investor Day on May 19, 2025, in New York City, where the leadership team will discuss strategic priorities [1] - The event will begin at 8:30 a.m. ET and will be available for live streaming on the company's investor relations website [2] - Carrier is recognized as a global leader in intelligent climate and energy solutions, focusing on creating impactful solutions for people and the planet [3] Event Details - The Investor Day will feature presentations from Chairman & CEO David Gitlin and other leadership team members [1] - A live webcast of the event will be accessible on the day, with a replay available afterward [2] Company Overview - Carrier Global Corporation is committed to innovation and has a diverse workforce that prioritizes customer needs [3] - The company has a history of leading in technology and industry development [3]

Core Viewpoint - Carrier Global Corporation is experiencing strong order growth, with expectations for continued demand in the commercial HVAC sector and a positive outlook for recovery in certain regions [2]. Group 1: Orders Growth - The company reported a full-year orders growth in the low teens percentage range last year [2]. - Expectations for double-digit growth in global commercial HVAC across all regions [2]. - Aftermarket orders are also anticipated to grow in double digits [2]. Group 2: Regional Performance - Residential and light commercial segments in Europe and Asia saw significant declines last year but are expected to stabilize this year [2]. - Guidance for mid-single-digit growth this year, with potential for recovery in the affected regions [2]. - Long-term growth expectations remain strong, with a target growth algorithm of 6% to 8% once recovery occurs [2].

Core Insights - Carrier Global Corporation will have its Chairman & CEO David Gitlin speak at Citi's 2025 Global Industrial Tech and Mobility Conference on February 20, 2025 [1] - The event will be broadcast live and a replay will be available on the company's website [1] Company Overview - Carrier Global Corporation is a global leader in intelligent climate and energy solutions, focusing on creating impactful solutions for people and the planet [2] - The company has a history of leading in technology innovation and industry creation, supported by a diverse workforce that prioritizes customer needs [2]

15.8% +180 bps Y/Y Adjusted EPS1 $2.56 +16% Y/Y Adjusted Operating Profit1 Sales $22,486M Organic1 +3% Y/Y Adjusted Operating Margin1 February 11, 2025 2024 Summary Paid down debt – back to ~2x net leverage Highlights >$2.6B returned to shareholders through dividends and repurchases Strong results while successfully completing game-changing portfolio transformation 1. See appendix for additional information regarding non-GAAP measures 2. Excludes NORESCO Carrier orders up low-teens, commercial HVAC backlog ...

Financial Data and Key Metrics Changes - Carrier achieved 3% organic growth in 2024, with adjusted EPS growth of 16% and close to 100% core earnings conversion [6][7][16] - Reported sales for Q4 were $5.1 billion, reflecting 6% organic sales growth, with adjusted operating profit up 65% year-over-year [22][23] - Adjusted operating margin expanded by 370 basis points compared to last year, with adjusted EPS of $0.54, up 50% year-over-year [24][25] Business Line Data and Key Metrics Changes - HVAC segment saw organic sales growth of 11%, with Americas organic sales up high teens [27][28] - Refrigeration segment was down 1% organically for the full year, with global truck and trailer business down around 10% [30][31] - Total company organic orders were up low teens, with HVAC orders up about 5% [32] Market Data and Key Metrics Changes - Organic sales in EMEA were flat, driven by double-digit growth in commercial, offset by declines in residential and light commercial HVAC [29] - Organic sales in Asia were slightly positive, with strength in Japan and South Asia, but declines in residential and light commercial business in China [29] Company Strategy and Development Direction - Carrier is focused on margin expansion through operational excellence and disciplined capital allocation, with a strategic emphasis on digital lifecycle solutions [11][15] - The company expects continued double-digit growth in aftermarket and global commercial HVAC, with a focus on integrated systems and energy management solutions [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, despite political and economic uncertainties in Europe, and expects organic growth in single digits [18][21] - The company anticipates a strong year with accelerated organic growth, margin expansion, and strong free cash flow [21][39] Other Important Information - Carrier completed a significant portfolio transformation, yielding over $10 billion in gross proceeds from divestitures [8][10] - The company plans to repurchase about $3 billion in shares and increase the dividend per share by 18% [39][43] Q&A Session Summary Question: Can you elaborate on residential HVAC performance and inventory levels? - Management indicated a slight prebuy of $75 million to $100 million in Q4, with strong movement from distributors to dealers [48][49] Question: What is the outlook for revenue growth in 2025? - Management expects flat to down mid-single digits in market volume, with positive mix from heat pumps and aftermarket growth [60][62] Question: How are tariffs affecting operations, particularly in Mexico? - Management is actively monitoring tariff implications and is prepared to take pricing and operational actions to mitigate impacts [120][121] Question: Can you provide updates on capacity additions in Americas Commercial? - A new facility for commercial HVAC was established, significantly increasing output capacity, which positions the company for growth [90][92] Question: What are the expectations for Viessmann's margins in 2025? - Management expects EBITDA ROS to improve from low teens to mid-teens, with cost synergies increasing from $75 million to $150 million [94][95]

Financial Performance - For the year ended December 31, 2024, Carrier's net sales were $22.5 billion, with an operating profit of $2.6 billion[19]. - Total net sales for 2024 reached $22,486 million, a 18.0% increase from $18,951 million in 2023[285]. - Operating profit for 2024 was $2,646 million, compared to $2,160 million in 2023, marking a 21.5% increase[285]. - Net earnings attributable to common shareholders for 2024 were $5,604 million, significantly up from $1,349 million in 2023[285]. - Net earnings for 2024 reached $5,708 million, a significant increase from $1,440 million in 2023 and $3,584 million in 2022, reflecting strong operational performance[296]. - The total income before income taxes was $2,274 million, an increase of 13.8% from $1,999 million in 2023[415]. Sales and Revenue Composition - Net sales distribution: Americas (52%), EMEA (31%), Asia-Pacific (17%), with international operations representing approximately 50% of total net sales[19]. - New equipment accounted for 75% of net sales, while parts and service made up 25%[19]. - Product sales increased to $19,990 million in 2024, up 19.0% from $16,665 million in 2023[285]. - Service sales rose to $2,496 million, reflecting a 9.2% increase from $2,286 million in 2023[285]. - Total segment sales for 2024 reached $22,486 million, compared to $18,951 million in 2023, indicating a growth of approximately 8.1%[395]. Acquisitions and Divestitures - On January 2, 2024, Carrier completed the acquisition of the climate solutions business of Viessmann Group, enhancing its HVAC segment[26]. - Carrier sold its Access Solutions business for cash proceeds of $5.0 billion on June 2, 2024, recognizing a net gain of $1.8 billion[27]. - The sale of the Industrial Fire business generated cash proceeds of $1.4 billion on July 1, 2024, with a net gain of $319 million[28]. - Carrier completed the sale of its Commercial Refrigeration business for $679 million on October 1, 2024, recognizing a net gain of $292 million[29]. - The sale of the Commercial and Residential Fire business brought in $2.9 billion on December 2, 2024, with a net gain of $1.4 billion[30]. - The acquisition of the VCS Business was completed on January 2, 2024, for a total consideration of $14.2 billion, with 20% paid in stock and 80% in cash[347]. Employee and Operational Metrics - As of December 31, 2024, the company had approximately 48,000 employees worldwide, with 35% in the Americas, 36% in EMEA, and 29% in Asia Pacific[47]. - The total recordable incident rate (TRIR) for 2024 was 0.32, and the lost time incident rate (LTIR) was 0.15, indicating a focus on employee safety[51]. - The company promotes learning and development through various programs, including technical and leadership training, to enhance employee skills[49]. Financial Position and Assets - Total assets increased to $37,403 million in 2024, up from $32,822 million in 2023, representing a 14.3% growth[290]. - Total liabilities decreased to $23,008 million in 2024 from $23,817 million in 2023[290]. - The company’s total equity increased to $14,395 million by December 31, 2024, from $9,005 million in 2023[296]. - The Company reported a total long-term debt of $11,728 million in 2024, a decrease from $13,951 million in 2023, representing a reduction of 16.0%[346]. Research and Development - Research and development expenses increased to $686 million in 2024, up from $493 million in 2023 and $416 million in 2022, reflecting a focus on new product development and technology innovation[329]. Sustainability and Strategic Focus - Carrier's strategic focus includes investing in product and technology innovation, particularly in energy management solutions and sustainable technologies[18][34]. - The company aims to enhance its operational excellence through the Carrier Excellence framework, focusing on digitalization and supply chain productivity[40]. - The company has set ambitious sustainability goals to be achieved by 2030, including investing over $4 billion in intelligent climate and energy solutions[44]. - The company aims to avoid more than 1 gigaton of customer greenhouse gas emissions and achieve carbon neutral operations[44]. Stock and Shareholder Information - The company declared dividends of $0.795 per share in 2024, totaling $712 million, compared to $624 million in 2023[296]. - The company repurchased $1,943 million in common stock in 2024, up from $62 million in 2023[296]. - The company repurchased 70.1 million shares of common stock for an aggregate purchase price of $3.9 billion, leaving approximately $3.2 billion remaining under the current authorization as of December 31, 2024[390]. Taxation - The total income tax expense for 2024 was $1,062 million, which is a 103.9% increase compared to $521 million in 2023[417]. - The federal income tax expense in the United States increased to $920 million in 2024, up from $361 million in 2023[417]. - The total current income tax expense for 2024 was $1,414 million, which is a significant increase from $764 million in 2023[417].