Core Viewpoint - Carrier Global Corporation has acquired Addvolt, a Portuguese company specializing in transport electrification technology, enhancing Carrier's capabilities in electric systems for refrigerated transportation [1][2][3] Company Overview - Carrier Global Corporation is a leader in intelligent climate and energy solutions, committed to innovation and sustainability [6] - Addvolt, founded over a decade ago, focuses on patented electric systems for refrigerated transport, emphasizing low maintenance and reduced emissions [2][4] Strategic Implications - The acquisition combines Addvolt's expertise in electric systems with Carrier's industry-leading solutions, positioning the company to innovate beyond refrigerated transportation [3] - This partnership is expected to create opportunities for new applications and enhance Carrier's electrification strategy through advanced technology and engineering talent [3][4] Operational Details - Addvolt has approximately 60 employees who will join Carrier's Climate Solutions Transportation segment following the acquisition [5] - The technology developed by Addvolt is already in use by Carrier Transicold customers in Europe, including the world's first fully autonomous electric trailer refrigeration system, the Vector® eCool [3]

Financial Performance - For the three months ended March 31, 2025, net sales were $5.2 billion, a 4% decrease compared to the same period in 2024[124]. - Gross margin for the same period was $1.4 billion, a 4% increase year-over-year, with gross margin as a percentage of net sales rising to 27.7% from 25.6%[126]. - Operating profit increased by 63% to $629 million for the three months ended March 31, 2025, compared to $385 million in the same period of 2024[124]. - Operating expenses decreased by 18% to $816 million, primarily due to productivity initiatives and synergies from the integration of the VCS Business[127]. - Organic sales increased by 2% for the three months ended March 31, 2025, primarily driven by strong demand in the Climate Solutions Americas segment[125]. - For the three months ended March 31, 2025, the adjusted operating profit was $843 million, a 10.4% increase from $764 million in the same period of 2024[136]. Segment Performance - Climate Solutions Americas reported net sales of $2.6 billion, a 9% increase year-over-year, driven by a 20% increase in the residential business and a 15% increase in the commercial business[141]. - Segment operating profit for Climate Solutions Americas was $570 million, a 34% increase compared to $425 million in the prior year[142]. - Climate Solutions Europe experienced a 10% decrease in net sales to $1.2 billion, with a segment operating profit decline of 37% to $105 million[143][144]. - Climate Solutions Asia Pacific, Middle East & Africa reported net sales of $826 million, a 7% decrease, while segment operating profit increased by 12% to $121 million[145][146]. - Climate Solutions Transportation saw net sales decline by 26% to $651 million, with segment operating profit decreasing by 14% to $97 million[147][149]. Investments and Acquisitions - The company completed the acquisition of the climate solutions business of Viessmann Group, enhancing its portfolio in sustainable building solutions[119]. - The company divested its Commercial Refrigeration business during 2024, part of a broader portfolio transformation strategy[119]. - The company completed the divestiture of its Access Solutions business for cash proceeds of $5.0 billion on June 2, 2024[158]. - The divestiture of the Industrial Fire business was completed for cash proceeds of $1.4 billion on July 1, 2024[158]. Cash Flow and Debt - As of March 31, 2025, the company had cash and cash equivalents of $1.7 billion, down from $3.97 billion at the end of 2024[151]. - Total debt as of March 31, 2025, was $11.184 billion, a decrease from $12.278 billion at the end of 2024[154]. - The total debt to total capitalization ratio improved to 44% from 46% in the previous period[154]. - The company maintains a $2.0 billion commercial paper program and a $2.5 billion revolving credit facility, with no borrowings outstanding as of March 31, 2025[155]. - Net cash flows provided by continuing operating activities increased to $488 million for the three months ended March 31, 2025, compared to $45 million in the prior year[162]. - Net cash used in continuing investing activities was $30 million for the three months ended March 31, 2025, significantly lower than $11.1 billion in the same period of 2024[163]. - Net cash used in continuing financing activities was $2.7 billion for the three months ended March 31, 2025, primarily due to stock repurchases and long-term debt repayments[164]. Shareholder Returns - The company repurchased 19.0 million shares of common stock for an aggregate purchase price of $1.3 billion during the three months ended March 31, 2025[160]. - Dividends paid on common stock totaled $198 million during the three months ended March 31, 2025[161]. - The company declared a dividend of $0.23 per share of common stock payable on May 22, 2025[161]. - The company has authorized the repurchase of up to $7.1 billion of its outstanding common stock since February 2021[159]. Tax and Market Risk - The effective tax rate for the three months ended March 31, 2025, was 20.3%, up from 19.3% in the same period of 2024[133]. - There has been no significant change in the company's exposure to market risk during the three months ended March 31, 2025[165].

Financial Data and Key Metrics Changes - The company reported sales of $5.2 billion with 2% organic sales growth, including about 2 points from price increases [15][16] - Adjusted EPS was $0.65, up 27% year over year, driven by strong productivity performance [17][18] - Free cash flow for the quarter was $420 million, stronger than expected, driven by higher net income and lower capital expenditures [18][19] Business Line Data and Key Metrics Changes - Climate Solutions Americas (CSA) segment had organic sales growth of 9%, with residential and commercial sales up around 20% each [19][20] - Climate Solutions Europe (CSE) saw organic sales down 7%, with mid-single-digit growth in commercial offset by a decline in residential light commercial [21] - Climate Solutions Asia, Middle East, and Africa (CS AME) experienced a 6% decline in organic sales, primarily due to weakness in residential China [23] - Transportation segment's organic sales were up 2%, driven by a 20% increase in container sales [24] Market Data and Key Metrics Changes - Total company backlog was up about 10% year over year and 15% sequentially [4] - Organic orders momentum continued, with high single-digit growth across most segments except CS AME, where orders were down [24] Company Strategy and Development Direction - The company is focused on driving sustained growth through differentiated products, aftermarket services, and systems [5][6] - A new partnership with Google was announced to enhance grid resilience and support smarter energy management [8] - The company is committed to mitigating tariff exposure through supply chain and productivity actions, with a balance of $300 million via price increases [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit organic sales growth for the full year, with adjusted EPS guidance increased to $3 to $3.1 [13][28] - The macroeconomic environment remains uncertain, but the company is focused on customer needs and investing in differentiation [13][28] Other Important Information - The company is on track to achieve over $200 million in cost synergies by the end of next year [10] - The new German coalition government supports heat pump subsidies and infrastructure investments, which is expected to boost demand [11] Q&A Session Summary Question: Confirmation of Q2 guidance and EPS expectations - Management confirmed expectations of mid-single-digit organic growth and sales of about $6 billion for Q2, with adjusted EPS growth close to 20% [30][31] Question: Insights on the Americas segment performance - The residential side is expected to see high single-digit to low double-digit growth, while light commercial is projected to decline by about 10% for the full year [38][40] Question: Clarification on tariffs and pricing impact - The company has effectively mitigated most tariff impacts, with $300 million remaining to be offset through pricing [35][114] Question: Update on Viasman and margin expectations - Management expects Viasman to remain flat for the year, with margin improvement anticipated in the low teens [55][59] Question: Dynamics of free cash flow in the quarter - Free cash flow was stronger than typical for Q1, driven by lower working capital use [104][105] Question: Service business growth and initiatives - The service business is expected to continue double-digit growth, with initiatives to harmonize operations globally [106][110]

Financial Data and Key Metrics Changes - The company reported sales of $5.2 billion with 2% organic sales growth, including about 2 points from price increases [16][17] - Adjusted EPS was $0.65, up 27% year over year, driven by strong productivity performance [18] - Free cash flow for the quarter was $420 million, stronger than expected due to higher net income and lower capital expenditures [18][19] Business Line Data and Key Metrics Changes - The Climate Solutions Americas (CSA) segment had organic sales growth of 9%, with residential and commercial sales up around 20% each [19][20] - The Climate Solutions Europe (CSE) segment saw organic sales down 7%, with mid single-digit growth in commercial offset by a 10% decline in residential light commercial [21] - The Climate Solutions Asia, Middle East, and Africa (CS AME) segment experienced a 6% decline in organic sales, primarily due to weakness in residential China [23] - The Commercial Systems Transportation (CST) segment had organic sales up 2%, driven by a 20% increase in container sales [24] Market Data and Key Metrics Changes - Total company backlog was up about 10% year over year and 15% sequentially [6] - Organic orders momentum continued with high single-digit growth across most segments, except for CS AME [25] - In the Americas, organic sales growth is expected to pick up in the second quarter, with mid-teens growth anticipated [33] Company Strategy and Development Direction - The company is focused on driving sustained growth through differentiated products, aftermarket services, and systems integration [7][8] - A new partnership with Google aims to enhance grid resilience and support smarter energy management [10] - The company is committed to mitigating tariff exposure through supply chain and productivity actions, with a focus on maintaining competitive pricing [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit organic sales growth for the full year, with strong margin expansion and close to 20% adjusted EPS growth anticipated [28] - The macroeconomic environment remains uncertain, but the company is focused on customer needs and investing in differentiation [15][14] - Management noted that the new German coalition government supports climate goals, which is expected to drive demand for heat pumps [12] Other Important Information - The company repurchased $1.3 billion worth of shares in the quarter and plans to target $3 billion in share repurchases for 2025 [19] - Adjusted operating profit increased by 10% compared to last year, driven by strong productivity and pricing [17] Q&A Session Summary Question: Confirmation of Q2 guidance and EPS - Management confirmed expectations of mid-single-digit organic growth and approximately $6 billion in sales for Q2, with adjusted EPS growth close to 20% [30][31] Question: Insights on the Americas segment performance - Management indicated that residential sales in the Americas are expected to be strong, with a potential increase in guidance for the full year [40][41] Question: Clarification on tariffs and pricing impact - Management stated that they have effectively mitigated most tariff impacts, with $300 million remaining to be offset through pricing [35][119] Question: Update on Viasman and margin expectations - Management expects Viasman to remain flat for the year, with margin improvements anticipated as the business integrates [58][63] Question: Discussion on commercial HVAC business growth - Management highlighted strong growth in the commercial HVAC sector, particularly in data centers, and noted that capacity increases have allowed for more aggressive sales efforts [66][123] Question: Inquiry about inventory levels and pre-buy effects - Management acknowledged elevated inventory levels but indicated that movement has been strong, with careful monitoring of distributor inventory [99][127]

Q1 2025 Earnings Conference Call May 1, 2025 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 financi ...

Exhibit 99.1 Carrier's first quarter sales of $5.2 billion were down 4% compared to the prior year. Organic sales growth of 2% was offset by a 5% headwind from net acquisitions and divestitures, driven by the sale of Commercial Refrigeration in Q4 2024. Foreign currency translation was a 1% headwind to sales growth. GAAP operating profit in the quarter of $629 million was up 63% from last year driven by operational performance, the absence of VCS backlog and inventory step-up amortization and decrease in ac ...

Net sales down 4% given prior year divestiture; organic sales up 2% GAAP EPS of $0.47 up 147% and adjusted EPS of $0.65 up 27% GAAP operating margin up 500 bps; adjusted operating margin up 210 bps Net cash flows from operating activities were $483 million and free cash flow was $420 million Returned $1.5 billion to shareholders through share repurchases and dividends and paid down $1.2 billion in debt Fully mitigating impact of tariffs in effect today Increasing full-year 2025 adjusted earnings per share ...

Carrier named Finalist for 2025 Manufacturing Leadership Award; LeanDNA recognized as a Partner in Collaborative InnovationPALM BEACH GARDENS, Fla., April 30, 2025 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, has been named a finalist in the Digital Supply Chain category of the 2025 Manufacturing Leadership Awards, presented by the National Association of Manufacturers' Manufacturing Leadership Council.Carrier utilizes leading digital te ...

Carrier Global (CARR) is scheduled to report its first-quarter 2025 results on May 1.The Zacks Consensus Estimate for first-quarter earnings is pegged at 57 cents per share, unchanged over the past 30 days, suggesting a year-over-year decline of 8.06%.The Zacks Consensus Estimate for revenues is pegged at $5.11 billion, indicating a 17.4% year-over-year decline.Carrier Global’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.68%. (Find the ...

PALM BEACH GARDENS, Fla., April 22, 2025 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, will release its first quarter 2025 earnings on Thursday, May 1, 2025 and host a conference call and webcast at 7:30 a.m. ET.The webcast and presentation will be available at ir.carrier.com. To listen to the earnings call by phone, participants must pre-register at the following link: Carrier Earnings Call Registration. All registrants will receive dial ...