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 ...

Core Insights - Carrier Global Corporation reported strong financial results for Q1 2025, with adjusted EPS growth of 27% and increased full-year guidance [1][2][20] - The company experienced a 2% organic sales growth, with total company orders up in the high-single digits and backlogs increasing over 15% sequentially [2][4] Financial Performance - Total net sales for Q1 2025 were $5.218 billion, down 4% from $5.420 billion in Q1 2024, primarily due to divestitures [3][7] - Adjusted operating profit increased by 10% to $843 million, while GAAP operating profit rose 63% to $629 million [4][7] - The diluted earnings per share from continuing operations were $0.47, up 147%, and adjusted EPS was $0.65, up 27% [4][7] Segment Performance - Climate Solutions Americas (CSA) reported net sales of $2.572 billion, a 9% increase, with organic sales also up 9% [6][8] - Climate Solutions Europe (CSE) saw a 10% decline in net sales to $1.169 billion, with organic sales down 7% [10][11] - Climate Solutions Asia Pacific, Middle East & Africa (CSAME) had net sales of $826 million, down 7%, with organic sales decreasing by 6% [13][14] - Climate Solutions Transportation (CST) reported a 26% decline in net sales to $651 million, with organic sales growth of 2% [16][17] Cash Flow and Shareholder Returns - Net cash flows from operating activities were $483 million, with free cash flow of $420 million [18][19] - The company returned $1.5 billion to shareholders through share repurchases and dividends while paying down $1.2 billion in debt [19][20] Full-Year Guidance - Carrier increased its full-year 2025 adjusted EPS guidance to a range of $3.00 to $3.10, reflecting a year-over-year growth of approximately 17-21% [20][21] - The company anticipates organic sales growth in the mid-single digits and expects free cash flow between $2.4 billion and $2.6 billion [20][21]

Group 1 - Carrier Global Corporation has been named a finalist in the Digital Supply Chain category of the 2025 Manufacturing Leadership Awards [1] - The company is utilizing digital technologies to digitize its supply chain and inventory management, particularly in its HVAC business unit, to address post-pandemic inventory challenges [2] - The implementation of digital tools like LeanDNA has provided Carrier with real-time visibility and actionable insights, leading to reduced shortages and optimized inventory levels [2][3] Group 2 - Carrier's collaboration with LeanDNA has transformed its inventory management processes, enhancing operational excellence and customer value [3] - The partnership has demonstrated rapid, measurable results in optimizing inventory and driving efficiency within Carrier's HVAC business [3] - Both Carrier and LeanDNA will be recognized at the Manufacturing Leadership Awards Gala on June 18, 2025 [4] Group 3 - Carrier is committed to digital innovation and aims to build a more resilient, efficient, and customer-centric supply chain [3] - LeanDNA is a leading intelligent supply chain execution platform that helps manufacturers improve on-time delivery and working capital levels through enhanced visibility and collaboration [6]

Core Viewpoint - Carrier Global (CARR) is expected to report a decline in both earnings and revenues for the first quarter of 2025, with earnings estimated at 57 cents per share, reflecting an 8.06% year-over-year decrease, and revenues projected at $5.11 billion, indicating a 17.4% decline [1]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for first-quarter earnings is 57 cents per share, unchanged over the past 30 days, suggesting a year-over-year decline of 8.06% [1]. - The Zacks Consensus Estimate for revenues is pegged at $5.11 billion, indicating a 17.4% year-over-year decline [1]. Group 2: Recent Performance Trends - Carrier Global has consistently surpassed the Zacks Consensus Estimate in the past four quarters, with an average surprise of 8.68% [2]. - The HVAC segment is expected to contribute to top-line growth, driven by strong demand for heating and cooling systems in residential and commercial applications [3]. Group 3: Segment Performance Insights - The Zacks Consensus Estimate for first-quarter 2025 HVAC revenues is $4.32 billion, indicating a decline of 4.87% year-over-year [4]. - Residential HVAC orders in North America increased approximately 10-15% year-over-year in Q4 2024, with global commercial HVAC orders also up 10%, trends likely to continue in Q1 [4]. - The aftermarket segment has shown consistent double-digit growth, expected to continue in the upcoming quarter [5]. Group 4: Market Opportunities and Challenges - The data center market is anticipated to grow significantly due to increased heat generation from AI chips, with Carrier Global aiming to capitalize on this growth [6]. - The integration of Viessmann Climate Solutions is expected to enhance Carrier's capabilities in heat pump technology and sustainable solutions [6]. - Weakness in Europe and China, along with softness in commercial refrigeration, is expected to negatively impact Carrier's performance in the upcoming quarter [7]. Group 5: Earnings Prediction Model - Carrier Global has an Earnings ESP of +0.63% and a Zacks Rank of 3, indicating a moderate chance of an earnings beat [8].

Core Viewpoint - Carrier Global Corporation is set to release its first quarter 2025 earnings on May 1, 2025, and will host a conference call and webcast at 7:30 a.m. ET [1]. Group 1 - The earnings call will be accessible via a pre-registration process, allowing participants to receive dial-in information and a PIN for live access [2]. - A recording of the earnings call will be archived and available for replay on the company's investor relations website [2]. Group 2 - Carrier Global Corporation is recognized as a global leader in intelligent climate and energy solutions, focusing on creating impactful solutions for people and the planet [3]. - The company emphasizes its commitment to innovation and customer-centric approaches, supported by a diverse workforce [3].

Core Insights - Carrier Global Corporation has been recognized as one of 'America's Climate Leaders' by USA Today for its significant efforts in reducing greenhouse gas emissions [1][2] - The recognition is based on a ranking that evaluated U.S. companies for the greatest reduction in emissions intensity from 2021 to 2023, measured by greenhouse gas emissions relative to revenue [2] Company Commitment - Carrier is focused on innovation in sustainable HVAC, cold chain, and energy management solutions, emphasizing its commitment to sustainability for future generations [2] - The company aims to enhance optimization, system integration, and grid resilience, which not only supports sustainability goals but also helps reduce energy costs for households and businesses [3] Industry Position - As the largest U.S.-headquartered company in the HVAC and refrigeration industry, Carrier plays a pivotal role in driving progress within the built environment [3]