Carrier (US:CARR)2025-10-28 10:56Financial Performance - Carrier reported third-quarter 2025 net sales of $5.579 billion, a decrease of 7% year-over-year, with organic sales down 4%[4] - The company's GAAP EPS from continuing operations was $0.47, down 24% year-over-year, while adjusted EPS was $0.67, down 13%[7] - Operating profit for the quarter was $539 million, reflecting a 29% decline from the previous year, primarily due to weaker residential end-markets[6] - The company expects full-year 2025 sales of approximately $22 billion and adjusted EPS of around $2.65, down from prior guidance of $23 billion and $3.00-$3.10, respectively[17] - The Climate Solutions Americas segment saw net sales decline by 8%, with organic sales also down 8%, driven by a 30% increase in Commercial but a 30% decrease in Residential[8] - The Climate Solutions Europe segment reported a 4% increase in net sales, although organic sales were down 3%[9] - Carrier's total net sales for Q3 2025 were $5,579 million, a decrease of 6.8% compared to $5,984 million in Q3 2024[33] - Adjusted operating profit for Q3 2025 was $539 million, down from $763 million in Q3 2024, reflecting a decline of 29.5%[33] - The adjusted earnings per share (EPS) for Q3 2025 was $0.50, compared to $0.49 in Q3 2024, indicating a slight increase of 2.0%[33] - For the three months ended September 30, 2025, net earnings decreased to $455 million from $481 million in 2024, representing a decline of 5.4%[37] - The consolidated segment operating profit fell to $865 million, down 22.9% from $1,122 million in the prior year[39] - The Climate Solutions Transportation segment experienced a significant decline in net sales, dropping 20% to $745 million from $937 million in the previous year[41] - For the nine months ended September 30, 2025, total net sales decreased by 2% to $16,910 million compared to $17,338 million in 2024[39] - The adjusted operating profit for the three months ended September 30, 2025, was $823 million, down from $1,044 million in 2024, reflecting a decrease of 21.1%[45] - Earnings from continuing operations attributable to common shareowners for Q3 2025 were $576 million, compared to $705 million in Q3 2024, a decrease of 18.3%[50] - Diluted earnings per share from continuing operations for Q3 2025 were $0.67, down from $0.77 in Q3 2024, a decline of 12.9%[50] Cash Flow and Shareholder Returns - Free cash flow for the third quarter was $224 million, with net cash flows from operating activities at $341 million[16] - Carrier returned $3 billion to shareholders year-to-date, including $2.4 billion in share repurchases[4] - Carrier's board approved a $5 billion share repurchase authorization, reflecting confidence in the company's strategy[4] - Free cash flow for the nine months ended September 30, 2025, was $1,212 million, significantly higher than $119 million for the same period in 2024[51] - The company reported a net cash flow used in continuing financing activities of $591 million for the three months ended September 30, 2025, compared to $1,544 million in 2024[37] Balance Sheet and Assets - Total assets increased to $38,077 million as of September 30, 2025, up from $37,403 million at the end of 2024, representing a growth of 1.8%[35] - Cash and cash equivalents decreased significantly to $1,423 million from $3,969 million at the end of 2024, a decline of 64.1%[35] - Long-term debt rose to $11,336 million as of September 30, 2025, compared to $11,026 million at the end of 2024, an increase of 2.8%[35] - Carrier's total liabilities increased to $23,238 million as of September 30, 2025, compared to $23,008 million at the end of 2024, an increase of 1.0%[35] - The company’s equity increased to $14,839 million as of September 30, 2025, up from $14,395 million at the end of 2024, reflecting a growth of 3.1%[35] - Net debt increased to $10,493 million as of September 30, 2025, up from $8,393 million at the end of 2024, reflecting a rise of 25.0%[52] Expenses and Costs - Research and development expenses for Q3 2025 were $151 million, down from $172 million in Q3 2024, a reduction of 12.2%[33] - The company incurred restructuring costs of $50 million for the three months ended September 30, 2025, compared to $60 million in the same period last year[45] - Total adjustments for Q3 2025 amounted to $295 million, compared to $195 million in Q3 2024, reflecting an increase of 51.3%[50] Margins and Tax Rate - The operating margin for Q3 2025 was 14.8%, down from 17.4% in Q3 2024, showing a decrease of 1.9 percentage points[47] - The effective tax rate for Q3 2025 was 17.2%, compared to 23.3% in Q3 2024, indicating a decrease of 6.1 percentage points[50] - The Climate Solutions Europe segment's operating margin decreased to 9.3% from 10.4% year-over-year[39]