Carrier (US:CARR)2025-10-28 19:14Financial Performance - For the three months ended September 30, 2025, net sales were $5.6 billion, a 7% decrease compared to the same period in 2024[132]. - Gross margin for the same period was $1.4 billion, a 14% decrease year-over-year, with a gross margin percentage of 26.0% compared to 28.0% in 2024[134]. - Operating profit decreased to $539 million, down 29% from $763 million in the prior year[132]. - Non-operating income (expense), net was $(106) million, a significant decrease of 1,614% compared to $7 million in 2024[139]. - Adjusted operating profit for the three months ended September 30, 2025, was $823 million, down from $1.0 billion in 2024[143]. - For the nine months ended September 30, 2025, net sales were $16.9 billion, a 2% decrease compared to the same period in 2024[145]. - Gross margin for the same period was $4.7 billion, reflecting a 1% increase year-over-year, with a gross margin percentage of 27.6%[146]. - Adjusted operating profit for the nine months ended September 30, 2025, was $2.8 billion, slightly down from $2.9 billion in 2024[154]. - Non-operating income (expense), net was $278 million, a 5% decrease compared to the prior year, primarily due to reduced interest expense[151]. Tax and Expenses - The effective tax rate for the three months ended September 30, 2025, was a benefit of 0.2%, compared to 22.3% in the same period of 2024[141]. - The effective tax rate for the nine months ended September 30, 2025, was 15.2%, down from 21.4% in 2024, driven by various tax benefits[152]. - Operating expenses were $910 million, flat compared to the same period in 2024, with selling, general and administrative expenses increasing by 1%[135]. - Operating expenses decreased by 6% to $2.6 billion, with selling, general and administrative expenses at $2.3 billion, a 2% decrease from 2024[147]. Segment Performance - Organic sales decreased by 4% year-over-year, primarily due to reduced demand in the Climate Solutions Americas segment[133]. - Climate Solutions Americas segment reported net sales of $2.7 billion for the three months ended September 30, 2025, down from $3.0 billion in 2024[157]. - Segment operating profit for Climate Solutions Americas was $533 million, a 29% decrease year-over-year[160]. - Climate Solutions Europe reported net sales of $1.3 billion, a 4% increase compared to the same period in 2024[161]. - Segment operating profit for Climate Solutions Europe was $120 million, a 7% decrease year-over-year[162]. - Climate Solutions Asia Pacific, Middle East & Africa had net sales of $833 million, a 1% decrease compared to the same period in 2024[163]. - Segment operating profit for Climate Solutions Asia Pacific, Middle East & Africa was $97 million, an 8% decrease year-over-year[164]. - Climate Solutions Transportation reported net sales of $745 million, a 20% decrease compared to the same period in 2024[165]. - Segment operating profit for Climate Solutions Transportation was $115 million, a 16% decrease year-over-year[166]. Cash Flow and Capital Structure - As of September 30, 2025, the company had cash and cash equivalents of $1.4 billion, with approximately 94% held by foreign subsidiaries[179]. - As of September 30, 2025, the company had cash and cash equivalents of $1,423 million, down from $3,969 million on December 31, 2024[182]. - Total debt stood at $11,916 million, with a total equity of $14,839 million, resulting in a total debt to total capitalization ratio of 45%[182]. - The company completed several divestitures in 2024, raising a total of $9.0 billion from the sale of various business units, which were used for debt repayment and growth initiatives[186]. - During the nine months ended September 30, 2025, the company repurchased 36.3 million shares for $2.4 billion, leaving approximately $811 million remaining under the current share repurchase authorization[188]. - Dividends paid during the nine months ended September 30, 2025, totaled $583 million, with a declared dividend of $0.225 per share payable on November 18, 2025[189]. - Net cash flows from continuing operating activities for the nine months ended September 30, 2025, were $1,076 million, a decrease from $1,208 million in the prior year[190]. - Cash used in continuing investing activities was $232 million, significantly lower than $11.3 billion in the same period of 2024, primarily due to a major acquisition in the prior year[192]. - Net cash used in continuing financing activities was $3.9 billion, driven by stock repurchases of $2.4 billion and long-term debt repayments of $1.2 billion[193]. - The company maintains a $2.0 billion USD-denominated facility and a $500 million Euro-denominated facility for general corporate purposes, with $415 million outstanding under the commercial paper program as of September 30, 2025[183]. - Credit ratings from major agencies as of September 30, 2025, include BBB+ from S&P and Baa1 from Moody's, indicating stable and positive outlooks respectively[185]. Strategic Actions - The company acquired the climate solutions business of Viessmann Group, enhancing its portfolio in sustainable building solutions[127]. - The company divested its Commercial Refrigeration business during 2024, part of a broader portfolio transformation strategy[127].