Carrier (US:CARR) ZACKS·2025-07-29 17:50Core Insights - Carrier Global (CARR) reported second-quarter 2025 adjusted earnings of 92 cents per share, exceeding the Zacks Consensus Estimate by 1.10% and representing a 26% year-over-year increase [2] - Net sales reached $6.11 billion, surpassing the Zacks Consensus Estimate by 0.87% and increasing by 3% year over year [2] - The company has consistently beaten earnings estimates in the past four quarters, with an average surprise of 5.69% [3] Financial Performance - Product sales, accounting for 89.6% of net sales, amounted to $5.48 billion, reflecting a 3.1% year-over-year increase [2] - Service sales, making up 10.4% of net sales, were $636 million, up 2.1% year over year [2] - Climate Solutions Americas (CSA) revenues were $3.25 billion, contributing 53.2% to net sales and increasing 13.5% year over year, driven by a 45% rise in Commercial sales [4] - Climate Solutions Europe (CSE) revenues reached $1.25 billion, contributing 20.5% to net sales with a 4.9% year-over-year increase [5] - Climate Solutions Asia Pacific, Middle East & Africa (CSAME) revenues were $882 million, contributing 14.4% to net sales but declining 2.2% year over year [6] - Climate Solutions Transportation (CST) revenues were $726 million, contributing 11.9% to net sales and decreasing 25.4% year over year [7] Expenses and Margins - Research & development (R&D) expenses increased by 0.6% year over year to $161 million, with R&D expenses as a percentage of revenues declining by 10 basis points [7] - Selling, general & administrative (SG&A) expenses rose 3% year over year to $813 million, remaining unchanged as a percentage of revenues [8] - Adjusted operating margin expanded by 130 basis points year over year to 19.1%, with significant contributions from CSA and CST segments [11] Balance Sheet and Cash Flow - As of June 30, 2025, Carrier had cash and cash equivalents of $1.8 billion, up from $1.69 billion as of March 31, 2025 [10] - Total debt increased to $11.44 billion from $11.18 billion in the previous quarter [12] - The company generated $649 million in cash from operations, compared to $483 million in the previous quarter, and free cash flow was $568 million, up from $420 million [12] Future Outlook - For 2025, Carrier expects sales of $23 billion, reflecting mid-single-digit organic growth [13] - Adjusted operating margin is projected to be between 16.5% and 17%, an increase of 100 basis points from 2024 [13] - The company anticipates adjusted earnings between $3 per share and $3.10, representing a mid to high-teens growth [13]