Carrier (US:CARR) ZACKS·2025-10-28 18:25Core Insights - Carrier Global (CARR) reported third-quarter 2025 adjusted earnings of 67 cents per share, exceeding the Zacks Consensus Estimate by 21.82%, but down 19.3% year over year [1][10] - Net sales reached $5.58 billion, surpassing the Zacks Consensus Estimate by 0.93%, yet decreased 6.8% year over year [1][10] - The company announced a $5 billion share buyback and projected 4% EPS growth for 2025 [10][12] Financial Performance - Product sales, accounting for 87.9% of net sales, totaled $4.90 billion, down 7.6% year over year [1] - Service sales, making up 12.1% of net sales, were $673 million, a decline of 0.6% year over year [1] - R&D expenses decreased 12.2% year over year to $151 million, while SG&A expenses increased 0.5% to $803 million [7] - Adjusted operating margin contracted 260 basis points year over year to 14.8% [7] Segment Performance - Climate Solutions Americas revenues were $2.71 billion, contributing 48.6% to net sales, down 8.4% year over year [3] - Climate Solutions Europe revenues increased 3.5% year over year to $1.29 billion, contributing 23.1% to net sales [4] - Climate Solutions Asia Pacific, Middle East & Africa revenues were $833 million, a decline of 1% year over year [5] - Climate Solutions Transportation revenues decreased 20.5% year over year to $745 million [6] Cash Flow and Balance Sheet - The company generated $341 million in cash from operations, down from $649 million in the previous quarter [11] - Free cash flow was $224 million, compared to $568 million in the prior quarter [11] - As of September 30, 2025, cash and cash equivalents were $1.42 billion, down from $1.8 billion as of June 30, 2025 [9] 2025 Outlook - Carrier expects 2025 sales of $22 billion, reflecting flat organic growth [12] - Adjusted operating margin is projected to be between 15% and 15.5%, down 50 basis points from 2024 [12] - Anticipated adjusted earnings are $2.65 per share, indicating a year-over-year growth of 4% [12]