Carrier Reports 2025 Results and Announces 2026 Outlook

Core Insights - Carrier Global Corporation reported a significant decline in financial performance for Q4 2025, with net sales of $4.8 billion, down 6% year-over-year, and organic sales down 9% [3][5]. - The company continues to experience strong growth in its commercial HVAC segment, with Q4 orders increasing nearly 50%, driven by data center wins [2][4]. - The overall operating profit for Q4 was $101 million, reflecting an 87% decline from the previous year, primarily due to weaker residential markets and distributor destocking [4][6]. Financial Performance - Q4 2025 net sales were $4,837 million, compared to $5,148 million in Q4 2024, marking a 6% decrease [3]. - Organic sales decreased by 9%, partially offset by a 3% positive impact from foreign currency translation [3]. - Adjusted operating profit for Q4 was $455 million, down 33% from $678 million in the prior year [6]. - The diluted earnings per share (EPS) from continuing operations was $0.03, compared to a loss of $0.05 in the previous year [5][6]. Segment Performance - Climate Solutions Americas (CSA) reported a 17% decline in net sales to $1,935 million, with organic sales also down 17% [7]. - Climate Solutions Europe (CSE) saw a 6% increase in net sales to $1,332 million, although organic sales were down 2% [9]. - Climate Solutions Asia Pacific, Middle East & Africa (CSAME) experienced a 9% decline in net sales to $798 million, with organic sales also down 9% [11]. - Climate Solutions Transportation (CST) reported a 13% increase in net sales to $772 million, with organic sales up 10% [12]. Cash Flow and Shareholder Returns - Net cash flows from operating activities for Q4 were $1,040 million, with free cash flow of $909 million [14]. - The company returned approximately $3.7 billion to shareholders, including $0.8 billion in dividends and $2.9 billion in share repurchases [5]. Full-Year Guidance for 2026 - Carrier expects continued double-digit growth in global commercial HVAC and aftermarket, with a projected sales range of approximately $22 billion for 2026 [15][16]. - The guidance includes a headwind of about $350 million in sales and a $0.03 impact on adjusted EPS due to the divestiture of Riello [15]. - Adjusted operating profit is expected to be around $3.4 billion, with adjusted EPS projected at $2.80 [15][16].