Carrier Reports Strong Second Quarter 2025 Results

Net sales up 3%; organic sales up 6% GAAP EPS of $0.70 up 56% and adjusted EPS of $0.92 up 26% GAAP operating margin up 260 bps; adjusted operating margin up 130 bps Net cash flows from operating activities were $649 million and free cash flow was $568 million Reaffirming full-year 2025 guidance for sales, adjusted operating margin, adjusted EPS and free cash flow* , /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported strong financial results for the second quarter of 2025 and reaffirmed its full year guidance. "We delivered another quarter of strong financial performance," said Carrier Chairman & CEO David Gitlin. "Organic sales growth of 6% was driven by strong results in our Climate Solutions Americas segment, with Commercial1 sales up 45% and total company aftermarket sales up 13%. Adjusted operating margins expanded 130 basis points driven by strong organic growth and productivity, leading to over 25% adjusted EPS growth. With a strong first half, we remain committed to accelerating growth driven by differentiated products, aftermarket offerings and system solutions. We are maintaining our full-year outlook for sales, adjusted operating margin expansion and adjusted EPS, representing about 20% adjusted EPS growth at the midpoint." Second Quarter 2025 Results Total Company (Unaudited) Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 6,113 $ 5,934 3 % Organic sales 6 % Operating profit $ 903 $ 724 25 % Operating margin 14.8 % 12.2 % 260 bps Adjusted operating profit $ 1,166 $ 1,056 10 % Adjusted operating margin 19.1 % 17.8 % 130 bps ‌ Diluted earnings per share: Continuing operations $ 0.70 $ 0.45 56 % Continuing operations - Adjusted $ 0.92 $ 0.73 26 % Carrier's second quarter sales of $6.1 billion increased 3% compared to the prior year. Organic sales growth of 6% was offset by a 4% headwind from net acquisitions and divestitures, driven by the sale of Commercial Refrigeration in Q4 2024. Foreign currency translation was a 1% tailwind to sales growth. GAAP operating profit in the quarter of $903 million was up 25% from last year driven by strong operational performance, the absence of backlog and inventory step-up amortization and a decrease in acquisition and divestiture-related costs. Adjusted operating profit of $1,166 million was up 10%, largely driven by strong organic growth and productivity. Net earnings from continuing operations were $608 million and adjusted net earnings from continuing operations was $796 million. GAAP EPS from continuing operations was $0.70 and adjusted EPS from continuing operations was $0.92 driven by higher operating profit, lower net interest expense and benefits of a lower share count. Climate Solutions Americas (CSA) (Unaudited) Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 3,252 $ 2,865 14 % Organic sales 14 % ‌ Segment operating profit $ 879 $ 713 23 % Segment operating margin 27.0 % 24.9 % 210 bps CSA segment sales increased 14%. Organic sales were up 14%, driven by continued strength in Commercial1 up 45% and Residential up over 10%, partially offset by a decline in Light Commercial. Segment operating margin increased 210 basis points driven by strong organic sales growth and productivity. Climate Solutions Europe (CSE) (Unaudited) Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 1,253 $ 1,194 5 % Organic sales — % ‌ Segment operating profit $ 99 $ 93 6 % Segment operating margin 7.9 % 7.8 % 10 bps CSE segment sales increased 5%. Organic sales were flat, with Commercial up low-single digits while Residential and Light Commercial was about flat. Segment operating margin increased 10 basis points, driven by productivity including cost synergies, partially offset by geographic and product mix. Climate Solutions Asia Pacific, Middle East & Africa (CSAME) (Unaudited) Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 882 $ 902 (2) % Organic sales (4) % ‌ Segment operating profit $ 135 $ 157 (14) % Segment operating margin 15.3 % 17.4 % (210) bps CSAME segment sales declined 2%. Organic sales were down 4%, mainly driven by Residential Light Commercial in China, partially offset by strength in India, Japan and the Middle East. Segment operating margin decreased 210 basis points with strong productivity more than offset by a prior year favorable currency impact and lower volume. Climate Solutions Transportation (CST) (Unaudited) Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 726 $ 973 (25) % Organic sales (1) % ‌ Segment operating profit $ 128 $ 138 (7) % Segment operating margin 17.6 % 14.2 % 340 bps CST sales declined 25% driven by the impact from the divestiture of Commercial Refrigeration. Organic sales growth declined 1% with mid-single digit growth in Container and low-single digit growth in North America Truck and Trailer more than offset by declines in Europe and Asia Truck and Trailer. Segment operating margin increased 340 basis points largely due to the Commercial Refrigeration exit during Q4 2024. Cash Flow (Unaudited) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2025 2024 2025 2024 Net cash flows provided by operating activities $ 649 $ 660 $ 1,132 $ 700 Less: Capital expenditures - continuing operations (81) (108) (144) (210) Less: Capital expenditures - discontinued operations — (3) — (5) Free cash flow $ 568 $ 549 $ 988 $ 485 Net cash flows generated from operating activities were $649 million and capital expenditures were $81 million, resulting in free cash flow of $568 million. Full-Year 2025 Guidance** Current Guidance** No change vs. prior guidance Prior Guidance Sales ~$23 billion ~$750 million revenue headwind from CCR exit Organic* up MSD FX 1% Acquisitions 0% Divestitures (3%) ~$23 billion ~$750 million revenue headwind from CCR exit Organic* up MSD FX 1% Acquisitions 0% Divestitures (3%) ‌ Adjusted Operating Margin* 16.5% – 17.0% + ~100 bps Y/Y 16.5% – 17.0% + ~100 bps Y/Y ‌ Adjusted EPS* $3.00 – $3.10 ~17-21% Y/Y $3.00 – $3.10 ~17-21% Y/Y ‌ Free Cash Flow* $2.4 – $2.6 billion Includes the expected results of continuing and discontinued operations $2.4 – $2.6 billion Includes the expected results of continuing and discontinued operations ‌ *Note: When the company provides expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See "Use and Definitions of Non-GAAP Financial Measures" below for additional information. ‌ **As of July 29, 2025 Conference Call Carrier will host a webcast of its earnings conference call today, Tuesday, July 29, 2025, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at ir.carrier.com/news-and-events/events-and-presentations or to listen to the earnings call by phone, participants must pre-register at Carrier Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing access to the live call. Cautionary StatementThis communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, Carrier's guidance for full-year 2025, Carrier's plans with respect to our indebtedness and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation, those described below and under the section titled "Risk Factors" in our most recent Annual Report on Form 10-K and in subsequent reports that we file with the SEC: the effect of economic conditions in the industries and markets in which Carrier and our businesses operate in the U.S. and globally and any changes therein, including financial market conditions, inflationary cost pressures, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction, the impact of weather conditions, pandemic health issues, natural disasters and the financial condition of our customers and suppliers; challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; future levels of capital spending and research and development spending; future availability of credit and factors that may affect such availability, including credit market conditions and Carrier's capital structure and credit ratings; the timing and scope of future repurchases of Carrier's common stock, including market conditions and the level of other investing activities and uses of cash; delays and disruption in the delivery of materials and services from suppliers; cost reduction efforts and restructuring costs and savings and other consequences thereof; new business and investment opportunities; the outcome of legal proceedings, investigations and other contingencies; the impact of pension plan assumptions on future cash contributions and earnings; the impact of the negotiation of collective bargaining agreements and labor disputes; the effect of changes in political conditions in the U.S. and other countries in which Carrier and our businesses operate, including the effect of ongoing uncertainty and/or changes in U.S. trade policies, on general market conditions, global trade policies, the imposition of tariffs, and currency exchange rates in the near term and beyond; the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which we and our businesses operate; the ability of Carrier to retain and hire key personnel; the scope, nature, impact or timing of acquisition and divestiture activity, such as our portfolio transformation transactions, including among other things integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; a determination by the IRS and other tax authorities that the distribution of Carrier from RTX Corporation (f/k/a United Technologies Corporation or certain related transactions should be treated as taxable transactions; and risks associated with current and future indebtedness, as well as our ability to reduce indebtedness and the timing thereof. The forward-looking statements speak only as of the date of this communication. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements is disclosed from time to time in our other filings with the SEC. About CarrierCarrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating innovations that bring comfort, safety and sustainability to life. Through cutting-edge advancements in climate solutions such as temperature control, air quality and transportation, we improve lives, empower critical industries and ensure the safe transport of food, life-saving medicines and more. Since inventing modern air conditioning in 1902, we lead with purpose: enhancing the lives we live and the world we share. We continue to lead because of our world-class, inclusive workforce that puts the customer at the center of everything we do. For more information, visit corporate.carrier.com or follow Carrier on social media at @Carrier. Carrier. For the World We Share. CARR-IR SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS Following are tables that present selected financial data of Carrier Global Corporation ("Carrier"). Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures. As a result of Carrier's portfolio transformation, Carrier revised its reportable segments during the first quarter of 2025 to better reflect its business strategy, align its management reporting and increase transparency for investors. In connection with the revised structure, the Chief Operating Decision Maker changed the measure used to evaluate segment profitability from Operating profit to Segment operating profit. It represents operating profit (a GAAP measure) adjusted to exclude restructuring costs, amortization of acquired intangible assets and other significant items of a nonoperational nature. All prior period comparative information has been recast to reflect the revised segment structure. Use and Definitions of Non-GAAP Financial MeasuresCarrier reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures. Organic sales, adjusted operating profit, adjusted operating margin, adjusted net income, adjusted earnings per share ("EPS"), adjusted effective tax rate and net debt are non-GAAP financial measures and are associated with Carrier's continuing operations unless specifically noted. Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a nonoperational nature (hereinafter referred to as "other significant items"). Adjusted operating profit represents consolidated operating profit (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of consolidated net sales (a GAAP measure). Adjusted net income represents net income attributable to common shareowners (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure). Free cash flow is a non-GAAP financial measure that represents net cash flows provided by continuing operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Carrier's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of Carrier's common stock and distribution of earnings to shareowners. Orders are contractual commitments with customers to provide specified goods or services for an agreed upon price and may not be subject to penalty if cancelled. When Carrier provides our expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted effective tax rate, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. Carrier Global Corporation Condensed Consolidated Statement of Operations ‌ (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share amounts) 2025 2024 2025 2024 Net sales Product sales $ 5,477 $ 5,311 $ 10,129 $ 10,153 Service sales 636 623 1,202 1,201 Total Net sales 6,113 5,934 11,331 11,354 Costs and expenses Cost of products sold (3,867) (3,867) (7,225) (7,449) Cost of services sold (477) (492) (892) (945) Research and development (161) (160) (314) (352) Selling, general and administrative (813) (789) (1,542) (1,596) Total Costs and expenses (5,318) (5,308) (9,973) (10,342) Equity method investment net earnings 78 90 122 121 Other income (expense), net 30 8 52 (24) Operating profit 903 724 1,532 1,109 Non-service pension (expense) benefit — — 1 — Interest (expense) income, net (91) (157) (173) (298) Earnings before income taxes 812 567 1,360 811 Income tax (expense) benefit (162) (120) (273) (167) Earnings from continuing operations 650 447 1,087 644 Discontinued operations, net of tax (17) 1,922 (17) 2,014 Net earnings (loss) 633 2,369 1,070 2,658 Less: Non-controlling interest in subsidiaries' 42 32 67 52 Net earnings (loss) attributable to common shareowners $ 591 $ 2,337 $ 1,003 $ 2,606 Amounts attributable to common shareowners: Continuing operations $ 608 $ 415 $ 1,020 $ 592 Discontinued operations (17) 1,922 (17) 2,014 Net earnings (loss) attributable to common shareowners $ 591 $ 2,337 $ 1,003 $ 2,606 Earnings per share Basic: Continuing operations $ 0.71 $ 0.46 $ 1.18 $ 0.66 Discontinued operations (0.02) 2.13 (0.01) 2.24 Net earnings (loss) $ 0.69 $ 2.59 $ 1.17 $ 2.90 Diluted: Continuing operations $ 0.70 $ 0.45 $ 1.17 $ 0.65 Discontinued operations (0.02) 2.10 (0.02) 2.20 Net earnings (loss) $ 0.68 $ 2.55 $ 1.15 $ 2.85 Weighted-average number of shares outstanding Basic 854.9 902.4 860.8 900.2 Diluted 866.3 915.3 872.3 913.6 Carrier Global Corporation Condensed Consolidated Balance Sheet ‌ (Unaudited) (In millions) June 30, 2025 December 31, 2024 Assets Cash and cash equivalents $ 1,797 $ 3,969 Accounts receivable, net 3,373 2,651 Inventories, net 2,888 2,299 Other current assets 1,073 972 Total current assets 9,131 9,891 Future income tax benefits 1,220 1,131 Fixed assets, net 3,182 2,999 Operating lease right-of-use assets 575 554 Intangible assets, net 6,770 6,432 Goodwill 15,672 14,601 Pension and post-retirement assets 50 43 Equity method investments 1,353 1,194 Other assets 540 558 Total Assets $ 38,493 $ 37,403 ‌ Liabilities and Equity Accounts payable $ 3,214 $ 2,458 Accrued liabilities 4,508 4,182 Current portion of long-term debt 107 1,252 Total current liabilities 7,829 7,892 Long-term debt 11,336 11,026 Future pension and post-retirement obligations 221 214 Future income tax obligations 2,087 2,015 Operating lease liabilities 444 432 Other long-term liabilities 1,562 1,429 Total Liabilities 23,479 23,008 ‌ Equity Common stock 9 9 Treasury stock (5,522) (3,915) Additional paid-in capital 8,338 8,610 Retained earnings 12,294 11,483 Accumulated other comprehensive loss (413) (2,106) Non-controlling interest 308 314 Total Equity 15,014 14,395 Total Liabilities and Equity $ 38,493 $ 37,403 Carrier Global Corporation Condensed Consolidated Statement of Cash Flows (Unaudited) ‌ Six Months Ended June 30, (In millions) 2025 2024 Operating Activities Net earnings (loss) $ 1,070 $ 2,658 Discontinued operations, net of tax 17 (2,014) Adjustments for non-cash items, net: Depreciation and amortization 620 602 Deferred income tax provision (158) (231) Stock-based compensation costs 44 40 Equity method investment net earnings (122) (121) (Gain) loss on sale of investments (17) — Changes in operating assets and liabilities Accounts receivable, net (702) (232) Inventories, net (412) 7 Accounts payable and accrued liabilities 378 2 Distributions from equity method investments 81 12 Other operating activities, net (47) (114) Net cash flows provided by (used in) continuing operating activities 752 609 Net cash flows provided by (used in) discontinued operating activities 380 91 Net cash flows provided by (used in) operating activities 1,132 700 Investing Activities Capital expenditures (144) (210) Investment in businesses, net of cash acquired (61) (10,779) Dispositions of businesses 8 — Settlement of derivative contracts, net 87 (185) Other investing activities, net (3) 27 Net cash flows provided by (used in) continuing investing activities (113) (11,147) Net cash flows provided by (used in) discontinued investing activities 35 4,874 Net cash flows provided by (used in) investing activities (78) (6,273) Financing Activities Increase (decrease) in short-term borrowings, net (57) 7 Issuance of long-term debt 15 2,555 Repayment of long-term debt (1,208) (3,542) Repurchases of common stock (1,628) — Dividends paid on common stock (390) (330) Dividends paid to non-controlling interest (9) (67) Other financing activities, net (17) (14) Net cash flows provided by (used in) continuing financing activities (3,294) (1,391) Net cash flows provided by (used in) discontinued financing activities — (15) Net cash flows provided by (used in) financing activities (3,294) (1,406) Effect of foreign exchange rate changes on cash and cash equivalents 68 (82) Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale (2,172) (7,061) Less: Change in cash balances classified as assets held for sale — 34 Net increase (decrease) in cash and cash equivalents and restricted cash (2,172) (7,095) Cash, cash equivalents and restricted cash, beginning of period 3,972 9,853 Cash, cash equivalents and restricted cash, end of period 1,800 2,758 Less: restricted cash 3 2 Cash and cash equivalents, end of period $ 1,797 $ 2,756 Carrier Global Corporation Segment Summary ‌ (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2025 2024 2025 2024 Segment net sales Climate Solutions Americas $ 3,252 $ 2,865 $ 5,824 $ 5,225 Climate Solutions Europe 1,253 1,194 2,422 2,486 Climate Solutions Asia Pacific, Middle East & Africa 882 902 1,708 1,786 Climate Solutions Transportation 726 973 1,377 1,857 Segment net sales $ 6,113 $ 5,934 $ 11,331 $ 11,354 ‌ Segment operating profit Climate Solutions Americas $ 879 $ 713 $ 1,449 $ 1,138 Climate Solutions Europe 99 93 204 260 Climate Solutions Asia Pacific, Middle East & Africa 135 157 256 265 Climate Solutions Transportation 128 138 225 251 Segment operating profit $ 1,241 $ 1,101 $ 2,134 $ 1,914 ‌ Segment operating margin Climate Solutions Americas 27.0 % 24.9 % 24.9 % 21.8 % Climate Solutions Europe 7.9 % 7.8 % 8.4 % 10.5 % Climate Solutions Asia Pacific, Middle East & Africa 15.3 % 17.4 % 15.0 % 14.8 % Climate Solutions Transportation 17.6 % 14.2 % 16.3 % 13.5 % Components of Changes in Net Sales ‌ Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024 ‌ (Unaudited) Factors Contributing to Total % change in Net Sales Organic FXTranslation Acquisitions /Divestitures, net Other Total Climate Solutions Americas 14 % — % — % — % 14 % Climate Solutions Europe — % 5 % — % — % 5 % Climate Solutions Asia Pacific, Middle East & Africa (4) % 2 % — % — % (2) % Climate Solutions Transportation (1) % 1 % (25) % — % (25) % Consolidated 6 % 1 % (4) % — % 3 % ‌ Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024 ‌ (Unaudited) Factors Contributing to Total % change in Net Sales Organic FXTranslation Acquisitions /Divestitures, net Other Total Climate Solutions Americas 11 % — % — % — % 11 % Climate Solutions Europe (4) % 1 % — % — % (3) % Climate Solutions Asia Pacific, Middle East & Africa (5) % 1 % — % — % (4) % Climate Solutions Transportation — % — % (26) % — % (26) % Consolidated 4 % — % (4) % — % — % Carrier Global Corporation Reconciliations ‌ (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2025 2024 2025 2024 Reconciliation to Earnings before income taxes Segment operating profit $ 1,241 $ 1,101 $ 2,134 $ 1,914 Corporate and other (75) (45) (120) (94) Restructuring costs (47) (29) (55) (37) Amortization of acquired intangibles (214) (170) (415) (342) Acquisition step-up amortization — (109) — (220) Acquisition/divestiture-related costs (9) (24) (19) (72) CCR gain 7 — 7 — Viessmann-related hedges — — — (86) Gain on liability adjustment — — — 46 Non-service pension (expense) benefit — — 1 — Interest (expense) income, net (91) (157) (173) (298) ‌ Earnings before income taxes $ 812 $ 567 $ 1,360 $ 811 ‌ (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2025 2024 2025 2024 Reconciliation of Segment operating profit to Adjusted operating profit Climate Solutions Americas $ 879 $ 713 $ 1,449 $ 1,138 Climate Solutions Europe 99 93 204 260 Climate Solutions Asia Pacific, Middle East & Africa 135 157 256 265 Climate Solutions Transportation 128 138 225 251 Segment operating profit $ 1,241 $ 1,101 $ 2,134 $ 1,914 Corporate and other (75) (45) (120) (94) Adjusted operating profit $ 1,166 $ 1,056 $ 2,014 $ 1,820 Carrier Global Corporation Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share and Effective Tax Rate ‌ (Unaudited) Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 (In millions, except per share amounts) Reported Adjustments Adjusted Reported Adjustments Adjusted Net sales $ 6,113 $ — $ 6,113 $ 11,331 $ — $ 11,331 ‌ Operating profit $ 903 263 a $ 1,166 $ 1,532 482 a $ 2,014 Operating margin 14.8 % 19.1 % 13.5 % 17.8 % ‌ Earnings before income taxes $ 812 263 a $ 1,075 $ 1,360 482 a,b $ 1,842 Income tax (expense) benefit $ (162) (75) c $ (237) $ (273) (133) c $ (406) Effective tax rate 20.0 % 22.1 % 20.1 % 22.1 % ‌ Earnings from continuing operations attributable to common shareowners $ 608 $ 188 $ 796 $ 1,020 $ 349 $ 1,369 ‌ Summary of Adjustments: Amortization of acquired intangibles $ 214 a $ 415 a Restructuring costs 47 a 55 a Acquisition/divestiture-related costs 9 a 19 a CCR gain (7) a (7) a Total adjustments $ 263 $ 482 Tax effect on adjustments above $ (69) $ (127) Tax specific adjustments (6) (6) Total tax adjustments $ (75) c $ (133) c ‌ Diluted shares outstanding 866.3 866.3 872.3 872.3 ‌ Diluted earnings per share: Continuing operations $ 0.70 $ 0.92 $ 1.17 $ 1.57 Carrier Global Corporation Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share and Effective Tax Rate ‌ (Unaudited) Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 (In millions, except per share amounts) Reported Adjustments Adjusted Reported Adjustments Adjusted Net sales $ 5,934 $ — $ 5,934 $ 11,354 $ — $ 11,354 ‌ Operating profit $ 724 332 a $ 1,056 $ 1,109 711 a $ 1,820 Operating margin 12.2 % 17.8 % 9.8 % 16.0 % ‌ Earnings before income taxes $ 567 344 a,b $ 911 $ 811 723 a,b $ 1,534 Income tax (expense) benefit $ (120) (87) c $ (207) $ (167) (173) c $ (340) Effective tax rate 21.2 % 22.7 % 20.6 % 22.2 % ‌ Earnings from continuing operations attributable to common shareowners $ 415 $ 257 $ 672 $ 592 $ 550 $ 1,142 ‌ Summary of Adjustments: Amortization of acquired intangibles $ 170 a $ 342 a Restructuring costs 29 a 37 a Acquisition/divestiture-related costs 24 a 72 a Acquisition step-up amortization (1) 109 a 220 a Viessmann-related hedges — a 86 a Gain on liability adjustment (2) — a (46) a Debt prepayment costs $ 12 b $ 12 b Total adjustments $ 344 $ 723 ‌ Tax effect on adjustments above $ (87) $ (173) Total tax adjustments $ (87) c $ (173) c ‌ Diluted shares outstanding 915.3 915.3 913.6 913.6 ‌ Diluted earnings per share: Continuing operations $ 0.45 $ 0.73 $ 0.65 $ 1.25 ‌ (1) Amortization of the step-up to fair value of acquired inventory and backlog. (2) Gain associated with an adjustment to our tax-related liability owed to UTC. Free Cash Flow Reconciliation ‌ (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2025 2024 2025 2024 Net cash flows provided by operating activities $ 649 $ 660 $ 1,132 $ 700 Less: Capital expenditures - continuing operations (81) (108) (144) (210) Less: Capital expenditures - discontinued operations — (3) — (5) Free cash flow $ 568 $ 549 $ 988 $ 485 Net Debt Reconciliation ‌ (Unaudited) (In millions) June 30, 2025 December 31, 2024 Long-term debt $ 11,336 $ 11,026 Current portion of long-term debt 107 1,252 Less: Cash and cash equivalents 1,797 3,969 Net debt $ 9,646 $ 8,309 SOURCE Carrier Global Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Carrier Reports Strong Second Quarter 2025 Results

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