Slide 1: Q2 2025 Earnings Conference Call
Q2 2025 Earnings Conference Call July 29, 2025
Slide 2: Cautionary statement
Cautionary statement This 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 infor
Slide 3: Q2 2025 Summary Highlights
Q2 2025 Summary Highlights $6,113M Sales CSA sales up MT with commercial3 sales up ~45% Organic1 +6% Y/Y Global aftermarket3 sales up 13% Adjusted $1,166M Operating Profit1 +10% Y/Y Residential Europe heat pump sales up >10% including Germany up >50% Adjusted 19.1% Operating Margin1 +130 bps Y/Y Ver
Slide 4: Strong progress on strategic focus areas
Strong progress on strategic focus areas Growth Q2 2025 Results • New mag-bearing air cooled chiller with top-tier efficiency Best-in-class products, channels and • $45M data center win in the Middle East brands • Received 2025 Sustainable Product of the Year1 award for the integrated air-to-water h
Slide 5: Residential and light commercial (RLC) Europe
Residential and light commercial (RLC) Europe Leveraging world-class combination Q2 Highlights • Sales in-line with expectations Differentiated • Home Energy Management System technology • Hydronics • Component designs • Germany heat pump units up >50% • Sales outside of Germany up LSD year-over-yea
Slide 6: Continued growth momentum and margin expansion
Continued growth momentum and margin expansion Sales Adj. operating margin3 Adj. EPS3 16.5 – 17.0% $3.00 – 3.10 ~$23B ~300 ~17% bps CAGR 13.6% $17B $1.89 1 1 1 2022A 2025 Guidance2 2022A 2025 Guidance 2 2022A 2025 Guidance 2 Accelerating organic sales growth and delivering continued mid-teens+ adj.
Slide 7: Q2 2025 Results
Q2 2025 Results Q2 2025 Q2 2024 Y/Y Sales $6,113M $5,934M 3% Organic sales1 6% Acquisitions / Divestitures, net (4%) FX 1% Adjusted operating profit1 $1,166M $1,056M 10% Adjusted operating margin1 19.1% 17.8% 130 bps Adjusted effective tax rate1 22.1% 22.7% Adjusted EPS1 $0.92 $0.73 26% Free cash fl
Slide 8: Q2 2025 Climate Solutions Americas (CSA)
Q2 2025 Climate Solutions Americas (CSA) Q2 2025 Q2 2024 Y/Y Highlights Sales $3,252M $2,865M 14% Very strong organic growth at 14% Organic sales1 14% Continued strength in commercial2, sales up 45% Acq / div, net 0% FX 0% Residential sales up 11% Segment operating profit $879M $713M 23% Light comme
Slide 9: Q2 2025 Climate Solutions Europe (CSE)
Q2 2025 Climate Solutions Europe (CSE) Q2 2025 Q2 2024 Y/Y Highlights Sales $1,253M $1,194M 5% Residential and light commercial sales flattish Organic sales1 0% • Heat pump units in Germany up >50% Acq / div, net 0% FX 5% Commercial sales up LSD Segment operating profit $99M $93M 6% Margin expansion
Slide 10: Q2 2025 Climate Solutions Asia Pacific Middle East & Africa (CSAME)
Q2 2025 Climate Solutions Asia Pacific Middle East & Africa (CSAME) Q2 2025 Q2 2024 Y/Y Highlights Sales $882M $902M (2%) Very strong sales growth in India, Japan and the Organic sales1 (4%) Middle East Acq / div, net 0% FX 2% Continued weakness in China, sales down 11% Segment operating profit $135
Slide 11: Q2 2025 Climate Solutions Transportation (CST)
Q2 2025 Climate Solutions Transportation (CST) Q2 2025 Q2 2024 Y/Y Highlights Sales $726M $973M (25%) Global Truck & Trailer sales down MSD; North Organic sales1 (1%) America returned to growth Acq / div, net (25%) Container sales up MSD FX 1% Sensitech sales up HSD Segment operating profit $128M $1
Slide 12: Q2 2025 Organic orders down HT
Q2 2025 Organic orders down HT Climate Solutions Americas (CSA)1 (~30%) Q2 CHVAC Backlog (~60%) Residential vs. >100% PY Light commercial >+20% Commercial1 +HT Climate Solutions Europe (CSE) (MSD) Residential and light commercial (MSD) Commercial (HSD) Climate Solutions Asia Pacific MEA (CSAME) (LSD
Slide 13: Reaffirming FY 2025 guidance
Reaffirming FY 2025 guidance February Guidance May Guidance Current Guidance Sales $22.5B - $23.0B ~$23B ~$23B Organic +MSD Organic +MSD Organic +MSD Adjusted Operating 16.5 – 17.0% 16.5 – 17.0% 16.5 – 17.0% Margin +~100 bps +~100 bps +~100 bps Adjusted EPS $2.95 – $3.05 $3.00 – $3.10 $3.00 – $3.10
Slide 14: FY 2025 Organic sales guidance
FY 2025 Organic sales1 guidance Change vs. prior guide Current guide Prior guide Segment (July 2025) (May 2025) Climate Solutions Americas (CSA) +HSD +HSD Residential +MSD +HSD - DD Light commercial (MT) (DD) Commercial >+20% +DD Climate Solutions Europe (CSE) +LSD +LSD Residential and Light commerc
Slide 15: FY 2025 Profit and cash guidance
FY 2025 Profit and cash guidance Change vs. prior guide Current guide Prior guide Segment (July 2025) (May 2025) ~22.75% Margin ~22.5% Margin CS Americas +~75 bps +~50 bps ~10.0% Margin ~10.5% Margin CS Europe +~50 bps +~100 bps ~13.5% Margin ~13.5% Margin CS Asia Pacific Middle East & Africa ~Flatt
Slide 16: Summary
Summary • Strong Q2 with +6% organic growth and +26% adjusted EPS growth • Exceptional +45% CSA commercial1 growth and +13% global aftermarket1 growth • Traction on all key growth initiatives: products, aftermarket and systems • Continued productivity drove 130 basis points of margin expansion in Q2
Slide 17: APPENDIX
APPENDIX 17
Slide 18: Q2 2025 Adjusted EPS bridge
Q2 2025 Adjusted EPS1 bridge $0.04 $0.00 $0.04 $0.11 $0.92 $0.73 Q2 2024 Adj. EPS Operational Net interest Tax rate / other Share count Q2 2025 Adj. EPS 1. See appendix for additional information regarding non-GAAP measures 2025 Q2 Earnings | July 29, 2025 18
Slide 19: FY 2025 Adjusted EPS guidance bridge
FY 2025 Adjusted EPS1 guidance bridge $0.10 – $0.15 ~$0.00 $0.05 – $0.10 ~$0.30 Share repurchases Tax ~22% Volume NCI Price / Mix $3.05 Net productivity Midpoint $2.56 ~ Tariffs - net Stranded cost elimination Investments 2024 Adj. EPS Operational Foreign exchange Net interest Share count / Other 20
Slide 20: Additional items
Additional items Current Guidance Prior Guidance (July 2025) (May 2025) Average shares outstanding (diluted) ~865M ~865M Corporate expenses / eliminations and other ~$225M ~$225M Interest expense, net1 $350 – $360M $350 – $360M Adjusted effective tax rate1 ~22.0% ~22.0% Non-controlling interest ~$11
Slide 21: Use and definitions of non-GAAP financial measures
Use and definitions of non-GAAP financial measures Carrier 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 informati
Slide 22: Segment summary
Segment summary (Unaudited) Three Months Ended Six Months Ended June 30, 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 9
Slide 23: Organic sales reconciliation
Organic sales reconciliation Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024 (Unaudited) Factors Contributing to Total % change in Net Sales FX Acquisitions / Organic Translation Divestitures, net Other Total Climate Solutions Americas 14 % — % — % — % 14 % Climate So
Slide 24: Earnings before income taxes reconciliation
Earnings before income taxes reconciliation (Unaudited) (Unaudited) Three Months Ended Six Months Ended June June 30, 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)
Slide 25: Adjusted operating profit reconciliation
Adjusted operating profit reconciliation (Unaudited) Three Months Ended Six Months Ended June June 30, 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 2
Slide 26: Q2 and YTD 2025 EPS reconciliation
Q2 and YTD 2025 EPS reconciliation (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
Slide 27: Q2 and YTD 2024 EPS reconciliation
Q2 and YTD 2024 EPS reconciliation (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
Slide 28: Free cash flow reconciliation
Free cash flow reconciliation (Unaudited) Three Months Ended Six Months Ended June 30, 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 expendit
Slide 29: Net debt reconciliation
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 2025 Q2 Earnings | July 29, 2025 29
Slide 30: 2022 reconciliations
2022 reconciliations (Unaudited) Year Ended December 31, 2022 (In millions, except per share amounts) Reported Adjustments Adjusted (Unaudited) Net sales $ 17,288 $ — $ 17,288 Year Ended December 31, 2022 Operating profit $ 3,984 $ (1,637) a $ 2,347 Operating margin 23.04% 13.58% (In millions) Carri
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