Carrier Global Corporation · NYSE:CARR
Carrier Global — Q3 2025 Earnings Presentation
32 slides from Carrier Global's earnings presentation, Oct 28, 2025
Slide 1: Q3 2025 Earnings Conference Call
Q3 2025 Earnings Conference Call October 28, 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: Q3 2025 Summary Highlights
Q3 2025 Summary Highlights $5,579M Sales CSA commercial3 continues to outperform market with Q3 sales up Organic1 (4%) Y/Y 30%, including data centers up ~250% Adjusted $823M CSA resi sales down ~30%; field inventory levels down significantly Operating Profit1 (21%) Y/Y RLC Europe heat pump sales up
Slide 4: Strong progress on strategic focus areas
Strong progress on strategic focus areas Growth Q3 2025 Results • Secured largest ever win with a North American data center hyperscaler (Q4 order) • 3-year supply contract secured with a top U.S. homebuilder – long-term pursuit account • Viessmann flagship heat pump awarded3 best product in the ind
Slide 5: Strong position with CSA Residential business
Strong position with CSA Residential business Share gains enhancing Field inventory levels projected to be • #1 share position, up ~300 bps market leadership down ~30% by year-end (units) since 2019 • Best-in-class margins and ROIC ~+300 bps1 • 2025 double-digit pricing and mix- up benefit • Q3 Carr
Slide 6: RLC Europe benefiting from transition to electrification
RLC Europe benefiting from transition to electrification Heat pump subsidy Shift towards electrification applications expected to • Transition from fossil fuels to heat continuing with pace pumps is progressing as double this year expected (RLC Europe heat pump sales) (Germany) • Europe market heati
Slide 7: Strong performance in CSA Commercial
Strong performance in CSA Commercial1 • 15 consecutive quarters of double-digit growth ~$3.5B Data center • Aftermarket sales growth of >2X1,2 sales +HT CAGR • ALC building automation sales up >2X2 ~$1.6B • Strategic R&D resulting in 195 new product launches2 Non-data center sales • 3X chiller capac
Slide 8: Global data center wins driving outsized growth
Global data center wins driving outsized growth • Dedicated integrated team including top Focused priority industry talent • Launched differentiated product offerings ~$0.9B • Significant key wins with hyperscalers and Gaining share ~$0.7B colos driving outsized share gains • Major data center win p
Slide 9: Carrier well-positioned for outsized value creation
Carrier well-positioned for outsized value creation Executing on strategy to deliver Growing leadership positions in each end-market best-in-class growth and margin expansion CS CS Americas CS Europe CS AME Transportation Growth initiatives Product – share gains Commercial ++ Commercial + China CHVA
Slide 10: Q3 2025 Results
Q3 2025 Results Q3 2025 Q3 2024 Y/Y Sales $5,579M $5,984M (7%) Organic sales1 (4%) Acquisitions / Divestitures, net (4%) FX 1% Adjusted operating profit1 $823M $1,044M (21%) Adjusted operating margin1 14.8% 17.4% (260) bps Adjusted effective tax rate1 17.1% 23.3% Adjusted EPS1 $0.67 $0.77 (13%) Free
Slide 11: Q3 2025 Climate Solutions Americas (CSA)
Q3 2025 Climate Solutions Americas (CSA) Q3 2025 Q3 2024 Y/Y Highlights Sales $2,711M $2,961M (8%) Continued strength in commercial2, sales up 30% Organic sales1 (8%) • Data centers up >3X, non-data centers up Acq / div, net 0% double-digits FX 0% Residential sales down ~30% with volume down ~40%; p
Slide 12: Q3 2025 Climate Solutions Europe (CSE)
Q3 2025 Climate Solutions Europe (CSE) Q3 2025 Q3 2024 Y/Y Highlights Sales $1,290M $1,246M 4% Residential and light commercial sales down LSD Organic sales1 (3%) Heat pump sales up mid-teens; up 45% in Germany Acq / div, net 0% FX 7% Commercial sales down MSD Aftermarket sales up HSD Segment operat
Slide 13: Q3 2025 Climate Solutions Asia Pacific Middle East & Africa (CSAME)
Q3 2025 Climate Solutions Asia Pacific Middle East & Africa (CSAME) Q3 2025 Q3 2024 Y/Y Highlights Sales $833M $840M (1%) Continued strength in India and the Middle East Organic sales1 (2%) with sales up >30% and LT respectively Acq / div, net 0% FX 1% Commercial China up MSD; RLC China remains weak
Slide 14: Q3 2025 Climate Solutions Transportation (CST)
Q3 2025 Climate Solutions Transportation (CST) Q3 2025 Q3 2024 Y/Y Highlights Sales $745M $937M (20%) Global truck and trailer sales down MSD with NATT Organic sales1 6% sales flat Acq / div, net (28%) Strong growth in container with sales up 50% driven FX 2% by strong OptimaLine adoption Segment op
Slide 15: Q3 2025 organic orders down HSD vs ~+20% in 2024
Q3 2025 organic orders down HSD vs ~+20% in 20243 Climate Solutions Americas1 Q3 ‘24 Q3 ‘25 Climate Solutions Asia Pacific MEA Q3 ‘24 Q3 ‘25 Total CSA ~+30% (~25%) Total CSAME (MSD) Flat Residential ~+30% (~40%) China (LT) (HT) Light commercial ~+60% (~20%) Balance of segment +LSD ~+20% Commercial1
Slide 16: FY 2025 Organic sales guidance
FY 2025 Organic sales1 guidance Current guide Prior guide Segment (October 2025) (July 2025) Climate Solutions Americas (CSA) +LSD +HSD Residential (HSD) +MSD Light commercial (HT) (MT) Commercial >+25% >+20% Climate Solutions Europe (CSE) (LSD) +LSD Residential and Light commercial (MSD) ~Flat Comm
Slide 17: FY 2025 Profit and cash guidance
FY 2025 Profit and cash guidance Current guide Prior guide Segment (October 2025) (July 2025) ~21.0% Margin ~22.75% Margin CS Americas ~(100) bps +~75 bps ~9.0% Margin ~10.0% Margin CS Europe ~(50) bps +~50 bps ~13.5% Margin ~13.5% Margin CS Asia Pacific Middle East & Africa ~Flattish ~Flattish ~15.
Slide 18: Appendix
APPENDIX
Slide 19: Q3 2025 Adjusted EPS bridge
Q3 2025 Adjusted EPS1 bridge ($0.21) $0.05 $0.07 ($0.01) 0.77 0.67 Q3 2024 Adj. EPS Operational Net interest Tax rate / other Share count Q3 2025 Adj. EPS 1. See appendix for additional information regarding non-GAAP measures 2025 Q3 Earnings | October 28, 2025 19
Slide 20: FY 2025 Adjusted EPS guidance bridge
FY 2025 Adjusted EPS1 guidance bridge ~$0.15 ~($0.10) ~$0.00 ~$0.05 Share repurchases Volume Price / Mix ~ Tax ~21% NCI Net productivity ~ Tariffs - net ~$2.65 $2.56 Stranded cost elimination Investments 2024 Adj. EPS Operational Foreign exchange Net interest Share count / Other 2025E Adj. EPS outlo
Slide 21: Additional items
Additional items Current Guidance Prior Guidance (October 2025) (July 2025) Average shares outstanding (diluted) ~865M ~865M Corporate expenses / eliminations and other ~$225M ~$225M Interest expense, net1 ~$360M $350 – $360M Adjusted effective tax rate1 ~21.0% ~22.0% Non-controlling interest ~$110M
Slide 22: 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 23: Segment summary
Segment summary 2025 Q3 Earnings | October 28, 2025 23
Slide 24: Organic sales reconciliation
Organic sales reconciliation 2025 Q3 Earnings | October 28, 2025 24
Slide 25: Earnings before income taxes reconciliation
Earnings before income taxes reconciliation 2025 Q3 Earnings | October 28, 2025 25
Slide 26: Adjusted operating profit reconciliation
Adjusted operating profit reconciliation 2025 Q3 Earnings | October 28, 2025 26
Slide 27: Q3 and YTD 2025 EPS reconciliation
Q3 and YTD 2025 EPS reconciliation 2025 Q3 Earnings | October 28, 2025 27
Slide 28: Q3 and YTD 2024 EPS reconciliation
Q3 and YTD 2024 EPS reconciliation (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. 2025 Q3 Earnings | October 28, 2025 28
Slide 29: 2024 EPS reconciliation
2024 EPS reconciliation (Unaudited) Year Ended December 31, 2024 (In millions, except per share amounts) Reported Adjustments Adjusted Net sales $22,486 $— $22,486 Operating profit $2,646 896 a $3,542 Operating margin 11.8% 15.8% Earnings before income taxes $2,274 831 a,b $3,105 Income tax (expense
Slide 30: Free cash flow reconciliation
Free cash flow reconciliation (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, (In millions) 2025 2024 2025 2024 Net cash flows provided by operating activities $ 341 $ (269) $ 1,473 $ 431 Less: Capital expenditures - continuing operations (117) (92) (261) (302) Less: Cap
Slide 31: Net debt reconciliation
Net debt reconciliation 2025 Q3 Earnings | October 28, 2025 31
Slide 32: For the World We Share
For the World We Share