Carrier Global Corporation · NYSE:CARR
Carrier Global — Q2 2026 Earnings Presentation
33 slides from Carrier Global's earnings presentation, Jul 28, 2026
Slide 1: Q2 2026 Earnings Conference Call
Q2 2026 Earnings Conference Call July 28, 2026
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 2026 Summary
Q2 2026 Summary ($ Millions, except EPS) Highlights $6,351 • Orders3 up ~40%; global Commercial3 HVAC orders Sales Organic1 3% Y/Y up ~65% with data center orders up >300% • Increasing FY 2026 data centers sales to ~$2B; $1,095 Adjusted Operating Profit1 adding capacity to support demand for 2027 an
Slide 4: 75F: Enabling Intelligent and Autonomous Building Solutions
75F: Enabling Intelligent and Autonomous Building Solutions Integrated tech stack… …driving differentiated outcomes Enabled by Additional BMS offering to expand TAM ✓ Customer loyalty Small-to-mid size building applications ✓ Access to new markets (~$20B TAM2) International expansion ✓ Enhanced effi
Slide 5: Well-positioned for accelerating growth
Well-positioned for accelerating growth RLC China Poised for recovery CST Strong demand, sustained DD Expecting mid-teens Global growth RLC Commercial & Aftermarket organic sales growth CSA & CSE in 2H 2026 Back to growth Longer and shorter cycle businesses aligning for expected strong growth 2026 Q
Slide 6: Continued strong momentum in Commercial
Continued strong momentum in Commercial1 Continued strong sales growth Accelerating global DC sales Highlights >$7B • ~15-20% global Commercial sales growth Y/Y in 2026 ~$2.0B • Increasing full-year DC sales to ~$2B, up from ~$1.5B prior guide ~$4B • Record backlog positions us for continued strong
Slide 7: CSA Residential: strong growth in 2Q; positioned for strength in 2H
CSA Residential: strong growth in 2Q; positioned for strength in 2H CSA Residential industry units Highlights ~9.7M Estimated industry volumes: ~9M units / yr ~9M • 2Q sales up HSD Y/Y ~7.5M ~7.0 – 7.5M • 2Q price realization ~3% Y/Y ~6.5M • Field inventory levels healthy, down ~25% Y/Y • ~55K techn
Slide 8: CSE market conditions improving
CSE market conditions improving RLC sales growth Y/Y Commercial orders growth Y/Y Highlights • RLC market recovering; 2Q sales up HSD; 2Q heat pumps up ~20% HSD >20% • Favorable electricity to gas ratio and continued German subsidies supporting continued heat pump demand LSD • Key new product introd
Slide 9: Driving sustained aftermarket growth
Driving sustained aftermarket growth Highlights DD organic sales CAGR • Solid order rate with Book:Bill >1 Parts • Expanded North America network to drive on-time delivery and increase wallet share • Strong momentum for equipment connectivity; ~75K+ chillers connected, ~250K Lynx subscriptions; ~110
Slide 10: FY 2026 Updated outlook
FY 2026 Updated outlook CS CS CS CS Americas Europe AME Transportation 2026 Guidance1 Commercial ++ Commercial ~ China CHVAC ~ Truck / Trailer – Sales ~$23 Billion 2026 Updated Residential + RLC HPs ++ China RLC – Container ++ Adj. business operating ~$3.5 Billion outlook Light CML + RLC boilers – R
Slide 11: Q2 2026 Results
Q2 2026 Results ($ Millions, except EPS) Q2 2026 Q2 2025 Y/Y Sales $6,351 $6,113 4% Organic sales1 3% Acquisitions / Divestitures, net 0% FX 1% Adjusted operating profit1 $1,095 $1,166 (6%) Adjusted operating margin1 17.2% 19.1% (190 bps) Adjusted effective tax rate1 23.2% 22.1% Adjusted EPS1 $0.86
Slide 12: Q2 2026 Climate Solutions Americas (CSA)
Q2 2026 Climate Solutions Americas (CSA) ($ Millions) Q2 2026 Q2 2025 Y/Y Highlights Sales $3,372 $3,252 4% • Orders2 up ~65% with Commercial up ~2x, Organic sales1 4% driven by strong data center orders up >300% Acq / div, net 0% • Residential sales up 9%, better than expected FX 0% • Field invento
Slide 13: Q2 2026 Climate Solutions Europe (CSE)
Q2 2026 Climate Solutions Europe (CSE) ($ Millions) Q2 2026 Q2 2025 Y/Y Highlights Sales $1,324 $1,253 6% • RLC momentum with sales up HSD Organic sales1 3% • Shift towards electrification continues Acq / div, net 0% • Heat pump sales up ~20%, boilers down (HSD) FX 3% • Commercial down (MSD); expect
Slide 14: Q2 2026 Climate Solutions Asia Pacific Middle East & Africa (CSAME)
Q2 2026 Climate Solutions Asia Pacific Middle East & Africa (CSAME) ($ Millions) Q2 2026 Q2 2025 Y/Y Highlights Sales $917 $882 4% • Sales ex. China region2 up >20% Organic sales1 4% • India up ~35%, Middle East up ~35%, Australia ~30% and SE Asia up ~20% Acq / div, net 0% FX 0% • Strong aftermarket
Slide 15: Q2 2026 Climate Solutions Transportation (CST)
Q2 2026 Climate Solutions Transportation (CST) ($ Millions) Q2 2026 Q2 2025 Y/Y Highlights Sales $738 $726 2% • Strong growth in Container, up ~40% driven by Organic sales1 0% strong OptimaLine sales Acq / div, net 0% • Global Truck and Trailer sales down (LT) FX 2% • Decline in segment operating ma
Slide 16: Q2 2026 Organic orders up ~40%
Q2 2026 Organic orders1 up ~40% Climate Solutions Americas (CSA) ~65% Climate Solutions Asia Pacific MEA (CSAME) ~5% Residential ~70% China region2 ~(15%) Light commercial ~25% Balance of segment ~25% Commercial ~100% Climate Solutions Europe (CSE) ~20% Climate Solutions Transportation (CST) ~5% Res
Slide 17: Raising FY 2026 Organic sales guidance
Raising FY 2026 Organic sales1 guidance Sales Current guide Prior guide (Jul. 2026) (Apr. 2026) Climate Solutions Americas (CSA) ~MT ~LSD Residential HSD (HSD) Light commercial HSD (HSD) Commercial2 M-20s MT Climate Solutions Europe (CSE) ~LSD ~LSD Residential and Light commercial LSD Flat Commercia
Slide 18: Raising FY 2026 profit guidance
Raising FY 2026 profit guidance Segment operating margin Current guide Prior guide (July 2026) (April 2026) CS Americas ~Flat 25 – 50 bps CS Europe ~Flat ~100 bps CS Asia Pacific Middle East & Africa ~(200 bps) ~(50 bps) CS Transportation ~Flat ~50 bps Carrier adj. operating profit1 ~$3.5B ~$3.4B Ad
Slide 19: APPENDIX
APPENDIX 2026 Q2 Earnings | July 28, 2026
Slide 20: Q2 2026 Adjusted EPS bridge
Q2 2026 Adjusted EPS1 bridge ($0.07) ($0.01) $0.02 $0.00 $0.92 Volume Share repo $0.86 Net productivity Tax ~23% Mix JV Income Q2 2025 Adj. EPS Operational Net interest Tax rate / shares NCI / other Q2 2026 Adj. EPS 1. See appendix for additional information regarding non-GAAP measures 2026 Q2 Earni
Slide 21: FY 2026 Adjusted EPS guidance bridge
FY 2026 Adjusted EPS1 guidance bridge ~$0.15 ~($0.05) ~$0.25 ~($0.05) NCI Tax ~19% Divestitures2 Volume Share repo Price $2.59 Net productivity ~$2.90 Mix Investments 2025 Adj. EPS Operational Net interest Tax rate / shares Other 2026E Adj. EPS Outlook 1. See appendix for additional information rega
Slide 22: FY 2026 Adjusted EPS guidance bridge vs prior guide
FY 2026 Adjusted EPS1 guidance bridge vs prior guide ~$0.15 ~($0.05) $2.80 ~$2.90 2 Prior Adj. EPS Outlook Operational Divestitures & Investments Current Adj. EPS Outlook 1. See appendix for additional information regarding non-GAAP measures 2. Riello exit closed July 1st; announced NORESCO exit. In
Slide 23: Additional items
Additional items ($ Millions, except D&A) Current outlook Prior outlook (Jul. 2026) (Apr. 2026) Average shares outstanding (diluted) ~833 ~833 Corporate expenses / eliminations and other ~$240 ~$240 Interest expense, net ~$400 ~$400 Adjusted effective tax rate1 ~19% ~19% Non-controlling interest ~$1
Slide 24: 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 25: Segment summary
Segment summary (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (In millions) 2026 2025 2026 2025 Segment net sales Climate Solutions Americas $ 3,372 $ 3,252 $ 5,873 $ 5,824 Climate Solutions Europe 1,324 1,253 2,617 2,422 Climate Solutions Asia Pacific, Middle East & Africa 917 8
Slide 26: Organic sales reconciliation
Organic sales reconciliation Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025 (Unaudited) Factors Contributing to Total % change in Net Sales FX Acquisitions / Organic Translation Divestitures, net Other Total Climate Solutions Americas 4 % — % — % — % 4 % Climate Solu
Slide 27: Earnings before income taxes reconciliation
Earnings before income taxes reconciliation (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (In millions) 2026 2025 2026 2025 Reconciliation to Earnings before income taxes Segment operating profit $ 1,144 $ 1,241 $ 1,788 $ 2,134 Corporate and other (49) (75) (99) (120) Restructuri
Slide 28: Adjusted operating profit reconciliation
Adjusted operating profit reconciliation (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (In millions) 2026 2025 2026 2025 Reconciliation of Segment operating profit to Adjusted operating profit Climate Solutions Americas $ 823 $ 879 $ 1,196 $ 1,449 Climate Solutions Europe 95 99 1
Slide 29: Q2 and YTD 2026 EPS reconciliation
Q2 and YTD 2026 EPS reconciliation (Unaudited) Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 (In millions, except per share amounts) Reported Adjustments Adjusted Reported Adjustments Adjusted Net sales $ 6,351 $ — $ 6,351 $ 11,692 $ — $ 11,692 Operating profit $ 825 270 a $ 1,095
Slide 30: 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 31: Free cash flow reconciliation
Free cash flow reconciliation (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (In millions) 2026 2025 2026 2025 Net cash flows provided by operating activities $ 927 $ 649 $ 1,006 $ 1,132 Less: Capital expenditures (117) (81) (211) (144) Free cash flow $ 810 $ 568 $ 795 $ 988 2026
Slide 32: Net debt reconciliation
Net debt reconciliation (Unaudited) (In millions) June 30, 2026 December 31, 2025 Long-term debt $ 10,314 $ 11,365 Short-term borrowings and current portion of long-term debt 1,638 468 Less: Cash and cash equivalents 1,344 1,555 Net debt $ 10,608 $ 10,278 2026 Q2 Earnings | July 28, 2026 32
Slide 33: For the World We Share
For the World We Share