Carrier Global Corporation · NYSE:CARR
Carrier Global — Q1 2025 Earnings Presentation
35 slides from Carrier Global's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Earnings Conference Call
Q1 2025 Earnings Conference Call May 1, 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: Q1 2025 Summary
Q1 2025 Summary Highlights $5,218M Sales Organic1 +2% Y/Y Organic orders up HSD with double-digit growth in Climate Solutions Europe and Climate Solutions Transportation Adjusted $843M Within Climate Solutions Americas, residential and commercial2 sales Operating Profit1 +10% Y/Y both up ~20%, offse
Slide 4: Strong progress on strategic focus areas
Strong progress on strategic focus areas Growth Q1 2025 Results • Selling Carrier-branded air-to-air heat pumps in Europe leveraging Viessmann’s channel Best-in-class products, channels and • In Europe, introduced Carrier’s first energy-efficient, air-cooled commercial heat pump using low- brands GW
Slide 5: RLC Europe: Backlog at highest levels in over a year
RLC Europe:1 Backlog at highest levels in over a year Q1 Commentary Strongest orders intake First quarter of backlog in over a year growth in a year – backlog up • Organic orders up mid-teens; Germany heat 60% sequentially pump subsidy applications highest Q1 in past five years +Mid-teens % • Organi
Slide 6: Driving performance in a dynamic environment
Driving performance in a dynamic environment Guidance Tariffs Current guide Prior guide (May 2025) (Feb 2025) • Guide reflects full mitigation of tariffs in effect today through: Sales ~$23B $22.5 - $23.0B Organic1 +MSD Y/Y Organic1 +MSD Y/Y • Supply chain actions, increased productivity and Adj. Op
Slide 7: Q1 2025 Results
Q1 2025 Results Q1 2025 Q1 2024 Y/Y Sales $5,218M $5,420M (4%) Organic sales1 2% Acquisitions / Divestitures, net (5%) FX (1%) Adjusted operating profit1 $843M $764M 10% Adjusted operating margin1 16.2% 14.1% 210 bps Adjusted effective tax rate1 22.0% 21.4% Adjusted EPS1 $0.65 $0.51 27% Free cash fl
Slide 8: Climate Solutions Americas (CSA)
Q1 2025 Climate Solutions Americas (CSA) Q1 2025 Q1 2024 Y/Y Highlights Sales $2,572M $2,360M 9% Continued strength in residential and commercial2 – Organic sales1 9% both up ~20% Acq / div, net 0% Light commercial down year-over-year and lower FX 0% than expected Segment operating profit $570M $425
Slide 9: Climate Solutions Europe (CSE)
Q1 2025 Climate Solutions Europe (CSE) Q1 2025 Q1 2024 Y/Y Highlights Sales $1,169M $1,292M (10)% Residential and Light Commercial sales down low- Organic sales1 (7)% double digits, in-line with expectations Acq / div, net 0% Commercial sales up MSD FX (3)% Aftermarket sales up MSD Segment operating
Slide 10: Climate Solutions Asia Pacific Middle East & Africa (CSAME)
Q1 2025 Climate Solutions Asia Pacific Middle East & Africa (CSAME) Q1 2025 Q1 2024 Y/Y Highlights Sales $826M $884M (7)% Continued weakness in China with sales (LDD) Organic sales1 (6)% Acq / div, net 0% Rest of CSAME sales flat with growth in Japan and India FX (1)% Aftermarket sales up HSD Segmen
Slide 11: Climate Solutions Transportation (CST)
Q1 2025 Climate Solutions Transportation (CST) Q1 2025 Q1 2024 Y/Y Highlights Sales $651M $884M (26)% Container up ~20% Organic sales1 2% Global Truck & Trailer sales down LSD Acq / div, net (27)% FX (1)% Sensitech up MSD Segment operating profit $97M $113M (14%) Aftermarket sales up MSD Strong marg
Slide 12: Organic orders up HSD
Q1 2025 Organic orders up HSD Climate Solutions Americas (CSA)1 +HSD Climate Solutions Asia Pacific MEA (CSAME) (LSD) Residential +HSD China (HSD) Light commercial +DD Balance of segment +HSD Commercial1 +MSD Climate Solutions Europe (CSE) +LDD Climate Solutions Transportation (CST)2 +DD Residential
Slide 13: FY 2025 Organic sales guidance
FY 2025 Organic sales1 guidance Change vs. prior guide Current guide Prior guide Segment (May 2025) (Feb. 2025) Climate Solutions Americas (CSA) +HSD +HSD Residential +HSD - DD +HSD Light commercial (DD) +L-MSD Commercial +DD +DD Climate Solutions Europe (CSE) +LSD +LSD Residential and Light commerc
Slide 14: FY 2025 Profit and cash guidance
FY 2025 Profit and cash guidance Change vs. prior guide Current guide Prior guide Segment (May 2025) (Feb. 2025) ~22.5% Margin CS Americas +~50 bps ~10.5% Margin CS Europe +~100 bps N.M.2 ~13.5% Margin CS Asia Pacific Middle East & Africa ~Flattish ~16.5% Margin CS Transportation +~250 bps Carrier a
Slide 15: FY 2025 Adjusted EPS guidance bridge
FY 2025 Adjusted EPS1 guidance bridge Change vs. prior guide $0.10 – $0.15 ~$0.00 $0.05 – $0.10 ~$0.30 Share repurchases Tax ~22% NCI Volume Price / Mix $3.05 Net productivity Midpoint $2.56 ~ Tariffs - net Stranded cost elimination Investments 2024 Adj. EPS Operational Foreign exchange Net interest
Slide 16: 2025 Investor day
2025 Investor day Carrier management to present strategic initiatives to accelerate growth Theme: Accelerating growth Key agenda topics: growth drivers, margin expansion, capital allocation Presenters: CEO, CFO and business leaders Logistics: • May 19th, 2025, 8:30am ET • New York City • Webcast: ht
Slide 17: APPENDIX
APPENDIX 2025 Q1 Earnings | May 1, 2025 17
Slide 18: Additional items
Additional items Current Guidance Prior Guidance (May 2025) (Feb. 2025) Average shares outstanding (diluted) ~865M ~865M Corporate expenses / eliminations and other ~$225M N.M.2 Interest expense, net1 $350 – $360M $350 – $360M Adjusted effective tax rate1 ~22.0% ~22.0% Non-controlling interest ~$110
Slide 19: Adjusted EPS bridge
Q1 2025 Adjusted EPS1 bridge $0.05 $0.00 $0.02 $0.07 $0.65 $0.51 Q1 2024 Adj. EPS Operational Net interest Tax rate Share count Q1 2025 Adj. EPS 1. See appendix for additional information regarding non-GAAP measures 2025 Q1 Earnings | May 1, 2025 19
Slide 20: 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 21: Q1 2025 and 2024 Segment summary
Q1 2025 and 2024 Segment summary (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Segment net sales Climate Solutions Americas $ 2,572 $ 2,360 Climate Solutions Europe 1,169 1,292 Climate Solutions Asia Pacific, Middle East & Africa 826 884 Climate Solutions Transportation 651 884 Se
Slide 22: Organic sales reconciliation
Organic sales reconciliation Three Months Ended March 31, 2025 Compared with Three Months Ended March 31, 2024 (Unaudited) Factors Contributing to Total % change in Net Sales FX Acquisitions / Organic Translation Divestitures, net Other Total Climate Solutions Americas 9 % — % — % — % 9 % Climate So
Slide 23: Earnings before income taxes reconciliation
Q1 2025 and 2024 Earnings before income taxes reconciliation (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Reconciliation to Earnings before income taxes Segment operating profit $ 893 $ 813 Corporate and other (50) (49) Restructuring costs (8) (8) Amortization of acquired intangi
Slide 24: Adjusted operating profit reconciliation
Q1 2025 and 2024 Adjusted operating profit reconciliation (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Reconciliation of Segment operating profit to Adjusted operating profit Climate Solutions Americas $ 570 $ 425 Climate Solutions Europe 105 167 Climate Solutions Asia Pacific, M
Slide 25: Q1 2025 EPS reconciliation
Q1 2025 EPS reconciliation (Unaudited) Three Months Ended March 31, 2025 (In millions, except per share amounts) Reported Adjustments Adjusted Net sales $ 5,218 $ — $ 5,218 Operating profit $ 629 214 a $ 843 Operating margin 12.1 % 16.2 % Earnings before income taxes $ 548 214 a $ 762 Income tax (ex
Slide 26: Q1 2024 EPS reconciliation
Q1 2024 EPS reconciliation (Unaudited) Three Months Ended March 31, 2024 (In millions, except per share amounts) Reported Adjustments Adjusted Net sales $ 5,420 $ — $ 5,420 Operating profit $ 385 379 a $ 764 Operating margin 7.1 % 14.1 % Earnings before income taxes $ 244 379 a $ 623 Income tax (exp
Slide 27: Free cash flow reconciliation
Free cash flow reconciliation (Unaudited) Three Months Ended March 31, (In millions) 2025 2024 Net cash flows provided by operating activities $ 483 $ 40 Less: Capital expenditures - continuing operations (63) (102) Less: Capital expenditures - discontinued operations — (2) Free cash flow $ 420 $ (6
Slide 28: Net debt reconciliation
Net debt reconciliation (Unaudited) (In millions) March 31, 2025 December 31, 2024 Long-term debt $ 11,080 $ 11,026 Current portion of long-term debt 104 1,252 Less: Cash and cash equivalents 1,698 3,969 Net debt $ 9,486 $ 8,309 2025 Q1 Earnings | May 1, 2025 28
Slide 29: Historical Financial Information
HISTORICAL FINANCIAL INFORMATION 2025 Q1 Earnings | May 1, 2025 29
Slide 30: 2024 Segment results
2024 Segment results 2024 (In millions) Q1 Q2 Q3 Q4 Full Year Climate Solutions Americas Net sales $ 2,360 $ 2,865 $ 2,961 $ 2,341 $ 10,527 Segment operating profit 425 713 750 435 2,323 Segment operating margin 18.0 % 24.9 % 25.3 % 18.6 % 22.1 % Climate Solutions Europe Net sales $ 1,292 $ 1,194 $
Slide 31: 2024 Earnings before income taxes reconciliation
2024 Earnings before income taxes reconciliation 2024 (In millions) Q1 Q2 Q3 Q4 Full Year Reconciliation to Earnings before income taxes Segment operating profit $ 813 $ 1,101 $ 1,122 $ 707 $ 3,743 Corporate and other (49) (45) (78) (29) (201) Restructuring costs (8) (29) (60) (11) (108) Amortizatio
Slide 32: 2024 Adjusted operating profit reconciliation
2024 Adjusted operating profit reconciliation 2024 (In millions) Q1 Q2 Q3 Q4 Full Year Reconciliation of Segment operating profit to Adjusted operating profit Climate Solutions Americas $ 425 $ 713 $ 750 $ 435 $ 2,323 Climate Solutions Europe 167 93 129 80 469 Climate Solutions Asia Pacific, Middle
Slide 33: 2023 Segment results
2023 Segment results 2023 (In millions) Q1 Q2 Q3 Q4 Full Year Climate Solutions Americas Net sales $ 2,215 $ 2,719 $ 2,694 $ 1,987 $ 9,615 Segment operating profit 332 579 660 260 1,831 Segment operating margin 15.0 % 21.3 % 24.5 % 13.1 % 19.0 % Climate Solutions Europe Net sales $ 522 $ 498 $ 453 $
Slide 34: 2023 Earnings before income taxes reconciliation
2023 Earnings before income taxes reconciliation 2023 (In millions) Q1 Q2 Q3 Q4 Full Year Reconciliation to Earnings before income taxes Segment operating profit $ 582 $ 876 $ 926 $ 479 $ 2,863 Corporate and other (50) (47) (49) (68) (214) Restructuring costs (4) (10) (29) (32) (75) Amortization of
Slide 35: 2023 Adjusted operating profit reconciliation
2023 Adjusted operating profit reconciliation 2023 (In millions) Q1 Q2 Q3 Q4 Full Year Reconciliation of Segment operating profit to Adjusted operating profit Climate Solutions Americas $ 332 $ 579 $ 660 $ 260 $ 1,831 Climate Solutions Europe 61 43 44 29 177 Climate Solutions Asia Pacific, Middle Ea