Carrier Global Corporation · NYSE:CARR
Carrier Global — Q1 2026 Earnings Presentation
30 slides from Carrier Global's earnings presentation, Apr 30, 2026
Slide 1: Q1 2026 Earnings Conference Call
Q1 2026 Earnings Conference Call April 30, 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: Q1 2026 Summary
Q1 2026 Summary ($ Millions, except EPS) Highlights • Orders3 up >10%; global CHVAC3 orders up 35% $5,341 Sales with data center orders up >500% Organic1 (1%) Y/Y • Total backlog up ~15% sequentially and Y/Y $594 Adjusted Operating Profit1 • Aftermarket sales up 9% (30%) Y/Y • CSA Resi and Light com
Slide 4: CSA RLC initiatives to drive share gains and increase TAM
Product CSA RLC initiatives to drive share gains and increase TAM Aftermarket Systems New & connected Residential products Connected eco-system New & connected LCML products Distributor Dealer Variable-speed Fan coil Advanced heat-pump thermostat Hybrid-heat rooftop unit now with Humidi-MiZer adapti
Slide 5: Transformed CHVAC product portfolio, technicians and capacity
Product Transformed CHVAC product portfolio, technicians and capacity Aftermarket Systems 2020 Ability to bid (est. market size, ~$5B) Global CHVAC technicians CSA chiller capacity additions Capacity (kw) < 200 200 – 900 > 900 Est. market mix ~20% ~30% ~50% Air-cooled Up ~3x chillers ~75% Water-cool
Slide 6: Commercial HVAC transformation delivering results
Product Commercial HVAC1 transformation delivering results Aftermarket Systems Global CHVAC sales CSA CHVAC chiller share Global CHVAC backlog Up Up >$6B ~500bps ~130% Up ~80% <$3.5B 2020 2025 CSA applied equipment margins ~3x 2020 2025 2020 2025 2020 2025 1. Excludes NORESCO 2026 Q1 Earnings | Apri
Slide 7: Aftermarket playbook working; on-track for 6th year of DD growth
Product Aftermarket playbook working; on-track for 6th year of DD growth Aftermarket Systems Highlights DD organic • Strategic partnerships through national accounts expanding sales CAGR channel reach Parts • Operational excellence with focus on parts availability and on- time delivery to increase c
Slide 8: Driving growth and customer value through system solutions
Product Driving growth and customer value through system solutions Aftermarket Systems QuantumLeapTM CST connected eco-system Air Cooled or Lifecycle Water Cooled Service Chillers AquaEdge AquaForce 19XR 30XF Integrated Data Air Center Mgmt Cooling (IDCM) Building Liquid Automation Cooling System (B
Slide 9: Q1 2026 Results
Q1 2026 Results ($ Millions, except EPS) Q1 2026 Q1 2025 Y/Y Sales $5,341 $5,218 2% Organic sales1 (1%) Acquisitions / Divestitures, net 0% FX 3% Adjusted operating profit1 $594 $848 (30%) Adjusted operating margin1 11.1% 16.3% (520 bps) Adjusted effective tax rate1 (1%) 22% Adjusted EPS1 $0.57 $0.6
Slide 10: Climate Solutions Americas (CSA)
Q1 2026 Climate Solutions Americas (CSA) ($ Millions) Q1 2026 Q1 2025 Y/Y Highlights Sales $2,501 $2,572 (3%) • Orders2 up ~25% with Commercial up ~80%, Organic sales1 (3%) driven by strong data center orders Acq / div, net 0% • Residential sales down (12%), better than FX 0% expected • Field invent
Slide 11: Climate Solutions Europe (CSE)
Q1 2026 Climate Solutions Europe (CSE) ($ Millions) Q1 2026 Q1 2025 Y/Y Highlights Sales $1,293 $1,169 11% • RLC sales returned to growth, up LSD Organic sales1 0% • Shift towards electrification continues Acq / div, net 0% • Germany up MSD, Italy up HSD, France down (MSD) FX 11% • Heat pump sales u
Slide 12: Climate Solutions Asia Pacific Middle East & Africa (CSAME)
Q1 2026 Climate Solutions Asia Pacific Middle East & Africa (CSAME) ($ Millions) Q1 2026 Q1 2025 Y/Y Highlights Sales $834 $826 1% • Commercial ex. China region2 up HT Organic sales1 (1%) • India up ~35% and Australia up ~65% Acq / div, net 0% • Strong aftermarket performance, up MT FX 2% • Pressure
Slide 13: Climate Solutions Transportation (CST)
Q1 2026 Climate Solutions Transportation (CST) ($ Millions) Q1 2026 Q1 2025 Y/Y Highlights Sales $713 $651 10% • Strong growth in Container, up >35% driven by Organic sales1 5% strong OptimaLine sales Acq / div, net 0% • Global Truck and Trailer sales down (HSD) FX 5% • Decline in segment operating
Slide 14: Organic orders up 11%
Q1 2026 Organic orders1 up 11% Climate Solutions Americas (CSA)1 ~25% Climate Solutions Asia Pacific MEA (CSAME) ~Flat Residential ~5% China region2 ~(15%) Light commercial ~10% Balance of segment ~15% Commercial1 ~80% Climate Solutions Europe (CSE) ~Flat Climate Solutions Transportation (CST) ~(10%
Slide 15: Reaffirming FY 2026 Organic sales guidance
Reaffirming FY 2026 Organic sales1 guidance Sales Current guide Prior guide (Apr. 2026) (Feb. 2026) Climate Solutions Americas (CSA) ~LSD ~LSD Residential (HSD) (HSD) Light commercial (HSD) (HSD) Commercial2 MT MT Climate Solutions Europe (CSE) ~LSD ~LSD Residential and Light commercial Flat Flat Co
Slide 16: Reaffirming FY 2026 profit and cash guidance
Reaffirming FY 2026 profit and cash guidance Change vs. prior guide Segment operating margin Current guide Prior guide (Apr. 2026) (Feb. 2026) CS Americas 25 – 50 bps 25 – 50 bps CS Europe ~100 bps ~100 bps CS Asia Pacific Middle East & Africa ~(50 bps) Flat – 25 bps Due to Middle East conflict CS T
Slide 17: FY 2026 Adjusted EPS guidance bridge
FY 2026 Adjusted EPS1 guidance bridge ~$0.15 ~($0.05) ~$0.15 ~($0.04) NCI Tax ~19% Riello exit Volume / mix Share repo Price $2.59 Net productivity ~$2.80 Investments 2025 Adj. EPS Operational Net interest Tax rate / shares NCI / other 2026E Adj. EPS outlook 1. See appendix for additional informatio
Slide 18: Appendix
APPENDIX 2026 Q1 Earnings | April 30, 2026
Slide 19: Adjusted EPS bridge
Q1 2026 Adjusted EPS1 bridge ($0.30) $0.24 $0.00 $0.65 $0.57 Volume / mix ($0.01) Tax ~0% Ops productivity Share repo Q1 2025 Adj. EPS Operational Net interest Tax rate / shares NCI / other Q1 2026 Adj. EPS 1. See appendix for additional information regarding non-GAAP measures 2026 Q1 Earnings | Apr
Slide 20: Additional items
Additional items ($ Millions, except D&A) Current outlook Prior outlook (Apr. 2026) (Feb. 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 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: Q1 2026 and 2025 Segment summary
Q1 2026 and 2025 Segment summary (Unaudited) Three Months Ended March 31, (In millions) 2026 2025 Segment net sales Climate Solutions Americas $ 2,501 $ 2,572 Climate Solutions Europe 1,293 1,169 Climate Solutions Asia Pacific, Middle East & Africa 834 826 Climate Solutions Transportation 713 651 Se
Slide 23: Organic sales reconciliation
Organic sales reconciliation Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025 (Unaudited) Factors Contributing to Total % change in Net Sales FX Acquisitions / Organic Translation Divestitures, net Other Total Climate Solutions Americas (3) % — % — % — % (3) % Climat
Slide 24: Earnings before income taxes reconciliation
Q1 2026 and 2025 Earnings before income taxes reconciliation (Unaudited) Three Months Ended March 31, (In millions) 2026 2025 Reconciliation to Earnings before income taxes Segment operating profit $ 644 $ 893 Corporate and other (50) (45) Restructuring costs (108) (8) Amortization of acquired intan
Slide 25: Adjusted operating profit reconciliation
Q1 2026 and 2025 Adjusted operating profit reconciliation (Unaudited) Three Months Ended March 31, (In millions) 2026 2025 Reconciliation of Segment operating profit to Adjusted operating profit Climate Solutions Americas $ 373 $ 570 Climate Solutions Europe 89 105 Climate Solutions Asia Pacific, Mi
Slide 26: Q1 2026 EPS reconciliation
Q1 2026 EPS reconciliation (Unaudited) Three Months Ended March 31, 2026 (In millions, except per share amounts) Reported Adjustments Adjusted Net sales $ 5,341 $ — $ 5,341 Operating profit $ 259 335 a $ 594 Operating margin 4.8 % 11.1 % Earnings before income taxes $ 170 335 a $ 505 Income tax (exp
Slide 27: 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 $ 629 219 a $ 848 Operating margin 12.1 % 16.3 % Earnings before income taxes $ 548 219 a $ 767 Income tax (ex
Slide 28: Free cash flow reconciliation
Free cash flow reconciliation (Unaudited) Three Months Ended March 31, (In millions) 2026 2025 Net cash flows provided by operating activities $ 79 $ 483 Less: Capital expenditures (94) (63) Free cash flow $ (15) $ 420 2026 Q1 Earnings | April 30, 2026 28
Slide 29: Net debt reconciliation
Net debt reconciliation (Unaudited) (In millions) March 31, 2026 December 31, 2025 Long-term debt $ 10,422 $ 11,365 Short-term borrowings and current portion of long-term debt 1,736 468 Less: Cash and cash equivalents 1,371 1,555 Net debt $ 10,787 $ 10,278 2026 Q1 Earnings | April 30, 2026 29
Slide 30: For the World We Share
For the World We Share