Carrier Reports Second Quarter 2026 Results

About this update from Carrier Global Corporation

Increases Full-year Outlook for Sales, Adj. Op. Profit and Adj. EPS Total company orders 1 up ~40%; Commercial HVAC 1 up ~65%; data centers up >300% Net sales up 4%; organic sales up 3% GAAP EPS of $0.60 and adjusted EPS of $0.86 Net cash flows from operating activities of $927 million and free cash flow of $810 million Returned ~$640 million to shareholders through dividends and repurchases Raises full year outlook to ~$23B sales, ~$3.5B adj. op. profit and ~$2.90 adj. EPS Includes ~($0.05) adj. EPS impact from NORESCO exit and new U.S. factory costs PALM BEACH GARDENS, Fla. , July 28, 2026 /PRNewswire/ -- Carrier Global Corporation  (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported better than expected financial results for the second quarter of 2026. "We ended the first half with a stronger than expected second quarter, including better sales, adjusted EPS and free cash flow," said Chairman & CEO David Gitlin. "Organic sales returned to growth earlier than expected, up 3%, driven by strong performance in our CSA segment. Improving Residential and Light Commercial markets in CSA and CSE are encouraging. Orders were very strong globally in the second quarter supported by continued data center demand. Given record backlog levels and our year-to-date performance, we are raising our full-year outlook and now expect sales of about $23 billion and adjusted EPS of ~$2.90." 1 Excludes NORESCO (exit announced) and Riello (exit completed on July 1, 2026) Second Quarter 2026 Results Total Company (Unaudited) Three Months Ended June 30 (In millions) 2026 2025 Change Net sales $    6,351 $    6,113 4 % Organic sales 3 % Operating profit $       825 $       903 (9) % Operating margin 13.0 % 14.8 % (180) bps Adjusted operating profit $    1,095 $    1,166 (6) % Adjusted operating margin 17.2 % 19.1 % (190) bps Diluted earnings per share: Continuing operations $      0.60 $      0.70 (14) % Continuing operations - Adjusted $      0.86 $      0.92 (7) % Carrier's second-quarter sales of $6.4 billion increased 4% compared to the prior year. Organic sales increased 3% and foreign currency translation was a tailwind of 1%. GAAP operating profit of $825 million in the quarter declined 9 %  from last year, driven primarily by the Climate Solutions Americas (CSA) and Climate Solutions Asia Pacific, Middle East and Africa segments (CSAME).            Adjusted operating margin of 17.2% was down 190 basis points from last year, predominantly due to favorable volume and productivity more than offset by the impact of increased input costs and unfavorable business mix.  Net earnings from continuing operations were $501 million and adjusted net earnings from continuing operations were $721 million. GAAP EPS from continuing operations was $0.60 and adjusted EPS was $0.86, down 14% and 7% year-over-year, respectively. The declines were primarily driven by lower operating profit and a higher effective tax rate, partially offset by the benefit of a lower share count. Climate Solutions Americas (CSA) (Unaudited) Three Months Ended June 30 (In millions) 2026 2025 Change Net sales $    3,372 $    3,252 4 % Organic sales 4 % Segment operating profit $       823 $       879 (6) % Segment operating margin 24.4 % 27.0 % (260) bps CSA segment sales grew 4%. Organic sales were up 4% driven by Residential and Light Commercial (RLC), up 9% and 10% respectively, partially offset by Commercial 1 , down 8% due to the timing of customer deliveries. Segment operating margin decreased 260 basis points as revenue growth mainly related to price which was more than offset by unfavorable mix and input costs. Climate Solutions Europe (CSE) (Unaudited) Three Months Ended June 30 (In millions) 2026 2025 Change Net sales $    1,324 $    1,253 6 % Organic sales 3 % Segment operating profit $         95 $         99 (4) % Segment operating margin 7.2 % 7.9 % (70) bps CSE segment sales increased 6%. Organic sales were up 3% with RLC up high-single digits and Commercial down mid-single digits. Segment operating margin decreased 70 basis points driven by volume growth and favorable price / cost more than offset by unfavorable mix and selling investments. 1 Excludes NORESCO Climate Solutions Asia Pacific, Middle East & Africa (CSAME) (Unaudited) Three Months Ended June 30 (In millions) 2026 2025 Change Net sales $      917 $      882 4 % Organic sales 4 % Segment operating profit $      108 $      135 (20) % Segment operating margin 11.8 % 15.3 % (350) bps CSAME segment sales increased 4%. Organic sales were up 4% driven by double-digit growth in India, the Middle East, Southeast Asia and Australia partially offset by continued pressure in RLC in China. Segment operating margin decreased 350 basis points driven by volume growth and productivity more than offset by unfavorable mix and lower JV income due to the impacts from the Middle East conflict. Climate Solutions Transportation (CST) (Unaudited) Three Months Ended June 30 (In millions) 2026 2025 Change Net sales $      738 $      726 2 % Organic sales — % Segment operating profit $      118 $      128 (8) % Segment operating margin 16.0 % 17.6 % (160) bps CST sales increased 2% driven by strong growth in Container. Organic sales were flat as strong Container growth of ~40% was offset by low-teens declines in Global Truck and Trailer. Segment operating margin declined 160 basis points, due to unfavorable mix from lower Global Truck and Trailer volume offset by higher Container volume.  Cash Flow (Unaudited) (Unaudited) Three Months Ended   June 30, Six Months Ended 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 Net cash flows generated from operating activities were $927 million and capital expenditures were $117 million, resulting in free cash flow of $810 million. Full-Year 2026 Guidance** Current Guidance** Prior Guidance Sales ~$23 billion Organic* up ~M-HSD FX 1% Net, Acquisitions / Divestitures (2%) ~$225 million and ~$125 million year-over- year revenue headwind from Riello and NORESCO exits, respectively  ~$22 billion Organic* flat to up LSD FX 1% Net, Acquisitions / Divestitures (1%) ~$250 million year-over-year revenue headwind from Riello exit Adjusted Operating Profit* ~$3.5 billion ~$3.4 billion Adjusted EPS* ~$2.90 ~$2.80 Free Cash Flow* ~$2 billion ~$2 billion Riello divestiture completed on July 1 st . NORESCO divestiture announced. *Note: When the company provides expectations for organic sales, adjusted operating profit, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See "Use and Definitions of Non-GAAP Financial Measures" below for additional information. **As of July   28, 2026 Conference Call Carrier will host a webcast of its earnings conference call today, Tuesday, July 28, 2026, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site. For alternative dial-in information, please contact Carrier investor relations at [email protected] . 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 information released to the public. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, expectations relating to our sales backlog, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, market conditions including with respect to residential end-markets, data center and otherwise, growth prospects for 2026 and beyond, expectations concerning the mitigation and net impact of tariffs during 2026, Carrier's guidance for full-year 2026, Carrier's plans with respect to our indebtedness and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation, those described below and under the section titled "Risk Factors" in our most recent Annual Report on Form 10-K and in subsequent reports that we file with the SEC: the effect of economic conditions in the industries and markets in which Carrier and our businesses operate in the U.S. and globally and any changes therein, including financial market conditions, inflationary cost pressures, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction, the impact of weather conditions, pandemic health issues, natural disasters and the financial condition of our customers and suppliers; challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; future levels of capital spending and research and development spending; future availability of credit and factors that may affect such availability, including credit market conditions and Carrier's capital structure and credit ratings; the timing and scope of future repurchases of Carrier's common stock, including market conditions and the level of other investing activities and uses of cash; delays and disruption in the delivery of materials and services from suppliers; cost reduction efforts and restructuring costs and savings and other consequences thereof; new business and investment opportunities; the outcome of legal proceedings, investigations and other contingencies; the impact of pension plan assumptions on future cash contributions and earnings; the impact of the negotiation of collective bargaining agreements and labor disputes; the effect of changes in political conditions in the U.S. and other countries in which Carrier and our businesses operate, including the effect of ongoing uncertainty and/or changes in U.S. trade policies, on general market conditions, global trade policies, the imposition of tariffs, and currency exchange rates in the near term and beyond; the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which we and our businesses operate; the ability of Carrier to retain and hire key personnel; the scope, nature, impact or timing of acquisition and divestiture activity, such as our acquisition of the VCS business and our portfolio transformation transactions, including among other things integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; a determination by the IRS and other tax authorities that the distribution of Carrier from RTX Corporation (f/k/a United Technologies Corporation) or certain related transactions should be treated as taxable transactions; and risks associated with current and future indebtedness, as well as our ability to reduce indebtedness and the timing thereof. The forward-looking statements speak only as of the date of this communication. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements is disclosed from time to time in our other filings with the SEC. About Carrier Carrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating innovations that bring comfort, safety and sustainability to life. Through cutting-edge advancements in climate solutions such as temperature control, air quality and transportation, we improve lives, empower critical industries and ensure the safe transport of food, life-saving medicines and more. Since inventing modern air conditioning in 1902, we lead with purpose: enhancing the lives we live and the world we share. We continue to lead because of our world-class, inclusive workforce that puts the customer at the center of everything we do. For more information, visit carrier.com  or follow Carrier on social media at @Carrier . Carrier. For the World We Share CARR-IR Contact: Investor Relations Michael Rednor 561-365-2020 [email protected]   Media Inquiries Kristina Pantelides 561-236-4241 [email protected]   SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS Following are tables that present selected financial data of Carrier Global Corporation ("Carrier"). Also included are reconciliations of non-GAAP measures to their most comparable GAAP 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 information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures. Organic sales, adjusted operating profit, adjusted operating margin, adjusted earnings per share ("EPS"), adjusted effective tax rate and net debt are non-GAAP financial measures and are associated with Carrier's continuing operations unless specifically noted. Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a nonoperational nature (hereinafter referred to as "other significant items"). Adjusted operating profit represents consolidated operating profit (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of consolidated net sales (a GAAP measure). Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure). Segment operating profit is the measure of profit and loss that the Chief Operating Decision Maker uses to evaluate segment profitability. Segment operating profit represents operating profit (a GAAP measure) adjusted to exclude restructuring costs, amortization of acquired intangible assets and other significant items of a nonoperational nature. Free cash flow is a non-GAAP financial measure that represents net cash flows provided by continuing operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Carrier's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of Carrier's common stock and distribution of earnings to shareowners. Orders are contractual commitments with customers to provide specified goods or services for an agreed upon price and may not be subject to penalty if cancelled. Price/cost represents the combined impact of realized pricing, cost inflation and productivity actions, including manufacturing efficiencies, sourcing initiatives and certain productivity measures. When Carrier provides our expectations for organic sales, adjusted operating profit (including on a segment basis), adjusted operating margin (including on a segment basis), adjusted effective tax rate, adjusted EPS, free cash flow, and interest expense, net on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. Carrier Global Corporation Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended   June 30, Six Months Ended June 30, (In millions, except per share amounts) 2026 2025 2026 2025 Net sales Product sales $     5,634 $     5,477 $    10,301 $    10,129 Service sales 717 636 1,391 1,202 Total Net sales 6,351 6,113 11,692 11,331 Costs and expenses Cost of products sold (4,081) (3,867) (7,672) (7,225) Cost of services sold (542) (477) (1,048) (892) Research and development (148) (161) (291) (314) Selling, general and administrative (810) (813) (1,672) (1,542) Total Costs and expenses (5,581) (5,318) (10,683) (9,973) Equity method investment net earnings 58 78 89 122 Other income (expense), net (3) 30 (15) 52 Operating profit 825 903 1,083 1,532 Non-service pension benefit (expense) 1 — 2 1 Interest (expense) income, net (105) (91) (195) (173) Earnings before income taxes 721 812 890 1,360 Income tax (expense) benefit (180) (162) (84) (273) Earnings from continuing operations 541 650 806 1,087 Discontinued operations, net of tax — (17) — (17) Net earnings (loss) 541 633 806 1,070 Less: Non-controlling interest in subsidiaries' 40 42 67 67 Net earnings (loss) attributable to common shareowners $        501 $        591 $         739 $      1,003 Amounts attributable to common shareowners: Continuing operations $        501 $        608 $         739 $      1,020 Discontinued operations — (17) — (17) Net earnings (loss) attributable to common shareowners $        501 $        591 $         739 $      1,003 Earnings per share Basic: Continuing operations $       0.61 $       0.71 $        0.89 $        1.18 Discontinued operations — (0.02) — (0.01) Net earnings (loss) $       0.61 $       0.69 $        0.89 $        1.17 Diluted: Continuing operations $       0.60 $       0.70 $        0.88 $        1.17 Discontinued operations — (0.02) — (0.02) Net earnings (loss) $       0.60 $       0.68 $        0.88 $        1.15 Weighted-average number of shares outstanding Basic 828.1 854.9 831.5 860.8 Diluted 836.5 866.3 839.6 872.3   Carrier Global Corporation Condensed Consolidated Balance Sheet (Unaudited) (In millions) June 30, 2026 December 31, 2025 Assets Cash and cash equivalents $            1,344 $              1,555 Accounts receivable, net 3,246 2,639 Inventories, net 2,759 2,483 Assets held for sale 815 592 Other current assets 1,250 1,264 Total current assets 9,414 8,533 Future income tax benefits 1,126 1,074 Fixed assets, net 3,162 3,165 Operating lease right-of-use assets 568 546 Intangible assets, net 5,756 6,326 Goodwill 15,267 15,501 Pension and post-retirement assets 61 56 Equity method investments 1,341 1,321 Other assets 677 668 Total Assets $          37,372 $            37,190 Liabilities and Equity Accounts payable $            3,216 $              2,702 Accrued liabilities 3,963 3,774 Liabilities held for sale 414 170 Short-term borrowings and current portion of long-term debt 1,638 468 Total current liabilities 9,231 7,114 Long-term debt 10,314 11,365 Future pension and post-retirement obligations 185 192 Future income tax obligations 1,622 1,833 Operating lease liabilities 442 418 Other long-term liabilities 2,106 2,140 Total Liabilities 23,900 23,062 Equity Common stock 10 10 Treasury stock (7,550) (6,795) Additional paid-in capital 8,688 8,665 Retained earnings 12,536 12,193 Accumulated other comprehensive income (loss) (537) (269) Non-controlling interest 325 324 Total Equity 13,472 14,128 Total Liabilities and Equity $          37,372 $            37,190   Carrier Global Corporation Condensed Consolidated Statement of Cash Flows (Unaudited) Three Months Ended   June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Operating Activities Net earnings (loss) $        541 $        633 $        806 $     1,070 Discontinued operations, net of tax — 17 — 17 Adjustments for non-cash items, net: Depreciation and amortization 314 317 629 620 Deferred income tax provision (63) (89) (242) (158) Stock-based compensation costs 12 21 33 44 Equity method investment net earnings (58) (78) (89) (122) (Gain) loss on sale of investments and impairments, net 40 (12) 37 (17) Changes in operating assets and liabilities Accounts receivable, net (142) (340) (651) (702) Inventories, net (197) (111) (335) (412) Accounts payable and accrued liabilities 280 (103) 631 378 Distributions from equity method investments 39 4 51 81 Other operating activities, net 122 5 83 (47) Net cash flows provided by (used in) continuing operating activities 888 264 953 752 Net cash flows provided by (used in) discontinued operating activities 39 385 53 380 Net cash flows provided by (used in) operating activities 927 649 1,006 1,132 Investing Activities Capital expenditures (117) (81) (211) (144) Investment in businesses, net of cash acquired (31) (49) (54) (61) Dispositions of businesses 7 — 15 8 Settlement of derivative contracts, net (29) 51 6 87 Other investing activities, net — (4) 9 (3) Net cash flows provided by (used in) continuing investing activities (170) (83) (235) (113) Net cash flows provided by (used in) discontinued investing activities — 28 — 35 Net cash flows provided by (used in) investing activities (170) (55) (235) (78) Financing Activities Increase (decrease) in short-term borrowings, net (10) (8) 361 (57) Issuance of long-term debt 17 6 39 15 Repayment of long-term debt (41) (3) (57) (1,208) Repurchases of common stock (439) (340) (745) (1,628) Dividends paid on common stock (199) (192) (400) (390) Dividends paid to non-controlling interest (64) (9) (65) (9) Other financing activities, net (24) (1) (34) (17) Net cash flows provided by (used in) continuing financing activities (760) (547) (901) (3,294) Net cash flows provided by (used in) discontinued financing activities — — — — Net cash flows provided by (used in) financing activities (760) (547) (901) (3,294) Effect of foreign exchange rate changes on cash and cash equivalents 3 51 (10) 68 Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale — 98 (140) (2,172) Less: Change in cash balances classified as assets held for sale 27 — 70 — Net increase (decrease) in cash and cash equivalents and restricted cash (27) 98 (210) (2,172) Cash, cash equivalents and restricted cash, beginning of period 1,374 1,702 1,557 3,972 Cash, cash equivalents and restricted cash, end of period 1,347 1,800 1,347 1,800 Less: restricted cash 3 3 3 3 Cash and cash equivalents, end of period $     1,344 $     1,797 $     1,344 $     1,797   Carrier Global Corporation Segment Summary (Unaudited) Three Months Ended   June 30, Six Months Ended 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 917 882 1,751 1,708 Climate Solutions Transportation 738 726 1,451 1,377 Segment net sales $   6,351 $   6,113 $ 11,692 $ 11,331 Segment operating profit Climate Solutions Americas $    823 $    879 $   1,196 $   1,449 Climate Solutions Europe 95 99 184 204 Climate Solutions Asia Pacific, Middle East & Africa 108 135 189 256 Climate Solutions Transportation 118 128 219 225 Segment operating profit $   1,144 $   1,241 $   1,788 $   2,134 Segment operating margin Climate Solutions Americas 24.4 % 27.0 % 20.4 % 24.9 % Climate Solutions Europe 7.2 % 7.9 % 7.0 % 8.4 % Climate Solutions Asia Pacific, Middle East & Africa 11.8 % 15.3 % 10.8 % 15.0 % Climate Solutions Transportation 16.0 % 17.6 % 15.1 % 16.3 %   Components of Changes in Net Sales Three Months Ended June 30, 2026 Compared with   Three Months Ended June 30, 2025 (Unaudited) Factors Contributing to Total % change in Net Sales Organic FX Translation Acquisitions / Divestitures, net Other Total Climate Solutions Americas 4 % — % — % — % 4 % Climate Solutions Europe 3 % 3 % — % — % 6 % Climate Solutions Asia Pacific, Middle East & Africa 4 % — % — % — % 4 % Climate Solutions Transportation — % 2 % — % — % 2 % Consolidated 3 % 1 % — % — % 4 % Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025 (Unaudited) Factors Contributing to Total % change in Net Sales Organic FX Translation Acquisitions / Divestitures, net Other Total Climate Solutions Americas 1 % — % — % — % 1 % Climate Solutions Europe 1 % 7 % — % — % 8 % Climate Solutions Asia Pacific, Middle East & Africa 1 % 1 % 1 % — % 3 % Climate Solutions Transportation 2 % 3 % — % — % 5 % Consolidated 1 % 2 % — % — % 3 %   Carrier Global Corporation Reconciliations (Unaudited) Three Months Ended   June 30, Six Months Ended 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) Restructuring costs (8) (47) (116) (55) Amortization of acquired intangible assets (213) (214) (426) (415) Acquisition/divestiture-related costs (8) (6) (18) (11) Riello impairment (46) — (46) — CCR gain — 7 — 7 Other 5 (3) — (8) Non-service pension (expense) benefit 1 — 2 1 Interest (expense) income, net (105) (91) (195) (173) Earnings before income taxes $        721 $        812 $        890 $     1,360 (Unaudited) Three Months Ended   June 30, Six Months Ended 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 99 184 204 Climate Solutions Asia Pacific, Middle East & Africa 108 135 189 256 Climate Solutions Transportation 118 128 219 225 Segment operating profit $     1,144 $     1,241 $     1,788 $     2,134 Corporate and other (49) (75) (99) (120) Adjusted operating profit $     1,095 $     1,166 $     1,689 $     2,014   Carrier Global Corporation  Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share and Effective Tax Rate (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 $   1,083 606 a $   1,689 Operating margin 13.0 % 17.2 % 9.3 % 14.4 % Earnings before income taxes $     721 270 a $     991 $      890 606 a $   1,496 Income tax (expense) benefit $    (180) (50) b $    (230) $       (84) (142) b $     (226) Effective tax rate 25.0 % 23.2 % 9.4 % 15.1 % Earnings from continuing operations attributable to common shareowners $     501 $      220 $     721 $      739 $       464 $   1,203 Summary of Adjustments: Restructuring costs $          8 a $       116 a Amortization of acquired intangible assets 213 a 426 a Acquisition/divestiture-related costs 8 a 18 a Riello impairment 46 a 46 a Other (5) a — a Total adjustments $       270 $       606 Tax effect on adjustments above $        (50) $      (142) Total tax adjustments $        (50) b $      (142) b Diluted shares outstanding 836.5 836.5 839.6 839.6 Diluted earnings per share: Continuing operations $    0.60 $    0.86 $     0.88 $     1.43   Carrier Global Corporation Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share and Effective Tax Rate (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 $   1,532 482 a $   2,014 Operating margin 14.8 % 19.1 % 13.5 % 17.8 % Earnings before income taxes $     812 263 a $  1,075 $   1,360 482 a $   1,842 Income tax (expense) benefit $    (162) (75) b $    (237) $     (273) (133) b $     (406) Effective tax rate 20.0 % 22.1 % 20.1 % 22.1 % Earnings from continuing operations attributable to common shareowners $     608 $      188 $     796 $   1,020 $        349 $   1,369 Summary of Adjustments: Restructuring costs $         47 a 55 a Amortization of acquired intangible assets 214 a $        415 a Acquisition/divestiture-related costs 6 a 11 a CCR gain (7) a (7) a Other 3 a 8 a Total adjustments $       263 $        482 Tax effect on adjustments above $        (69) $       (127) Tax specific adjustments (6) (6) Total tax adjustments $        (75) b $       (133) b Diluted shares outstanding 866.3 866.3 872.3 872.3 Diluted earnings per share: Continuing operations $    0.70 $    0.92 $     1.17 $     1.57   Free Cash Flow Reconciliation (Unaudited) Three Months Ended   June 30, Six Months Ended 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   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   View original content to download multimedia: https://www.prnewswire.com/news-releases/carrier-reports-second-quarter-2026-results-302836318.html SOURCE Carrier Global Corporation

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