Carrier Global (CARR) Q1 2025 earnings summary

Executive summary

• Q1 2025 organic sales grew 2% year-over-year to $5.2B, offsetting a 4% decline in net sales due to divestitures and FX headwinds; Commercial and Residential Americas sales each rose about 20%.

• Adjusted EPS increased 27% to $0.65, GAAP EPS rose 147% to $0.47, and operating profit rose 63% to $629M, driven by productivity, pricing, and lower share count.

• Strong performance in Climate Solutions Americas offset declines in Europe and Transportation; global aftermarket sales rose 8%.

• Orders rose high-single digits, with backlogs up over 15% sequentially and about 10% year-over-year.

• $1.5B returned to shareholders via dividends and repurchases; $1.2B debt paydown completed in Q1 2025.

Financial highlights

• Net sales: $5.2B (down 4% year-over-year); organic sales up 2%.

• Adjusted operating profit: $843M (up 10%); GAAP operating profit: $629M (up 63%).

• Adjusted operating margin: 16.2% (up 210 bps year-over-year); gross margin: 27.7% (up 210 bps).

• Free cash flow: $420M, up from $(64)M year-over-year.

• Net earnings attributable to common shareowners: $412M (up 53%); adjusted net earnings: $569M.

Outlook and guidance

• Raised full-year 2025 adjusted EPS guidance to $3.00–$3.10 (up 17–21% year-over-year); full-year sales expected at ~$23B.

• Adjusted operating margin guidance: 16.5–17.0%, up ~100 bps year-over-year.

• Free cash flow guidance: $2.4–$2.6B, reflecting roughly 100% conversion.

• Q2 guidance: sales of about $6B, 100 bps of margin expansion, and ~20% Adjusted EPS growth.

• Management expects to fully mitigate 2025 tariff impacts through supply chain actions and $300M in incremental pricing.