Carrier Earnings: Transformation Is Nearly Complete and Leverage Should Normalize in 2024

Carrier's first-quarter revenue popped 17% year over year, but most of that growth was from the Viessmann acquisition, which closed on Jan. 2. Organic revenue grew a much more muted 2%, driven by 2% organic growth from the HVAC segment, 7% organic growth from the fire and security segment, partially offset by a negative 2% organic revenue decline from the refrigeration segment. Acquisition and divestiture-related costs weighed heavily on GAAP operating margin, which declined 240 basis points to 8.1%. However, excluding nonrecurring charges, adjusted operating margin expanded 280 basis points to 15%.