Company Reports

Carrier offers a variety of HVAC solutions, led by its flagship Carrier brand, serving global residential, light commercial, and more complex, “applied” commercial markets. Through its Transicold brand, the company also serves the more niche transportation refrigeration market in what is largely an oligopoly with competitor Trane’s ThermoKing business. Owing to the high quality of its products and the significant efficiency gains its customers have achieved, the company has achieved a number 1 market share in residential and light commercial markets and a number 3 share in applied commercial markets. Carrier is somewhat unique among peers in pursuing a distribution strategy that relies almost entirely on independent third-party distributors for its residential business, whereas the industry standard is to maintain a direct salesforce for more bespoke commercial solutions. The company operates an asset-light model, so it is a highly cash-generative business that can fund its product development, growth initiatives, and generous shareholder remuneration policies.

Carrier Global reported 3% organic growth to $6.4 billion, but operating margins contracted 190 basis points to 17.2%, and adjusted EPS fell 7% to $0.86 on weaker product mix and additional investments in the business.

Carrier offers a variety of HVAC solutions, led by its flagship Carrier brand, serving global residential, light commercial, and more complex, “applied” commercial markets. Through its Transicold brand, the company also serves the more niche transportation refrigeration market in what is largely an oligopoly with competitor Trane’s ThermoKing business. Owing to the high quality of its products and the significant efficiency gains its customers have achieved, the company has achieved a number 1 market share in residential and light commercial markets and a number 3 share in applied commercial markets. Carrier is somewhat unique among peers in pursuing a distribution strategy that relies almost entirely on independent third-party distributors for its residential business, whereas the industry standard is to maintain a direct salesforce for more bespoke commercial solutions. The company operates an asset-light model, so it is a highly cash-generative business that can fund its product development, growth initiatives, and generous shareholder remuneration policies.

Carrier offers a variety of HVAC solutions, led by its flagship Carrier brand, serving global residential, light commercial, and more complex, “applied” commercial markets. Through its Transicold brand, the company also serves the more niche transportation refrigeration market in what is largely an oligopoly with competitor Trane’s ThermoKing business. Owing to the high quality of its products and the significant efficiency gains its customers have achieved, the company has achieved a number 1 market share in residential and light commercial markets and a number 3 share in applied commercial markets. Carrier is somewhat unique among peers in pursuing a distribution strategy that relies almost entirely on independent third-party distributors for its residential business, whereas the industry standard is to maintain a direct salesforce for more bespoke commercial solutions. The company operates an asset-light model, so it is a highly cash-generative business that can fund its product development, growth initiatives, and generous shareholder remuneration policies.

Carrier Global posted 2% revenue growth to $5.3 billion and a 12% decline in adjusted earnings per share to $0.57 due mainly to capacity under-absorption. The firm reiterated its 2026 guidance for $22 billion in sales and $2.80 in adjusted EPS. Order and backlog growth were particularly reassuring.

We are relaunching coverage of Carrier, the market leader in global HVAC, with number-one positions in residential and light commercial markets and a number-three position in more complex commercial solutions. The company has a global reach.

Carrier offers a variety of HVAC solutions, led by its flagship Carrier brand, serving global residential, light commercial, and more complex, “applied” commercial markets. Through its Transicold brand, the company also serves the more niche transportation refrigeration market in what is largely an oligopoly with competitor Trane’s ThermoKing business. Owing to the high quality of its products and the significant efficiency gains its customers have achieved, the company has achieved a number 1 market share in residential and light commercial markets and a number 3 share in applied commercial markets. Carrier is somewhat unique among peers in pursuing a distribution strategy that relies almost entirely on independent third-party distributors for its residential business, whereas the industry standard is to maintain a direct sales force for more bespoke commercial solutions. The company operates an asset-light model, so it is a highly cash-generative business that can fund its product development, growth initiatives, and generous shareholder remuneration policies.

We will discontinue analyst coverage of Carrier on or about Nov. 7.

Carrier Global, a leading supplier of HVAC and refrigeration products and related services, was spun off from United Technologies in April 2020. Since then, the firm has undergone a substantial transformation. In the immediate years following the spinoff, Carrier's management focused on strengthening the balance sheet and organic reinvestment. The company sold its Chubb fire and security services business and its ownership stake in the Beijer joint venture to raise capital to pay down debt. Carrier also increased spending on research and development, its sales organization, and capital projects to support product development and growth initiatives.

According to the Air-Conditioning, Heating, and Refrigeration Institute, US shipments of air conditioners and heat pumps declined year over year by 22% in June and 27% in July. HVAC manufacturers have confirmed weakening demand.

Carrier's second-quarter organic revenue grew 6% year over year, and adjusted operating margin expanded 130 basis points to 19.1%. Robust demand for global commercial heating, ventilation, and air-conditioning products and services remains a key driver behind Carrier's strong financial results.

Carrier Global, a leading supplier of HVAC and refrigeration products and related services, was spun off from United Technologies in April 2020. Since then, the firm has undergone a substantial transformation. In the immediate years following the spinoff, Carrier's management focused on strengthening the balance sheet and organic reinvestment. The company sold its Chubb fire and security services business and its ownership stake in the Beijer joint venture to raise capital to pay down debt. Carrier also increased spending on research and development, its sales organization, and capital projects to support product development and growth initiatives.

During Carrier Global's May 19 investor day, management laid out its plans for 6%-8% organic revenue growth and 50 basis points of annual operating margin expansion over the medium term.

Carrier Global, a leading supplier of HVAC and refrigeration products and related services, was spun off from United Technologies in April 2020. Since then, the firm has undergone a substantial transformation. In the immediate years following the spinoff, Carrier's management focused on strengthening the balance sheet and organic reinvestment. The company sold its Chubb fire and security services business and its ownership stake in the Beijer joint venture to raise capital to pay down debt. Carrier also increased spending on research and development, its sales organization, and capital projects to support product development and growth initiatives.

Carrier Global, a leading supplier of heating, ventilation, air-conditioning, and refrigeration products and related services, was spun off from United Technologies in April 2020. Since then, the firm has undergone a substantial transformation. In the immediate years following the spinoff, Carrier's management focused on strengthening the firm's balance sheet and organic reinvestment. Notably, the company sold its Chubb fire and security services business and its ownership stake in the Beijer joint venture to raise capital to pay down debt. Carrier also increased spending on research and development, its sales organization, and capital projects to support product development and growth initiatives.

Carrier's first-quarter organic revenue grew 2% year over year, and adjusted operating margin expanded 210 basis points to 16.2%. The firm resegmented its financials after several divestitures last year. Sales growth was led by the new Climate Solutions Americas segment, with 9% organic growth.

On April 2, President Trump announced sweeping tariffs, featuring a minimum 10% tariff on all US imports and higher tariff rates for select countries. Goods imported from Canada and Mexico that comply with the United States-Mexico-Canada Agreement remain exempt from tariffs.

Carrier reported strong fourth-quarter results, featuring 6% organic revenue growth and adjusted operating margin expanding 370 basis points to 13.2%. Management expects another year of solid organic revenue growth and margin expansion in 2025.

We have consolidated our recent DeepSeek-related coverage in this note. Artificial intelligence affects companies across much of our coverage, including semiconductors, cloud infrastructure, software, utilities, and energy.

Shares of heating, ventilation, and air-conditioning manufacturers Carrier, Johnson Controls, and Trane Technologies sold off on Jan. 27 in reaction to the release of new artificial intelligence technology from China's DeepSeek, which could redefine long-term growth expectations for data centers.