Carrier Global Q3 Earnings & Revenues Beat Estimates, Stock Up

Carrier Global CARR reported third-quarter 2025 adjusted earnings of 67 cents per share, which beat the Zacks Consensus Estimate by 21.82%. However, it has declined 19.3% year over year.

Net sales of $5.58 billion beat the Zacks Consensus Estimate by 0.93% but decreased 6.8% year over year. Product sales (87.9% of net sales) of $4.90 billion decreased 7.6% year over year. Service sales (12.1% of net sales) of $673 million were down 0.6% year over year.

However, CARR shares gained 3.06% at the time of writing this article.

CARR’s Quarter in Detail

Climate Solutions Americas (CSA) revenues of $2.71 billion contributed 48.6% to net sales and declined 8.4% year over year. Sales decreased 8% organically. Commercial showed strong growth of 30%. However, this was more than offset by lower volumes in Residential, which fell about 30%, and in Light Commercial, which decreased 4%.

Carrier Global Corporation Price, Consensus and EPS Surprise

Carrier Global Corporation price-consensus-eps-surprise-chart | Carrier Global Corporation Quote

Climate Solutions Europe revenues of $1.29 billion contributed 23.1% to net sales and increased 3.5% year over year. Organic sales declined 3%, with Residential and Light Commercial down low-single digits and Commercial down mid-single digits. 

Climate Solutions Asia Pacific Middle East & Africa revenues of $833 million contributed 14.9% to net sales and declined 1% year over year. Sales decreased 2% organically due to declines in Residential Light Commercial in China, partially offset by continued strong growth in India and the Middle East.

Climate Solutions Transportation revenues of $745 million contributed 13.4% to net sales and decreased 20.5% year over year. The decline can be attributed to the impact of the divestiture of Commercial Refrigeration. Sales increased 6% organically, with 50% growth in Container, partially offset by a decline in Global Truck and Trailer, which was down in the mid-single digits.

Research & development (R&D) expenses decreased 12.2% year over year to $151 million. As a percentage of revenues, R&D expenses declined 20 basis points (bps) year over year.

Selling, general & administrative (SG&A) expenses increased 0.5% year over year to $803 million. As a percentage of revenues, SG&A expenses expanded 100 bps year over year.

Adjusted operating margin contracted 260 bps on a year-over-year basis to 14.8%.

Adjusted operating margin in the Climate Solutions Americas segment contracted 560 bps year over year to 19.7%. The Climate Solutions Europe segment contracted 110 bps year over year to 9.3%. Climate Solutions Asia Pacific, Middle East & Africa segment contracted 100 bps year over year to 11.6%. Climate Solutions Transportation segment expanded 80 bps year over year to 15.4%.

CARR’s Balance Sheet

As of Sept. 30, 2025, Carrier had cash and cash equivalents of $1.42 billion compared with $1.8 billion as of June 30, 2025.

Total debt (including the current portion) as of Sept. 30, 2025, was $11.91 billion compared with $11.44 billion as of June 30, 2025.

The company generated $341 million in cash from operations compared with $649 million in the previous quarter.

Free cash flow was $224 million compared with $568 million reported in the prior quarter.

In the third quarter of 2025, CARR repurchased $2.4 billion of its shares and paid $3 billion to shareholders.

In the reported quarter, CARR’s board of directors approved a $5 billion share repurchase authorization.

Carrier Offers Weak 2025 Outlook

For 2025, Carrier expects to achieve sales of $22 billion, reflecting flat organic growth.

Adjusted operating margin is expected to be between 15% and 15.5%, down 50 bps from 2024. 

The company anticipates adjusted earnings of $2.65 per share, indicating year-over-year growth of 4%.

Free cash flow is expected to be $2 billion.

Zacks Rank and Stocks to Consider

Currently, Carrier has a Zacks Rank #5 (Strong Sell). 

Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Alkami Technology ALKT, AMETEK AME, and Advanced Energy AEIS. While Alkami Technology sports a Zacks Rank #1 (Strong Buy), AMETEK and Advanced Energy carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alkami Technology is set to report third-quarter 2025 results on Oct. 30. Alkami Technology shares have lost 35.2% year to date.

AMETEK is slated to report third-quarter 2025 results on Oct. 30. AMETEK shares have gained 2.5% year to date.

Advanced Energy is set to report third-quarter 2025 results on Nov. 4. Advanced Energy shares have surged 75.2% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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