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Mar 31, 2023

Carrier Q1 2023 Earnings Report

Carrier reported strong financial results, with sales and organic sales increasing, but GAAP operating profit decreasing due to the prior year's divestiture gain.

Key Takeaways

Carrier Global Corporation reported first quarter 2023 results with net sales up 13% and organic sales up 4%. GAAP EPS was $0.44 and adjusted EPS was $0.52. Net cash inflows from operating activities were $120 million and free cash flow generation was $50 million. The company reaffirmed its full-year 2023 guidance for sales, adjusted operating margin, adjusted EPS, and free cash flow.

Net sales increased by 13% compared to the first quarter of 2022, with organic sales up by 4%.

GAAP EPS was reported at $0.44, while adjusted EPS reached $0.52.

Net cash inflows from operating activities amounted to $120 million, with a free cash flow of $50 million.

Full-year 2023 guidance for sales, adjusted operating margin, adjusted EPS, and free cash flow was reaffirmed.

Total Revenue
$5.27B
Previous year: $4.65B
+13.3%
EPS
$0.52
Previous year: $0.54
-3.7%
Total Organic Sales Growth
4%
Previous year: 10%
-60.0%
Gross Profit
$1.38B
Previous year: $1.29B
+6.6%
Cash and Equivalents
$3.35B
Previous year: $3.6B
-7.1%
Free Cash Flow
$50M
Previous year: -$258M
-119.4%
Total Assets
$26.4B
Previous year: $24.2B
+9.2%

Carrier

Carrier

Carrier Revenue by Segment

Forward Guidance

Carrier reaffirmed the following guidance for 2023: Sales of ~$22B, Organic Sales up LSD-MSD, Adjusted Operating Margin of ~14% (includes ~50bps negative impact from Toshiba Carrier Corp. (TCC)), Adjusted EPS of $2.50 - $2.60, and Free Cash Flow of ~$1.9B.

Revenue & Expenses

Visualization of income flow from segment revenue to net income