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Mar 31, 2025
Carrier Q1 2025 Earnings Report
Carrier delivered strong operational performance and grew adjusted EPS in Q1 2025.
Key Takeaways
Carrier achieved 2% organic sales growth, expanded margins, and increased adjusted EPS by 27%, despite a 4% revenue decline due to divestitures.
Adjusted EPS rose 27% to $0.65, driven by margin expansion and operational strength.
Organic sales increased 2%, offsetting a 5% headwind from divestitures.
Free cash flow significantly improved to $420 million, aided by stronger income and lower capex.
Climate Solutions Americas segment led growth with 9% higher sales.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Carrier raised its full-year 2025 adjusted EPS guidance and maintained a strong outlook, supported by healthy order backlog and margin expansion.
Positive Outlook
- Raised adjusted EPS guidance to $3.00–$3.10
- Expected free cash flow of $2.4–$2.6 billion
- Adjusted operating margin projected at 16.5%–17.0%
- Organic growth anticipated to be mid-single digits
- Backlog increased over 15% sequentially
Challenges Ahead
- Sales headwind of ~$750 million due to Commercial Refrigeration exit
- Foreign exchange impact remains a 1% headwind
- No expected contribution from acquisitions
- Residential weakness in Europe and Asia poses a risk
- Lower volumes in some segments may limit margin upside
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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