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Mar 31
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.
Carrier
Carrier
Carrier Revenue by Segment
Carrier Revenue by Geographic Location
Revenue by Segment
CSA Revenue
CapyFin.comCSE Revenue
CapyFin.comCSAME Revenue
CapyFin.comCST Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAPAC + MEA Revenue
CapyFin.comTransportation Revenue
CapyFin.com 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