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Jun 30, 2023
Carrier Q2 2023 Earnings Report
Reported strong financial results and raised full year guidance.
Key Takeaways
Carrier Global Corporation reported strong financial results for the second quarter of 2023. Net sales were up 15% compared to the prior year, with organic sales growing 6%. The company raised its full year revenue, adjusted operating margin, and adjusted EPS guidance.
Net sales increased by 15% compared to the second quarter of 2022, with organic sales up by 6%.
GAAP EPS was $0.23, and adjusted EPS was $0.79.
Net cash inflows from operating activities amounted to $384 million, with free cash flow generation reaching $310 million.
Adjusted EPS guidance was increased from $2.50 - $2.60 to $2.55 - $2.65, driven by strong performance in the first half of the year.
Carrier
Carrier
Forward Guidance
Carrier updated the following guidance for 2023, which now reflects the deconsolidation of KFI as of its Chapter 11 filing date of May 14, 2023:
Positive Outlook
- Sales over $22B
- Organic up MSD
- FX ~0%
- Acquisitions / Divestitures, net +~5%
- Adjusted Operating Margin *14.0% - 14.5%
Challenges Ahead
- Includes ~50bps negative impact from TCC
- Adjusted EPS *$2.55 - $2.65
- Free Cash Flow ~$1.9B
- When the company provides expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort.
- The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.