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Jun 30, 2024

Carrier Q2 2024 Earnings Report

Carrier's Q2 2024 financial performance was strong, marked by significant sales growth, operating margin expansion, and progress in portfolio transformation.

Key Takeaways

Carrier reported strong Q2 2024 results with net sales of $6.7 billion, up 12% year-over-year, and organic sales up 2%. GAAP EPS was $2.55, and adjusted EPS was $0.87, up double-digits. The company achieved a 200 bps expansion in adjusted operating margin and reduced net debt by approximately $5 billion. They also plan to repurchase about $1 billion of shares in the second half of 2024.

Net sales reached $6.7 billion, a 12% increase compared to Q2 2023, with organic sales up by 2%.

GAAP EPS significantly increased to $2.55, while adjusted EPS rose to $0.87, showing double-digit growth.

Adjusted operating margin expanded by 200 bps due to strong operational execution.

The company closed two of the four planned business exit transactions and is on track with the remaining two.

Total Revenue
$6.69B
Previous year: $5.99B
+11.6%
EPS
$0.87
Previous year: $0.79
+10.1%
Total Organic Sales Growth
2%
Previous year: 6%
-66.7%
Gross Profit
$1.89B
Previous year: $1.76B
+7.7%
Cash and Equivalents
$2.92B
Previous year: $3.21B
-9.0%
Free Cash Flow
$549M
Previous year: $310M
+77.1%
Total Assets
$40.4B
Previous year: $26.3B
+53.8%

Carrier

Carrier

Carrier Revenue by Segment

Forward Guidance

Carrier updated its full-year 2024 guidance, which now includes Commercial Refrigeration for nine months.

Positive Outlook

  • Sales: ~$25.5B
  • Organic Sales: Up mid-single digit
  • FX: (1%)
  • Acquisitions: +16%
  • Divestitures: (5%)

Challenges Ahead

  • Free Cash Flow* ~$0.4B
  • Includes ~$2B of expected tax payments on the gains from the announced business exits, restructuring, and transaction-related costs
  • Sales ~$26B
  • Organic* up MSD
  • FX (0%)

Revenue & Expenses

Visualization of income flow from segment revenue to net income