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Sep 30, 2020

Carrier Q3 2020 Earnings Report

Carrier's Q3 2020 results reflected a solid performance driven by strong North American residential HVAC and progress on growth and cost initiatives.

Key Takeaways

Carrier Global Corporation reported a 4% increase in sales to $5 billion in the third quarter of 2020, with organic sales growth of 3%. GAAP EPS was $0.84 and adjusted EPS was $0.67. The company is raising its full-year outlook for sales, adjusted operating profit, and free cash flow.

Third quarter sales increased by 4% year-over-year to $5 billion.

GAAP EPS was $0.84, and adjusted EPS was $0.67.

The company is increasing its three-year savings target by $100 million, renaming the Carrier 600 program to Carrier 700.

Plans to reduce debt by $1.5 billion in the fourth quarter of 2020, backed by stronger than expected free cash flow.

Total Revenue
$5B
Previous year: $4.82B
+3.7%
EPS
$0.67
Previous year: $0.57
+17.5%
Total Organic Sales Growth
3%
Gross Profit
$1.56B
Previous year: $1.45B
+8.0%
Cash and Equivalents
$3.85B
Previous year: $862M
+346.4%
Free Cash Flow
$880M
Total Assets
$25.7B

Carrier

Carrier

Carrier Revenue by Segment

Forward Guidance

Carrier is raising its full-year 2020 outlook.

Positive Outlook

  • Sales of approximately $17.3 billion, up from a range of $15.5 to $17.0 billion
  • Adjusted operating profit of approximately $2.2 billion, up from a range of $1.8 to $2.0 billion
  • Free cash flow of approximately $1.5 billion, up from at least $1.1 billion
  • Plans to reduce the Company's debt by $1.5 billion in the fourth quarter 2020
  • Stronger than expected free cash flow will support plans to reduce the Company's debt

Revenue & Expenses

Visualization of income flow from segment revenue to net income