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Sep 30
Carrier Q3 2025 Earnings Report
Carrier reported third-quarter 2025 results showing lower sales and profits amid residential market weakness, partially offset by strong commercial HVAC and aftermarket growth.
Key Takeaways
Carrier generated $5.6 billion in revenue for Q3 2025, down 7% year-over-year, with organic sales down 4%. GAAP EPS was $0.47 and adjusted EPS was $0.67. Net income from continuing operations reached $407 million, and operating profit was $539 million. The company announced a new $5 billion share repurchase authorization while maintaining solid cash generation with $224 million in free cash flow.
Revenue decreased 7% year-over-year to $5.6 billion.
GAAP EPS was $0.47; adjusted EPS was $0.67.
Net income from continuing operations totaled $407 million.
Carrier authorized a $5 billion share repurchase program.
Carrier
Carrier
Carrier Revenue by Segment
Carrier Revenue by Geographic Location
Revenue by Segment
Climate Solutions Americas Revenue
CapyFin.comClimate Solutions Europe Revenue
CapyFin.comCS Asia Pacific, ME & Africa Revenue
CapyFin.comClimate Solutions Transportation Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific, ME & Africa Revenue
CapyFin.comTransportation Revenue
CapyFin.com Forward Guidance
Carrier expects full-year 2025 sales of approximately $22 billion and adjusted EPS of around $2.65, reflecting a softer residential market and divestiture impacts but continued strength in commercial HVAC and aftermarket performance.
Positive Outlook
- Full-year sales expected at ~$22 billion.
- Adjusted EPS forecasted at ~$2.65.
- Adjusted operating margin expected between 15.0% and 15.5%.
- Data center and commercial HVAC demand remains strong.
- Cost reduction actions support 2026 earnings growth.
Challenges Ahead
- Residential weakness continues to weigh on performance.
- Organic sales expected to remain flat year-over-year.
- Operating margin projected to decline by ~50 basis points.
- Impact from Commercial Refrigeration divestiture (~$750M revenue headwind).
- Free cash flow guidance reduced to ~$2 billion from prior outlook.