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Dec 31, 2021

Carrier Q4 2021 Earnings Report

Reported strong financial results for the fourth quarter, capping a full year 2021 that exceeded expectations.

Key Takeaways

Carrier's Q4 2021 sales were $5.1 billion, up 12% compared to the prior year, with organic sales up 11%. GAAP EPS was $0.36 and adjusted EPS was $0.44. Net cash flow from operating activities was $913 million, and free cash flow was $775 million.

Sales of $5.1 billion, up 12% compared to 2020 including 11% organic growth

GAAP EPS of $0.36 and adjusted EPS of $0.44

Net cash flow from operating activities of $913 million

Free cash flow of $775 million

Total Revenue
$5.13B
Previous year: $4.59B
+11.7%
EPS
$0.44
Previous year: $0.31
+41.9%
Total Organic Sales Growth
11%
Gross Profit
$1.37B
Previous year: $1.29B
+6.3%
Cash and Equivalents
$2.99B
Previous year: $3.12B
-4.1%
Free Cash Flow
$775M
Total Assets
$26.2B
Previous year: $25.1B
+4.3%

Carrier

Carrier

Carrier Revenue by Segment

Forward Guidance

Carrier projects solid organic growth and adjusted operating margin expansion in 2022 and is well-positioned with a strong balance sheet with significant capital to deploy towards continued value creation.

Positive Outlook

  • Sales of about $20 billion
  • High single-digit organic sales growth
  • Adjusted operating margin up ~75 bps
  • Adjusted EPS of $2.20 - $2.30, up double-digits adjusting for the Chubb divestiture
  • Free cash flow of ~$1.65 billion, which includes a ~$200 million tax payment related to the gain on the Chubb sale

Challenges Ahead

  • Outlook excludes recently announced Toshiba acquisition, expected to close before the end of Q3 2022
  • ~1% FX impact on sales
  • ~10% Divestitures impact on sales
  • Includes ~$200M in tax payments on Chubb gain
  • Unspecified impacts of acquisitions

Revenue & Expenses

Visualization of income flow from segment revenue to net income