Carrier Q4 2024 Earnings Report

Key Takeaways

Carrier Global Corporation reported strong financial results for Q4 2024, with revenue reaching $5.1 billion, a 19% increase from the previous year, driven by 6% organic growth. Adjusted EPS grew 50% to $0.54. The HVAC segment saw an 11% organic sales increase, while Refrigeration sales declined by 6%. Operating profit rose 44% due to the gain on the sale of Commercial Refrigeration.

Total Revenue

$5.15B

Previous year: $5.1B

+0.9%

EPS

$0.54

Previous year: $0.53

+1.9%

Total Organic Sales Growth

HVAC Organic Growth

11%

Refrigeration Organic Growth

-6%

Gross Profit

$1.34B

Previous year: $1.43B

-6.3%

Cash and Equivalents

$3.97B

Previous year: $10B

-60.3%

Free Cash Flow

-$85M

Previous year: $829M

-110.3%

Total Assets

$37.4B

Previous year: $32.8B

+14.0%

Carrier Revenue

Carrier EPS

Carrier Revenue by Segment

Forward Guidance

Carrier expects mid-single-digit organic revenue growth in 2025, with a projected revenue range of $22.5B–$23.0B. Adjusted EPS is expected to increase by 15-20% year-over-year, reaching $2.95–$3.05. Free cash flow is projected to be between $2.4B and $2.6B, with a focus on share repurchases.

Positive Outlook

Mid-single-digit organic revenue growth projected for 2025.
Adjusted operating margin expected to increase by ~100 basis points.
Adjusted EPS growth projected at 15-20% year-over-year.
Free cash flow guidance set between $2.4B and $2.6B.
Plan to repurchase ~$3 billion in shares.

Challenges Ahead

Commercial Refrigeration divestiture expected to reduce revenue by ~$750 million.
FX impact expected to slightly hinder growth (-1%).
Continued cost pressures in the supply chain.
Macroeconomic uncertainties may impact growth.
Potential headwinds in certain residential markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income