CARRIER GLOBAL Corp 10-Q for FY2025 Q1

CARRIER GLOBAL Corp (CARR)

10-Q 2025-05-01 For: 2025-03-31

Added on April 11, 2026

About this 10-Q

CARRIER GLOBAL Corp filed this 10-Q on May 1, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $5.22B; down 3.7% from $5.42B a year earlier
Net income: $412M; up 53.2% from net income of $269M a year earlier
Diluted EPS: $0.47; up 62.1% from $0.29 a year earlier

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Delaware						83-4051582
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)


			Page

PART I – FINANCIAL INFORMATION			3

Item 1. Financial Statements:			3

Condensed Consolidated Statement of Operations (Unaudited)			3



Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited)			4

Condensed Consolidated Balance Sheet (Unaudited)			5

Condensed Consolidated Statement of Changes in Equity (Unaudited)			6

Condensed Consolidated Statement of Cash Flows (Unaudited)			7

Notes to Condensed Consolidated Financial Statements (Unaudited)			8

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			28

Item 3. Quantitative and Qualitative Disclosures About Market Risk			39

Item 4. Controls and Procedures			39

PART II – OTHER INFORMATION			41

Item 1. Legal Proceedings			41

Item 1A. Risk Factors			41

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			41

Item 5. Other Information			41

Item 6. Exhibits			42

SIGNATURES			43


	Three Months Ended March 31,
(In millions, except per share amounts)	2025		2024
Net sales
Product sales	$	4,652	$	4,842
Service sales	566		578
Total Net sales	5,218		5,420
Costs and expenses
Cost of products sold	(3,358)		(3,582)
Cost of services sold	(415)		(453)
Research and development	(153)		(192)
Selling, general and administrative	(729)		(807)
Total Costs and expenses	(4,655)		(5,034)
Equity method investment net earnings	44		31
Other income (expense), net	22		(32)
Operating profit	629		385
Non-service pension (expense) benefit	1		—
Interest (expense) income, net	(82)		(141)
Earnings before income taxes	548		244
Income tax (expense) benefit	(111)		(47)
Earnings from continuing operations	437		197
Discontinued operations, net of tax	—		92
Net earnings (loss)	437		289
Less: Non-controlling interest in subsidiaries'	25		20
Net earnings (loss) attributable to common shareowners	$	412	$	269
Amounts attributable to common shareowners:
Continuing operations	$	412	$	177
Discontinued operations	—		92
Net earnings (loss) attributable to common shareowners	$	412	$	269
Earnings per share
Basic:
Continuing operations	$	0.47	$	0.20
Discontinued operations	—		0.10
Net earnings (loss)	$	0.47	$	0.30
Diluted:
Continuing operations	$	0.47	$	0.19
Discontinued operations	—		0.10
Net earnings (loss)	$	0.47	$	0.29
Weighted-average number of shares outstanding
Basic	866.9		899.2
Diluted	878.3		913.0


	Three Months Ended March 31,
(In millions)	2025		2024
Net earnings (loss)	$	437	$	289
Other comprehensive income (loss), net of tax:




Foreign currency translation adjustments arising during period	634		(388)


















Amortization of unrealized cash flow hedging gain (loss)	(1)		(1)




Other comprehensive income (loss), net of tax	633		(389)
Comprehensive income (loss)	1,070		(100)
Less: Comprehensive income (loss) attributable to non-controlling interest	25		17
Comprehensive income (loss) attributable to common shareowners	$	1,045	$	(117)


	As of
(In millions)	March 31, 2025		December 31, 2024
Assets
Cash and cash equivalents	$	1,698	$	3,969
Accounts receivable, net	2,979		2,651
Inventories, net	2,648		2,299

Other current assets	1,119		972
Total current assets	8,444		9,891
Future income tax benefits	1,149		1,131
Fixed assets, net	3,040		2,999
Operating lease right-of-use assets	563		554
Intangible assets, net	6,480		6,432
Goodwill	14,959		14,601
Pension and post-retirement assets	48		43
Equity method investments	1,253		1,194

Other assets	511		558
Total Assets	$	36,447	$	37,403

Liabilities and Equity
Accounts payable	$	3,015	$	2,458
Accrued liabilities	3,892		4,182

Current portion of long-term debt	104		1,252
Total current liabilities	7,011		7,892
Long-term debt	11,080		11,026
Future pension and post-retirement obligations	218		214
Future income tax obligations	2,028		2,015
Operating lease liabilities	437		432

Other long-term liabilities	1,475		1,429
Total Liabilities	22,249		23,008
Commitments and contingent liabilities (Note 19)
Equity
Common stock	9		9
Treasury stock	(5,188)		(3,915)
Additional paid-in capital	8,616		8,610
Retained earnings	11,895		11,483
Accumulated other comprehensive loss	(1,473)		(2,106)
Non-controlling interest	339		314
Total Equity	14,198		14,395
Total Liabilities and Equity	$	36,447	$	37,403


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


(In millions)	Accumulated Other Comprehensive Income (Loss)		Common Stock		Treasury Stock		Additional Paid-In Capital		Retained Earnings		Non-Controlling Interest		Total Equity
Balance as of December 31, 2024	$	(2,106)	$	9	$	(3,915)	$	8,610	$	11,483	$	314	$	14,395
Net earnings (loss)	—		—		—		—		412		25		437
Other comprehensive income (loss), net of tax	633		—		—		—		—		—		633

Shares issued under incentive plans, net	—		—		—		(17)		—		—		(17)
Stock-based compensation	—		—		—		23		—		—		23



Treasury stock repurchase	—		—		(1,273)		—		—		—		(1,273)


Balance as of March 31, 2025	$	(1,473)	$	9	$	(5,188)	$	8,616	$	11,895	$	339	$	14,198
























































(In millions)	Accumulated Other Comprehensive Income (Loss)		Common Stock		Treasury Stock		Additional Paid-In Capital		Retained Earnings		Non-Controlling Interest		Total Equity
Balance as of December 31, 2023	$	(1,486)	$	9	$	(1,972)	$	5,535	$	6,591	$	328	$	9,005
Net earnings (loss)	—		—		—		—		269		20		289
Other comprehensive income (loss), net of tax	(386)		—		—		—		—		(3)		(389)

Shares issued under incentive plans, net	—		—		—		(22)		—		—		(22)
Stock-based compensation	—		—		—		23		—		—		23
Acquisition of VCS Business	—		—		—		3,000		—		—		3,000




Balance as of March 31, 2024	$	(1,872)	$	9	$	(1,972)	$	8,536	$	6,860	$	345	$	11,906


(In millions)	Climate Solutions Americas		Climate Solutions Europe		Climate Solutions Asia Pacific, Middle East & Africa		Climate Solutions Transportation		Total
Balance as of December 31, 2024	$	5,059	$	7,035	$	1,380	$	1,127	$	14,601



Foreign currency translation	1		319		28		10		358
Balance as of March 31, 2025	$	5,060	$	7,354	$	1,408	$	1,137	$	14,959


	March 31, 2025						December 31, 2024
(In millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount

Customer relationships	$	5,818	$	(1,115)	$	4,703	$	5,607	$	(939)	$	4,668
Patents and trademarks	915		(165)		750		885		(147)		738

Service portfolios and other	1,585		(558)		1,027		1,530		(504)		1,026
Total intangible assets	$	8,318	$	(1,838)	$	6,480	$	8,022	$	(1,590)	$	6,432


(In millions)	Total		Level 1		Level 2		Level 3
March 31, 2025


Derivative assets (1)	$	64	$	—	$	64	$	—
Derivative liabilities (2)	$	(33)	$	—	$	(33)	$	—

December 31, 2024


Derivative assets (1)	$	82	$	—	$	82	$	—
Derivative liabilities (2)	$	(41)	$	—	$	(41)	$	—


(In millions)	Foreign Currency Translation		Defined Benefit Pension and Post-retirement Plans		Unrealized Hedging Gains (Losses)		Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2024	$	(2,053)	$	(107)	$	54	$	(2,106)
Other comprehensive income (loss) before reclassifications, net	634		—		—		634
Amounts reclassified, pre-tax	—		—		(1)		(1)


Balance as of March 31, 2025	$	(1,419)	$	(107)	$	53	$	(1,473)


(In millions)	January 2, 2024
Cash	$	11,156
Common shares (58,608,959 shares at $51.20 per share)	3,001
Total consideration	$	14,157


(In millions)	January 2, 2024
Cash and cash equivalents	$	393
Accounts receivable	413
Inventories	920
Other current assets	17
Fixed assets	919
Intangible assets	6,645
Other assets	299
Accounts payable	(290)
Other liabilities, current	(663)
Future income tax obligations	(1,810)
Other liabilities	(301)
Total identifiable net assets	6,542
Goodwill	7,607
Total consideration	$	14,149


(In millions)	Estimated Useful Life (in years)	Intangible Assets Acquired
Customer relationships	17	$	4,787
Technology	10 - 20	1,051
Trademark	40	679
Backlog	1	123
Other	50	5
Total intangible assets acquired		$	6,645


	Three Months Ended March 31,
(In millions)	2025		2024
Operating Activities
Net earnings (loss)	$	437	$	289
Discontinued operations, net of tax	—		(92)
Adjustments for non-cash items, net:
Depreciation and amortization	303		308
Deferred income tax provision	(69)		(104)
Stock-based compensation costs	23		19
Equity method investment net earnings	(44)		(31)


(Gain) loss on sale of investments / deconsolidation	(5)		—

Changes in operating assets and liabilities
Accounts receivable, net	(362)		(181)
Inventories, net	(301)		(83)
Accounts payable and accrued liabilities	481		(146)
Distributions from equity method investments	77		7
Other operating activities, net	(52)		59
Net cash flows provided by (used in) continuing operating activities	488		45
Net cash flows provided by (used in) discontinued operating activities	(5)		(5)
Net cash flows provided by (used in) operating activities	483		40

Investing Activities
Capital expenditures	(63)		(102)
Investment in businesses, net of cash acquired	(12)		(10,772)
Dispositions of businesses	8		—

Settlement of derivative contracts, net	36		(209)
Other investing activities, net	1		3
Net cash flows provided by (used in) continuing investing activities	(30)		(11,080)
Net cash flows provided by (used in) discontinued investing activities	7		(1)
Net cash flows provided by (used in) investing activities	(23)		(11,081)

Financing Activities
Increase (decrease) in short-term borrowings, net	(49)		20
Issuance of long-term debt	9		2,548
Repayment of long-term debt	(1,205)		(5)


(In millions)	March 31, 2025		December 31, 2024
2.242% Notes due 2025 (1)	$	—	$	1,200
2.493% Notes due 2027	900		900
4.125% Notes due 2028	809		783
2.722% Notes due 2030	2,000		2,000
2.700% Notes due 2031	750		750
4.500% Notes due 2032	917		887
5.900% Notes due 2034	875		875
3.625% Notes due 2037	809		783
3.377% Notes due 2040	1,500		1,500
3.577% Notes due 2050	1,400		1,400
6.200% Notes due 2054	650		650
Total long-term notes	10,610		11,728

Japanese Term Loan Facility	358		342
Other debt (including project financing obligations and finance leases)	302		296
Discounts and debt issuance costs	(86)		(88)
Total debt	11,184		12,278
Less: current portion of long-term debt	104		1,252
Long-term debt, net of current portion	$	11,080	$	11,026


(In millions)	March 31, 2025		December 31, 2024
Contract assets (included within Other current assets)	$	452	$	366
Contract assets, non-current (included within Other assets)	35		65
Total contract assets	487		431

Contract liabilities (included within Accrued liabilities)	(542)		(553)
Contract liabilities, non-current (included within Other long-term liabilities)	(168)		(164)
Total contract liabilities	(710)		(717)
Net contract assets (liabilities)	$	(223)	$	(286)



	Three Months Ended March 31, 2025
(In millions)	CSA		CSE		CSAME		CST		Segment Total
Net sales	$	2,572	$	1,169	$	826	$	651	$	5,218
Cost of goods sold	(1,700)		(788)		(609)		(471)		(3,568)
Research and development	(86)		(18)		(15)		(16)		(135)
Selling, general and administrative	(250)		(257)		(112)		(69)		(688)
Equity method investment net earnings	26		(2)		18		2		44
Other income (expense), net	8		1		13		—		22
Segment operating profit	$	570	$	105	$	121	$	97	$	893


	Three Months Ended March 31, 2024
(In millions)	CSA		CSE		CSAME		CST		Segment Total
Net sales	$	2,360	$	1,292	$	884	$	884	$	5,420
Cost of goods sold	(1,623)		(826)		(643)		(651)		(3,743)
Research and development	(109)		(23)		(19)		(22)		(173)
Selling, general and administrative	(231)		(275)		(128)		(96)		(730)
Equity method investment net earnings	23		(1)		7		2		31
Other income (expense), net	5		—		7		(4)		8
Segment operating profit	$	425	$	167	$	108	$	113	$	813


	Three Months Ended March 31, 2025
Organic	2	%
Foreign currency translation	(1)	%
Acquisitions and divestitures, net	(5)	%

Total % change	(4)	%


	Net sales				Segment operating profit				Segment operating profit margin
	Three Months Ended March 31,				Three Months Ended March 31,				Three Months Ended March 31,
(In millions)	2025		2024		2025		2024		2025		2024
Climate Solutions Americas	$	2,572	$	2,360	$	570	$	425	22.2	%	18.0	%
Climate Solutions Europe	1,169		1,292		105		167		9.0	%	12.9	%
Climate Solutions Asia Pacific, Middle East & Africa	826		884		121		108		14.6	%	12.2	%
Climate Solutions Transportation	651		884		97		113		14.9	%	12.8	%
Total segment	$	5,218	$	5,420	$	893	$	813	17.1	%	15.0	%


	Segment operating profit
Operational	36	%
Foreign currency translation	(2)	%



Total % change in Segment operating profit	34	%


	Segment operating profit
Operational	(35)	%
Foreign currency translation	(2)	%



Total % change in Segment operating profit	(37)	%


	Total Number of Shares Purchased (in 000's)	Average Price Paid per Share (1)		Total Number of Shares Purchased as Part of a Publicly Announced Program (in 000's)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in millions)
2025
January 1 - January 31	10,264	$	68.19	10,264	$	2,487
February 1 - February 29	5,771	$	64.60	5,771	$	2,114
March 1 - March 31	2,926	$	64.67	2,926	$	1,925
Total	18,961	$	66.55	18,961


Exhibit Number						Exhibit Description
10.1						Schedule of Terms for Performance Share Unit Awards (annual) granted under the Carrier Global Corporation 2020 Long-Term Incentive Plan (rev. February 6, 2025 )*+
10.2						Schedule of Terms for Restricted Stock Unit Awards (annual) granted under the Carrier Global Corporation 2020 Long-Term Incentive Plan (February 6, 2025 )*+
10.3						Schedule of Terms for Stock Appreciation Right Awards (annual) granted under the Carrier Global Corporation 2020 Long-Term Incentive Plan (February 6, 2025 )*+
10.4						Schedule of Terms for Performance Share Unit Awards (off-cycle) granted under the Carrier Global Corporation 2020 Long-Term Incentive Plan (rev. February 6 , 202 5 )*+
10.5						Schedule of Terms for Restricted Stock Unit Awards (off-cycle) granted under the Carrier Global Corporation 2020 Long-Term Incentive Plan (rev. February 6 , 202 5 )*+
10.6						Schedule of Terms for Stock Appreciation Right Awards (off-cycle) granted under the Carrier Global Corporation 2020 Long-Term Incentive Plan (rev. February 6, 2025 )*+
10.7						Form of Award Agreement granted under the Carrier Global Corporation 2020 Long-Term Incentive Plan*+
10.8						Carrier Summary of Compensation and Benefits for Directors (2025-2026 Board Cycle)*+
31.1						Rule 13a-14(a)/15d-14(a) Certification*
31.2						Rule 13a-14(a)/15d-14(a) Certification*
31.3						Rule 13a-14(a)/15d-14(a) Certification*
32						Section 1350 Certifications*
101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.* (File name: carr-20250331.xml)
101.SCH						XBRL Taxonomy Extension Schema Document.* (File name: carr-20250331.xsd)
101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document.* (File name: carr-20250331_cal.xml)
101.DEF						XBRL Taxonomy Extension Definition Linkbase Document.* (File name: carr-20250331_def.xml)
101.LAB						XBRL Taxonomy Extension Label Linkbase Document.* (File name: carr-20250331_lab.xml)
101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document.* (File name: carr-20250331_pre.xml)
104						Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document and contained in Exhibit 101


		CARRIER GLOBAL CORPORATION (Registrant)

Dated:	May 1, 2025	by:	/s/PATRICK GORIS
			Patrick Goris
			Senior Vice President and Chief Financial Officer

			(on behalf of the Registrant and as the Registrant's Principal Financial Officer)

Dated:	May 1, 2025	by:	/s/KYLE CROCKETT
			Kyle Crockett
			Vice President, Controller and Chief Accounting Officer

			(on behalf of the Registrant and as the Registrant's Principal Accounting Officer)


Retirement Type	Company Consents to Early Retirement *	Exercise Period***
Normal Retirement (age 65)	N/A	SARs may be exercised until the expiration of their term
Early Retirement on or after age 55 + 10 years of continuous service as of the Termination Date	Yes	SARs may be exercised until the expiration of their term
	No	SARs may be exercised for three (3) years following the Termination Date or until the expiration of the SAR, whichever is earlier


Rule of 65** (Early Retirement on or after age 50, but prior to age 55 + years of continuous service = 65+ as of the Termination Date)	Yes	SARs may be exercised for five (5) years following the Termination Date or until the expiration of the SAR, whichever is earlier
	No	SARs may be exercised for three (3) years following the Termination Date or until the expiration of the SAR, whichever is earlier
* The Company’s consent to the Participant’s Retirement will be at the sole discretion of the Company based on its ability to effectively transition the Participant’s responsibilities as of the Termination Date and such other factors as it may deem appropriate. Applicable only for Participants who were actively employed by the Corporation at an M/P7 or F1/F2 level or above on December 31, 2021. *Exercise periods for certain employees may be shorter where required by local law. For example, in no event will SARs be exercisable after 6 months following the Termination Date for Participants subject to exchange control regulations in the People’s Republic of China.


Grant Type			Performance Share Unit (PSU)
Award Weighting (% of total award)			[__]%
Grant Date			[____]
Vest Date			[____]1
Performance Period			[____]2
Performance Measure [1]			[Earnings per Share (EPS) Compound Annual Growth Rate (CAGR)]
Performance Measure [1] Weighting			[__]%
Performance Measure [1] Payout Range			0% to 200%
Performance Measure [2]			[Total Shareholder Return (TSR) relative to a subset of industrial companies in the S&P 500 index approved by the Carrier Compensation Committee]
Performance Measure [2] Weighting			[__]%
Performance Measure [2] Payout Range			0% to 200%; maximum payout of 100% if TSR is negative (regardless of relative performance)
Dividend Eligibility			PSUs do not earn dividends/dividend equivalents


Grant Type			Stock Appreciation Right (SAR)
Award Weighting (% of total award)			[__]%


Grant Type			Restricted Stock Unit (RSU)
Award Weighting (% of total award)			[__]%
Grant Date			[____]
Vest Date			[____]1
Dividend Eligibility			RSUs earn dividend equivalents, unless otherwise prohibited by the Plan


	Total Combined Award	Annual Cash Retainer Award	Annual DSU Award
Base Compensation	$325,000	$130,000	$195,000


	Total Additional Combined Award	Additional Annual Cash Retainer Award	Additional Annual DSUs
Lead Director	$60,000	$24,000	$36,000
Audit Chair	$35,000	$14,000	$21,000
Audit Members	$15,000	$6,000	$9,000
Compensation Chair	$30,000	$12,000	$18,000
Governance Chair	$30,000	$12,000	$18,000
Technology and Innovation Chair	$30,000	$12,000	$18,000


Date:	May 1, 2025	/s/David Gitlin
		David Gitlin
		Chairman and Chief Executive Officer