Carrier Reports Second Quarter 2026 Results

Increases Full-year Outlook for Sales, Adj. Op. Profit and Adj. EPS Total company orders 1 up ~40%; Commercial HVAC 1 up ~65%; data centers up >300% Net sales up 4%; organic sales up 3% GAAP EPS of $0.60 and adjusted EPS of $0.86 Net cash flows from operating activities of $927 million and free cash flow of $810 million Returned ~$640 million to shareholders through dividends and repurchases Raises full year outlook to ~$23B sales, ~$3.5B adj. op. profit and ~$2.90 adj. EPS Includes ~($0.05) adj. EPS impact from NORESCO exit and new U.S. factory costs PALM BEACH GARDENS, Fla. , July 28, 2026 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported better than expected financial results for the second quarter of 2026. "We ended the first half with a stronger than expected second quarter, including better sales, adjusted EPS and free cash flow," said Chairman & CEO David Gitlin. "Organic sales returned to growth earlier than expected, up 3%, driven by strong performance in our CSA segment. Improving Residential and Light Commercial markets in CSA and CSE are encouraging. Orders were very strong globally in the second quarter supported by continued data center demand. Given record backlog levels and our year-to-date performance, we are raising our full-year outlook and now expect sales of about $23 billion and adjusted EPS of ~$2.90." 1 Excludes NORESCO (exit announced) and Riello (exit completed on July 1, 2026) Second Quarter 2026 Results Total Company (Unaudited) Three Months Ended June 30 (In millions) 2026 2025 Change Net sales $ 6,351 $ 6,113 4 % Organic sales 3 % Operating profit $ 825 $ 903 (9) % Operating margin 13.0 % 14.8 % (180) bps Adjusted operating profit $ 1,095 $ 1,166 (6) % Adjusted operating margin 17.2 % 19.1 % (190) bps Diluted earnings per share: Continuing operations $ 0.60 $ 0.70 (14) % Continuing operations - Adjusted $ 0.86 $ 0.92 (7) % Carrier's second-quarter sales of $6.4 billion increased 4% compared to the prior year. Organic sales increased 3% and foreign currency translation was a tailwind of 1%. GAAP operating profit of $825 million in the quarter declined 9 % from last year, driven primarily by the Climate Solutions Americas (CSA) and Climate Solutions Asia Pacific, Middle East and Africa segments (CSAME). Adjusted operating margin of 17.2% was down 190 basis points from last year, predominantly due to favorable volume and productivity more than offset by the impact of increased input costs and unfavorable business mix. Net earnings from continuing operations were $501 million and adjusted net earnings from continuing operations were $721 million. GAAP EPS from continuing operations was $0.60 and adjusted EPS was $0.86, down 14% and 7% year-over-year, respectively. The declines were primarily driven by lower operating profit and a higher effective tax rate, partially offset by the benefit of a lower share count. Climate Solutions Americas (CSA) (Unaudited) Three Months Ended June 30 (In millions) 2026 2025 Change Net sales $ 3,372 $ 3,252 4 % Organic sales 4 % Segment operating profit $ 823 $ 879 (6) % Segment operating margin 24.4 % 27.0 % (260) bps CSA segment sales grew 4%. Organic sales were up 4% driven by Residential and Light Commercial (RLC), up 9% and 10% respectively, partially offset by Commercial 1 , down 8% due to the timing of customer deliveries. Segment operating margin decreased 260 basis points as revenue growth mainly related to price which was more than offset by unfavorable mix and input costs. Climate Solutions Europe (CSE) (Unaudited) Three Months Ended June 30 (In millions) 2026 2025 Change Net sales $ 1,324 $ 1,253 6 % Organic sales 3 % Segment operating profit $ 95 $ 99 (4) % Segment operating margin 7.2 % 7.9 % (70) bps CSE segment sales increased 6%. Organic sales were up 3% with RLC up high-single digits and Commercial down mid-single digits. Segment operating margin decreased 70 basis po