Carrier Reports Strong 2024 Results and Announces 2025 Outlook (Form 8-K)

Carrier Reports Strong 2024 Results and Announces 2025 Outlook

Fourth Quarter 2024 Highlights

•Sales of $5.1 billion, up 19% compared to 2023 including 6% organic growth

•GAAP EPS from continuing operations of ($0.05); adjusted EPS from continuing operations of $0.54, up 50%

•Operating margin expansion of 250 basis points and adjusted operating margin expansion of 370 basis points

Full Year 2024 Highlights

•Sales of $22.5 billion, up 19% compared to 2023 including 3% organic growth

•GAAP EPS from continuing operations of $1.22; adjusted EPS from continuing operations of $2.56 up 16%

•Operating margin expansion of 40 basis points and adjusted operating margin expansion of 180 basis points

•Returned ~$2.6 billion to shareholders, including ~$0.7 billion in dividends and ~$1.9 billion shares repurchased

PALM BEACH GARDENS, Fla., February 11, 2025 - Carrier Global Corporation (NYSE:CARR), global leader in intelligent climate and energy solutions, today reported strong financial results for the fourth quarter and full year of 2024.

"We capped a transformational year for Carrier with robust fourth quarter financial results including 6% organic growth, significant adjusted operating profit margin expansion of 370 basis points and 50% adjusted EPS growth. The quarter also marked the completion of our portfolio transformation, which resulted in total divestiture proceeds of over $10 billion," said Carrier Chairman & CEO David Gitlin. "We successfully acquired and integrated Viessmann Climate Solutions in 2024, giving us the most comprehensive and differentiated global portfolio in our industry. We are well-positioned to deliver strong results in 2025, reinforced by our growing global commercial HVAC backlog supported by the acceleration in data centers, commitment to double-digit aftermarket growth, and leading positions across our

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businesses. We remain laser focused on delivering value for our customers, employees and shareholders."

Fourth Quarter 2024 Results

Carrier's fourth quarter sales of $5.1 billion increased 19% versus the prior year, including 6% organic growth and a 13% net contribution from acquisitions and divestitures.

Sales in the HVAC segment increased 11% organically. Americas sales were up high-teens organically driven by continued strength in Commercial and North America Residential, both up double-digits, partially offset by declines in Light Commercial. EMEA sales were flat organically, with double-digit growth in Commercial offsetting a decline in Residential and Light Commercial. Asia Pacific sales were slightly positive, driven by strength in Japan and South Asia partially offset by declines in residential light commercial in China.

Refrigeration sales were down 6% organically, mostly driven by declines in North America truck and trailer, with flat sales growth across the remainder of the segment.

GAAP operating profit in the quarter of $774 million was up 44% from last year, primarily due to the gain on the sale of Commercial Refrigeration. Adjusted operating profit of $678 million from continuing operations increased 65%, driven by the contribution of Viessmann Climate Solutions, the benefit of organic growth, and productivity.

GAAP net loss from continuing operations was $48 million primarily driven by a tax charge of approximately $650 million related to an internal business re-organization which was more than offset by a related tax benefit recorded in discontinued operations. Adjusted net earnings from continuing operations was $492 million. GAAP EPS and adjusted EPS from continuing operations were ($0.05) and $0.54, respectively.

Full-Year 2024 Results

Carrier's 2024 sales of $22.5 billion increased 19% compared to the prior year including organic sales growth of 3% and a 16% impact from acquisitions and divestitures. GAAP operating profit of $2.6 billion from continuing operations increased 23%. Adjusted operating profit of $3.5 billion from continuing operations increased 34%, driven by the addition of Viessmann Climate Solutions and strong operational performance.

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GAAP net earnings and adjusted net earnings from continuing operations were $1.1 billion and $2.3 billion, respectively. GAAP EPS and adjusted EPS from continuing operations were $1.22 and $2.56, respectively.

Full-Year 2025 Guidance

The Company projects accelerated organic growth in 2025 supported by secular tailwinds, continued innovation and double-digit aftermarket growth.

•Mid-single-digit organic* growth; Reported sales of $22.5 - $23.0 billion

•Commercial Refrigeration divestiture represents a ~$750 million sales headwind versus prior year

•Adjusted operating margin* of 16.5% - 17.0% up ~100 basis points compared to 2024

•Adjusted EPS* of $2.95 - $3.05, up mid to high-teens

•Free cash flow* of $2.4 - $2.6 billion

•Expect to repurchase ~$3 billion in shares

			2025 Guidance
Sales			$22.5 - $23.0 billion ~$750 million revenue headwind from CCR exit Organic* up MSD FX (1%) Acquisitions 0% Divestitures (3%)
Adjusted Operating Margin*			16.5% - 17.0% + ~100 bps Y/Y
Adjusted EPS*			$2.95 - $3.05 + ~15-20% Y/Y
Free Cash Flow*			$2.4 - $2.6 billion

*Note: When the company provides expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See "Use and Definitions of Non-GAAP Financial Measures" below for additional information.

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Conference Call

Carrier will host a webcast of its earnings conference call today, Tuesday, February 11, 2025, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at ir.carrier.com/news-and-events/events-and-presentations or to listen to the earnings call by phone, participants must pre-register at Carrier Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing access to the live call.

Discontinued Operations

In 2023, the Company announced plans to exit its Fire & Security and Commercial Refrigeration businesses over the course of 2024. The announced plan to exit the Fire & Security segment represented a single disposal plan to separately divest multiple businesses over different reporting periods. Upon the Commercial and Residential Fire Business qualifying as held for sale during the three months ended September 30, 2024, the components of the Fire & Security segment in aggregate met the criteria to be presented as discontinued operations in the Company's unaudited condensed consolidated statement of operations and unaudited condensed consolidated statement of cash flows. In addition, the assets and liabilities of the Commercial and Residential Fire Business have been reclassified to held for sale at December 31, 2023. The results of the Commercial Refrigeration business did not meet the criteria to be presented in discontinued operations. Accordingly, all financial measures presented herein, including non-GAAP financial measures, are associated with Carrier's continuing operations unless specifically noted. See "Use and Definitions of Non-GAAP Financial Measures" below.