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Carrier Global CARR reported first-quarter 2025 adjusted earnings of 65 cents per share, which beat the Zacks Consensus Estimate by 12.07% and surged 27.5% year over year.
Net sales of $5.21 billion beat the Zacks Consensus Estimate by 1.91% but decreased 3.7% year over year. Product sales (89.2% of net sales) of $4.65 billion declined 3.9% year over year. Service sales (10.8% of net sales) of $566 million were down 2.1% year over year.
As part of its portfolio transformation, Carrier revised its reportable segments during the first quarter of 2025. The company’s revised reportable segments consist of the following: Climate Solutions Americas, Climate Solutions Europe, Climate Solutions Asia Pacific Middle East & Africa, and Climate Solutions Transportation.
CARR earnings beat the Zacks Consensus Estimate in all four trailing quarters, the surprise being 8.68%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Carrier Global Corporation Price, Consensus and EPS Surprise
Carrier Global Corporation price-consensus-eps-surprise-chart | Carrier Global Corporation Quote
CARR shares gained 5.92% in pre-market trading.
CARR’s Quarter in Details
Climate Solutions Americas (CSA) revenues of $2.57 billion contributed 49.3% to net sales and increased 9% year over year. Sales increased 9% organically. This increase was driven by strong performance in both Commercial and Residential, each seeing a rise of approximately 20%, which more than compensated for the decline in Light Commercial.
Climate Solutions Europe (CSE) revenues of $1.16 billion contributed 22.4% to net sales and decreased 10% year over year. Sales decreased 7% organically as mid-single-digit growth in the Commercial segment was offset by a low-double-digit decline in the Residential and Light Commercial segments.
Climate Solutions Asia Pacific Middle East & Africa (CSAME) revenues of $826 million contributed 15.8% to net sales and declined 7% year over year. Sales decreased 6% organically, driven by declines in Residential Light Commercial in China, partially offset by strength in other countries.
Climate Solutions Transportation (CST) revenues of $651 million contributed 12.5% to net sales and decreased 26% year over year. Sales increased 2% organically, which was due to 20% growth in Container, partially offset by declines in Europe and North America Truck and Trailer.
Research & development (R&D) expenses decreased 20.3% year over year to $153 million. As a percentage of revenues, R&D expenses declined 60 basis points (bps) year over year.
Selling, general & administrative (SG&A) expenses declined 9.7% year over year to $729 million. As a percentage of revenues, SG&A expenses decreased 90 bps year over year.
Adjusted operating margin expanded 210 bps on a year-over-year basis to 16.2%.
Adjusted operating margin in the Climate Solutions Americas segment expanded 420 bps year over year to 22.2%. Climate Solutions Europe segment contracted 390 bps year over year to 9%. Climate Solutions Asia Pacific Middle East & Africa segment expanded 240 bps year over year to 14.6%. Climate Solutions Transportation segment expanded 210 bps year over year to 14.9%.