Carrier Global Corporation

CARR
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$5.3B
Q1 2026 · +2.4% YoY
TTM ROIC
8.2%
FY2025 · NOPAT (adjusted for acquired intangibles amortization) / Invested Capital (incl. goodwill) · WACC ~9% · Moat spread +-0.8pp
Margin Profile
Gross 25.9%
Operating 10%
FCF 9.8%
FY2025

Business Overview

ticker: CARR step: 01 generated: 2026-05-12 source: quick-research

Carrier Global Corporation (CARR) — Business Overview

Business Description

Carrier Global is a pure-play intelligent climate and energy solutions company following 2024-25 portfolio transformation. Spun off from United Technologies in 2020. Provides HVAC + refrigeration + fire safety + security + building automation globally. CEO Dave Gitlin transformed Carrier into climate solutions pure-play via €12B Viessmann acquisition (Jan 2024) + $10B+ divestitures (Fire & Security, Commercial Refrigeration, Industrial Fire). Major beneficiary of AI data center cooling demand.

Revenue Model

~$21.7B FY2025 revenue across two operating segments post-restructuring: Climate Solutions (HVAC + refrigeration) and Light Commercial HVAC. Mix: residential HVAC (~30%), commercial HVAC (~45%, including data centers), and aftermarket services (~25%). Recurring services + replacement cycle + new construction drive revenue. Data center cooling = fastest-growing category (+400% Q4 orders).

Products & Services

  • Carrier HVAC — Residential + commercial air conditioning + heating + ventilation
  • Viessmann (Europe) — Heat pumps, boilers, hybrid systems; #1 European residential HVAC
  • Data Center Cooling — AquaEdge 30CF chillers, QuantumLeap CDUs (1.3-5MW), liquid cooling
  • Aftermarket Services — Maintenance, parts, retrofits = recurring revenue
  • Light Commercial HVAC — Rooftop units, packaged HVAC for small commercial buildings
  • ZutaCore investment — Liquid cooling specialist (CARR Ventures)
  • Bryant, Payne, Heil, Carlyle — Owned brand portfolio

Customer Base & Go-to-Market

Diverse customer base: residential homeowners (via distributors + dealers), commercial building developers, data center operators (NVIDIA-grade cooling), institutional (hospitals, schools, government), industrial process cooling. Geographic mix: North America (~50%), Europe (~30%, post-Viessmann), Asia-Pacific (~15%), Other (~5%).

Competitive Position

Top 3 global HVAC manufacturer with Trane Technologies, Daikin, Mitsubishi Electric, Lennox, Johnson Controls. Carrier differentiates via: pure-play climate focus post-divestiture, Viessmann European heat pump leadership, expanding data center cooling portfolio, intelligent building automation integration. Data center cooling is the high-growth differentiator vs Trane (more focused on traditional HVAC).

Key Facts

  • Founded: 1915 (Willis Carrier invented modern air conditioning); spun off from UTC April 2020
  • Headquarters: Palm Beach Gardens, FL
  • Employees: ~52,000 (post-divestitures)
  • Exchange: NYSE (CARR)
  • Sector / Industry: Industrials / Building Products (Climate)
  • Market Cap: ~$55B
  • CEO: David Gitlin (since spin 2020)

Financial Snapshot

ticker: CARR step: 04 generated: 2026-05-12 source: quick-research

Carrier Global Corporation (CARR) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 FY2025 YoY (25)
Revenue $20.4B $22.1B $22.5B $21.7B -3.6%
Organic Growth – +5% +3% LSD
Adj Operating Margin 14.5% 15.0% 16.0% 16.5% +50bps
Operating Profit $2.0B $2.1B $2.2B $2.2B flat
Adjusted EPS $2.50 $2.69 $2.84 $3.05 +7%
Data Center Revenue – – ~$600M ~$1B +67%

FY25 was a "reset year" — residential headwinds in North America offset by data center surge. FY25 Q2 adj op margin +130bps; commercial HVAC +45% organic; data center orders +400% in Q4.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$2.9B
Free Cash Flow ~$2.5B
FCF Conversion ~95%
Cash & Equivalents ~$3.5B (post divestitures)
Total Debt ~$12B (post-Viessmann)
Net Debt/EBITDA ~2.5x

Key Ratios (approximate)

  • P/E: ~20x | EV/EBITDA: ~14x | FCF Yield: ~4.5%
  • Revenue Growth (TTM): -3.6% reported / LSD organic | Op Margin: ~16.5%
  • Dividend Yield: ~1.4% | Dividend: $0.95/share
  • Aggressive buybacks: $10B+ post-divestitures

Growth Profile

Long-term model: mid-single-digit organic growth + 100bps annual margin expansion + double-digit adj EPS growth. Data center cooling super-cycle: $1B (2025) → $1.5B (2026) → multi-year compounding. Viessmann synergies $150M cost savings + revenue cross-sell. Residential housing recovery in 2026-27 = additional tailwind.

Forward Estimates

  • FY 2026: Revenue $22-23B; adj EPS $3.50-3.70; data center revenue $1.5B
  • FY 2027: Adj EPS $4.00-4.30; full data center scaling + residential recovery
  • Bull case: 4.3% revenue CAGR (conservative) — data center adds 50%/yr alone

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $CARR.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Carrier Global Corporation (CARR) — Financial Analysis | Margin of Insight