Barclays Keeps Their Buy Rating on Synovus (SNV)
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According to TipRanks, Shaw is a 3-star analyst with an average return of 1.1% and a 53.28% success rate. Shaw covers the Financial sector, focusing on stocks such as UMB Financial, Cadence Bank, and BankUnited.
In addition to Barclays, Synovus also received a Buy from TR | OpenAI – 4o's Wes Branchor in a report issued on July 26. However, on July 25, Wells Fargo downgraded Synovus (NYSE: SNV) to a Hold.
The company has a one-year high of $61.06 and a one-year low of $35.94. Currently, Synovus has an average volume of 1.47M.
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Carrier Reports Strong Second Quarter 2025 Results
Net sales up 3%; organic sales up 6% GAAP EPS of $0.70 up 56% and adjusted EPS of $0.92 up 26% GAAP operating margin up 260 bps; adjusted operating margin up 130 bps Net cash flows from operating activities were $649 million and free cash flow was $568 million Reaffirming full-year 2025 guidance for sales, adjusted operating margin, adjusted EPS and free cash flow* PALM BEACH GARDENS, Fla., July 29, 2025 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported strong financial results for the second quarter of 2025 and reaffirmed its full year guidance. "We delivered another quarter of strong financial performance," said Carrier Chairman & CEO David Gitlin. "Organic sales growth of 6% was driven by strong results in our Climate Solutions Americas segment, with Commercial1 sales up 45% and total company aftermarket sales up 13%. Adjusted operating margins expanded 130 basis points driven by strong organic growth and productivity, leading to over 25% adjusted EPS growth. With a strong first half, we remain committed to accelerating growth driven by differentiated products, aftermarket offerings and system solutions. We are maintaining our full-year outlook for sales, adjusted operating margin expansion and adjusted EPS, representing about 20% adjusted EPS growth at the midpoint." 1. Excludes NORESCO Second Quarter 2025 Results Total Company (Unaudited)Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 6,113 $ 5,934 3 % Organic sales 6 % Operating profit $ 903 $ 724 25 % Operating margin 14.8 % 12.2 % 260 bps Adjusted operating profit $ 1,166 $ 1,056 10 % Adjusted operating margin 19.1 % 17.8 % 130 bps Diluted earnings per share:Continuing operations $ 0.70 $ 0.45 56 % Continuing operations - Adjusted $ 0.92 $ 0.73 26 % Carrier's second quarter sales of $6.1 billion increased 3% compared to the prior year. Organic sales growth of 6% was offset by a 4% headwind from net acquisitions and divestitures, driven by the sale of Commercial Refrigeration in Q4 2024. Foreign currency translation was a 1% tailwind to sales growth. GAAP operating profit in the quarter of $903 million was up 25% from last year driven by strong operational performance, the absence of backlog and inventory step-up amortization and a decrease in acquisition and divestiture-related costs. Adjusted operating profit of $1,166 million was up 10%, largely driven by strong organic growth and productivity. Net earnings from continuing operations were $608 million and adjusted net earnings from continuing operations was $796 million. GAAP EPS from continuing operations was $0.70 and adjusted EPS from continuing operations was $0.92 driven by higher operating profit, lower net interest expense and benefits of a lower share count. Climate Solutions Americas (CSA)(Unaudited)Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 3,252 $ 2,865 14 % Organic sales 14 % Segment operating profit $ 879 $ 713 23 % Segment operating margin 27.0 % 24.9 % 210 bps CSA segment sales increased 14%. Organic sales were up 14%, driven by continued strength in Commercial1 up 45% and Residential up over 10%, partially offset by a decline in Light Commercial. Segment operating margin increased 210 basis points driven by strong organic sales growth and productivity. Climate Solutions Europe (CSE)(Unaudited)Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 1,253 $ 1,194 5 % Organic sales — % Segment operating profit $ 99 $ 93 6 % Segment operating margin 7.9 % 7.8 % 10 bps CSE segment sales increased 5%. Organic sales were flat, with Commercial up low-single digits while Residential and Light Commercial was about flat. Segment operating margin increased 10 basis points, driven by productivity including cost synergies, partially offset by geographic and product mix. 1. Excludes NORESCO Climate Solutions Asia Pacific, Middle East & Africa (CSAME)(Unaudited)Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 882 $ 902 (2) % Organic sales (4) % Segment operating profit $ 135 $ 157 (14) % Segment operating margin 15.3 % 17.4 % (210) bps CSAME segment sales declined 2%. Organic sales were down 4%, mainly driven by Residential Light Commercial in China, partially offset by strength in India, Japan and the Middle East. Segment operating margin decreased 210 basis points with strong productivity more than offset by a prior year favorable currency impact and lower volume. Climate Solutions Transportation (CST)(Unaudited)Three Months Ended June 30 (In millions) 2025 2024 Change Net sales $ 726 $ 973 (25) % Organic sales (1) % Segment operating profit $ 128 $ 138 (7) % Segment operating margin 17.6 % 14.2 % 340 bps CST sales declined 25% driven by the impact from the divestiture of Commercial Refrigeration. Organic sales growth declined 1% with mid-single digit growth in Container and low-single digit growth in North America Truck and Trailer more than offset by declines in Europe and Asia Truck and Trailer. Segment operating margin increased 340 basis points largely due to the Commercial Refrigeration exit during Q4 2024. Cash Flow (Unaudited)(Unaudited) Three Months Ended June 30,Six Months Ended June 30, (In millions)2025202420252024 Net cash flows provided by operating activities$ 649$ 660$ 1,132$ 700 Less: Capital expenditures - continuing operations(81)(108)(144)(210) Less: Capital expenditures - discontinued operations—(3)—(5) Free cash flow$ 568$ 549$ 988$ 485 Net cash flows generated from operating activities were $649 million and capital expenditures were $81 million, resulting in free cash flow of $568 million. Full-Year 2025 Guidance**Current Guidance** No change vs. prior guidance Prior Guidance Sales ~$23 billion ~$750 million revenue headwind from CCR exit Organic* up MSD FX 1% Acquisitions 0% Divestitures (3%) ~$23 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 16.5% – 17.0% + ~100 bps Y/Y Adjusted EPS* $3.00 – $3.10 ~17-21% Y/Y $3.00 – $3.10 ~17-21% Y/Y Free Cash Flow* $2.4 – $2.6 billion Includes the expected results of continuing and discontinued operations $2.4 – $2.6 billion Includes the expected results of continuing and discontinued operations *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. **As of July 29, 2025 Conference Call Carrier will host a webcast of its earnings conference call today, Tuesday, July 29, 2025, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at 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. Cautionary StatementThis communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, Carrier's guidance for full-year 2025, Carrier's plans with respect to our indebtedness and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation, those described below and under the section titled "Risk Factors" in our most recent Annual Report on Form 10-K and in subsequent reports that we file with the SEC: the effect of economic conditions in the industries and markets in which Carrier and our businesses operate in the U.S. and globally and any changes therein, including financial market conditions, inflationary cost pressures, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction, the impact of weather conditions, pandemic health issues, natural disasters and the financial condition of our customers and suppliers; challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; future levels of capital spending and research and development spending; future availability of credit and factors that may affect such availability, including credit market conditions and Carrier's capital structure and credit ratings; the timing and scope of future repurchases of Carrier's common stock, including market conditions and the level of other investing activities and uses of cash; delays and disruption in the delivery of materials and services from suppliers; cost reduction efforts and restructuring costs and savings and other consequences thereof; new business and investment opportunities; the outcome of legal proceedings, investigations and other contingencies; the impact of pension plan assumptions on future cash contributions and earnings; the impact of the negotiation of collective bargaining agreements and labor disputes; the effect of changes in political conditions in the U.S. and other countries in which Carrier and our businesses operate, including the effect of ongoing uncertainty and/or changes in U.S. trade policies, on general market conditions, global trade policies, the imposition of tariffs, and currency exchange rates in the near term and beyond; the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which we and our businesses operate; the ability of Carrier to retain and hire key personnel; the scope, nature, impact or timing of acquisition and divestiture activity, such as our portfolio transformation transactions, including among other things integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; a determination by the IRS and other tax authorities that the distribution of Carrier from RTX Corporation (f/k/a United Technologies Corporation or certain related transactions should be treated as taxable transactions; and risks associated with current and future indebtedness, as well as our ability to reduce indebtedness and the timing thereof. The forward-looking statements speak only as of the date of this communication. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements is disclosed from time to time in our other filings with the SEC. About CarrierCarrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating innovations that bring comfort, safety and sustainability to life. Through cutting-edge advancements in climate solutions such as temperature control, air quality and transportation, we improve lives, empower critical industries and ensure the safe transport of food, life-saving medicines and more. Since inventing modern air conditioning in 1902, we lead with purpose: enhancing the lives we live and the world we share. We continue to lead because of our world-class, inclusive workforce that puts the customer at the center of everything we do. For more information, visit or follow Carrier on social media at @Carrier. Carrier. For the World We Share. CARR-IR Contact: Investor RelationsMichael Rednor561-365-2020InvestorRelations@ InquiriesJason SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS Following are tables that present selected financial data of Carrier Global Corporation ("Carrier"). Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures. As a result of Carrier's portfolio transformation, Carrier revised its reportable segments during the first quarter of 2025 to better reflect its business strategy, align its management reporting and increase transparency for investors. In connection with the revised structure, the Chief Operating Decision Maker changed the measure used to evaluate segment profitability from Operating profit to Segment operating profit. It represents operating profit (a GAAP measure) adjusted to exclude restructuring costs, amortization of acquired intangible assets and other significant items of a nonoperational nature. All prior period comparative information has been recast to reflect the revised segment structure. Use and Definitions of Non-GAAP Financial MeasuresCarrier reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures. Organic sales, adjusted operating profit, adjusted operating margin, adjusted net income, adjusted earnings per share ("EPS"), adjusted effective tax rate and net debt are non-GAAP financial measures and are associated with Carrier's continuing operations unless specifically noted. Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a nonoperational nature (hereinafter referred to as "other significant items"). Adjusted operating profit represents consolidated operating profit (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of consolidated net sales (a GAAP measure). Adjusted net income represents net income attributable to common shareowners (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure). Free cash flow is a non-GAAP financial measure that represents net cash flows provided by continuing operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Carrier's ability to fund its activities, including the financing of acquisitions, debt service, repurchases of Carrier's common stock and distribution of earnings to shareowners. Orders are contractual commitments with customers to provide specified goods or services for an agreed upon price and may not be subject to penalty if cancelled. When Carrier provides our expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted effective tax rate, 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 due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. Carrier Global Corporation Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended June 30,Six Months Ended June 30, (In millions, except per share amounts)2025202420252024 Net sales Product sales$ 5,477$ 5,311$ 10,129$ 10,153 Service sales6366231,2021,201 Total Net sales6,1135,93411,33111,354 Costs and expenses Cost of products sold(3,867)(3,867)(7,225)(7,449) Cost of services sold(477)(492)(892)(945) Research and development(161)(160)(314)(352) Selling, general and administrative(813)(789)(1,542)(1,596) Total Costs and expenses(5,318)(5,308)(9,973)(10,342) Equity method investment net earnings7890122121 Other income (expense), net30852(24) Operating profit9037241,5321,109 Non-service pension (expense) benefit——1— Interest (expense) income, net(91)(157)(173)(298) Earnings before income taxes8125671,360811 Income tax (expense) benefit(162)(120)(273)(167) Earnings from continuing operations6504471,087644 Discontinued operations, net of tax(17)1,922(17)2,014 Net earnings (loss)6332,3691,0702,658 Less: Non-controlling interest in subsidiaries'42326752 Net earnings (loss) attributable to common shareowners$ 591$ 2,337$ 1,003$ 2,606 Amounts attributable to common shareowners: Continuing operations$ 608$ 415$ 1,020$ 592 Discontinued operations(17)1,922(17)2,014 Net earnings (loss) attributable to common shareowners$ 591$ 2,337$ 1,003$ 2,606 Earnings per share Basic: Continuing operations$ 0.71$ 0.46$ 1.18$ 0.66 Discontinued operations(0.02)2.13(0.01)2.24 Net earnings (loss)$ 0.69$ 2.59$ 1.17$ 2.90 Diluted: Continuing operations$ 0.70$ 0.45$ 1.17$ 0.65 Discontinued operations(0.02)2.10(0.02)2.20 Net earnings (loss)$ 0.68$ 2.55$ 1.15$ 2.85 Weighted-average number of shares outstanding Basic854.9902.4860.8900.2 Diluted866.3915.3872.3913.6 Carrier Global Corporation Condensed Consolidated Balance Sheet (Unaudited) (In millions)June 30, 2025December 31, 2024 Assets Cash and cash equivalents$ 1,797$ 3,969 Accounts receivable, net3,3732,651 Inventories, net2,8882,299 Other current assets1,073972 Total current assets9,1319,891 Future income tax benefits1,2201,131 Fixed assets, net3,1822,999 Operating lease right-of-use assets575554 Intangible assets, net6,7706,432 Goodwill15,67214,601 Pension and post-retirement assets5043 Equity method investments1,3531,194 Other assets540558 Total Assets$ 38,493$ 37,403 Liabilities and Equity Accounts payable$ 3,214$ 2,458 Accrued liabilities4,5084,182 Current portion of long-term debt1071,252 Total current liabilities7,8297,892 Long-term debt11,33611,026 Future pension and post-retirement obligations221214 Future income tax obligations2,0872,015 Operating lease liabilities444432 Other long-term liabilities1,5621,429 Total Liabilities23,47923,008 Equity Common stock99 Treasury stock(5,522)(3,915) Additional paid-in capital8,3388,610 Retained earnings12,29411,483 Accumulated other comprehensive loss(413)(2,106) Non-controlling interest308314 Total Equity15,01414,395 Total Liabilities and Equity$ 38,493$ 37,403 Carrier Global Corporation Condensed Consolidated Statement of Cash Flows (Unaudited) Six Months Ended June 30, (In millions)20252024 Operating Activities Net earnings (loss)$ 1,070$ 2,658 Discontinued operations, net of tax17(2,014) Adjustments for non-cash items, net: Depreciation and amortization620602 Deferred income tax provision(158)(231) Stock-based compensation costs4440 Equity method investment net earnings(122)(121) (Gain) loss on sale of investments(17)— Changes in operating assets and liabilities Accounts receivable, net(702)(232) Inventories, net(412)7 Accounts payable and accrued liabilities3782 Distributions from equity method investments8112 Other operating activities, net(47)(114) Net cash flows provided by (used in) continuing operating activities752609 Net cash flows provided by (used in) discontinued operating activities38091 Net cash flows provided by (used in) operating activities1,132700 Investing Activities Capital expenditures(144)(210) Investment in businesses, net of cash acquired(61)(10,779) Dispositions of businesses8— Settlement of derivative contracts, net87(185) Other investing activities, net(3)27 Net cash flows provided by (used in) continuing investing activities(113)(11,147) Net cash flows provided by (used in) discontinued investing activities354,874 Net cash flows provided by (used in) investing activities(78)(6,273) Financing Activities Increase (decrease) in short-term borrowings, net(57)7 Issuance of long-term debt152,555 Repayment of long-term debt(1,208)(3,542) Repurchases of common stock(1,628)— Dividends paid on common stock(390)(330) Dividends paid to non-controlling interest(9)(67) Other financing activities, net(17)(14) Net cash flows provided by (used in) continuing financing activities(3,294)(1,391) Net cash flows provided by (used in) discontinued financing activities—(15) Net cash flows provided by (used in) financing activities(3,294)(1,406) Effect of foreign exchange rate changes on cash and cash equivalents68(82) Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale(2,172)(7,061) Less: Change in cash balances classified as assets held for sale—34 Net increase (decrease) in cash and cash equivalents and restricted cash(2,172)(7,095) Cash, cash equivalents and restricted cash, beginning of period3,9729,853 Cash, cash equivalents and restricted cash, end of period1,8002,758 Less: restricted cash32 Cash and cash equivalents, end of period$ 1,797$ 2,756 Carrier Global Corporation Segment Summary (Unaudited)Three Months Ended June 30,Six Months Ended June 30, (In millions) 2025202420252024 Segment net sales Climate Solutions Americas$ 3,252... $ 2,865$ 5,824$ 5,225 Climate Solutions Europe1,2531,1942,4222,486 Climate Solutions Asia Pacific, Middle East & Africa8829021,7081,786 Climate Solutions Transportation7269731,3771,857 Segment net sales$ 6,113$ 5,934$ 11,331$ 11,354 Segment operating profit Climate Solutions Americas$ 879$ 713$ 1,449$ 1,138 Climate Solutions Europe9993204260 Climate Solutions Asia Pacific, Middle East & Africa135157256265 Climate Solutions Transportation128138225251 Segment operating profit$ 1,241$ 1,101$ 2,134$ 1,914 Segment operating margin Climate Solutions Americas27.0 %24.9 %24.9 %21.8 % Climate Solutions Europe7.9 %7.8 %8.4 %10.5 % Climate Solutions Asia Pacific, Middle East & Africa15.3 %17.4 %15.0 %14.8 % Climate Solutions Transportation17.6 %14.2 %16.3 %13.5 % Components of Changes in Net Sales Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024 (Unaudited)Factors Contributing to Total % change in Net SalesOrganicFXTranslationAcquisitions /Divestitures, netOtherTotal Climate Solutions Americas 14 %— %— %— %14 % Climate Solutions Europe — %5 %— %— %5 % Climate Solutions Asia Pacific, Middle East & Africa (4) %2 %— %— %(2) % Climate Solutions Transportation (1) %1 %(25) %— %(25) % Consolidated 6 %1 %(4) %— %3 % Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024 (Unaudited)Factors Contributing to Total % change in Net SalesOrganicFXTranslationAcquisitions /Divestitures, netOtherTotal Climate Solutions Americas 11 %— %— %— %11 % Climate Solutions Europe (4) %1 %— %— %(3) % Climate Solutions Asia Pacific, Middle East & Africa (5) %1 %— %— %(4) % Climate Solutions Transportation — %— %(26) %— %(26) % Consolidated 4 %— %(4) %— %— % Carrier Global Corporation Reconciliations (Unaudited) Three Months Ended June 30,Six Months Ended June 30, (In millions)2025202420252024 Reconciliation to Earnings before income taxes Segment operating profit$ 1,241$ 1,101$ 2,134$ 1,914Corporate and other(75)(45)(120)(94) Restructuring costs(47)(29)(55)(37) Amortization of acquired intangibles(214)(170)(415)(342) Acquisition step-up amortization—(109)—(220) Acquisition/divestiture-related costs(9)(24)(19)(72) CCR gain7—7— Viessmann-related hedges———(86) Gain on liability adjustment ———46 Non-service pension (expense) benefit——1— Interest (expense) income, net(91)(157)(173)(298) Earnings before income taxes$ 812$ 567$ 1,360$ 811 (Unaudited) Three Months Ended June 30,Six Months Ended June 30, (In millions)2025202420252024 Reconciliation of Segment operating profit to Adjusted operating profit Climate Solutions Americas$ 879$ 713$ 1,449$ 1,138 Climate Solutions Europe9993204260 Climate Solutions Asia Pacific, Middle East & Africa135157256265 Climate Solutions Transportation128138225251 Segment operating profit$ 1,241$ 1,101$ 2,134$ 1,914 Corporate and other(75)(45)(120)(94) Adjusted operating profit$ 1,166$ 1,056$ 2,014$ 1,820 Carrier Global Corporation Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share and Effective Tax Rate (Unaudited)Three Months Ended June 30, 2025Six Months Ended June 30, 2025 (In millions, except per share amounts) ReportedAdjustmentsAdjustedReportedAdjustmentsAdjusted Net sales $ 6,113$ —$ 6,113$ 11,331$ —$ 11,331 Operating profit $ 903263 a $ 1,166$ 1,532482 a $ 2,014 Operating margin 14.8 %19.1 %13.5 %17.8 % Earnings before income taxes $ 812263 a $ 1,075$ 1,360482 a,b $ 1,842 Income tax (expense) benefit $ (162)(75) c $ (237)$ (273)(133) c $ (406) Effective tax rate 20.0 %22.1 %20.1 %22.1 % Earnings from continuing operations attributable to common shareowners $ 608$ 188$ 796$ 1,020$ 349$ 1,369 Summary of Adjustments:Amortization of acquired intangibles $ 214 a $ 415 aRestructuring costs 47 a 55 aAcquisition/divestiture-related costs 9 a 19 aCCR gain (7) a (7) aTotal adjustments $ 263$ 482 Tax effect on adjustments above $ (69)$ (127) Tax specific adjustments (6)(6) Total tax adjustments $ (75) c $ (133) c Diluted shares outstanding 866.3866.3872.3872.3 Diluted earnings per share:Continuing operations $ 0.70$ 0.92$ 1.17$ 1.57 Carrier Global Corporation Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results Net Income, Earnings Per Share and Effective Tax Rate (Unaudited)Three Months Ended June 30, 2024Six Months Ended June 30, 2024 (In millions, except per share amounts) ReportedAdjustmentsAdjustedReportedAdjustmentsAdjusted Net sales $ 5,934$ —$ 5,934$ 11,354$ —$ 11,354 Operating profit $ 724332 a $ 1,056$ 1,109711 a $ 1,820 Operating margin 12.2 %17.8 %9.8 %16.0 % Earnings before income taxes $ 567344 a,b $ 911$ 811723 a,b $ 1,534 Income tax (expense) benefit $ (120)(87) c $ (207)$ (167)(173) c $ (340) Effective tax rate 21.2 %22.7 %20.6 %22.2 % Earnings from continuing operations attributable to common shareowners $ 415$ 257$ 672$ 592$ 550$ 1,142 Summary of Adjustments:Amortization of acquired intangibles $ 170 a $ 342 aRestructuring costs 29 a 37 aAcquisition/divestiture-related costs 24 a 72 aAcquisition step-up amortization (1) 109 a 220 aViessmann-related hedges — a 86 aGain on liability adjustment (2) — a (46) aDebt prepayment costs $ 12 b $ 12 bTotal adjustments $ 344$ 723 Tax effect on adjustments above $ (87)$ (173) Total tax adjustments $ (87) c $ (173) c Diluted shares outstanding 915.3915.3913.6913.6 Diluted earnings per share:Continuing operations $ 0.45$ 0.73$ 0.65$ 1.25 (1) Amortization of the step-up to fair value of acquired inventory and backlog. (2) Gain associated with an adjustment to our tax-related liability owed to UTC. Free Cash Flow Reconciliation (Unaudited) Three Months Ended June 30,Six Months Ended June 30, (In millions)2025202420252024 Net cash flows provided by operating activities$ 649$ 660$ 1,132$ 700 Less: Capital expenditures - continuing operations(81)(108)(144)(210) Less: Capital expenditures - discontinued operations—(3)—(5) Free cash flow$ 568$ 549$ 988$ 485 Net Debt Reconciliation (Unaudited) (In millions)June 30, 2025December 31, 2024 Long-term debt$ 11,336$ 11,026 Current portion of long-term debt1071,252 Less: Cash and cash equivalents1,7973,969 Net debt$ 9,646$ 8,309 View original content to download multimedia: SOURCE Carrier Global Corporation Sign in to access your portfolio
Business Wire
11 minutes ago
- Business Wire
UPS Releases 2Q 2025 Earnings
ATLANTA--(BUSINESS WIRE)--UPS (NYSE:UPS) today announced second-quarter 2025 consolidated revenues of $21.2 billion. Consolidated operating profit was $1.8 billion; $1.9 billion on a non-GAAP adjusted basis. Diluted earnings per share were $1.51 for the quarter; non-GAAP adjusted diluted earnings per share were $1.55. UPS announced second-quarter 2025 consolidated revenues of $21.2 billion. Share For the second quarter of 2025, GAAP results include a net charge of $29 million, or $0.04 per diluted share, comprised of after-tax transformation strategy costs of $57 million, partially offset by a $15 million gain from the divestiture of a business within Supply Chain Solutions and a $13 million benefit from the partial reversal of an income tax valuation allowance. 'I want to thank all UPSers for their dedication and hard work in what continues to be a dynamic and evolving trade environment,' said Carol Tomé, UPS chief executive officer. 'Our second quarter results reflect both the complexity of the landscape and the strength of our execution. We are making meaningful progress on our strategic initiatives, and we're confident these actions are positioning the company for stronger long-term financial performance and enhanced competitive advantage." U.S. Domestic Segment † 2Q 2025 Non-GAAP Adjusted 2Q 2025 2Q 2024 Non-GAAP Adjusted 2Q 2024 Revenue $14,083 M $14,201 M Operating profit $916 M $982 M $988 M $996 M Expand Revenue declined 0.8%, primarily driven by the expected decline in volume, partially offset by increases in air cargo and revenue per piece. Operating margin was 6.5%; non-GAAP adjusted operating margin was 7.0%. International Segment 2Q 2025 Non-GAAP Adjusted 2Q 2025 2Q 2024 Non-GAAP Adjusted 2Q 2024 Revenue $4,485 M $4,370 M Operating profit $672 M $682 M $718 M $824 M Expand Revenue increased 2.6%, driven by a 3.9% increase in average daily volume. Operating margin was 15.0%; non-GAAP adjusted operating margin was 15.2%. Supply Chain Solutions 1 † Revenue declined 18.3%, primarily due to the impact from the third quarter 2024 divestiture of Coyote. Operating margin was 8.8%; non-GAAP adjusted operating margin was 8.0%. 2025 Outlook Given the current macro-economic uncertainty, the company is not providing revenue or operating profit guidance, but confirms the following for the full year 2025: Capital expenditures of approximately $3.5 billion Dividend payments expected to be around $5.5 billion, subject to Board approval Effective tax rate of approximately 23.5% $1.4 billion in pension contributions (of which $921 million have been made) Share repurchases of around $1.0 billion, which have been completed $3.5 billion in expected expense reductions due to its network reconfiguration and Efficiency Reimagined initiatives * 'Non-GAAP Adjusted' or 'Non-GAAP Adj.' amounts are non-GAAP adjusted financial measures. See the appendix to this release for a discussion of non-GAAP adjusted financial measures, including a reconciliation to the most closely correlated GAAP measure. † Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers. Expand Conference Call Information UPS CEO Carol Tomé and CFO Brian Dykes will discuss second-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, July 29, 2025. That call will be open to others through a live Webcast. To access the call, go to the UPS Investor Relations page and click on 'Earnings Conference Call.' Additional financial information is included in the detailed financial schedules being posted on under 'Quarterly Earnings and Financials' and as furnished to the SEC as an exhibit to our Current Report on Form 8-K. About UPS UPS (NYSE: UPS) is one of the world's largest companies, with 2024 revenue of $91.1 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, 'Moving our world forward by delivering what matters,' the company's approximately 490,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. More information can be found at and Forward-Looking Statements This release, our Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the Securities and Exchange Commission contain and in the future may contain 'forward-looking statements'. Statements other than those of current or historical fact, and all statements accompanied by terms such as 'will,' 'believe,' 'project,' 'expect,' 'estimate,' 'assume,' 'intend,' 'anticipate,' 'target,' 'plan,' and similar terms, are intended to be forward-looking statements. From time to time, we also include written or oral forward-looking statements in other publicly disclosed materials. Forward-looking statements may relate to our intent, belief, forecasts of, or current expectations about our strategic direction, prospects, future results, or future events; they do not relate strictly to historical or current facts. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any forward-looking statements because such statements speak only as of the date when made and the future, by its very nature, cannot be predicted with certainty. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or anticipated results. These risks and uncertainties include, but are not limited to: changes in general economic conditions in the U.S. or internationally, including as a result of changes in the global trade policy and new or increased tariffs; significant competition on a local, regional, national and international basis; changes in our relationships with our significant customers; our ability to attract and retain qualified employees; strikes, work stoppages or slowdowns by our employees; increased or more complex physical or operational security requirements; a significant cybersecurity incident, or increased data protection regulations; our ability to maintain our brand image and corporate reputation; impacts from global climate change; interruptions in or impacts on our business from natural or man-made events or disasters including terrorist attacks, epidemics or pandemics; exposure to changing economic, political, regulatory and social developments in international and emerging markets; our ability to realize the anticipated benefits from acquisitions, dispositions, joint ventures or strategic alliances; the effects of changing prices of energy, including gasoline, diesel, jet fuel, other fuels and interruptions in supplies of these commodities; changes in exchange rates or interest rates; our ability to accurately forecast our future capital investment needs; increases in our expenses or funding obligations relating to employee health, retiree health and/or pension benefits; our ability to manage insurance and claims expenses; changes in business strategy, government regulations or economic or market conditions that may result in impairments of our assets; potential additional U.S. or international tax liabilities; increasingly stringent regulations related to climate change; potential claims or litigation related to labor and employment, personal injury, property damage, business practices, environmental liability and other matters; and other risks discussed in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2024, and subsequently filed reports. You should consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions contained in such forward-looking statements. We do not undertake any obligation to update forward-looking statements to reflect events, circumstances, changes in expectations, or the occurrence of unanticipated events after the date of those statements, except as required by law. The Company routinely posts important information, including news releases, announcements, materials provided or displayed at analyst or investor conferences, and other statements about its business and results of operations, that may be deemed material to investors on the Company's Investors Relations website at The Company uses its website as a means of disclosing material, nonpublic information and for complying with the Company's disclosure obligations under Regulation FD. Investors should monitor the Company's Investor Relations website in addition to following the Company's press releases, filings with the SEC, public conference calls and webcasts. We do not incorporate the contents of any website into this or any other report we file with the SEC. Reconciliation of GAAP and Non-GAAP Adjusted Financial Measures We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP adjusted financial measures. Management views and evaluates business performance on both a GAAP basis and by excluding costs and benefits associated with these non-GAAP adjusted financial measures. As a result, we believe the presentation of these non-GAAP adjusted financial measures better enables users of our financial information to view and evaluate underlying business performance from the same perspective as management. Non-GAAP adjusted financial measures should be considered in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. Our non-GAAP adjusted financial measures do not represent a comprehensive basis of accounting and therefore may not be comparable to similarly titled measures reported by other companies. Forward-Looking Non-GAAP Adjusted Financial Measures From time to time when presenting forward-looking non-GAAP adjusted financial measures, we are unable to provide quantitative reconciliations to the most closely correlated GAAP measure due to the uncertainty in the timing, amount or nature of any adjustments, which could be material in any period. Expense for Regulatory Matter We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of an expense to settle a regulatory matter. We do not believe this is a component of our ongoing operations and we do not expect this or similar payments to recur. One-Time Payment for International Regulatory Matter We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of a payment to settle a previously-disclosed international tax regulatory matter. We do not believe this payment was a component of our ongoing operations and we do not expect this or similar payments to recur. Transformation Strategy Costs We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of charges related to activities within our transformation strategy. Our transformation strategy activities have spanned several years and are designed to fundamentally change the spans and layers of our organization structure, processes, technologies and the composition of our business portfolio. Our transformation strategy includes initiatives within our Transformation 2.0, Fit to Serve, and Network Reconfiguration and Efficiency Reimagined programs. Various circumstances have precipitated these initiatives, including developments and changes in competitive landscapes, inflationary pressures, consumer behaviors, and other factors including post-COVID normalization and volume diversions attributed to our 2023 labor negotiations. Our transformation strategy has included the following programs and initiatives: Transformation 2.0: We identified opportunities to reduce spans and layers of management, began a review of our business portfolio and identified opportunities to invest in certain technologies, including financial reporting and certain schedule, time and pay systems, to reduce global indirect operating costs, provide better visibility, and reduce reliance on legacy systems and coding languages. Costs associated with Transformation 2.0 have primarily consisted of compensation and benefit costs related to reductions in our workforce and fees paid to third-party consultants. We expect any remaining costs to be incurred during 2025. Fit to Serve: We undertook our Fit to Serve initiative with the intent to right-size our business to create a more efficient operating model that was more responsive to market dynamics through a workforce reduction of approximately 14,000 positions, primarily within management. Fit to Serve is expected to conclude in 2025. Network Reconfiguration and Efficiency Reimagined: Our Network of the Future initiative is intended to enhance the efficiency of our network through automation and operational sort consolidation in our U.S. Domestic network. In connection with our anticipation of lower volumes from our largest customer, we began our Network Reconfiguration, which is an expansion of Network of the Future and will lead to consolidations of our facilities and workforce as well as an end-to-end process redesign. We launched our Efficiency Reimagined initiatives to undertake the end-to-end process redesign effort which will align our organizational processes to the network reconfiguration. We expect to reduce our operational workforce by approximately 20,000 positions during 2025. We closed daily operations at 74 leased and owned buildings by June 30. We continue to review expected changes in volume in our integrated air and ground network to identify additional buildings for closure. We anticipate $3.5 billion of total cost savings will be achieved from Network Reconfiguration and Efficiency Reimagined in 2025. In connection with the Network Reconfiguration and Efficiency Reimagined programs described above, we expect to record between $400 and $650 million in non-GAAP adjusted expense during 2025, related primarily to third-party consulting fees, employee separation benefits, and certain programmatic expenses. We expect the costs associated with these actions may increase should we determine to close additional buildings. In addition, we believe that workforce reductions may require a remeasurement of defined benefit plan benefit obligations and assets during 2025. We are not yet able to estimate the timing or potential impact of such an event. We do not consider the related costs to be ordinary because each program involves separate and distinct activities that may span multiple periods and are not expected to drive incremental revenue, and because the scope of the programs exceeds that of routine, ongoing efforts to enhance profitability. These initiatives are in addition to ordinary, ongoing efforts to enhance business performance. Goodwill and Asset Impairments We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of goodwill and certain asset impairment charges, including impairments of long-lived assets and equity method investments. We do not consider these charges when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards. Gains and Losses Related to Divestitures We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of gains (or losses) related to the divestiture of businesses. We do not consider these transactions to be a component of our ongoing operations, nor when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards. Reversal of Income Tax Valuation Allowance We previously recorded non-GAAP adjustments for transactions that resulted in capital loss deferred tax assets not expected to be realized. We now expect a portion of these capital losses to be realized in future periods. We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of subsequent changes in the valuation allowances against these deferred tax assets as we believe such treatment is consistent with how the valuation allowance was initially established. Non-GAAP Adjusted Cost per Piece We evaluate the efficiency of our operations using various metrics, including non-GAAP adjusted cost per piece. Non-GAAP adjusted cost per piece is calculated as non-GAAP adjusted operating expenses in a period divided by total volume for that period. Because non-GAAP adjusted operating expenses exclude costs or charges that we do not consider a part of underlying business performance when monitoring and evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards, we believe this is the appropriate metric on which to base reviews and evaluations of the efficiency of our operational performance. Free Cash Flow We calculate free cash flow as cash flows from operating activities less capital expenditures, proceeds from disposals of property, plant and equipment, and plus or minus the net changes in other investing activities. We believe free cash flow is an important indicator of how much cash is generated by our ongoing business operations and we use this as a measure of incremental cash available to invest in our business, meet our debt obligations and return cash to shareowners. United Parcel Service, Inc. Reconciliation of GAAP and Non-GAAP Adjusted Measures (unaudited) Three Months Ended June 30, (amounts in millions) 2025 2025 Net Income (GAAP) $ 1,283 Diluted Earnings Per Share (GAAP) $ 1.51 Transformation Strategy Costs: Transformation Strategy Costs: Transformation 2.0 Transformation 2.0 Business portfolio review (13 ) Business portfolio review (0.01 ) Financial systems 11 Financial systems 0.01 Transformation 2.0 total (2 ) Transformation 2.0 total — Fit to Serve 7 Fit to Serve 0.01 Network Reconfiguration and Efficiency Reimagined 52 Network Reconfiguration and Efficiency Reimagined 0.07 Total Transformation Strategy Costs 57 Total Transformation Strategy Costs 0.08 Gain on Divestiture (1) (15 ) Gain on Divestiture (1) (0.02 ) (1) Reflects pre-tax gain of $20 million and related tax effect on the divestiture of a business within Supply Chain Solutions. (2) Reflects the partial reversal of an income tax valuation allowance. Expand United Parcel Service, Inc. Reconciliation of GAAP and Non-GAAP Adjusted Measures (unaudited) Three Months Ended June 30, (amounts in millions) 2024 2024 Operating Profit (GAAP) $ 1,944 Diluted Earnings Per Share (GAAP) $ 1.65 Transformation Strategy Costs: Transformation Strategy Costs: Transformation 2.0 Transformation 2.0 Business portfolio review (10 ) Business portfolio review (0.01 ) Financial systems 13 Financial systems 0.01 Transformation 2.0 total 3 Transformation 2.0 total — Fit to Serve 24 Fit to Serve 0.02 Total Transformation Strategy Costs 27 Total Transformation Strategy Costs 0.02 One-Time Payment for Int'l Regulatory Matter (1) 88 One-Time Payment for Int'l Regulatory Matter (1) 0.11 (1) Reflects a one-time payment for an international regulatory matter of $88 million and related interest of $6 million. (2) Reflects expense related to the settlement of a regulatory matter. Expand United Parcel Service, Inc. Reconciliation of GAAP and Non-GAAP Adjusted Measures (unaudited) Six Months Ended June 30 (amounts in millions) 2025 2025 Operating Profit (GAAP) $ 3,488 Operating Margin (GAAP) 8.2 % Transformation Strategy Costs: Transformation Strategy Costs: Transformation 2.0 Transformation 2.0 Business portfolio review (18 ) Business portfolio review (0.1 )% Financial systems 31 Financial systems 0.1 % Transformation 2.0 total 13 Transformation 2.0 total — % Fit to Serve 28 Fit to Serve 0.1 % Network Redesign and Efficiency Reimagined 91 Network Redesign and Efficiency Reimagined 0.2 % Total Transformation Strategy Costs 132 Total Transformation Strategy Costs 0.3 % Gain on Divestiture (1) (20 ) Gain on Divestiture (1) (0.1 )% Goodwill and Asset Impairment Charges (2) 39 Goodwill and Asset Impairment Charges (2) 0.1 % Non-GAAP Adjusted Operating Profit $ 3,639 Non-GAAP Adjusted Operating Margin 8.5 % (amounts in millions) 2025 Other Income (Expense) (GAAP) $ (303 ) Goodwill and Asset Impairment Charges (2) 19 Non-GAAP Adjusted Other Income (Expense) $ (284 ) (1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions. (2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025. Expand United Parcel Service, Inc. Reconciliation of GAAP and Non-GAAP Adjusted Measures (unaudited) Six Months Ended June 30 (amounts in millions) 2025 Income Tax Expense (GAAP) $ 715 Transformation Strategy Costs: Transformation 2.0 Business portfolio review (5 ) Financial systems 8 Transformation 2.0 total 3 Fit to Serve 6 Network Redesign and Efficiency Reimagined 22 Total Transformation Strategy Costs 31 Gain on Divestiture (1) (5 ) Goodwill and Asset Impairment Charges (2) 9 Reversal of Income Tax Valuation Allowance (3) 23 Non-GAAP Adjusted Income Tax Expense $ 773 (1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions. (2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025. (3) Reflects the partial reversal of an income tax valuation allowance. Expand United Parcel Service, Inc. Reconciliation of GAAP and Non-GAAP Adjusted Measures (unaudited) Six Months Ended June 30 (amounts in millions) 2025 2025 Net Income (GAAP) $ 2,470 Diluted Earnings Per Share (GAAP) $ 2.91 Transformation Strategy Costs: Transformation Strategy Costs: Transformation 2.0 Transformation 2.0 Business portfolio review (13 ) Business portfolio review (0.02 ) Financial systems 23 Financial systems 0.03 Transformation 2.0 total 10 Transformation 2.0 total 0.01 Fit to Serve 22 Fit to Serve 0.03 Network Redesign and Efficiency Reimagined 69 Network Redesign and Efficiency Reimagined 0.08 Total Transformation Strategy Costs 101 Total Transformation Strategy Costs 0.12 Gain on Divestiture (1) (15 ) Gain on Divestiture (1) (0.02 ) Goodwill and Asset Impairment Charges (2) 49 Goodwill and Asset Impairment Charges (2) 0.06 Reversal of Income Tax Valuation Allowance (3) (23 ) Reversal of Income Tax Valuation Allowance (3) (0.03 ) (1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions. (2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025. (3) Reflects the partial reversal of an income tax valuation allowance. Expand United Parcel Service, Inc. Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment (unaudited) Six Months Ended June 30 2025 2024 2025 2024 2025 2024 Adjusted for: Goodwill and Asset Impairment Charges — (5 ) — 5 — % — % Adjusted for: Transformation Strategy Costs (23 ) (42 ) 23 42 0.3 % 0.6 % Goodwill and Asset Impairment Charges — (2 ) — 2 — % — % One-Time Int'l Regulatory Matter — (88 ) — 88 — % 1.0 % GAAP $ 5,086 $ 6,069 (16.2 )% $ 280 $ 362 (22.7 )% 5.2 % 5.6 % Adjusted for: Transformation Strategy Costs (11 ) (14 ) 11 14 0.2 % 0.2 % Gain on Divestiture 20 — (20 ) — (0.4 )% — % Goodwill and Asset Impairment Charges (39 ) (41 ) 39 41 0.8 % 0.7 % Expense for Regulatory Matter — (45 ) — 45 — % 0.7 % Non-GAAP Adjusted Measure $ 5,056 $ 5,969 (15.3 )% $ 310 $ 462 (32.9 )% 5.8 % 7.2 % Expand United Parcel Service, Inc. Reconciliation of Free Cash Flow (Non-GAAP measure) (unaudited): Six Months Ended June 30, (amounts in millions) 2025 Cash flows from operating activities $ 2,666 Capital expenditures (1,999 ) Proceeds from disposals of property, plant and equipment 91 Other investing activities (16 ) Free Cash Flow (Non-GAAP measure) $ 742 Expand
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- Business Wire
Armstrong World Industries Reports Record Second-Quarter 2025 Sales and Earnings
LANCASTER, Pa.--(BUSINESS WIRE)--Armstrong World Industries, Inc. (NYSE:AWI), an Americas leader in the design and manufacture of innovative interior and exterior architectural applications including ceilings, specialty walls and exterior metal solutions, today reported second-quarter 2025 financial results highlighted by strong net sales and earnings growth with operating and adjusted EBITDA margin expansion in both the Mineral Fiber and Architectural Specialties segments compared to the prior year. 'With strong performance across our enterprise, we delivered robust top and bottom-line growth with margin expansion in both our Mineral Fiber and Architectural Specialties segments,' said AWI President and CEO, Vic Grizzle. 'These record-setting results continue to demonstrate the resilience of our business model and strong execution on our growth initiatives including our acquisitions, innovation and digital tools. While macro-economic uncertainty persists, we are confident in our ability to navigate these challenges and continue generating profitable growth through strong commercial and operational execution.' * The Company uses non-GAAP adjusted measures in managing the business and believes the adjustments provide meaningful comparisons of operating performance between periods and are useful alternative measures of performance. Reconciliations of the most comparable generally accepted accounting principles in the United States ("GAAP") measure are found in the tables at the end of this press release. Excluding per share data, non-GAAP figures are rounded to the nearest million and corresponding percentages are based on unrounded figures. Expand Consolidated net sales for the second quarter of 2025 increased 16.3% over the prior-year period due to higher volumes of $46 million and favorable Average Unit Value (dollars per unit sold, or "AUV") of $14 million. Architectural Specialties net sales increased $43 million and Mineral Fiber net sales increased $17 million from the prior-year period. Architectural Specialties segment net sales improved primarily due to a $28 million contribution from the 2024 acquisitions of 3form, LLC ("3form") and A. Zahner Company ("Zahner") and increased organic net sales driven by strengthening broad-based penetration throughout our specialty product categories. The increase in Mineral Fiber net sales was primarily driven by favorable AUV and modestly improved sales volumes. Consolidated operating income increased 29.7% in the second quarter of 2025 primarily due to a $25 million benefit from sales volume growth, an $8 million margin benefit from favorable AUV and a $6 million increase in equity earnings from the Worthington Armstrong Joint Venture ("WAVE"). These benefits were partially offset by a $6 million increase in manufacturing costs and a $4 million increase in selling, general and administrative ('SG&A') expenses. Increased sales volumes and higher operating costs were driven primarily by the acquisitions of 3form and Zahner, which contributed $28 million to the increase in net sales and $5 million to the increase in operating income in the second quarter of 2025 compared to the prior-year period. Mineral Fiber net sales increased 6.7% in the second quarter of 2025 compared to the prior-year quarter due to $14 million of favorable AUV and $3 million of higher sales volumes, both of which were primarily driven by strong commercial execution and benefits from growth initiatives. The improvement in AUV was driven by both favorable like-for-like price and favorable mix. Mineral Fiber operating income increased 20.4% year-over-year primarily due to an $8 million benefit from favorable AUV, a $6 million increase in WAVE equity earnings and a $4 million decrease in SG&A expenses. Architectural Specialties net sales increased $43 million in the second quarter of 2025, driven primarily by a $28 million increase from the 2024 acquisitions of 3form and Zahner, in addition to increased organic net sales driven by strengthening broad-based penetration throughout our specialty product categories. Architectural Specialties operating income increased 80.3% in the second quarter of 2025, driven by operating leverage and improved custom project margins on strong organic growth, in addition to contributions from the acquisitions of 3form and Zahner. The benefit from higher net sales was partially offset by a $4 million increase in manufacturing costs and a $7 million increase in SG&A expenses, both of which were primarily attributable to the 2024 acquisitions. Unallocated Corporate Unallocated Corporate operating loss was $1 million in the second quarter of 2025 and 2024. Cash Flow Year-to-date cash flows from operating activities in 2025 increased $39 million or 46% in comparison to the prior-year period. The favorable change in operating cash flows was primarily driven by higher cash earnings and an increase in income taxes payable, partially offset by unfavorable timing-related working capital changes. Year-to-date cash flows from investing activities increased $95 million versus the prior-year period, primarily due to cash paid in 2024 for the 3form acquisition. Share Repurchase Program During the second quarter of 2025, we repurchased 0.2 million shares of common stock for a total cost of $30 million, excluding the cost of commissions and taxes. As of June 30, 2025, there was $610 million remaining under the Board of Directors' current authorized share repurchase program**. ** In July 2016, our Board of Directors approved our share repurchase program authorizing us to repurchase outstanding shares of common stock (the 'Program'). Since inception of the Program, we have been authorized to repurchase up to an aggregate of $1,700 million of our outstanding shares of common stock through December 2026. Since inception and through June 30, 2025, we have repurchased 15.0 million shares under the Program for a total cost of $1,090 million, excluding commissions and taxes, or an average share price of $72.67 per share. Expand Updating 2025 Outlook 'We delivered strong profitability in the second quarter, highlighted by robust adjusted EBITDA margin expansion in both segments. Given these strong first half results, we are increasing our guidance for all key metrics,' said Chris Calzaretta, AWI Senior Vice President and CFO. 'Given continued uncertainty in the macroeconomic backdrop, we remain focused on disciplined cost control and capital allocation. As a result of these efforts, we are well-positioned to deliver strong results for the remainder of the year as we continue to demonstrate the resilience of our business model and create value for our shareholders." Earnings Webcast Management will host a live webcast conference call at 10:00 a.m. ET today, to discuss second-quarter 2025 results. This event will be available on the Company's website. The call and accompanying slide presentation can be found on the investor relations section of the Company's website at The replay of this event will be available on the website for up to one year after the date of the call. Uncertainties Affecting Forward-Looking Statements Disclosures in this release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, those relating to future financial and operational results, market and broader economic conditions and guidance. Those statements provide our future expectations or forecasts and can be identified by our use of words such as 'anticipate,' 'estimate,' 'expect,' 'project,' 'intend,' 'plan,' 'believe,' 'outlook,' 'target,' 'predict,' 'may,' 'will,' 'would,' 'could,' 'should,' 'seek,' and other words or phrases of similar meaning in connection with any discussion of future operating or financial performance. This includes annual guidance. Forward-looking statements, by their nature, address matters that are uncertain and involve risks because they relate to events and depend on circumstances that may or may not occur in the future. As a result, our actual results may differ materially from our expected results and from those expressed in our forward-looking statements. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those projected, anticipated or implied is included in the 'Risk Factors' and 'Management's Discussion and Analysis' sections of our reports on Form 10-K and Form 10-Q filed with the U.S. Securities and Exchange Commission ('SEC'), including our quarterly report for the quarter ended June 30, 2025, that the Company expects to file today. Forward-looking statements speak only as of the date they are made. We undertake no obligation to update any forward-looking statements beyond what is required under applicable securities law. About Armstrong and Additional Information Armstrong World Industries, Inc. (AWI) is an Americas leader in the design and manufacture of innovative interior and exterior architectural applications including ceilings, specialty walls and exterior metal solutions. For more than 160 years, Armstrong has delivered products and capabilities that enable architects, designers and contractors to transform building design and construction with elevated aesthetics, acoustics and sustainable attributes. With $1.4 billion in revenue in 2024, AWI has approximately 3,700 employees and a manufacturing network of 20 facilities, plus seven facilities dedicated to its WAVE joint venture. More details on the Company's performance can be found in its report on Form 10-Q for the quarter ended June 30, 2025, that the Company expects to file with the SEC today. SEGMENT RESULTS Armstrong World Industries, Inc. and Subsidiaries (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Net Sales Mineral Fiber $ 267.0 $ 250.2 $ 512.1 $ 489.8 Architectural Specialties 157.6 114.9 295.2 201.6 Total net sales $ 424.6 $ 365.1 $ 807.3 $ 691.4 Expand For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Segment operating income (loss) Mineral Fiber $ 98.4 $ 81.7 $ 182.9 $ 160.9 Architectural Specialties 25.6 14.2 40.4 21.9 Unallocated Corporate (0.8 ) (0.9 ) (1.6 ) (1.7 ) Total consolidated operating income $ 123.2 $ 95.0 $ 221.7 $ 181.1 Expand SELECTED BALANCE SHEET INFORMATION Armstrong World Industries, Inc. and Subsidiaries Unaudited December 31, 2024 Assets Current assets $ 375.6 $ 348.9 Property, plant and equipment, net 595.1 598.8 Other non-current assets 891.3 895.0 Total assets $ 1,862.0 $ 1,842.7 Liabilities and shareholders' equity Current liabilities $ 232.9 $ 249.7 Non-current liabilities 791.3 835.9 Shareholders' equity 837.8 757.1 Total liabilities and shareholders' equity $ 1,862.0 $ 1,842.7 Expand SELECTED CASH FLOW INFORMATION Armstrong World Industries, Inc. and Subsidiaries (Unaudited) For the Six Months Ended June 30, 2025 2024 Net earnings $ 156.9 $ 125.8 Other adjustments to reconcile net earnings to net cash provided by operating activities 8.7 3.6 Changes in operating assets and liabilities, net (43.0 ) (45.7 ) Net cash provided by operating activities 122.6 83.7 Net cash provided by (used for) investing activities 13.2 (81.4 ) Net cash (used for) provided by financing activities (134.7 ) 1.1 Effect of exchange rate changes on cash and cash equivalents 0.7 (0.6 ) Net increase in cash and cash equivalents 1.8 2.8 Cash and cash equivalents at beginning of year 79.3 70.8 Cash and cash equivalents at end of period $ 81.1 $ 73.6 Expand Supplemental Reconciliations of GAAP to non-GAAP Results (unaudited) (Amounts in millions, except per share data) To supplement its consolidated financial statements presented in accordance with accounting principles generally accepted in the United States ('GAAP'), the Company provides additional measures of performance adjusted to exclude the impact of certain discrete expenses and income including adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), adjusted diluted earnings per share ("EPS") and adjusted free cash flow. Investors should not consider non-GAAP measures as a substitute for GAAP measures. The Company excludes certain acquisition related expenses (i.e. impact of adjustments related to the fair value of inventory, contingent third-party professional fees, changes in the fair value of contingent consideration and deferred compensation accruals for acquisitions). The Company also excludes all acquisition-related intangible amortization from adjusted net earnings and in calculations of adjusted diluted EPS. Examples of other excluded items have included plant closures, restructuring charges and related costs, separation costs and other cost reduction initiatives, environmental site expenses and environmental insurance recoveries, endowment level charitable contributions, the impact of defined benefit plan settlements, gains and losses on sales or impairment of fixed assets, and certain other gains and losses. The Company also excludes income/expense from its U.S. Retirement Income Plan ('RIP') in the non-GAAP results as it represents the actuarial net periodic benefit credit/cost recorded. For all periods presented, the Company was not required and did not make cash contributions to the RIP based on guidelines established by the Pension Benefit Guaranty Corporation, nor does the Company expect to make cash contributions to the plan in 2025. Adjusted free cash flow is defined as cash from operating and investing activities, adjusted to remove the impact of cash used or proceeds received for acquisitions and divestitures, environmental site expenses and environmental insurance recoveries. Management's adjusted free cash flow measure includes returns of investment from WAVE and cash proceeds received from the settlement of company-owned life insurance policies, which are presented within investing activities on our condensed consolidated statement of cash flows. The Company uses these adjusted performance measures in managing the business, including communications with its Board of Directors and employees, and believes that they provide users of this financial information with meaningful comparisons of operating performance between current results and results in prior periods. The Company believes that these non-GAAP financial measures are appropriate to enhance understanding of its past performance, as well as prospects for its future performance. The Company also uses adjusted EBITDA and adjusted free cash flow (with further adjustments, when necessary) as factors in determining at-risk compensation for senior management. These non-GAAP measures may not be defined and calculated the same as similar measures used by other companies. Non-GAAP financial measures utilized by the Company may not be comparable to non-GAAP financial measures used by other companies. A reconciliation of these adjustments to the most directly comparable GAAP measures is included in this release and on the Company's website. These non-GAAP measures should not be considered in isolation or as a substitute for the most comparable GAAP measures. In the following charts, numbers may not sum due to rounding. Excluding adjusted diluted EPS, non-GAAP figures are rounded to the nearest million and corresponding percentages are rounded to the nearest percent based on unrounded figures. (1) RIP expense represents only the plan service cost that is recorded within Operating income. For all periods presented, we were not required to and did not make cash contributions to our RIP. (2) Represents the impact of acquisition-related adjustments for the fair value of inventory, contingent third-party professional fees and changes in fair value of contingent consideration. (3) Represents the Company's 50% share of WAVE's settlement of their defined benefit pension plan. Expand Mineral Fiber For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Net sales $ 267 $ 250 $ 512 $ 490 Operating income $ 98 $ 82 $ 183 $ 161 Add: Acquisition-related impacts (1) - 1 - - Add: WAVE pension settlement (2) - 1 - 1 Add: Environmental expense - 1 - 1 Adjusted operating income $ 98 $ 85 $ 183 $ 164 Add: Depreciation and amortization 22 20 43 40 Adjusted EBITDA $ 121 $ 104 $ 226 $ 203 Operating income margin 36.9 % 32.7 % 35.7 % 32.9 % Adjusted EBITDA margin 45.2 % 41.7 % 44.1 % 41.5 % Expand (1) Represents the impact of acquisition-related adjustments for changes in fair value of contingent consideration. (2) Expand Architectural Specialties For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Net sales $ 158 $ 115 $ 295 $ 202 Operating income $ 26 $ 14 $ 40 $ 22 Add: Acquisition-related impacts (1) - 1 - 1 Adjusted operating income $ 26 $ 15 $ 40 $ 23 Add: Depreciation and amortization 8 6 17 10 Adjusted EBITDA $ 34 $ 21 $ 58 $ 33 Operating income margin 16.2 % 12.4 % 13.7 % 10.9 % Adjusted EBITDA margin 21.5 % 18.4 % 19.5 % 16.5 % Expand (1) Represents the impact of acquisition-related adjustments for the fair value of inventory, contingent third-party professional fees and changes in fair value of contingent consideration. Expand Unallocated Corporate For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Operating (loss) $ (1 ) $ (1 ) $ (2 ) $ (2 ) Add: RIP expense (1) 1 1 1 1 Adjusted operating (loss) $ - $ - $ (1 ) $ (1 ) Add: Depreciation and amortization - - - - Adjusted EBITDA $ - $ - $ - $ - Expand (1) RIP expense represents only the plan service cost that is recorded within Operating income. For all periods presented, we were not required to and did not make cash contributions to our RIP. Expand Consolidated Results – Adjusted Free Cash Flow For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Net cash provided by operating activities $ 82 $ 57 $ 123 $ 84 Net cash provided by (used by) investing activities 7 (87 ) 13 (81 ) Net cash provided by (used by) operating and investing activities $ 89 $ (30 ) $ 136 $ 2 (Less)/Add: Acquisitions, net of cash acquired and investment in unconsolidated affiliate (1 ) 94 (1 ) 99 Add: Contingent consideration in excess of acquisition-date fair value (1) - - 1 - Add: Arktura deferred compensation (1) - - - 6 (Less): Proceeds from sale of facility (2) - (2 ) - (2 ) Adjusted Free Cash Flow $ 88 $ 62 $ 136 $ 105 Expand (1) Deferred compensation and contingent consideration payments related to acquisitions that were recorded as components of net cash provided by operating activities. (2) Proceeds related to the sale of Architectural Specialties design center. Expand Consolidated Results – Adjusted Diluted Earnings Per Share (EPS) For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Total Per Diluted Share Total Per Diluted Share Total Per Diluted Share Total Per Diluted Share Net earnings $ 88 $ 2.01 $ 66 $ 1.50 $ 157 $ 3.59 $ 126 $ 2.86 Add: Income tax expense 28 21 49 42 Earnings before income taxes $ 115 $ 87 $ 206 $ 167 Add: Acquisition-related impacts (1) - 2 - 2 Add: Acquisition-related amortization (2) 4 3 9 5 Add: WAVE pension settlement (3) - 1 - 1 Add: Environmental expense - 1 - 1 Adjusted net earnings before income taxes $ 120 $ 94 $ 215 $ 176 (Less): Adjusted income tax expense (4) (29 ) (23 ) (51 ) (44 ) Adjusted net earnings $ 91 $ 2.09 $ 71 $ 1.62 $ 164 $ 3.76 $ 132 $ 3.00 Adjusted diluted EPS change versus prior year 29.0 % 25.3 % Diluted shares outstanding 43.7 44.0 43.7 44.0 Effective tax rate 24 % 24 % 24 % 25 % Expand (1) Represents the impact of acquisition-related adjustments for the fair value of inventory, contingent third-party professional fees and changes in fair value of contingent consideration. (2) Represents acquisition-related intangible amortization, including customer relationships, developed technology, software, trademarks and brand names, non-compete agreements and other intangibles. (3) Represents the Company's 50% share of WAVE's non-cash accounting loss upon settlement of their defined benefit pension plan. (4) Adjusted income tax expense is calculated using the effective tax rate multiplied by the adjusted net earnings before income taxes. Expand Adjusted EBITDA Guidance For the Year Ending December 31, 2025 Low High Net earnings $ 300 to $ 304 Add: Income tax expense 92 97 Earnings before income taxes $ 392 to $ 402 Add: Interest expense 34 36 Add: Other non-operating (income), net (2 ) (1 ) Operating income $ 425 to $ 436 Add: RIP expense (1) 2 2 Adjusted operating income $ 427 to $ 438 Add: Depreciation and amortization 117 122 Adjusted EBITDA $ 545 to $ 560 Expand (1) RIP expense represents only the plan service cost that is recorded within Operating income. We do not expect to make cash contributions to our RIP. Expand (1) Adjusted diluted EPS guidance for 2025 is calculated based on approximately 43 to 44 million of diluted shares outstanding. (2) RIP cost represents the entire actuarial net periodic pension cost recorded as a component of net earnings. We do not expect to make any cash contributions to our RIP. (3) Represents acquisition-related intangible amortization, including customer relationships, developed technology, software, trademarks and brand names, non-compete agreements and other intangibles. (4) Income tax expense is based on an adjusted effective tax rate of approximately 24%, multiplied by adjusted earnings before income taxes. Expand (1) Net cash provided by operating activities is based on a normalized cash tax rate including the impact of 2025 tax reform. Expand
