Latest news with #DavidGitlin
Yahoo
20-05-2025
- Business
- Yahoo
Carrier to spend $1B on US manufacturing
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. HVAC system maker Carrier Global announced last week it plans to invest $1 billion over the next five years to expand its U.S. manufacturing operations and workforce. The funds will go toward expanding existing facilities and building a new plant to support the production of components for its heat pumps and battery assemblies. The investment will also create 3,000 jobs in research and development and manufacturing, which adds to its workforce initiative launched in January that aims to hire 1,000 service technicians in the U.S. The money will support Carrier's broader U.S. operations, a company spokesperson said in an email, such as its recently announced workforce strategy, dubbed Carrier TechVantage Initiative. The program also aims to provide additional training to over 100,000 HVAC technicians within five years. The actions strive to address the growing demand for technical expertise in the commercial HVAC sector due to the rapid growth of data centers, industrial facilities and large-scale infrastructure projects, the company said in the January press release. The initiative is Carrier's push to keep up with the ever-evolving HVAC industry. While the program is included in the $1 billion investment, a specific dollar amount tied to the program was not disclosed, the spokesperson said. Other U.S. operations initiatives include the internal startup launched last year, Carrier Energy, which focuses on optimizing home energy use and supporting grid flexibility, including through heat pump production. The components for Carrier's heat pumps and battery assemblies are a necessity for the HVAC and smart products under its home energy management systems, or HEMS, which monitors energy consumption, the company said. Other HEMS products include solar photovoltaic and digital interconnectivity with the grid, according to Carrier's 2024 annual report. Heat pumps comprise 40% of Carrier's sales, driven by the demand that data centers are adding to the grid, Chairman and CEO David Gitlin said in a May 1 earnings call. The added demand is challenging for utilities during peak hours, he said. 'You think about what most of the demand is during peak, it's your HVAC system... You have both cooling and heating, putting demand on the grid during peak hours,' Gitlin said. The company has not yet selected a site for the new components facility and will not disclose specific details regarding the expansions, but it will share more details as plans progress, the Carrier spokesperson said. The money will also accelerate R&D, such as liquid cooling for data centers and battery-enabled climate solutions technologies under Carrier Energy, the company said. 'We are building for the future by creating high-quality, skilled trade careers and empowering American workers to lead the next generation of manufacturing,' Gitlin said in a statement. 'At the same time, it positions Carrier to capture the tremendous growth ahead in our industry and deliver smart, differentiated solutions for our customers.' Carrier has been adding partnerships to and expanding its data center infrastructure business. In February, the company launched Carrier QuantumLeap, which provides various solutions to manage the entire thermal life cycle for data centers. Later that same month, the company partnered with and invested an undisclosed amount through its venture capital subsidiary in computer hardware company ZutaCore. ZutaCore developed a two-phase direct-to-chip cooling technology for data centers, according to its website. In March, the HVAC system maker began a partnership with Google to strengthen grid resilience and support smarter energy management, according to the software developer's press release. Google will integrate Carrier's battery-powered HVAC technology delivered through its HEMS solutions by using Google Cloud's AI-powered analytics and weather forecast AI models, which Gitlin said will increase the energy efficiency of the infrastructure, reduce grid congestion and costs. 'We see this Google partnership as a tremendous win-win opportunity, not only for us and Google, but for our utility partners as well,' Gitlin said. Recommended Reading 8 manufacturers set to produce cold-climate heat pumps Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
19-05-2025
- Business
- Bloomberg
Carrier CEO Gitlin on Data Centers, US Hiring Plans
Carrier Chair and CEO David Gitlin discusses the company's data center business and plans to invest $1 billion to grow US manufacturing on "Bloomberg The Close." (Source: Bloomberg)
Associated Press
19-05-2025
- Business
- Associated Press
Carrier Hosts 2025 Investor Day to Showcase Transformed Portfolio and Focused Strategy for Growth and Significant Value Creation
PALM BEACH GARDENS, Fla., May 19, 2025 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, is hosting its 2025 Investor Day today at the New York Stock Exchange, beginning at 8:30 a.m. ET. The Carrier leadership team will outline the company's strategy to drive accelerated growth. The event will be webcast live on 'We have a proven track record of expanding adjusted operating margin, generating strong free cash flow and increasing adjusted EPS growth,' said Carrier Chairman & CEO David Gitlin. 'Our transformed portfolio – simplified, focused and balanced – and our strategies around products, aftermarket and systems position us to accelerate organic growth while continuing to expand adjusted operating margins and deliver mid-teens adjusted EPS growth. We look forward to hosting investors and sharing how we plan to build on this momentum over the medium-term.' Medium-Term Financial Framework In conjunction with today's event, the company is presenting its medium-term financial framework to create significant shareholder value: The presentation materials are available on *See 'Use and Definitions of Non-GAAP Financial Measures' below for additional information. About Carrier Carrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating solutions that matter for people and our planet for generations to come. From the beginning, we've led in inventing new technologies and entirely new industries. Today, we continue to lead because we have a world-class, diverse workforce that puts the customer at the center of everything we do. For more information, visit or follow Carrier on social media at @Carrier. CARR-IR Cautionary Statement This 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,' 'medium-term' 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 including growth initiatives and the expected impacts of such initiatives, plans with respect to capital deployment and otherwise, anticipated sales growth, Carrier's medium-term financial framework and targets, 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 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 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. 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 Measures Carrier 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. Contact: Media Inquiries Jason Shockley 561-542-0207 [email protected] Investor Relations Michael Rednor 561-365-2020 [email protected] View original content to download multimedia: SOURCE Carrier Global Corporation
Yahoo
19-05-2025
- Business
- Yahoo
Carrier Hosts 2025 Investor Day to Showcase Transformed Portfolio and Focused Strategy for Growth and Significant Value Creation
Highlights transformed portfolio – simplified, focused and balanced – and strategies to accelerate organic sales growth with differentiated product offerings, aftermarket solutions, and advanced systems designed to expand customer value Details Value Creation Framework targeting 6-8% organic sales growth, over 50 basis points of adjusted operating margin expansion and continued mid-teens adjusted EPS growth Underscores disciplined capital allocation strategy with approximately $15 billion available to deploy over the medium-term towards shareholder value creation PALM BEACH GARDENS, Fla., May 19, 2025 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, is hosting its 2025 Investor Day today at the New York Stock Exchange, beginning at 8:30 a.m. ET. The Carrier leadership team will outline the company's strategy to drive accelerated growth. The event will be webcast live on "We have a proven track record of expanding adjusted operating margin, generating strong free cash flow and increasing adjusted EPS growth," said Carrier Chairman & CEO David Gitlin. "Our transformed portfolio – simplified, focused and balanced – and our strategies around products, aftermarket and systems position us to accelerate organic growth while continuing to expand adjusted operating margins and deliver mid-teens adjusted EPS growth. We look forward to hosting investors and sharing how we plan to build on this momentum over the medium-term." Medium-Term Financial Framework In conjunction with today's event, the company is presenting its medium-term financial framework to create significant shareholder value: ~6-8% organic sales* growth per year More than 50 bps of adjusted operating margin* expansion per year Mid-teens adjusted EPS* growth per year ~100% free cash flow* conversion The presentation materials are available on *See "Use and Definitions of Non-GAAP Financial Measures" below for additional information. About CarrierCarrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating solutions that matter for people and our planet for generations to come. From the beginning, we've led in inventing new technologies and entirely new industries. Today, we continue to lead because we have a world-class, diverse workforce that puts the customer at the center of everything we do. For more information, visit or follow Carrier on social media at @Carrier. CARR-IR 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," "medium-term" 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 including growth initiatives and the expected impacts of such initiatives, plans with respect to capital deployment and otherwise, anticipated sales growth, Carrier's medium-term financial framework and targets, 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 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 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. 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. Contact: Media InquiriesJason Investor RelationsMichael Rednor561-365-2020InvestorRelations@ View original content to download multimedia: SOURCE Carrier Global Corporation Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
CARR Q1 Earnings Call: Management Prioritizes Product Innovation, Cost Controls, and Tariff Mitigation
Heating, ventilation, air conditioning, and refrigeration company Carrier Global (NYSE:CARR) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 3.7% year on year to $5.22 billion. The company's full-year revenue guidance of $23 billion at the midpoint came in 1.5% above analysts' estimates. Its non-GAAP profit of $0.65 per share was 10.9% above analysts' consensus estimates. Is now the time to buy CARR? Find out in our full research report (it's free). Revenue: $5.22 billion vs analyst estimates of $5.2 billion (3.7% year-on-year decline, in line) Adjusted EPS: $0.65 vs analyst estimates of $0.58 (10.9% beat) Adjusted EBITDA: $1.15 billion vs analyst estimates of $1.06 billion (22% margin, 7.7% beat) The company lifted its revenue guidance for the full year to $23 billion at the midpoint from $22.75 billion, a 1.1% increase Management raised its full-year Adjusted EPS guidance to $3.05 at the midpoint, a 1.7% increase Operating Margin: 12.1%, up from 7.1% in the same quarter last year Free Cash Flow was $420 million, up from -$64 million in the same quarter last year Organic Revenue rose 1.6% year on year, in line with the same quarter last year Market Capitalization: $64 billion Carrier Global's first quarter results reflected a combination of steady demand in core markets and management's focus on pricing actions, product mix benefits, and operational discipline. CEO David Gitlin emphasized the momentum in the Climate Solutions Americas segment, particularly in residential and commercial HVAC, along with notable progress in digital solutions and data center cooling. The quarter also saw continued growth in aftermarket services and new product introductions, offsetting softness in certain regional segments such as Asia and light commercial. Looking ahead, management raised revenue and adjusted earnings guidance for the year, citing effective tariff mitigation, increased productivity, and strong order backlogs. Gitlin stated that tariff-related headwinds would be offset by a mix of supply chain actions and pricing, while strategic investments in heat pump technology and partnerships, such as with Google for grid resilience, are expected to support growth. CFO Patrick Goris highlighted that cost containment and operating margin expansion remain key levers for achieving higher profit targets in a dynamic macro environment. Carrier's leadership attributed the quarter's results to product differentiation, aftermarket expansion, and successful execution of tariff mitigation strategies. Strategic partnerships and targeted investments in technology underpin the company's focus on margin growth and resilience against external pressures. Residential and Commercial Strength: Climate Solutions Americas saw about 20% sales growth in both residential and commercial HVAC, supported by regulatory mix benefits and new product launches, especially those leveraging low-global-warming-potential refrigerants like 454B. Aftermarket Momentum: The company's global aftermarket business grew at a double-digit pace, with attachment rates for service agreements on commercial chillers surpassing 60%, reflecting success in upselling value-added services. Tariff Mitigation Actions: Management reported that nearly all tariff exposure was neutralized through supply chain adjustments and productivity, with the remaining cost offset by pricing increases, particularly in the Americas segment. European Heat Pump Demand: Orders for heat pumps in Germany reached their highest first-quarter level in five years, driven by government subsidies and policy support for electrification, helping offset declines in legacy boiler sales. Strategic Partnerships and Digital Solutions: Carrier introduced a partnership with Google to integrate its home energy management systems with Google's AI and cloud analytics, aiming to improve grid efficiency and provide smarter energy solutions for customers. Carrier management expects mid-single-digit organic sales growth and continued margin improvement in the year ahead, driven by ongoing investments in differentiated products, digital solutions, and disciplined cost management. Product and Technology Investments: Expansion in data center cooling and launch of new heat pump products are expected to drive market share gains, particularly in Europe and the Americas. Tariff and Cost Management: The company's ability to offset tariff costs through supply chain actions and price increases is critical for maintaining operating margins, but continued volatility in input costs and trade policy remains a risk. Aftermarket and Service Expansion: Growth in aftermarket services, including higher attachment rates for service agreements and digital monitoring solutions, is intended to provide a recurring revenue stream and support overall profitability. Nigel Coe (Wolfe Research): Asked about the drivers and sustainability of mid-single-digit growth across segments; management pointed to strong Americas performance and tariff-related pricing, but flagged ongoing softness in light commercial and Asia. Julian Mitchell (Barclays): Queried margin progression in the Americas; CFO Patrick Goris explained seasonal improvements in Q2 and Q3, with second-half headwinds from tariffs and lower residential volumes. Andy Kaplowitz (Citigroup): Sought details on Viessmann's outlook and European margin recovery; management expects flat volumes but better product mix due to heat pump adoption, and sees margins rising to low-to-mid teens in coming years. Joe Ritchie (Goldman Sachs): Inquired about distributor inventory levels and the impact of refrigerant transition; CEO Gitlin noted elevated inventories and emphasized careful channel management to avoid second-half risk. Tommy Moll (Stephens): Requested specifics on the Google partnership and its monetization potential; management described early-stage projects focused on grid demand response and digital integration, with commercial details to be developed. In upcoming quarters, the StockStory team will watch (1) the progression of heat pump adoption and related European policy updates, (2) execution on data center cooling and digital product rollouts, and (3) the effectiveness of tariff mitigation and pricing strategies as trade dynamics evolve. Monitoring order backlog conversion and the impact of strategic partnerships, such as the Google collaboration, will also be essential for assessing Carrier's path to sustained growth. Carrier Global currently trades at a forward P/E ratio of 23.9×. Should you load up, cash out, or stay put? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
