Carrier Global 2025 Q1 Earnings Beats Expectations as Net Income Soars 51.2%
Friday, May 2, 2025 1:27 am ET
5min read Carrier Global (CARR) reported its fiscal 2025 Q1 earnings on May 01st, 2025. carrier global Corp's Q1 2025 earnings exceeded expectations, with adjusted earnings per share (EPS) of $0.65, surpassing analysts' estimates of $0.58. The company also raised its full-year guidance, projecting adjusted EPS between $3.00 and $3.10, an increase from the previous range of $2.95 to $3.05. Revenue for the quarter was $5.218 billion, slightly above analysts’ expectations of $5.19 billion despite a year-over-year decline due to divestitures. Carrier Global continues to demonstrate strong financial performance amidst a challenging economic landscape.
Revenue
Carrier Global's total revenue for Q1 2025 amounted to $5.22 billion, reflecting a 3.7% decrease from the previous year. The Climate Solutions Americas segment contributed significantly with $2.57 billion. Climate Solutions Europe generated $1.17 billion, while the Asia Pacific, Middle East & Africa segment recorded $826 million. Additionally, Climate Solutions Transportation achieved $651 million. Despite the decline, the company's diverse geographic presence highlights its ability to adapt to market fluctuations.
Earnings/Net Income
Carrier Global's EPS rose significantly by 56.7% to $0.47 in Q1 2025, up from $0.30 in the same quarter of the previous year, showcasing continued earnings growth. The company also reported a net income of $437 million, a 51.2% increase from $289 million in Q1 2024. This robust performance indicates a positive trajectory for the company's profitability.
Post-Earnings Price Action Review
Carrier Global's stock price has historically shown a negative correlation with earnings metrics such as revenue, net income, and EPS, with a maximum return of -0.11% during the backtested period. This suggests that these financial indicators may not always result in positive stock price movements for the company. Despite this trend, the recent earnings report has propelled the stock price upward, highlighting a potential shift in market perception. Investors may be reacting favorably to the company's strong earnings growth and optimistic guidance, which could indicate a more positive outlook for Carrier Global’s future performance. Understanding this dynamic is crucial for stakeholders assessing the company's financial health and market position.
CEO Commentary
David Gitlin, Chairman and CEO, highlighted the strong Q1 2025 performance, attributing success to high single-digit order growth and double-digit expansion in Climate Solutions, Europe, and Transportation. Gitlin emphasized the importance of differentiated products, strategic partnerships, and a customer-focused approach in sustaining growth. Despite challenges, particularly in light commercial sectors, the company remains optimistic about navigating macroeconomic uncertainties and delivering value to customers and shareholders.
Guidance
Carrier Global has revised its full-year adjusted EPS guidance upward to a range of $3.00 to $3.10, reflecting a 20% year-over-year growth. The company anticipates mid-single-digit organic sales growth and projects total sales to surpass $23 billion, with an expected $6 billion in sales for Q2. Furthermore, targets include free cash flow between $2.4 billion and $2.6 billion, alongside continued margin expansion across segments.
Additional News
Recently, Carrier Global has focused on mitigating the impact of existing tariffs, demonstrating resilience in adapting to global trade challenges. The company has also announced a substantial share repurchase program, returning $1.3 billion to shareholders, alongside $200 million in dividends. Additionally, Carrier Global has successfully transitioned to new segment reporting, enhancing transparency for investors and aligning with its strategic business direction. These initiatives underscore the company's commitment to maintaining shareholder value and operational efficiency amidst an evolving economic landscape.
Revenue
Carrier Global's total revenue for Q1 2025 amounted to $5.22 billion, reflecting a 3.7% decrease from the previous year. The Climate Solutions Americas segment contributed significantly with $2.57 billion. Climate Solutions Europe generated $1.17 billion, while the Asia Pacific, Middle East & Africa segment recorded $826 million. Additionally, Climate Solutions Transportation achieved $651 million. Despite the decline, the company's diverse geographic presence highlights its ability to adapt to market fluctuations.
Earnings/Net Income
Carrier Global's EPS rose significantly by 56.7% to $0.47 in Q1 2025, up from $0.30 in the same quarter of the previous year, showcasing continued earnings growth. The company also reported a net income of $437 million, a 51.2% increase from $289 million in Q1 2024. This robust performance indicates a positive trajectory for the company's profitability.
Post-Earnings Price Action Review
Carrier Global's stock price has historically shown a negative correlation with earnings metrics such as revenue, net income, and EPS, with a maximum return of -0.11% during the backtested period. This suggests that these financial indicators may not always result in positive stock price movements for the company. Despite this trend, the recent earnings report has propelled the stock price upward, highlighting a potential shift in market perception. Investors may be reacting favorably to the company's strong earnings growth and optimistic guidance, which could indicate a more positive outlook for Carrier Global’s future performance. Understanding this dynamic is crucial for stakeholders assessing the company's financial health and market position.
CEO Commentary
David Gitlin, Chairman and CEO, highlighted the strong Q1 2025 performance, attributing success to high single-digit order growth and double-digit expansion in Climate Solutions, Europe, and Transportation. Gitlin emphasized the importance of differentiated products, strategic partnerships, and a customer-focused approach in sustaining growth. Despite challenges, particularly in light commercial sectors, the company remains optimistic about navigating macroeconomic uncertainties and delivering value to customers and shareholders.
Guidance
Carrier Global has revised its full-year adjusted EPS guidance upward to a range of $3.00 to $3.10, reflecting a 20% year-over-year growth. The company anticipates mid-single-digit organic sales growth and projects total sales to surpass $23 billion, with an expected $6 billion in sales for Q2. Furthermore, targets include free cash flow between $2.4 billion and $2.6 billion, alongside continued margin expansion across segments.
Additional News
Recently, Carrier Global has focused on mitigating the impact of existing tariffs, demonstrating resilience in adapting to global trade challenges. The company has also announced a substantial share repurchase program, returning $1.3 billion to shareholders, alongside $200 million in dividends. Additionally, Carrier Global has successfully transitioned to new segment reporting, enhancing transparency for investors and aligning with its strategic business direction. These initiatives underscore the company's commitment to maintaining shareholder value and operational efficiency amidst an evolving economic landscape.
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