Carrier Global Corporation: A Good Quarter Despite Market Weakness, Says Jim Cramer

Carrier Global Corporation (CARR) reported a good quarter with sales up 6% and earnings up 26%, despite a 14.9% drop in July after its second quarter earnings report. The company's aftermarket business saw a 13% increase, and its data center business is on track to double this year to $1 billion. Jim Cramer praised the company's performance, calling it a "remarkable job" by CEO David Gitlin.

Carrier Global Corporation (CARR) reported a robust second quarter (Q2) 2025, with sales up 6% year-on-year and earnings increasing by 26%, despite a significant 14.9% drop in July following the earnings announcement. The company's aftermarket business experienced a 13% increase, while its data center business is poised to double this year, reaching $1 billion. Jim Cramer praised the company's performance, describing it as a "remarkable job" by CEO David Gitlin [1].

Carrier Global's Q2 revenue totaled $6.11 billion, meeting Wall Street's expectations and representing a 3% year-on-year growth. The company's non-GAAP profit per share was $0.92, surpassing analysts' consensus estimates by 2% [1]. The company's revenue guidance for the full year was set at $23 billion at the midpoint, aligning with analysts' projections [1].

Despite the strong Q2 performance, the stock experienced a significant drop in July. This could be attributed to the company's 14.9% drop in July, which followed the earnings report. The drop may have been influenced by concerns about the company's operating margin, which decreased by 5 percentage points over the last five years, indicating potential challenges with the company's expense base [1].

Carrier Global's data center business is a significant growth driver, with the segment on track to reach $1 billion in revenue this year. The company's aftermarket business also performed well, with a 13% increase in sales. These strong performances suggest that Carrier Global is well-positioned to capitalize on growth opportunities in high-growth segments like data center cooling [2].

Looking ahead, the company's reaffirmed sales outlook of $23 billion for 2025 provides a stable short-term demand environment. However, ongoing margin challenges and regional weaknesses remain key risks [2]. The company's filing of a $1.36 billion common stock shelf registration also stands out, providing greater financial flexibility for future growth opportunities [2].

References:
[1] https://finance.yahoo.com/news/carrier-global-nyse-carr-q2-102007087.html
[2] https://simplywall.st/stocks/us/capital-goods/nyse-carr/carrier-global/news/can-carrier-globals-carr-reaffirmed-sales-guidance-outweigh