• Organic Orders Growth: Up approximately 20% year-over-year.

• Organic Sales Growth: 4% increase.

• Aftermarket Growth: Double-digit growth, on track for the fourth consecutive year.

• Share Repurchase: Approximately $400 million worth of shares repurchased in Q3; $5 billion expected between the second half of this year and the end of next year.

• Reported Sales: $6 billion, up 21% year-over-year.

• Adjusted Operating Profit: Over $1 billion, up 19% compared to last year.

• Adjusted Operating Margin: Down 40 basis points; year-to-date margin up 120 basis points.

• Adjusted EPS from Continuing Operations: $0.77, up 3% year-over-year.

• Preliminary Free Cash Flow: Outflow of about $370 million in Q3; underlying performance approximately $700 million.

• HVAC Segment Operating Margins: Down 100 basis points; Visteon Climate Solutions impact of 200 basis points headwind.

• Refrigeration Segment Sales: Up 1%; transport refrigeration up 3%.

• Commercial Refrigeration Sales: Approximately $750 million year-to-date.

• Free Cash Flow Outlook: Outflow of $200 million for the year; underlying performance above $2.4 billion.

• Capital Expenditures: Expected to be about $500 million.

• Cash Restructuring: Closer to $150 million.

• Warning! GuruFocus has detected 8 Warning Signs with CARR.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Carrier Global Corp (NYSE:CARR) reported a 20% increase in organic orders compared to last year, indicating strong demand and positioning for future growth.

• The company achieved 4% organic sales growth, driven by strong performance in key verticals such as data centers and decarbonization-related infrastructure.

• Carrier Global Corp (NYSE:CARR) delivered double-digit aftermarket growth for the fourth consecutive year, highlighting the success of its aftermarket strategy.

• The company repurchased approximately $400 million worth of shares in Q3 and plans to repurchase around $5 billion worth of shares by the end of next year, demonstrating a commitment to returning value to shareholders.

• Carrier Global Corp (NYSE:CARR) is on track to complete its portfolio transformation by year-end, with the sale of its commercial refrigeration business already closed and the final divestiture of its commercial and residential fire business expected soon.

Negative Points

• Carrier Global Corp (NYSE:CARR) faced continued headwinds in residential and light commercial HVAC markets in Europe and China, impacting overall sales growth.

• The company's adjusted operating margin was down 40 basis points in Q3, partly due to the deconsolidation of Visteon Climate Solutions, which represented a 130 basis point headwind.

• Preliminary free cash flow was an outflow of about $370 million in the quarter, impacted by cash taxes on business exit gains and transaction costs.

• The refrigeration segment experienced a decline in North America truck and trailer sales, down over 15%, contributing to a challenging market environment.

• Carrier Global Corp (NYSE:CARR) adjusted its full-year sales expectation to $22.5 billion, reflecting a transition to discontinued operations for its Fire & Security exits, which impacted overall guidance.