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Carrier Global (CARR) FY2025 results: revenue $21.7 billion, down 3.3% on the year

Carrier Global Corp. (CARR) reported revenue of $21.7 billion for fiscal 2025, the year ended 31 December 2025, down 3.3% on the year before. Net income was $1.5 billion, down 73.5%, and diluted earnings per share $1.72. The figures are the company's own, from the 10-K it filed with the SEC on 5 February 2026.

Revenue
$21.7 billion
-3.3% on the year
FY2018FY2025
Operating margin
10.0%
11.8% a year earlier
FY2018FY2025
Net income
$1.5 billion
-73.5% on the year
FY2018FY2025
Diluted EPS
$1.72
-72.0% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 9 new.

  • Sales fell 6% on lower organic volume: Net sales were $4,837 million, down 6% from $5,148 million. Organic sales fell 9%, partly offset by a 3% currency tailwind from translation.
  • Operating profit fell 87%: GAAP operating profit was $101 million, down 87%, reflecting last year's gain on the commercial refrigeration sale. Commercial HVAC and aftermarket strength and operating efficiencies partly offset the decline.
  • Adjusted operating profit fell 33%: Adjusted operating profit was $455 million, down 33%, mainly on lower volume in the Americas residential business. Profit grew in Climate Solutions Europe and Transportation, partly offsetting that.
  • Americas residential volume fell sharply: Climate Solutions Americas sales fell 17% to $1,935 million and segment margin fell to 8.7% from 18.6%. Commercial was up double digits, while residential fell 38% and light commercial 20%.
  • Full-year sales down 3%: Full-year sales were $21.75 billion, down 3% from 2024, with organic sales down 1%. Management said global commercial HVAC and aftermarket each grew double digits, excluding NORESCO.
Read the Q4 FY2025 earnings call summary

From this 10-K

Carrier makes heating, cooling and refrigeration equipment and sells the services around it: audit, design, installation, system integration, repair, maintenance and monitoring. Its brands include Carrier, Viessmann, Toshiba, Automated Logic, Bryant, CIAT, Day & Night, Heil, NORESCO, Carrier Transicold and Sensitech. In 2025 new equipment was 72 percent of net sales and parts and service 28 percent, and international operations including exports from the United States were approximately 52 percent of net sales. The company was spun out of United Technologies, now RTX, on 3 April 2020, distributed one-for-one to United Technologies shareholders; of the agreements signed then, only parts of the tax matters agreement were still in force at the end of 2025.

Carrier Global Corp., the 10-K for 2025

Carrier makes heating, cooling and refrigeration equipment and sells the services around it: audit, design, installation, system integration, repair, maintenance and monitoring. Its brands include Carrier, Viessmann, Toshiba, Automated Logic, Bryant, CIAT, Day & Night, Heil, NORESCO, Carrier Transicold and Sensitech. In 2025 new equipment was 72 percent of net sales and parts and service 28 percent, and international operations including exports from the United States were approximately 52 percent of net sales. The company was spun out of United Technologies, now RTX, on 3 April 2020, distributed one-for-one to United Technologies shareholders; of the agreements signed then, only parts of the tax matters agreement were still in force at the end of 2025.

The four segments

The reporting structure was changed in May 2025 to four segments: Climate Solutions Americas, Climate Solutions Europe, Climate Solutions Asia Pacific, Middle East and Africa, and Climate Solutions Transportation. The three regional climate segments sell air conditioners, heat pumps, heating systems, home and building energy management systems, aftermarket components, repair and maintenance, rentals, and modernisation and upgrades over a product's life. Customers run across residential, commercial, education, healthcare, technology, retail, hospitality, data centre and infrastructure markets. Sales go directly to building contractors and owners and indirectly through joint ventures, independent sales representatives, distributors, wholesalers, dealers and retail outlets.

Transportation

Climate Solutions Transportation keeps food, medicine and other perishable cargo cold in transit, with equipment for trucks, trailers, shipping containers and intermodal use, on the road and at sea, plus maintenance, repair and monitoring. It is sold under Carrier Transicold and Sensitech, direct to transport companies and indirectly through joint ventures, representatives, distributors, wholesalers and dealers, and offered in both fossil fuel and electric versions. On-demand and subscription monitoring of cargo is part of the service line, along with modifications and upgrades to equipment already in the field.

Reshaping the portfolio

Since 2023 the company has been narrowing itself to climate and energy. On 2 January 2024 it bought the climate solutions business of Viessmann Group, a residential and light commercial HVAC business in Europe, now reported mostly in Climate Solutions Europe. It sold the Commercial and Residential Fire, Access Solutions and Industrial Fire businesses, which had been the Fire and Security segment, as a single disposal plan carried out over several reporting periods and presented as discontinued operations, and sold the Commercial Refrigeration business during 2024. On 16 December 2025 it agreed to sell Riello, a maker of burners, boilers, heat pumps, cooling systems and aftermarket services reported mostly in Climate Solutions Europe, to Ariston Group for expected gross proceeds of approximately $430 million, with completion expected in the first half of 2026 subject to conditions and regulatory approval.

Carrier Energy

Carrier Energy is a newer business selling energy management: optimising home energy use, providing grid flexibility and freeing up energy capacity. The company states that it also deepens the digital connection to end customers, which opens the way to selling services and aftermarket parts over the life of a product.

Supply, competition and people

Components and raw materials, including copper, aluminium, steel, semiconductors and other electronic parts, come from suppliers and commodity markets, bought through a central sourcing group that consolidates purchases across segments; investment in the supply chain has gone to automation, dual sourcing of critical components and localised manufacturing where feasible. The filing names technology differentiation, product performance, service, delivery schedule and price as the main competitive factors, with brand reputation and quality behind them, and states that losing any single contract or customer would not materially affect results. There were approximately 47,000 employees worldwide at the end of 2025, across more than 52 countries: 34 percent in the Americas, 36 percent in Europe and 30 percent in Asia Pacific, the Middle East and Africa. In the United States, 78 percent of approximately 3,800 production and maintenance employees were covered by six collective bargaining agreements expiring between 2026 and 2029; in Europe approximately 16,500 employees are represented by a European Works Council, with 42 local works councils and unions at approximately 40 sites. The recordable incident rate for 2025, counting employee injuries per 200,000 hours worked, was 0.35, and the lost time incident rate was 0.13.

From Carrier's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 5 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue21,74722,48618,951-3.3%
Cost of revenue16,12316,50513,789-2.3%
Gross profit5,6245,9815,162-6.0%
Gross margin25.9%26.6%27.2%
Research and development625686493-8.9%
Selling, general and administrative3,0923,1972,607-3.3%
Operating income2,1722,6462,160-17.9%
Operating margin10.0%11.8%11.4%
Interest expense458580306-21.0%
Pre-tax income1,7982,2741,999-20.9%
Income tax2401,062521-77.4%
Effective tax rate13.3%46.7%26.1%
Net income1,4845,6041,349-73.5%
Net margin6.8%24.9%7.1%
Diluted EPS$1.72$6.15$1.58-72.0%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow2,5135632,607+346.4%
Capital expenditure392519439-24.5%
Free cash flow2,12144.02,168+4,720.5%
Free cash flow margin9.8%0.2%11.4%
Cash from investing-307-2,025-660
Cash from financing-4,672-4,6364,612
Depreciation and amortisation1,2741,232491+3.4%
Share-based compensation74.098.081.0-24.5%
Buybacks2,8921,94462.0+48.8%
Dividends paid772670620+15.2%
Dividend per share$0.68$0.80$0.74-15.1%
Diluted shares, weighted862m912m853m-5.4%
Shares outstanding at period end836m878m840m-4.8%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity14,12814,3959,005-1.9%
Debt11,83312,36214,293-4.3%
Operating lease liabilities418432333-3.2%
Other liabilities10,81110,2149,191+5.8%
Total liabilities and equity37,19037,40332,822-0.6%
Fixed assets3,1652,9992,160+5.5%
Goodwill15,50114,6017,520+6.2%
Intangible assets6,3266,432945-1.6%
Cash and equivalents1,5553,9699,852-60.8%
Receivables2,6392,6512,080-0.5%
Inventory2,4832,2991,823+8.0%
Other assets5,5214,4528,442+24.0%
Total assets37,19037,40332,822-0.6%

10-K for the year ended 31 December 2025, filed 5 February 2026: the filing.