Q1 2025 Carrier Global Corp Earnings Call Transcript
Key Points
- Carrier Global Corp (CARR) reported a strong start to 2025 with orders up high single digits and double-digit growth in Climate Solutions, Europe, and Transportation.
- The company achieved 27% adjusted EPS growth on 2% organic growth, with a free cash flow of $420 million.
- Carrier Global Corp (CARR) introduced new products, such as the first air-cooled commercial heat pump in Europe, enhancing energy efficiency and operational performance.
- The aftermarket segment showed robust growth, with commercial HVAC aftermarket up about 10% and margin upgrades growing by 20%.
- Carrier Global Corp (CARR) increased its full-year adjusted EPS guidance to $3 to $3.10, reflecting a 20% year-over-year increase.
- The Climate Solutions segment in Asia, Middle East, and Africa underperformed, with organic sales down 6% due to weakness in residential China and parts of Southeast Asia.
- Light Commercial sales were lower than expected, down around 35%, impacting the overall sales outlook.
- The residential and light commercial business in Europe saw a 10% decline in organic sales, although it is expected to return to modest growth in the second quarter.
- Carrier Global Corp (CARR) faces a $300 million tariff exposure, which it plans to offset through pricing strategies.
- The company's legacy residential light commercial business in Europe is operating with low single-digit margins, indicating room for improvement.
Good morning, and welcome to Carrier's first quarter 2025 earnings conference call. I would like to introduce your host for today's conference, Michael Rednor, Vice President of Investor Relations. Please go ahead.
Good morning, and welcome to Carrier's First Quarter 2025 Earnings Conference Call. On the call with me today are David Gitlin, Chairman and Chief Executive Officer; and Patrick Goris, Chief Financial Officer. Except where otherwise noted, the company will speak to results from continuing operations, excluding restructuring costs amortization of acquired intangibles and certain significant nonrecurring items such as acquisition and divestiture-related costs. A reconciliation of these and other non-GAAP financial measures can be found in the appendix of the webcast.
We also remind listeners that the presentation contains forward-looking statements, which are subject to risks and uncertainties. Carrier's SEC filings and Form 10-K and quarterly reports on Form 10-Q
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