Investment Thesis
Carrier demonstrates solid operational fundamentals with healthy free cash flow generation (9.8% FCF margin) and manageable leverage (0.80x debt/equity), but faces headwinds from declining revenues (-3.3% YoY) and materially compressed earnings (-6.5% YoY net income, -72% EPS). The company's industrial positioning and cash generation provide stability, though the revenue contraction and earnings pressure suggest near-term operational challenges.
CARR Strengths
- Strong free cash flow generation at $2.1B with 9.8% FCF margin, enabling debt service and investment
- Solid interest coverage ratio of 4.7x indicates comfortable debt servicing capability
- Moderate leverage at 0.80x debt/equity with reasonable balance sheet structure
- Respectable operating margin of 10% in a cyclical industrial business demonstrates operational efficiency
CARR Risks
- Revenue declining 3.3% YoY signaling weakening demand in HVAC and refrigeration markets
- Net income down 6.5% YoY with EPS collapsing 72% YoY, indicating significant profitability pressure
- Current ratio of 1.20x and quick ratio of 0.85x suggest tightening working capital with limited liquidity cushion
- High long-term debt of $11.4B (31% of total assets) creates refinancing risk in rising rate environment
Key Metrics to Watch
- Revenue trend reversal and organic growth trajectory
- Operating margin sustainability amid cost pressures
- Free cash flow conversion and debt paydown progress
- Working capital efficiency and current ratio improvement
CARR Financial Metrics
CARR Profitability Ratios
CARR Balance Sheet & Liquidity
CARR 5-Year Financial Trend
5-Year Trend Summary: CARRIER GLOBAL Corp's revenue has shown modest growth of 9% over the 5-year period. The most recent EPS of $1.58 reflects profitable operations.
CARR Growth Metrics (YoY)
CARR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $5.6B | $428.0M | $0.49 |
| Q2 2025 | $5.9B | $591.0M | $0.68 |
| Q1 2025 | $5.2B | $269.0M | $0.29 |
| Q3 2024 | $4.9B | $357.0M | $0.42 |
| Q2 2024 | $6.0B | N/A | $0.23 |
| Q1 2024 | $5.3B | N/A | $0.29 |
| Q3 2023 | $5.5B | N/A | $0.42 |
| Q2 2023 | $5.2B | N/A | $0.23 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CARR Capital Allocation
CARR SEC Filings
Access official SEC EDGAR filings for CARRIER GLOBAL Corp (CIK: 0001783180)