Carrier Global Corporation (CARR) SEC Filings & Earnings Calls

Input cost inflation and unfavorable mix pressuring margins across segments.

“Adjusted operating margin down 190 bps; CSA down 260 bps; CSAME down 350 bps due to unfavorable mix and input costs.”

Middle East conflict impacting JV income in CSAME segment.

“Lower JV income due to impacts from the Middle East conflict.”

NORESCO exit and new U.S. factory costs creating ~$0.05 adj. EPS headwind.

“Includes ~($0.05) adj. EPS impact from NORESCO exit and new U.S. factory costs.” · word for word

Tariff exposure and margin pressure

“Gross margin decreased by $41 million compared with the three months ended June 30, 2025, primarily due to higher input costs, including the impact of tariffs, and unfavorable business mix.” · word for word

China demand weakness

“Results in China decreased (down 14%) as end-markets experienced economic challenges impacting both demand and price.” · word for word

Integration and divestiture execution risk

“The sale of Riello was completed on July 1, 2026.” · word for word

No material risk; routine board appointment.

“Standard director appointment.”

Residential HVAC demand weakness in Americas and China RLC continues to pressure margins.

“CSA Residential down about 12%; China RLC weakness; segment operating margin -730 bps in CSA”

Free cash flow negative in Q1 due to working capital and capex.

“Free cash flow of ($15) million” · word for word

Residential demand weakness

“Lower volume in our residential business (down 12%) was primarily driven by reduced end-market demand.” · word for word

China economic headwinds

“Results in China decreased (down 13%) as end-markets experienced economic challenges impacting both demand and price.” · word for word

Tariff uncertainty

“in 2026 we continue to evaluate and assess any potential exposure to the impacts of these tariffs, including impacts to supply chains and cost structures.” · word for word

Gross margin compression

“Gross margin as a percentage of Net sales decreased by 440 basis points compared with the same period of 2025.” · word for word

Below-target financial performance

“final Company Performance Factor of 39% of target” · word for word

Residential and light commercial headwinds

“global market softness in residential and light commercial” · word for word

Severe residential HVAC demand downturn in Americas with 38% decline.

“Residential, down 38%, and Light Commercial down 20%” · word for word

Distributor destocking in Americas adding to volume pressure.

“weaker residential end-markets and distributor destocking in the Americas” · word for word

Residential HVAC demand weakness

“Lower volume in our residential business (down 9%) was primarily due to reduced end-market demand and distributor destocking.” · word for word

China economic exposure

“Results in China decreased (down 12%) as residential end-markets experienced economic challenges impacting both demand and price.” · word for word

Goodwill impairment risk in Europe

“the reporting unit had a fair value of approximately 14% above its carrying value.” · word for word

Residential demand weakness and distributor destocking in Americas

“Residential down about 30% in Americas; distributor destocking”

Residential HVAC demand weakness

“lower volume in our residential business (down 30%) primarily due to reduced end-market demand and distributor destocking” · word for word

Tariff exposure

“Based on our updated analysis, we expect to fully mitigate our expected 2025 impact from tariffs announced to date through supply chain and productivity actions as well as approximately $200 million of incremental product pricing actions.” · word for word

Warranty cost pressure

“costs associated with warranty-related issues further impacted the segment” · word for word