Carrier
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Carrier Takes Wall Street, Reports Strong 4Q

Feb. 7, 2024
Industry giant marked successful 2023 by ringing the opening bell today at the New York Stock Exchange.

PRESS RELEASE

PALM BEACH GARDENS, FL, February 6, 2024 – Carrier Global Corporation (NYSE:CARR), global leader in intelligent climate and energy solutions, today reported strong financial results for the fourth quarter and full year of 2023.

The Company projects continued solid organic growth in 2024 supported by a projected fourth consecutive year of double-digit aftermarket growth, innovation, and significant secular tailwinds.

“Our fourth quarter results continue to show Carrier’s ability to perform while transforming
with strong operating profit growth and EPS up over 30% compared to the prior year. For full-year 2023, we grew gross margins 210 basis points on 3% organic sales growth with both operating and free cash flow up about 50% compared to the prior year,” said Carrier Chairman & CEO David Gitlin. “In addition to delivering results ahead of our projections for the year, we completed our game-changing combination with Viessmann Climate Solutions in January and reached definitive agreements to sell both our Global Access Solutions and Commercial Refrigeration businesses for close to $6B combined. Looking forward to 2024, our solid backlog levels and sustainability leadership position Carrier for another year of strong financial performance.”

Fourth Quarter 2023 Results

Carrier’s fourth quarter sales of $5.1B were flat compared to the prior year including flat organic sales growth, a 1% tailwind from currency translation and a 1% net negative impact from acquisitions and divestitures. Sales in the HVAC segment were down 1% organically. North America Residential & Light Commercial HVAC sales declined high single digits due to weaker than expected residential sales as distributors reduced inventory levels. This was offset by high single-digit growth in Commercial HVAC globally.

The Refrigeration segment returned to growth this quarter, with organic sales up 6% driven by growth in Transport Refrigeration. Fire and Security organic sales were down 1% driven by Global Access Solutions and Residential Fire partially offset by growth in Industrial Fire. GAAP operating profit in the quarter of $607M was up 40% from the fourth quarter of 2022. Adjusted operating profit of $557M was up 8%.

Net income and adjusted net income were $420M and $452M, respectively. GAAP EPS of $0.49 and adjusted EPS of $0.53 benefitted from operating margin expansion and lower effective tax rates. Net cash flows provided by operating activities for the quarter were approximately $1.1B and capital expenditures were $233M, resulting in free cash flow of $829M. 

Full-Year 2023 Results

Carrier’s 2023 sales of $22.1B increased 8% compared to the prior year, including flat organic sales growth of 3% and a 5% impact from acquisitions and divestitures. Gross margins increased 210 basis points compared to the prior year. GAAP operating profit of $2.3B decreased 49% due to prior year gains on the sale of Chubb and the acquisition of Toshiba Carrier, while adjusted operating profit increased 11% to $3.2B.

Operating margin decreased due to the prior year impact of the Chubb and Toshiba Carrier-related gains. Adjusted operating margin increased despite the impact from the consolidation of Toshiba Carrier. Strong price realization more than offset continued inflation and productivity savings more than offset strategic incremental investments.

GAAP EPS was $1.58 and adjusted EPS was $2.73. Net income was $1.3B, and adjusted net income was $2.3B. Net cash flows provided by operating activities were $2.6B and capital expenditures were $469M, resulting in free cash flow of $2.1B. During the quarter the company issued $5.6B of debt related to the acquisition of Viessmann Climate Solutions.

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Fourth Quarter 2023 Highlights

• Sales of $5.1B;
• Operating margin expansion of 340 basis points and adjusted operating margin 
expansion of 80 basis points;
• GAAP EPS of $0.49, up 53% vs. 2022 and adjusted EPS of $0.53, up 33% vs. 2022;
• Net cash flow from operating activities of $1.1B and free cash flow of $829M.

Full Year 2023 Highlights

• Sales of $22.1B, up 8% compared to 2022 including 3% organic growth
• Gross margins up 210 basis points compared to 2022
• GAAP EPS of $1.58 and adjusted EPS of $2.73
• Net cash flow from operating activities of $2.6B and free cash flow of $2.1B, up 49% and 
53% respectively

Outlook for 2024

• Global Access Solutions and Commercial Refrigeration included through June 30, 2024
• Viessmann Climate Solutions sales expected to grow mid-single-digits
• Assumes ~$4.5B net proceeds from business exits are used for debt reduction 
• Sales of ~$26.5B with mid-single-digit organic* growth
• Adjusted operating margin* of 15.0% - 15.5%, up > 50 basis points compared to 2023
• Adjusted EPS* of $2.80 - $2.90
• Free cash flow* of ~$0.7B (includes $1.7B of expected tax payments on the gains from 
the announced business exits, restructuring, and transaction-related costs): up ~10% 
excluding these expected items.

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