Carrier Q2 revenue rises on Climate Solutions Americas segment growth

Overview

• Climate and energy solutions provider's Q2 revenue rose 4% yr/yr, adjusted EPS fell 7%

• Company raised full-year outlook for sales, adjusted operating profit and adjusted EPS

• Carrier returned ~$640 mln to shareholders via dividends and repurchases in Q2

Outlook

• Carrier raises 2026 sales outlook to ~$23 bln from ~$22 bln

• Company now expects 2026 adj. operating profit of ~$3.5 bln, up from ~$3.4 bln

• Carrier lifts 2026 adj. EPS forecast to ~$2.90, including ~($0.05) impact from NORESCO exit and new U.S. factory costs

Result Drivers

• CSA SEGMENT GROWTH - Organic sales growth was driven by strong performance in Residential and Light Commercial within the Climate Solutions Americas segment

• INPUT COSTS AND MIX - Adjusted operating margin declined due to increased input costs and unfavorable business mix, which more than offset volume and productivity gains

• DATA CENTER DEMAND - Strong global orders were supported by continued demand from data center customers

Company press release: ID:nPn2C92pha

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Carrier Global Corp is $76.00, about 9.6% above its July 27 closing price of $69.33

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads

• July 27 - Simpson Manufacturing Q2 sales rise on growth in North America, Europe segments

• July 27 - Canada's Celestica Q2 results beat estimates on strong data center, cloud demand

• July 27 - Applied Digital beats quarterly revenue estimates on surging AI infrastructure demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)