Carrier Global reported second-quarter 2026 results with net sales of $6.35 billion and adjusted diluted EPS of $0.86, while GAAP EPS from continuing operations was $0.60. The company generated $927 million of operating cash flow and $810 million of free cash flow, returned roughly $640 million to shareholders, and raised full‑year guidance to about $23 billion in sales and ~$2.90 adjusted EPS. Carrier cited strong orders—notably in data centers—and improving end markets that supported earlier-than-expected organic sales growth.

Financial Highlights

  • Revenue: Total net sales of $6,351 million for Q2 2026, up 4% versus prior year.
  • Operating income: GAAP operating profit of $825 million for the quarter; operating margin 13.0%.
  • Adjusted operating profit: $1,095 million; adjusted operating margin 17.2%.
  • Net income and EPS: Net earnings attributable to common shareowners of $501 million; GAAP diluted EPS from continuing operations $0.60 and adjusted diluted EPS $0.86.
  • Cash flow and capital returns: Net cash provided by operating activities $927 million; free cash flow $810 million; returned approximately $640 million to shareholders via dividends and repurchases.

Business Highlights

  • Order momentum: Total company orders rose about 40%; Commercial HVAC orders up ~65%; data center orders increased over 300% (excludes NORESCO and Riello exits where noted).
  • Organic growth drivers: Organic sales increased 3% companywide, with Climate Solutions Americas showing 4% organic growth driven by Residential and Light Commercial (RLC) strength.
  • Segment performance: CSA sales grew 4% with RLC up mid-to-high single digits; Climate Solutions Europe and CSAME also reported mid-single-digit sales increases, while Climate Solutions Transportation saw strong Container growth offset by declines in Global Truck and Trailer.
  • Margin and mix impacts: Adjusted operating margin declined year-over-year (down 190 bps) due to higher input costs and unfavorable business mix despite favorable pricing and productivity actions; several segments reported margin contraction driven by mix and lower JV income in CSAME.
  • Portfolio actions and capacity: Completed Riello divestiture (July 1) and announced NORESCO exit; noted investments including new U.S. factory costs factored into updated full‑year outlook.

Original SEC Filing:

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