Carrier Global Corporation (NYSE: CARR) reported its fourth quarter and full year financial results for 2025, showing a decline in net sales but strong operating cash flow and robust shareholder returns, according to its earnings press release.
For the quarter ended December 31, 2025, Carrier’s net sales were $4.84 billion, down 6% from $5.15 billion in the same period a year earlier. Organic sales — excluding the effects of foreign exchange, acquisitions and divestitures — declined 9%.
Fourth Quarter 2025 Financial Results
Carrier reported a significant drop in operating profit for the quarter. GAAP operating profit was $101 million, down sharply from $774 million in the prior year period, largely reflecting the absence of a gain from the sale of its commercial refrigeration business in 2024 and weakness in certain end markets. Adjusted operating profit was $455 million, a 33% decline from the year-ago quarter.
Diluted earnings per share (EPS) from continuing operations were reported at $0.03 on a GAAP basis. On an adjusted basis, EPS was $0.34, compared with $0.54 in the fourth quarter of 2024.
The company said lower volume in its Climate Solutions Americas residential business and distributor destocking in the Americas weighed on quarterly results. These declines were partially offset by strong demand in global commercial HVAC and aftermarket businesses.
Segment Performance
- Climate Solutions Americas: Net sales declined 17%, driven by broad weakness in residential and light commercial markets. Segment operating profit fell 61%.
- Climate Solutions Europe: Sales increased 6%, while segment operating profit rose 50%, supported by productivity improvements.
- Climate Solutions Asia Pacific, Middle East & Africa: Sales and operating performance declined modestly amid reduced residential volumes.
- Climate Solutions Transportation: Sales grew 13% with an 10% organic increase, and segment margin expanded slightly.
Full Year 2025 Highlights
For the full year, Carrier reported net sales of $21.75 billion, down 3% compared with $22.49 billion in 2024. GAAP EPS from continuing operations was $1.69, while adjusted EPS was $2.59.
The company achieved an operating margin of 10.0%, with an adjusted operating margin of 15.1% for the full year. Carrier also reported double-digit growth in commercial HVAC and aftermarket businesses for 2025.
Cash Flow and Capital Returns
Carrier generated strong cash flows in both the quarter and full year. Net cash flow from operating activities was $1.04 billion for Q4 and $2.51 billion for the full year. Free cash flow totaled $909 million for the quarter and $2.12 billion for the year.
The company returned approximately $3.7 billion to shareholders in 2025. This included $0.8 billion in dividends and $2.9 billion in share repurchases.
Outlook for 2026
Carrier provided guidance for 2026, assuming the divestiture of Riello by the end of the first quarter. The company expects reported sales to be roughly flat to low-single-digit growth, with adjusted operating profit of about $3.4 billion and adjusted EPS near $2.80. Free cash flow is forecast at approximately $2 billion, and share repurchases of about $1.5 billion are planned.
Carrier will host a webcast of its earnings conference call to discuss results and outlook further.