Carrier Global’s first quarter results drew a positive market reaction, with management highlighting robust growth in Climate Solutions Americas and steady aftermarket gains. CEO David Gitlin credited stronger-than-expected orders—particularly in residential and commercial segments in the Americas—and improved productivity for supporting margin expansion. The company also cited progress in aftermarket attachment rates and successful mitigation of tariff-related cost pressures as key contributors to the quarter’s performance.
Is now the time to buy CARR? Find out in our full research report (it’s free).
Carrier Global (CARR) Q1 CY2025 Highlights:
- Revenue: $5.22 billion vs analyst estimates of $5.2 billion (3.7% year-on-year decline, in line)
- Adjusted EPS: $0.65 vs analyst estimates of $0.58 (11.3% beat)
- Adjusted EBITDA: $1.15 billion vs analyst estimates of $1.06 billion (22% margin, 7.7% beat)
- The company lifted its revenue guidance for the full year to $23 billion at the midpoint from $22.75 billion, a 1.1% increase
- Management raised its full-year Adjusted EPS guidance to $3.05 at the midpoint, a 1.7% increase
- Operating Margin: 12.1%, up from 7.1% in the same quarter last year
- Organic Revenue rose 1.6% year on year, in line with the same quarter last year
- Market Capitalization: $61.79 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Carrier Global’s Q1 Earnings Call
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Nigel Coe (Wolfe Research) asked how mid-single-digit organic growth would be distributed across segments. CFO Patrick Goris explained Americas would lead with high single-digit growth, while Europe and Asia would see low single digits.
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Julian Mitchell (Barclays) questioned margin seasonality in Americas. Goris clarified that margins would peak mid-year, reflecting tariff headwinds, with full-year averages tempered by lower second-half volumes.
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Andy Kaplowitz (Citigroup) inquired about Viessmann’s growth and margin outlook. CEO David Gitlin said mix improvements in heat pumps should offset lower boiler volumes, supporting flat growth and higher margins for the year.
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Joe Ritchie (Goldman Sachs) asked about the impact of the refrigerant transition (454B) on residential channel inventory. Gitlin stated inventory levels are elevated but manageable, and that the company expects normalized movement as the year progresses.
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Tommy Moll (Stephens) requested details on the Google partnership’s scope. Gitlin described the early-stage collaboration as focused on integrating Carrier’s home energy management with Google’s AI and analytics to optimize grid demand.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will watch (1) the pace of data center cooling adoption and its impact on commercial HVAC growth, (2) progress in Viessmann integration and margin improvement in European operations, and (3) Carrier’s ability to execute pricing strategies to offset tariffs without eroding demand. The rollout of advanced digital service tools and further policy developments in Europe will also be important indicators.
Carrier Global currently trades at $72.75, up from $62.48 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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