On October 24, 2024, Carrier Global Corp (CARR, Financial) released its 8-K filing detailing its financial performance for the third quarter of 2024. Carrier Global, a leader in intelligent climate and energy solutions, manufactures heating, ventilation, and air conditioning (HVAC), refrigeration, and fire and security products. The company is in the process of divesting its fire and security and commercial refrigeration businesses, while it recently acquired Germany-based Viessmann for approximately $13 billion.
Performance Overview
Carrier Global Corp reported net sales of $6.0 billion for Q3 2024, marking a 21% increase compared to the same period last year. This growth was driven by a 4% rise in organic sales and a significant 17% contribution from acquisitions, notably Viessmann Climate Solutions. However, the reported revenue fell short of the analyst estimate of $6,451.22 million. The company's GAAP earnings per share (EPS) from continuing operations stood at $0.62, while adjusted EPS was $0.77, surpassing the analyst estimate of $0.64.
Financial Achievements and Challenges
The company's strong performance is underscored by a 50% increase in GAAP operating profit to $0.8 billion, primarily due to operational improvements and the Viessmann acquisition. Adjusted operating profit from continuing operations rose by 19% to over $1.0 billion. Despite these achievements, Carrier faces challenges related to its strategic divestitures and the impact of discontinued operations on its financial guidance.
Income Statement Highlights
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $5,984 million | $4,935 million |
| GAAP EPS (Continuing Operations) | $0.62 | $0.32 |
| Adjusted EPS (Continuing Operations) | $0.77 | $0.32 |
Balance Sheet and Cash Flow
Carrier's balance sheet reflects total assets of $40.2 billion as of September 30, 2024, up from $32.8 billion at the end of 2023. This increase is largely attributed to the acquisition of Viessmann. The company reported preliminary net cash flows from operating activities of $431 million for the first nine months of 2024, with capital expenditures totaling $312 million, resulting in a free cash flow of $119 million.
Strategic Initiatives and Shareholder Returns
Carrier's strategic focus on portfolio transformation is evident in its decision to divest non-core businesses and concentrate on high-growth areas. The company has also increased its share repurchase authorization to $4.7 billion, reflecting its commitment to delivering shareholder value through disciplined capital allocation.
“We delivered another quarter of strong financial performance while making significant progress on our portfolio transformation,” said Carrier Chair & CEO David Gitlin.
Analysis and Outlook
Carrier Global Corp's Q3 2024 results highlight its robust operational performance and strategic focus on becoming a more streamlined and growth-oriented company. The successful integration of Viessmann and the ongoing divestitures are expected to enhance Carrier's market position in intelligent climate and energy solutions. However, the company must navigate the complexities of its portfolio transformation and manage the financial impacts of discontinued operations to sustain its growth trajectory.
Explore the complete 8-K earnings release (here) from Carrier Global Corp for further details.
