Carrier raises 2026 sales outlook as Q3 profit tops estimates

Carrier Global Corporation (CARR) said on Oct. 29 that third-quarter adjusted earnings were 87 cents per share, topping the 78 cents consensus estimate compiled by Finnhub. Sales were $6.263 billion, above the $6.19 billion estimate, according to the company's 8-K filing.

The company also reported a goodwill impairment that produced a GAAP loss for the quarter. Its outlook for 2026 sales moved up, while its adjusted operating profit and free cash flow targets were unchanged.

Here's how the company did:

• Adjusted EPS: 87 cents vs. 67 cents a year earlier, topping the 78 cents consensus estimate, according to Finnhub
• GAAP EPS: a loss of $3.16 per share
• Revenue: $6.263 billion vs. $5.579 billion a year earlier, above the $6.19 billion consensus estimate, according to Finnhub

Net sales rose 12% from a year earlier. Organic sales grew 15%, while divestitures were a 3% headwind, the filing said.

Adjusted operating profit was $1.091 billion, up 33%. The adjusted operating margin was 17.4%, up 260 basis points from last year, due mainly to favorable volume and price, partly offset by higher input costs and tariffs.

The company recorded a non-cash goodwill impairment charge of $3.1 billion tied to its Climate Solutions Europe reporting unit. GAAP operating profit was a loss of $2.273 billion for the quarter.

The company also recorded about $130 million of operating profit benefit from IEEPA refunds, according to the filing.

2026 guidance

Carrier now expects 2026 sales of $23.8 billion to $24.0 billion, with organic growth of about 10%. In its previous results release on July 28, it had forecast sales of about $23 billion.

The company expects adjusted EPS of $2.85 to $2.90. In July it gave adjusted EPS guidance of about $2.90. It kept its adjusted operating profit forecast at about $3.5 billion and its free cash flow forecast at about $2 billion.

Segment results

Climate Solutions Americas sales rose 24% to $3.354 billion, with organic sales up 25%. Segment operating margin widened 250 basis points, benefiting from about $120 million of IEEPA refunds.

Climate Solutions Europe sales rose 3% to $1.335 billion, with organic sales up 12%. Segment operating margin increased 330 basis points, including a net benefit of about 100 basis points from the correction of a prior period item.

Climate Solutions Asia Pacific, Middle East & Africa sales rose 2% to $848 million. Climate Solutions Transportation sales fell 3% to $726 million.

Orders, backlog and cash

Total company orders rose about 35%, excluding NORESCO, and data center orders rose about 300%. The company said backlog exceeded $8.5 billion, up 60% from a year earlier.

Operating cash flow was $813 million in the quarter, and free cash flow was $674 million. The company returned about $600 million to shareowners through dividends and repurchases and expects to return about $2.3 billion for 2026.

Chairman & CEO David Gitlin said, “We delivered strong third quarter performance, with orders, sales and adjusted EPS all up between 15% and 35%, with very strong free cash flow.” He added that record backlog levels give the company confidence to sustain this momentum into 2027 and beyond.