Form 8-K - Current report

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 25, 2024

CARRIER GLOBAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

001-39220

83-4051582

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

13995 Pasteur Boulevard
Palm Beach Gardens			Florida			33418

(Address of principal executive offices, including zip code)

(561)			365-2000

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock ($0.01 par value)			CARR			New York Stock Exchange
4.375% Notes due 2025			CARR25			New York Stock Exchange
4.125% Notes due 2028			CARR28			New York Stock Exchange
4.500% Notes due 2032			CARR32			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

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Section 2—Financial Information

Item 2.02. Results of Operations and Financial Condition.

On July 25, 2024, Carrier Global Corporation (“Carrier” or the “Company”) issued a press release announcing its second quarter 2024 results.

The press release issued July 25, 2024 is furnished herewith as Exhibit No. 99 to this Report, and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Section 9—Financial Statements and Exhibits

Item 9. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number			Exhibit Description
99			Press release, dated July 25, 2024, issued by Carrier Global Corporation.
104			Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			CARRIER GLOBAL CORPORATION
			(Registrant)
Date: July 25, 2024			By:			/S/ PATRICK GORIS
						Patrick Goris
						Senior Vice President and Chief Financial Officer

Exhibit 99

Carrier Reports Strong Second Quarter 2024 Results

•Net sales of $6.7 billion up 12% versus second quarter 2023; organic sales up 2%

•GAAP EPS of $2.55 up significantly and adjusted EPS of $0.87 up double-digits

•GAAP operating margin expanded significantly year over year; adjusted operating margin expanded 200 bps

•Reaffirming full year 2024 adjusted EPS guidance range

•Closed two of four business exit transactions; remaining two on-track

•Expect to repurchase about $1 billion worth of shares in the second half of 2024

PALM BEACH GARDENS, Fla., July 25, 2024 – Carrier Global Corporation (NYSE:CARR), global leader in intelligent climate and energy solutions, today reported strong financial results for the second quarter of 2024 and reaffirmed its full year earnings guidance.

“Carrier delivered another quarter of strong financial performance, while making great progress with our portfolio transformation,” said Carrier Chairman & CEO David Gitlin. “We delivered solid sales and roughly 30% orders growth as we continue to outperform in our markets. Our strong operational execution drove 200 basis points of adjusted operating margin expansion and double-digit adjusted earnings growth. Year-to-date, we also closed on two of our four business exits, and the remaining two continue to track well. The proceeds from the exits, combined with our strong free cash flow performance, have enabled us to reduce net debt by about $5 billion in the quarter and we now plan to repurchase about $1 billion of shares in the second half of 2024.”

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Second Quarter 2024 Results

Carrier’s second quarter sales of $6.7 billion were up 12% compared to the prior year including 2% organic growth and approximately 12% contribution from the acquisition of Viessmann Climate Solutions offset by about 2% from divestitures. Foreign currency translation had a 1% negative impact on sales. Organic sales in the HVAC segment were up 2%. HVAC sales in the Americas were up mid-single digits driven by continued strength in Commercial and Light Commercial businesses both of which were up double-digits. North America Residential HVAC sales were up about mid-single digits. HVAC organic sales in EMEA were up low-single-digits with Commercial HVAC up mid-teens, offsetting a decline in EMEA Residential and Light Commercial HVAC. These organic figures exclude the contribution of Viessmann Climate Solutions which was down almost 30% year-over-year in the quarter, roughly one third of which was driven by lower solar PV sales. HVAC sales in Asia Pacific were down high-single-digits with declines driven by residential light commercial in China, partially offset by Southeast Asia which was up double-digits. Refrigeration sales were up 1% organically driven by over 30% growth in container, mostly offset by North America truck and trailer and commercial refrigeration. Fire and Security showed broad-based growth and sales were up 3% organically in the quarter. The residential and commercial fire organic sales, the last of our four business exits, were up mid-single digits.

GAAP operating profit in the quarter of $3.7 billion was up over 650% from last year primarily due to the gain on the sale of Access Solutions and the addition of Viessmann Climate Solutions. Adjusted operating profit of $1.2 billion was up 26%, mostly driven by the addition of Viessmann Climate Solutions.

Net income was $2.3 billion and adjusted net income was $793 million. GAAP EPS was $2.55 and adjusted EPS was $0.87. Net cash flows generated from operating activities were $660 million and capital expenditures were $111 million, resulting in free cash flow of $549 million. During the second-quarter, Carrier received $5.0 billion in cash proceeds from the sale of Access Solutions, redeemed $1.0 billion of its long-term notes, and repaid €2.3 billion of its term-loans.

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Full-Year 2024 Guidance**

Carrier updated the following guidance for 2024, which now includes Commercial Refrigeration for nine-months.

			Current Guidance			Prior Guidance
Sales			~$25.5B Organic* up MSD FX (1%) Acquisitions +16% Divestitures (5%)			~$26B Organic* up MSD FX (0%) Acquisitions +18% Divestitures (6%)
Adjusted Operating Margin*			~15.5%			~15.5%
Adjusted EPS*			$2.80 - $2.90			$2.80 - $2.90
Free Cash Flow*			~$0.4B Includes ~$2B of expected tax payments on the gains from the announced business exits, restructuring, and transaction-related costs			~$0.4B Includes ~$2B of expected tax payments on the gains from the announced business exits, restructuring, and transaction-related costs

*Note: When the company provides expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See “Use and Definitions of Non-GAAP Financial Measures” below for additional information.

**As of July 25, 2024

Conference Call

Carrier will host a webcast of its earnings conference call today, Thursday, July 25, 2024, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at ir.carrier.com/news-and-events/events-and-presentations or to listen to the earnings call by phone, participants must pre-register at Carrier Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing access to the live call.

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Cautionary Statement

This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. These forward-looking statements are intended to provide management's current expectations or plans for Carrier's future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, our portfolio transformation and the use of the anticipated proceeds thereof, potential future investments, Carrier's plans with respect to its indebtedness and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see Carrier's reports on Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission from time to time. Any forward-looking statement speaks only as of the date on which it is made, and Carrier assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

About Carrier

Carrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating solutions that matter for people and our planet for generations to come. From the beginning, we've led in inventing new technologies and entirely new industries. Today, we continue to lead because we have a world-class, diverse workforce that puts the customer at the center of everything we do. For more information, visit corporate.carrier.com or follow Carrier on social media at @Carrier.

CARR-IR

Contact:                        

Investor Relations

Sam Pearlstein

561-365-2251

[e-mail]

Media Inquiries

Rob Six

561-281-2362

[e-mail]

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SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS

Following are tables that present selected financial data of Carrier Global Corporation (“Carrier”). Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures.

Use and Definitions of Non-GAAP Financial Measures

Carrier Global Corporation (“Carrier”) reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

Organic sales, adjusted operating profit, adjusted operating margin, incremental margins / earnings conversion, earnings before interest, taxes and depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted net income, adjusted earnings per share (“EPS”), adjusted interest expense, net, adjusted effective tax rate and net debt are non-GAAP financial measures.

Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a nonoperational nature (hereinafter referred to as “other significant items”). Adjusted operating profit represents operating profit (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of net sales (a GAAP measure). Incremental margins / earnings conversion represents the year-over-year change in adjusted operating profit divided by the year-over-year change in net sales. EBITDA represents net income attributable to common shareholders (a GAAP measure), adjusted for interest income and expense, income tax expense, and depreciation and amortization. Adjusted EBITDA represents EBITDA, as calculated above, excluding non-service pension benefit, non-controlling interest in subsidiaries’ earnings from operations, restructuring costs and other significant items. Adjusted net income represents net income attributable to common shareowners (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted interest expense, net represents interest expense (a GAAP measure) and interest income (a GAAP measure), net excluding other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure). For the business segments, when applicable, adjustments of operating profit and operating margins represent operating profit, excluding restructuring, amortization of acquired intangibles and other significant items.

Free cash flow is a non-GAAP financial measure that represents net cash flows provided by operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Carrier’s ability to fund its activities, including the financing of acquisitions, debt service, repurchases of Carrier's common stock and distribution of earnings to shareowners.

Orders are contractual commitments with customers to provide specified goods or services for an agreed upon price and may not be subject to penalty if cancelled.

When we provide our expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted interest expense, net, adjusted effective tax rate, incremental margins/earnings conversion, EBITDA, adjusted EBITDA, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected net sales, operating profit, operating margin, interest expense, effective tax rate, incremental operating margin, net income attributable to common shareowners, diluted EPS and net cash flows provided by operating activities) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

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Carrier Global Corporation

Condensed Consolidated Statement of Operations

						(Unaudited)
						Three Months Ended June 30,												Six Months Ended June 30,
(In millions, except per share amounts)						2024						2023						2024						2023
Net sales
Product sales						$	6,004					$	5,355					$	11,546					$	10,041
Service sales						685						637						1,325						1,224
Total Net sales						6,689						5,992						12,871						11,265
Costs and expenses
Cost of products sold						(4,296)						(3,769)						(8,294)						(7,227)
Cost of services sold						(515)						(468)						(994)						(905)
Research and development						(187)						(151)						(411)						(290)
Selling, general and administrative						(975)						(784)						(1,960)						(1,505)
Total Costs and expenses						(5,973)						(5,172)						(11,659)						(9,927)
Equity method investment net earnings						90						52						121						96
Other income (expense), net						2,885						(383)						2,858						(390)
Operating profit						3,691						489						4,191						1,044
Non-service pension (expense) benefit						(1)						—						(1)						—
Interest (expense) income, net						(166)						(67)						(331)						(113)
Income from operations before income taxes						3,524						422						3,859						931
Income tax (expense) benefit						(1,155)						(189)						(1,201)						(311)
Net income from operations						2,369						233						2,658						620
Less: Non-controlling interest in subsidiaries' earnings from operations						32						34						52						48
Net income attributable to common shareowners						$	2,337					$	199					$	2,606					$	572
Earnings per share
Basic						$	2.59					$	0.24					$	2.90					$	0.68
Diluted						$	2.55					$	0.23					$	2.85					$	0.67
Weighted-average number of shares outstanding
Basic						902.4						836.0						900.2						835.5
Diluted						915.3						850.9						913.6						851.5

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Carrier Global Corporation

Condensed Consolidated Balance Sheet

						(Unaudited)
(In millions)						June 30, 2024						December 31, 2023
Assets
Cash and cash equivalents						$	2,919					$	10,015
Accounts receivable, net						3,187						2,481
Contract assets						333						306
Inventories, net						3,045						2,217
Assets held for sale						1,601						3,314
Other current assets						488						447
Total current assets						11,573						18,780
Future income tax benefits						939						739
Fixed assets, net						3,117						2,293
Operating lease right-of-use assets						635						491
Intangible assets, net						7,048						1,028
Goodwill						15,245						7,989
Pension and post-retirement assets						81						32
Equity method investments						1,221						1,140
Other assets						565						330
Total Assets						$	40,424					$	32,822
Liabilities and Equity
Accounts payable						$	3,181					$	2,742
Accrued liabilities						4,262						2,811
Contract liabilities						493						425
Liabilities held for sale						687						862
Current portion of long-term debt						2,052						51
Total current liabilities						10,675						6,891
Long-term debt						11,270						14,242
Future pension and post-retirement obligations						247						155
Future income tax obligations						2,184						535
Operating lease liabilities						501						391
Other long-term liabilities						1,468						1,603
Total Liabilities						26,345						23,817
Equity
Common stock						9						9
Treasury stock						(1,972)						(1,972)
Additional paid-in capital						8,563						5,535
Retained earnings						8,854						6,591
Accumulated other comprehensive loss						(1,686)						(1,486)
Non-controlling interest						311						328
Total Equity						14,079						9,005
Total Liabilities and Equity						$	40,424					$	32,822

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Carrier Global Corporation

Condensed Consolidated Statement of Cash Flows

												(Unaudited)
									Six Months Ended June 30,
(In millions)															2024						2023
Operating Activities
Net income from operations															$	2,658					$	620
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization															625						273
Deferred income tax provision															(338)						(110)
Stock-based compensation costs															48						40
Equity method investment net earnings															(121)						(96)
(Gain) loss on sale of investments / deconsolidation															(2,881)						276
Changes in operating assets and liabilities
Accounts receivable, net															(286)						(406)
Contract assets															(62)						(40)
Inventories, net															(2)						(59)
Other current assets															(52)						(105)
Accounts payable and accrued liabilities															1,118						120
Contract liabilities															(19)						37
Distributions from equity method investments															12						10
Other operating activities, net															—						(56)
Net cash flows provided by (used in) operating activities															700						504
Investing Activities
Capital expenditures															(215)						(144)
Investment in businesses, net of cash acquired															(10,779)						(56)
Dispositions of businesses															4,877						36
Settlement of derivative contracts, net															(185)						(14)
Kidde-Fenwal, Inc. deconsolidation															—						(134)
Other investing activities, net															29						16
Net cash flows provided by (used in) investing activities															(6,273)						(296)
Financing Activities
Increase (decrease) in short-term borrowings, net															—						(19)
Issuance of long-term debt															2,555						6
Repayment of long-term debt															(3,542)						(12)
Repurchases of common stock															—						(62)
Dividends paid on common stock															(330)						(309)
Dividends paid to non-controlling interest															(67)						(41)
Other financing activities, net															(22)						(69)
Net cash flows provided by (used in) financing activities															(1,406)						(506)
Effect of foreign exchange rate changes on cash and cash equivalents															(82)						(13)
Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale															(7,061)						(311)
Less: Change in cash balances classified as assets held for sale															34						—
Net increase (decrease) in cash and cash equivalents and restricted cash															(7,095)						(311)
Cash, cash equivalents and restricted cash, beginning of period															10,017						3,527
Cash, cash equivalents and restricted cash, end of period															2,922						3,216
Less: restricted cash															3						7
Cash and cash equivalents, end of period															$	2,919					$	3,209

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Carrier Global Corporation

Segment Net Sales and Operating Profit

			(Unaudited)
			Three Months Ended June 30,																								Six Months Ended June 30,
			2024												2023												2024												2023
(In millions)			Reported						Adjusted						Reported						Adjusted						Reported						Adjusted						Reported						Adjusted
Net sales
HVAC			$	4,970					$	4,970					$	4,216					$	4,216					$	9,511					$	9,511					$	7,838					$	7,838
Refrigeration			973						973						972						972						1,857						1,857						1,870						1,870
Fire & Security			871						871						932						932						1,758						1,758						1,801						1,801
Segment sales			6,814						6,814						6,120						6,120						13,126						13,126						11,509						11,509
Eliminations and other			(125)						(125)						(128)						(128)						(255)						(255)						(244)						(244)
Net sales			$	6,689					$	6,689					$	5,992					$	5,992					$	12,871					$	12,871					$	11,265					$	11,265
Operating profit
HVAC			$	687					$	991					$	742					$	791					$	1,116					$	1,711					$	1,177					$	1,281
Refrigeration			113						118						112						119						210						217						220						230
Fire & Security			3,001						155						(157)						137						3,154						319						(64)						245
Segment operating profit			3,801						1,264						697						1,047						4,480						2,247						1,333						1,756
Eliminations and other			(23)						(20)						(146)						(35)						(98)						(54)						(184)						(71)
General corporate expenses			(87)						(31)						(62)						(48)						(191)						(53)						(105)						(79)
Operating profit			$	3,691					$	1,213					$	489					$	964					$	4,191					$	2,140					$	1,044					$	1,606
Operating margin
HVAC			13.8		%				19.9		%				17.6		%				18.8		%				11.7		%				18.0		%				15.0		%				16.3		%
Refrigeration			11.6		%				12.1		%				11.5		%				12.2		%				11.3		%				11.7		%				11.8		%				12.3		%
Fire & Security			344.5		%				17.8		%				(16.8)		%				14.7		%				179.4		%				18.1		%				(3.6)		%				13.6		%
Total Carrier			55.2		%				18.1		%				8.2		%				16.1		%				32.6		%				16.6		%				9.3		%				14.3		%

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Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP)

Operating Profit

			(Unaudited)
			Three Months Ended June 30, 2024
(In millions)			HVAC						Refrigeration						Fire & Security						Eliminations and Other						General Corporate Expenses						Carrier
Net sales			$	4,970					$	973					$	871					$	(125)					$	—					$	6,689
Segment operating profit			$	687					$	113					$	3,001					$	(23)					$	(87)					$	3,691
Reported operating margin			13.8		%				11.6		%				344.5		%																55.2		%
Adjustments to segment operating profit:
Restructuring costs			$	25					$	1					$	3					$	3					$	—					$	32
Amortization of acquired intangibles			170						—						—						—						—						170
Acquisition step-up amortization (1)			109						—						—						—						—						109
Acquisition/divestiture-related costs			—						4						32						—						56						92
Access Solutions gain			—						—						(2,881)						—						—						(2,881)
Total adjustments to operating profit			$	304					$	5					$	(2,846)					$	3					$	56					$	(2,478)
Adjusted operating profit			$	991					$	118					$	155					$	(20)					$	(31)					$	1,213
Adjusted operating margin			19.9		%				12.1		%				17.8		%																18.1		%

			(Unaudited)
			Three Months Ended June 30, 2023
(In millions)			HVAC						Refrigeration						Fire & Security						Eliminations and Other						General Corporate Expenses						Carrier
Net sales			$	4,216					$	972					$	932					$	(128)					$	—					$	5,992
Segment operating profit			$	742					$	112					$	(157)					$	(146)					$	(62)					$	489
Reported operating margin			17.6		%				11.5		%				(16.8)		%																8.2		%
Adjustments to segment operating profit:
Restructuring costs			$	3					$	7					$	(1)					$	—					$	—					$	9
Amortization of acquired intangibles			36						—						2						—						—						38
Acquisition step-up amortization (1)			10						—						—						—						—						10
Acquisition/divestiture-related costs			—						—						—						—						14						14
Viessmann-related hedges			—						—						—						111						—						111
KFI deconsolidation			—						—						293						—						—						293
Total adjustments to operating profit			$	49					$	7					$	294					$	111					$	14					$	475
Adjusted operating profit			$	791					$	119					$	137					$	(35)					$	(48)					$	964
Adjusted operating margin			18.8		%				12.2		%				14.7		%																16.1		%

(1) Amortization of the step-up to fair value of acquired inventory and backlog.

10

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Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP)

Operating Profit

			(Unaudited)
			Six Months Ended June 30, 2024
(In millions)			HVAC						Refrigeration						Fire & Security						Eliminations and Other						General Corporate Expenses						Carrier
Net sales			$	9,511					$	1,857					$	1,758					$	(255)					$	—					$	12,871
Segment operating profit			$	1,116					$	210					$	3,154					$	(98)					$	(191)					$	4,191
Reported operating margin			11.7		%				11.3		%				179.4		%																32.6		%
Adjustments to segment operating profit:
Restructuring costs			$	32					$	1					$	10					$	4					$	—					$	47
Amortization of acquired intangibles			342						—						—						—						—						342
Acquisition step-up amortization (1)			220						—						—						—						—						220
Acquisition/divestiture-related costs			1						6						36						—						138						181
Viessmann-related hedges			—						—						—						86						—						86
Gain on liability adjustment (2)			—						—						—						(46)						—						(46)
Access Solutions gain			—						—						(2,881)						—						—						(2,881)
Total adjustments to operating profit			$	595					$	7					$	(2,835)					$	44					$	138					$	(2,051)
Adjusted operating profit			$	1,711					$	217					$	319					$	(54)					$	(53)					$	2,140
Adjusted operating margin			18.0		%				11.7		%				18.1		%																16.6		%

			(Unaudited)
			Six Months Ended June 30, 2023
(In millions)			HVAC						Refrigeration						Fire & Security						Eliminations and Other						General Corporate Expenses						Carrier
Net sales			$	7,838					$	1,870					$	1,801					$	(244)					$	—					$	11,265
Segment operating profit			$	1,177					$	220					$	(64)					$	(184)					$	(105)					$	1,044
Reported operating margin			15.0		%				11.8		%				(3.6)		%																9.3		%
Adjustments to segment operating profit:
Restructuring costs			$	2					$	10					$	12					$	2					$	—					$	26
Amortization of acquired intangibles			73						—						4						—						—						77
Acquisition step-up amortization (1)			21						—						—						—						—						21
Acquisition/divestiture-related costs			—						—						—						—						26						26
Viessmann-related hedges			—						—						—						111						—						111
TCC acquisition-related gain (3)			8						—						—						—						—						8
KFI deconsolidation			—						—						293						—						—						293
Total adjustments to operating profit			$	104					$	10					$	309					$	113					$	26					$	562
Adjusted operating profit			$	1,281					$	230					$	245					$	(71)					$	(79)					$	1,606
Adjusted operating margin			16.3		%				12.3		%				13.6		%																14.3		%

(1) Amortization of the step-up to fair value of acquired inventory and backlog.

(2) Gain associated with an adjustment to our tax-related liability owed to UTC.

(3) The carrying value of our previously held TCC equity investments were recognized at fair value and subsequently adjusted.

11

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Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results

Net Income, Earnings Per Share and Effective Tax Rate

			(Unaudited)
			Three Months Ended June 30, 2024																		Six Months Ended June 30, 2024
(In millions, except per share amounts)			Reported						Adjustments						Adjusted						Reported						Adjustments						Adjusted
Net sales			$	6,689					$	—					$	6,689					$	12,871					$	—					$	12,871
Operating profit			$	3,691					(2,478)			a			$	1,213					$	4,191					(2,051)			a			$	2,140
Operating margin			55.2		%										18.1		%				32.6		%										16.6		%
Income from operations before income taxes			$	3,524					(2,466)			a,b			$	1,058					$	3,859					(2,039)			a,b			$	1,820
Income tax expense			$	(1,155)					922			c			$	(233)					$	(1,201)					791			c			$	(410)
Effective tax rate			32.8		%										22.0		%				31.1		%										22.5		%
Net income attributable to common shareowners			$	2,337					$	(1,544)					$	793					$	2,606					$	(1,248)					$	1,358
Summary of Adjustments:
Restructuring costs									$	32		a															$	47		a
Amortization of acquired intangibles									170			a															342			a
Acquisition step-up amortization (1)									109			a															220			a
Acquisition/divestiture-related costs									92			a															181			a
Access Solutions gain									(2,881)			a															(2,881)			a
Viessmann-related hedges									—			a															86			a
Gain on liability adjustment (2)									—			a															(46)			a
Debt prepayment costs									12			b															12			b
Total adjustments									$	(2,466)																	$	(2,039)
Tax effect on adjustments above									$	976																	$	880
Tax specific adjustments									(54)																		(89)
Total tax adjustments									$	922		c															$	791		c
Shares outstanding - Diluted			915.3												915.3						913.6												913.6
Earnings per share - Diluted			$	2.55											$	0.87					$	2.85											$	1.49

(1) Amortization of the step-up to fair value of acquired inventory and backlog.

(2) Gain associated with an adjustment to our tax-related liability owed to UTC.

12

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Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results

Net Income, Earnings Per Share and Effective Tax Rate

			(Unaudited)
			Three Months Ended June 30, 2023																		Six Months Ended June 30, 2023
(In millions, except per share amounts)			Reported						Adjustments						Adjusted						Reported						Adjustments						Adjusted
Net sales			$	5,992					$	—					$	5,992					$	11,265					$	—					$	11,265
Operating profit			$	489					475			a			$	964					$	1,044					562			a			$	1,606
Operating margin			8.2		%										16.1		%				9.3		%										14.3		%
Income from operations before income taxes			$	422					496			a,b			$	918					$	931					583			a,b			$	1,514
Income tax expense			$	(189)					(25)			c			$	(214)					$	(311)					(43)			c			$	(354)
Effective tax rate			44.8		%										23.3		%				33.4		%										23.4		%
Net income attributable to common shareowners			$	199					$	471					$	670					$	572					$	540					$	1,112
Summary of Adjustments:
Restructuring costs									$	9		a															$	26		a
Amortization of acquired intangibles									38			a															77			a
Acquisition step-up amortization (1)									10			a															21			a
Acquisition/divestiture-related costs									14			a															26			a
Viessmann-related hedges									111			a															111			a
TCC acquisition-related gain (2)									—			a															8			a
KFI deconsolidation									293			a															293			a
Bridge loan financing costs									21			b															21			b
Total adjustments									$	496																	$	583
Tax effect on adjustments above									$	(25)																	$	(43)
Total tax adjustments									$	(25)		c															$	(43)		c
Shares outstanding - Diluted			850.9												850.9						851.5												851.5
Earnings per share - Diluted			$	0.23											$	0.79					$	0.67											$	1.31

(1) Amortization of the step-up to fair value of acquired inventory and backlog.

(2) The carrying value of our previously held TCC equity investments were recognized at fair value at the TCC acquisition date.

13

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Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results

Components of Changes in Net Sales

Three Months Ended June 30, 2024 Compared with Three Months Ended June 30, 2023
			(Unaudited)
			Factors Contributing to Total % change in Net Sales
			Organic						FX Translation						Acquisitions / Divestitures, net						Other						Total
HVAC			2		%				(1)		%				17		%				—		%				18		%
Refrigeration			1		%				(1)		%				—		%				—		%				—		%
Fire & Security			3		%				—		%				(10)		%				—		%				(7)		%
Consolidated			2		%				(1)		%				11		%				—		%				12		%

Six Months Ended June 30, 2024 Compared with Six Months Ended June 30, 2023
			(Unaudited)
			Factors Contributing to Total % change in Net Sales
			Organic						FX Translation						Acquisitions / Divestitures, net						Other						Total
HVAC			2		%				(1)		%				20		%				—		%				21		%
Refrigeration			(1)		%				—		%				—		%				—		%				(1)		%
Fire & Security			5		%				—		%				(7)		%				—		%				(2)		%
Consolidated			2		%				(1)		%				13		%				—		%				14		%

Historical Amounts of Amortization of Acquired Intangibles

						(Unaudited)
						Q1						Q2						Q3						Q4						FY						Q1						Q2
(In millions)						2023						2023						2023						2023						2023						2024						2024
HVAC						$	37					$	36					$	35					$	35					$	143					$	172					$	170
Fire & Security						2						2						2						—						6						—						—
Total Carrier						39						38						37						35						149						172						170
Associated tax effect						(12)						(11)						(11)						(11)						(45)						(46)						(42)
Net impact to adjusted results						$	27					$	27					$	26					$	24					$	104					$	126					$	128

Free Cash Flow Reconciliation

						(Unaudited)
						Q1						Q2						Q3						Q4						FY						Q1						Q2
(In millions)						2023						2023						2023						2023						2023						2024						2024
Net cash flows provided by (used in) operating activities						$	120					$	384					$	1,041					$	1,062					$	2,607					$	40					$	660
Less: Capital expenditures						70						74						92						233						469						104						111
Free cash flow						$	50					$	310					$	949					$	829					$	2,138					$	(64)					$	549

14

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Net Debt Reconciliation

						(Unaudited)
(In millions)						June 30, 2024						December 31, 2023
Long-term debt						$	11,270					$	14,242
Current portion of long-term debt						2,052						51
Less: Cash and cash equivalents						2,919						10,015
Net debt						$	10,403					$	4,278

15

Cover Page	Jul. 25, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 25, 2024
Entity Registrant Name	CARRIER GLOBAL CORPORATION
Entity Incorporation, State or Country Code	DE
Entity File Number	001-39220
Entity Tax Identification Number	83-4051582
Entity Address, Address Line One	13995 Pasteur Boulevard
Entity Address, City or Town	Palm Beach Gardens
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33418
City Area Code	(561)
Local Phone Number	365-2000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Listings [Line Items]
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001783180
Common Stock
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock ($0.01 par value)
Trading Symbol	CARR
Security Exchange Name	NYSE
4.375% Notes Due 2025
Entity Listings [Line Items]
Title of 12(b) Security	4.375% Notes due 2025
Trading Symbol	CARR25
Security Exchange Name	NYSE
4.125% Notes Due 2028
Entity Listings [Line Items]
Title of 12(b) Security	4.125% Notes due 2028
Trading Symbol	CARR28
Security Exchange Name	NYSE
4.500% Notes Due 2032
Entity Listings [Line Items]
Title of 12(b) Security	4.500% Notes due 2032
Trading Symbol	CARR32
Security Exchange Name	NYSE

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