Carrier Reports Third Quarter 2026 Results

Carrier Reports Third Quarter 2026 Results Signed LTAs valued at multiple billions of dollars with minimum volume commitments

PALM BEACH GARDENS, Fla., Oct. 29, 2026 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today reported financial results for the third quarter of 2026.

"We delivered strong third quarter performance, with orders, sales and adjusted EPS all up between 15% and 35%, with very strong free cash flow," said Chairman & CEO David Gitlin. "Organic orders were up ~35%, with data center orders up ~300%, resulting in over $8.5 billion of backlog, up 60% versus last year, reflecting continued strong demand for our differentiated solutions. We expect to deliver double-digit organic sales and adjusted EPS growth in 2026, while record backlog levels give us confidence to sustain this momentum into 2027 and beyond."

Excludes NORESCO

GAAP results include a goodwill impairment charge and IEEPA refunds; Adjusted EPS includes a ~$0.10 benefit from IEEPA refunds net of ~($0.02) NCI impact

Third Quarter 2026 Results

Total Company

(Unaudited)

Three Months Ended

September 30,

(In millions)

2026

2025

Change

Net sales

$ 6,263

$ 5,579

12 %

Organic sales

15 %

Operating profit (loss)

$ (2,273)

$ 539

n.m.

Operating margin

(36.3) %

9.7 %

n.m.

Adjusted operating profit

$ 1,091

$ 823

33 %

Adjusted operating margin

17.4 %

14.8 %

260 bps

Diluted earnings (loss) per share:

Continuing operations

$ (3.16)

$ 0.47

n.m.

Continuing operations – Adjusted

$ 0.87

$ 0.67

30 %

n.m. = not meaningful

Carrier's third quarter sales of $6.3 billion increased 12% compared to the prior year. Organic sales increased 15%, and divestitures were a headwind of 3%.

GAAP operating loss of ($2,273) million in the quarter decreased from last year, with growth in all segments offset by a goodwill impairment charge.

Adjusted operating profit of $1,091 million in the quarter increased 33% with growth in all segments.

Adjusted operating margin of 17.4% was up 260 basis points from last year, predominantly due to favorable volume and price partially offset by the impact of increased input costs and tariffs.

The company recorded approximately $130 million of operating profit benefit from IEEPA refunds.

Net loss from continuing operations was ($2,593) million and adjusted net earnings from continuing operations were $713 million. GAAP EPS from continuing operations was ($3.16) and adjusted EPS was $0.87. The increase in adjusted EPS was primarily driven by higher operating profit and the benefits of a lower share count, partially offset by a higher effective tax rate and higher non-controlling interest related to the IEEPA refunds.

Climate Solutions Americas (CSA)

(Unaudited)

Three Months Ended

September 30,

(In millions)

2026

2025

Change

Net sales

$ 3,354

$ 2,711

24 %

Organic sales

25 %

Segment operating profit

$ 745

$ 533

40 %

Segment operating margin

22.2 %

19.7 %

250 bps

CSA segment sales grew 24%. Organic sales were up 25%, driven by strong Residential and Commercial 1 performance, up over 30% and 25%, respectively.

Segment operating margin expanded 250 basis points from the benefit of ~$120 million of IEEPA refunds and organic growth, partially offset by increased input costs and tariffs.

Excludes NORESCO

Climate Solutions Europe (CSE)

(Unaudited)

Three Months Ended

September 30,

(In millions)

2026

2025

Change

Net sales

$ 1,335

$ 1,290

3 %

Organic sales

12 %

Segment operating profit

$ 168

$ 120

40 %

Segment operating margin

12.6 %

9.3 %

330 bps

CSE segment sales increased 3% with strong organic sales growth of 12% offset by a 7% net headwind from divestitures and a 2% headwind from currency. Residential and Light Commercial (RLC) sales increased low-teens and Commercial grew high-single digits. Strong demand in residential heat pumps and air conditioning continued, with sales up ~35% each, more than offsetting high-single digit declines in boilers.

Segment operating margin increased 330 basis points with strong organic revenue growth and a ~100 basis point net benefit from the correction of a prior period item offset by increases in inventory-related reserves.

Climate Solutions Asia Pacific, Middle East & Africa (CSAME)

(Unaudited)

Three Months Ended

September 30,

(In millions)

2026

2025

Change

Net sales

$ 848

$ 833

2 %

Organic sales

3 %

Segment operating profit

$ 103

$ 97

6 %

Segment operating margin

12.1 %

11.6 %

50 bps

CSAME segment sales increased 2%. Organic sales were up 3% driven by strong growth in Commercial, up 10%, partially offset by a mid-single-digit decline in RLC.

Segment operating margin increased 50 basis points.

Climate Solutions Transportation (CST)

(Unaudited)

Three Months Ended

September 30,

(In millions)

2026

2025

Change

Net sales

$ 726

$ 745

(3) %

Organic sales

(3) %

Segment operating profit

$ 117

$ 115

2 %

Segment operating margin

16.1 %

15.4 %

70 bps

CST sales decreased 3% as continued growth in Container was more than offset by Truck and Trailer.

Segment operating margin increased 70 basis points driven by the benefits from IEEPA refunds partially offset by lower volumes.

Cash Flow

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In millions)

2026

2025

2026

2025

Net cash flows provided by operating activities

$ 813

$ 341

$ 1,819

$ 1,473

Less: Capital expenditures

(139)

(117)

(350)

(261)

Free cash flow

$ 674

$ 224

$ 1,469

$ 1,212

Net cash flows generated from operating activities were $813 million, and capital expenditures were $139 million, resulting in free cash flow of $674 million.

Goodwill

During Q3, the company recorded a non-cash goodwill impairment charge of $3.1 billion related to its Climate Solutions Europe reporting unit.

Full-Year 2026 Guidance**

Supported by a differentiated product portfolio, record backlog, minimum volume commitments under long-term agreements, and continued recovery in RLC end markets, Carrier now expects sales of nearly $24 billion, with organic growth of approximately 10%. The company remains vigilant in navigating industry-wide macro pressures, including tariffs and increasing input costs, and expects to return to shareowners approximately $2.3 billion through dividends and share repurchases.

Current Guidance**

Prior Guidance

Sales

$23.8 to $24.0 billion

Organic* up ~10%

FX 1%

Net, Acquisitions / Divestitures (2%)

~$23 billion

Organic* up ~M-HSD

FX 1%

Net, Acquisitions / Divestitures (2%)

Adjusted Operating Profit*

~$3.5 billion

Adjusted EPS*

$2.85 to $2.90

~$2.90

Free Cash Flow*

~$2 billion

Riello divestiture completed on July 1. NORESCO divestiture completed on August 3.

~$225 million and ~$125 million year-over-year revenue headwind from Riello and NORESCO exits, respectively.

*Note: When the company provides expectations for organic sales, adjusted operating profit, 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 October 29, 2026

Conference Call

Carrier will host a webcast of its earnings conference call today, Thursday, Oct. 29, 2026, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site. For alternative dial-in information, please contact Carrier investor relations at [email protected].

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. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management's current expectations or plans for our 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, expectations relating to our sales backlog, commitments by us and our customers under long-term agreements, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, market conditions including with respect to residential end-markets, data center and otherwise, growth prospects for 2026 and beyond, expectations concerning the mitigation and net impact of tariffs during 2026, Carrier's guidance for full-year 2026, Carrier's plans with respect to our 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 those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation, those described below and under the section titled "Risk Factors" in our most recent Annual Report on Form 10-K and in subsequent reports that we file with the SEC: the effect of economic conditions in the industries and markets in which Carrier and our businesses operate in the U.S. and globally and any changes therein, including financial market conditions, inflationary cost pressures, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction, the impact of weather conditions, pandemic health issues, natural disasters and the financial condition of our customers and suppliers; challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; future levels of capital spending and research and development spending; future availability of credit and factors that may affect such availability, including credit market conditions and Carrier's capital structure and credit ratings; the timing and scope of future repurchases of Carrier's common stock, including market conditions and the level of other investing activities and uses of cash; delays and disruption in the delivery of materials and services from suppliers; cost reduction efforts and restructuring costs and savings and other consequences thereof; new business and investment opportunities; the outcome of legal proceedings, investigations and other contingencies; the impact of pension plan assumptions on future cash contributions and earnings; the impact of the negotiation of collective bargaining agreements and labor disputes; the effect of changes in political conditions in the U.S. and other countries in which Carrier and our businesses operate, including the effect of ongoing uncertainty and/or changes in U.S. trade policies, on general market conditions, global trade policies, the imposition of tariffs, and currency exchange rates in the near term and beyond; the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which we and our businesses operate; the ability of Carrier to retain and hire key personnel; the scope, nature, impact or timing of acquisition and divestiture activity, such as our acquisition of the VCS business and our portfolio transformation transactions, including among other things integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; a determination by the IRS and other tax authorities that the distribution of Carrier from RTX Corporation (f/k/a United Technologies Corporation) or certain related transactions should be treated as taxable transactions; and risks associated with current and future indebtedness, as well as our ability to reduce indebtedness and the timing thereof. The forward-looking statements speak only as of the date of this communication. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements is disclosed from time to time in our other filings with the SEC.

About Carrier

Carrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating innovations that bring comfort, safety and sustainability to life. Through cutting-edge advancements in climate solutions such as temperature control, air quality and transportation, we improve lives, empower critical industries and ensure the safe transport of food, life-saving medicines and more. Since inventing modern air conditioning in 1902, we lead with purpose: enhancing the lives we live and the world we share. We continue to lead because of our world-class, inclusive workforce that puts the customer at the center of everything we do. For more information, visit carrier.com or follow Carrier on social media at @Carrier.

Carrier. For the World We Share

CARR-IR

Contact:

Investor Relations

Michael Rednor

561-365-2020

[email protected]

Media Inquiries

Kristina Pantelides

561-236-4241

[email protected]

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 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, adjusted earnings per share ("EPS"), adjusted effective tax rate and net debt are non-GAAP financial measures and are associated with Carrier's continuing operations unless specifically noted.

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 consolidated operating profit (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of consolidated net sales (a GAAP measure). Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangible assets and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure).

Segment operating profit is the measure of profit and loss that the Chief Operating Decision Maker uses to evaluate segment profitability. Segment operating profit represents operating profit (a GAAP measure) adjusted to exclude restructuring costs, amortization of acquired intangible assets and other significant items of a nonoperational nature.

Free cash flow is a non-GAAP financial measure that represents net cash flows provided by continuing 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.

Price/cost represents the combined impact of realized pricing, cost inflation and productivity actions, including manufacturing efficiencies, sourcing initiatives and certain productivity measures.

When Carrier provides our expectations for organic sales, adjusted operating profit (including on a segment basis), adjusted operating margin (including on a segment basis), adjusted effective tax rate, adjusted EPS, free cash flow, and interest expense, net 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 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.

Carrier Global Corporation

Condensed Consolidated Statement of Operations

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In millions, except per share amounts)

2026

2025

2026

2025

Net sales

Product sales

$ 5,585

$ 4,906

$ 15,886

$ 15,035

Service sales

678

673

2,069

1,875

Total Net sales

6,263

5,579

17,955

16,910

Costs and expenses

Cost of products sold

(4,083)

(3,656)

(11,755)

(10,881)

Cost of services sold

(497)

(474)

(1,545)

(1,366)

Research and development

(154)

(151)

(445)

(465)

Selling, general and administrative

(758)

(803)

(2,430)

(2,345)

Total Costs and expenses

(5,492)

(5,084)

(16,175)

(15,057)

Goodwill impairment

(3,100)

—

(3,100)

—

Equity method investment net earnings

146

182

Other income (expense), net

(1)

(16)

Operating profit (loss)

(2,273)

539

(1,190)

2,071

Non-service pension benefit (expense)

(9)

(8)

Interest (expense) income, net

(93)

(97)

(288)

(270)

Earnings (loss) before income taxes

(2,363)

433

(1,473)

1,793

Income tax (expense) benefit

(177)

(261)

(272)

Earnings (loss) from continuing operations

(2,540)

434

(1,734)

1,521

Discontinued operations, net of tax

—

Net earnings (loss)

(2,540)

455

(1,734)

1,525

Less: Non-controlling interest in subsidiaries'

120

Net earnings (loss) attributable to common shareowners

$ (2,593)

$ 428

$ (1,854)

$ 1,431

Amounts attributable to common shareowners:

Continuing operations

$ (2,593)

$ 407

$ (1,854)

$ 1,427

Discontinued operations

—

Net earnings (loss) attributable to common shareowners

$ (2,593)

$ 428

$ (1,854)

$ 1,431

Earnings (loss) per share

Basic:

Continuing operations

$ (3.16)

$ 0.48

$ (2.24)

$ 1.67

Discontinued operations

—

0.02

—

Net earnings (loss)

$ (3.16)

$ 0.50

$ (2.24)

$ 1.67

Diluted:

Continuing operations

$ (3.16)

$ 0.47

$ (2.24)

$ 1.64

Discontinued operations

—

0.03

—

0.01

Net earnings (loss)

$ (3.16)

$ 0.50

$ (2.24)

$ 1.65

Weighted-average number of shares outstanding

Basic

821.8

848.8

828.3

856.8

Diluted

821.8

858.6

828.3

867.7

Carrier Global Corporation

Condensed Consolidated Balance Sheet

(Unaudited)

(In millions)

September 30, 2026

December 31, 2025

Assets

Cash and cash equivalents

$ 1,354

$ 1,555

Accounts receivable, net

3,499

2,639

Inventories, net

2,842

2,483

Assets held for sale

—

592

Other current assets

1,187

1,264

Total current assets

8,882

8,533

Future income tax benefits

1,190

1,074

Fixed assets, net

3,153

3,165

Operating lease right-of-use assets

532

546

Intangible assets, net

5,536

6,326

Goodwill

12,209

15,501

Pension and post-retirement assets

Equity method investments

1,390

1,321

Other assets

637

668

Total Assets

$ 33,594

$ 37,190

Liabilities and Equity

Accounts payable

$ 3,269

$ 2,702

Accrued liabilities

4,155

3,774

Liabilities held for sale

—

170

Short-term borrowings and current portion of long-term debt

1,482

468

Total current liabilities

8,906

7,114

Long-term debt

9,992

11,365

Future pension and post-retirement obligations

184

192

Future income tax obligations

1,584

1,833

Operating lease liabilities

402

418

Other long-term liabilities

2,105

2,140

Total Liabilities

23,173

23,062

Equity

Common stock

Treasury stock

(7,953)

(6,795)

Additional paid-in capital

8,694

8,665

Retained earnings

9,942

12,193

Accumulated other comprehensive income (loss)

(639)

(269)

Non-controlling interest

367

324

Total Equity

10,421

14,128

Total Liabilities and Equity

$ 33,594

$ 37,190

Carrier Global Corporation

Condensed Consolidated Statement of Cash Flows

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In millions)

2026

2025

2026

2025

Operating Activities

Net earnings (loss)

$ (2,540)

$ 455

$ (1,734)

$ 1,525

Discontinued operations, net of tax

—

(21)

—

(4)

Adjustments for non-cash items, net:

Depreciation and amortization

324

325

953

945

Deferred income tax provision

(105)

(158)

(347)

(316)

Stock-based compensation costs

Equity method investment net earnings

(57)

(60)

(146)

(182)

(Gain) loss on sale of investments and impairments, net

—

(17)

Goodwill impairment

3,100

—

3,100

—

Changes in operating assets and liabilities

Accounts receivable, net

(320)

212

(971)

(490)

Inventories, net

(68)

(116)

(403)

(528)

Accounts payable and accrued liabilities

275

(208)

906

170

Distributions from equity method investments

105

Other operating activities, net

112

(140)

195

(187)

Net cash flows provided by (used in) continuing operating activities

752

324

1,705

1,076

Net cash flows provided by (used in) discontinued operating activities

114

397

Net cash flows provided by (used in) operating activities

813

341

1,819

1,473

Investing Activities

Capital expenditures

(139)

(117)

(350)

(261)

Investment in businesses, net of cash acquired

(64)

(31)

(118)

(92)

Dispositions of businesses

395

—

410

Settlement of derivative contracts, net

120

Other investing activities, net

(4)

(7)

Net cash flows provided by (used in) continuing investing activities

221

(119)

(14)

(232)

Net cash flows provided by (used in) discontinued investing activities

—

Net cash flows provided by (used in) investing activities

221

(119)

(14)

(197)

Financing Activities

Increase (decrease) in short-term borrowings, net

(500)

444

(139)

387

Issuance of long-term debt

Repayment of long-term debt

(3)

(1)

(60)

(1,209)

Repurchases of common stock

(399)

(785)

(1,144)

(2,413)

Dividends paid on common stock

(198)

(193)

(598)

(583)

Dividends paid to non-controlling interest

(11)

(72)

(76)

(81)

Other financing activities, net

(1)

(35)

(18)

Net cash flows provided by (used in) continuing financing activities

(1,098)

(591)

(1,999)

(3,885)

Net cash flows provided by (used in) discontinued financing activities

—

Net cash flows provided by (used in) financing activities

(1,098)

(591)

(1,999)

(3,885)

Effect of foreign exchange rate changes on cash and cash equivalents

(5)

(7)

Net increase (decrease) in cash and cash equivalents and restricted

cash, including cash classified in current assets held for sale

(61)

(374)

(201)

(2,546)

Less: Change in cash balances classified as assets held for sale

(95)

—

(25)

—

Net increase (decrease) in cash and cash equivalents and restricted cash

(374)

(176)

(2,546)

Cash, cash equivalents and restricted cash, beginning of period

1,347

1,800

1,557

3,972

Cash, cash equivalents and restricted cash, end of period

1,381

1,426

1,381

1,426

Less: restricted cash

Cash and cash equivalents, end of period

$ 1,354

$ 1,423

$ 1,354

$ 1,423

Carrier Global Corporation

Segment Summary

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In millions)

2026

2025

2026

2025

Segment net sales

Climate Solutions Americas

$ 3,354

$ 2,711

$ 9,227

$ 8,535

Climate Solutions Europe

1,335

1,290

3,952

3,712

Climate Solutions Asia Pacific, Middle East & Africa

848

833

2,599

2,541

Climate Solutions Transportation

726

745

2,177

2,122

Segment net sales

$ 6,263

$ 5,579

$ 17,955

$ 16,910

Segment operating profit

Climate Solutions Americas

$ 745

$ 533

$ 1,941

$ 1,982

Climate Solutions Europe

168

120

352

324

Climate Solutions Asia Pacific, Middle East & Africa

103

292

353

Climate Solutions Transportation

117

115

336

340

Segment operating profit

$ 1,133

$ 865

$ 2,921

$ 2,999

Segment operating margin

Climate Solutions Americas

22.2 %

19.7 %

21.0 %

23.2 %

Climate Solutions Europe

12.6 %

9.3 %

8.9 %

8.7 %

Climate Solutions Asia Pacific, Middle East & Africa

12.1 %

11.6 %

11.2 %

13.9 %

Climate Solutions Transportation

16.1 %

15.4 %

16.0 %

Components of Changes in Net Sales

Three Months Ended September 30, 2026, Compared with Three Months Ended September 30, 2025

(Unaudited)

Factors Contributing to Total % change in Net Sales

Organic

Translation

Acquisitions /

Divestitures, net

Other

Total

Climate Solutions Americas

25 %

— %

(1) %

— %

24 %

Climate Solutions Europe

12 %

(2) %

(7) %

— %

3 %

Climate Solutions Asia Pacific, Middle East & Africa

3 %

— %

(1) %

— %

2 %

Climate Solutions Transportation

(3) %

— %

(3) %

Consolidated

15 %

— %

(3) %

— %

12 %

Nine Months Ended September 30, 2026, Compared with Nine Months Ended September 30, 2025

(Unaudited)

Factors Contributing to Total % change in Net Sales

Organic

Translation

Acquisitions /

Divestitures, net

Other

Total

Climate Solutions Americas

8 %

— %

8 %

Climate Solutions Europe

5 %

4 %

(3) %

— %

6 %

Climate Solutions Asia Pacific, Middle East & Africa

2 %

— %

2 %

Climate Solutions Transportation

1 %

2 %

— %

3 %

Consolidated

6 %

1 %

(1) %

— %

6 %

Carrier Global Corporation

Reconciliations

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In millions)

2026

2025

2026

2025

Reconciliation to Earnings before income taxes

Segment operating profit

$ 1,133

$ 865

$ 2,921

$ 2,999

Corporate and other

(42)

(141)

(162)

Restructuring costs

(45)

(50)

(161)

(105)

Amortization of acquired intangible assets

(210)

(221)

(636)

Acquisition/divestiture-related costs

(2)

(10)

(20)

(21)

Riello impairment and loss

(2)

—

(48)

—

Goodwill impairment

(3,100)

—

(3,100)

—

CCR gain

—

Other

(5)

(3)

(5)

(11)

Non-service pension (expense) benefit

(9)

(8)

Interest (expense) income, net

(93)

(97)

(288)

(270)

Earnings (loss) before income taxes

$ (2,363)

$ 433

$ (1,473)

$ 1,793

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In millions)

2026

2025

2026

2025

Reconciliation of Segment operating profit to Adjusted operating profit

Climate Solutions Americas

$ 745

$ 533

$ 1,941

$ 1,982

Climate Solutions Europe

168

120

352

324

Climate Solutions Asia Pacific, Middle East & Africa

103

292

353

Climate Solutions Transportation

117

115

336

340

Segment operating profit

$ 1,133

$ 865

$ 2,921

$ 2,999

Corporate and other

(42)

(141)

(162)

Adjusted operating profit

$ 1,091

$ 823

$ 2,780

$ 2,837

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 September 30, 2026

Nine Months Ended September 30, 2026

(In millions, except per share amounts)

Reported

Adjustments

Adjusted

Reported

Adjustments

Adjusted

Net sales

$ 6,263

$ —

$ 6,263

$ 17,955

$ —

$ 17,955

Operating profit (loss)

$ (2,273)

3,364

$ 1,091

$ (1,190)

3,970

$ 2,780

Operating margin

(36.3) %

17.4 %

(6.6) %

15.5 %

Earnings (loss) before income taxes

$ (2,363)

3,364

$ 1,001

$ (1,473)

3,970

$ 2,497

Income tax (expense) benefit

$ (177)

(58)

$ (235)

$ (261)

(200)

$ (461)

Effective tax rate

(7.5) %

23.5 %

(17.7) %

18.5 %

Earnings (loss) from continuing

operations attributable to common

shareowners

$ (2,593)

$ 3,306

$ 713

$ (1,854)

$ 3,770

$ 1,916

Summary of Adjustments:

Restructuring costs

$ 45

$ 161

Amortization of acquired intangible assets

210

636

Acquisition/divestiture-related costs

Riello impairment and loss

Goodwill impairment

3,100

Other

Total adjustments

$ 3,364

$ 3,970

Tax effect on adjustments above

$ (58)

$ (200)

Tax specific adjustments

—

Total tax adjustments

$ (58)

$ (200)

Diluted shares outstanding (1)

821.8

828.3

Diluted earnings (loss) per share:

Continuing operations

$ (3.16)

$ 0.87

$ (2.24)

$ 2.31

(1) During the three and nine months ended September 30, 2026, Carrier reported a net loss from continuing operations attributable to common shareowners. As a result, potentially dilutive shares were excluded from the computation of diluted loss per share because their inclusion would have reduced the loss per share. The inclusion of dilutive shares does not have a significant impact on adjusted diluted earnings per share.

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 September 30, 2025

Nine Months Ended September 30, 2025

(In millions, except per share amounts)

Reported

Adjustments

Adjusted

Reported

Adjustments

Adjusted

Net sales

$ 5,579

$ —

$ 5,579

$ 16,910

$ —

$ 16,910

Operating profit (loss)

$ 539

284

$ 823

$ 2,071

766

$ 2,837

Operating margin

9.7 %

14.8 %

12.2 %

16.8 %

Earnings (loss) before income taxes

$ 433

295

a,b

$ 728

$ 1,793

777

a,b

$ 2,570

Income tax (expense) benefit

$ 1

(126)

$ (125)

$ (272)

(259)

$ (531)

Effective tax rate

(0.2) %

17.2 %

15.2 %

20.7 %

Earnings (loss) from continuing

operations attributable to common

shareowners

$ 407

$ 169

$ 576

$ 1,427

$ 518

$ 1,945

Summary of Adjustments:

Restructuring costs

$ 50

$ 105

Amortization of acquired intangible assets

221

636

Acquisition/divestiture-related costs

CCR gain

—

(7)

Other

Defined benefit pension settlement

Total adjustments

$ 295

$ 777

Tax effect on adjustments above

$ (77)

$ (204)

Tax specific adjustments

(49)

(55)

Total tax adjustments

$ (126)

$ (259)

Diluted shares outstanding

858.6

867.7

Diluted earnings per share:

Continuing operations

$ 0.47

$ 0.67

$ 1.64

$ 2.24

Free Cash Flow Reconciliation

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In millions)

2026

2025

2026

2025

Net cash flows provided by operating activities

$ 813

$ 341

$ 1,819

$ 1,473

Less: Capital expenditures

(139)

(117)

(350)

(261)

Free cash flow

$ 674

$ 224

$ 1,469

$ 1,212

Net Debt Reconciliation

(Unaudited)

(In millions)

September 30, 2026

December 31, 2025

Long-term debt

$ 9,992

$ 11,365

Short-term borrowings and current portion of long-term debt

1,482

468

Less: Cash and cash equivalents

1,354

1,555

Net debt

$ 10,120

$ 10,278

SOURCE Carrier Global Corporation