Carrier Global Corporation (CARR) Bundle
A Brief History of Carrier Global Corporation
Carrier Global Corporation, a leading global provider of innovative HVAC, refrigeration, fire, and security solutions, has experienced significant growth and transformation over the years. As of 2024, the company has continued to expand its operations and enhance its product offerings.
Recent Financial Performance
For the nine months ended September 30, 2024, Carrier reported net sales of $17.3 billion, marking an 18% increase compared to $14.6 billion during the same period in 2023. The organic sales growth was 2%, while acquisitions contributed 17% to this increase .
| Financial Metric | 2024 Q3 | 2023 Q3 |
|---|---|---|
| Net Sales | $5.98 billion | $4.94 billion |
| Gross Margin | $1.68 billion | $1.49 billion |
| Operating Profit | $763 million | $510 million |
| Net Earnings | $481 million | $381 million |
Acquisition of the VCS Business
On January 2, 2024, Carrier completed the acquisition of the VCS Business for $14.2 billion. This strategic move was funded through a combination of cash on hand, proceeds from newly issued debt, and existing credit facilities .
Debt and Financial Structure
As of September 30, 2024, Carrier reported total debt of $12.4 billion and total equity of $15.0 billion. The company has made significant strides in managing its debt levels, reducing its debt to total capitalization ratio to 45% .
| Debt and Equity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt | $12.4 billion | $14.3 billion |
| Total Equity | $15.0 billion | $9.0 billion |
| Net Debt | $10.2 billion | $4.4 billion |
| Total Capitalization | $27.5 billion | $23.3 billion |
Share Repurchase Program
During the nine months ended September 30, 2024, Carrier repurchased 6.2 million shares for a total cost of $0.4 billion. The company has approximately $1.7 billion remaining under its share repurchase authorization .
Market Position and Future Outlook
Carrier continues to strengthen its market position through innovation and strategic acquisitions, including the VCS Business. The company is well-positioned to capitalize on trends in energy efficiency and environmental sustainability, driving future growth and profitability.
A Who Owns Carrier Global Corporation (CARR)
Major Shareholders
As of 2024, the ownership structure of Carrier Global Corporation is characterized by a mix of institutional and individual investors. The following table summarizes the major shareholders:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | ~700 million | 74.0% |
| Individual Investors | ~247 million | 26.0% |
Top Institutional Investors
The following table lists the top institutional investors holding significant stakes in Carrier Global Corporation:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| Vanguard Group | 120 million | 12.7% |
| BlackRock, Inc. | 115 million | 12.1% |
| State Street Corporation | 75 million | 7.9% |
| Capital Research Global Investors | 55 million | 5.8% |
| Fidelity Investments | 40 million | 4.2% |
Executive Ownership
Carrier Global's executive team also holds shares in the company. The following table provides details on executive ownership:
| Executive Name | Position | Shares Owned |
|---|---|---|
| David Gitlin | CEO | 2 million |
| Mark S. S. Cummings | CFO | 1.5 million |
| Maria J. C. V. F. de Oliveira | COO | 1 million |
Current Stock Performance
As of September 30, 2024, Carrier Global Corporation's stock has performed as follows:
| Metric | Value |
|---|---|
| Current Share Price | $51.20 |
| Market Capitalization | $48.5 billion |
| 52-Week High | $56.00 |
| 52-Week Low | $44.50 |
Recent Acquisition Impact
On January 2, 2024, Carrier Global Corporation completed the acquisition of the VCS Business for a total consideration of $14.2 billion, which significantly influenced its stock structure:
| Component | Value |
|---|---|
| Cash Paid | $11.2 billion |
| Shares Issued | 58,608,959 shares |
Dividends
Carrier Global Corporation has a history of paying dividends, with the following details for 2024:
| Quarter | Dividend Per Share |
|---|---|
| Q1 2024 | $0.19 |
| Q2 2024 | $0.19 |
Conclusion
Carrier Global Corporation's ownership structure as of 2024 reflects a strong institutional presence, significant executive ownership, and a commitment to returning value to shareholders through dividends and stock performance.
Carrier Global Corporation (CARR) Mission Statement
Mission Statement Overview
Carrier Global Corporation's mission is to create solutions that matter for people and the planet. The company aims to lead in the development of innovative and sustainable technologies in the HVAC, refrigeration, and fire and security sectors.
Financial Performance and Strategic Initiatives
As of September 30, 2024, Carrier reported net sales of $17.3 billion for the nine months ended, representing a 18% increase from the same period in 2023. The company attributed this growth to ongoing customer demand and strategic acquisitions.
Financial Highlights
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Net Sales | $17,338 million | $14,635 million | 18% |
| Gross Margin | $4,637 million | $4,045 million | 15% |
| Operating Expenses | $2,765 million | $2,424 million | 14% |
| Net Earnings | $3,053 million | $929 million | 228% |
Investment in Innovation
Carrier is committed to investing in research and development, with expenses totaling $524 million for the nine months ended September 30, 2024, up from $355 million in the prior year. This investment is aimed at new product development and technological innovation, particularly in energy efficiency and refrigerant regulation compliance.
Acquisition of VCS Business
On January 2, 2024, Carrier completed the acquisition of the VCS Business for approximately $14.2 billion, significantly enhancing its portfolio in sustainable technologies. The acquisition was financed through a combination of cash and stock, with 20% of the purchase price paid in Carrier common stock and 80% in cash.
Debt and Capital Structure
As of September 30, 2024, Carrier's total debt stood at $12.4 billion, while total equity was reported at $15.0 billion. The company’s net debt was calculated at $10.2 billion, reflecting a robust capital structure to support its strategic initiatives.
Shareholder Returns
During the nine months ended September 30, 2024, Carrier declared dividends totaling $514 million. The company continues to prioritize shareholder returns while investing in growth opportunities.
Outlook and Strategic Goals
Carrier aims to expand its market presence and strengthen its leadership in sustainable technology solutions. The company's strategic focus includes enhancing operational efficiencies and pursuing additional acquisitions to complement its existing product offerings.
Credit Ratings
As of September 30, 2024, Carrier's credit ratings are as follows:
| Rating Agency | Long-term Rating | Short-term Rating | Outlook |
|---|---|---|---|
| Standard & Poor's | BBB | A2 | Positive |
| Moody's | Baa2 | P2 | Positive |
| Fitch Ratings | BBB | F2 | Positive |
Conclusion
Carrier Global Corporation remains committed to its mission of providing sustainable solutions while delivering strong financial performance and enhancing shareholder value through strategic initiatives and investments in innovation.
How Carrier Global Corporation (CARR) Works
Business Overview
Carrier Global Corporation operates in the HVAC (heating, ventilation, and air conditioning) and refrigeration segments, providing solutions that enhance energy efficiency and sustainability. The company focuses on innovative technologies, including digital solutions and renewable energy systems.
Financial Performance
As of September 30, 2024, Carrier reported significant financial growth compared to the previous year. The following table summarizes key financial metrics for the three and nine months ended September 30, 2024:
| Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 |
|---|---|---|---|---|
| Net Sales (in millions) | $5,984 | $4,935 | $17,338 | $14,635 |
| Cost of Products Sold (in millions) | $(4,307) | $(3,449) | $(12,701) | $(10,590) |
| Gross Margin (in millions) | $1,677 | $1,486 | $4,637 | $4,045 |
| Operating Expenses (in millions) | $(914) | $(976) | $(2,765) | $(2,424) |
| Operating Profit (in millions) | $763 | $510 | $1,872 | $1,621 |
| Net Earnings (in millions) | $481 | $381 | $3,139 | $1,001 |
Segment Performance
Carrier's operations are divided primarily into two segments: HVAC and Refrigeration. The segment performance for the nine months ended September 30, 2024, is detailed below:
| Segment | Net Sales (in millions) | Operating Profit (in millions) | Operating Profit Margin |
|---|---|---|---|
| HVAC | $14,569 | $1,857 | 12.7% |
| Refrigeration | $2,795 | $319 | 11.4% |
| Total | $17,364 | $2,176 | 12.5% |
Acquisition of VCS Business
On January 2, 2024, Carrier completed the acquisition of the VCS Business for $14.2 billion, enhancing its product portfolio in high-efficiency heating and renewable energy systems. This acquisition contributed approximately 20% to Carrier's net sales for the nine months ended September 30, 2024.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Carrier's cash flow and liquidity metrics are as follows:
| Cash Flow Category | Cash Flow (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $431 |
| Net Cash Used in Investing Activities | $(5,114) |
| Net Cash Used in Financing Activities | $(2,939) |
Debt and Equity Position
As of September 30, 2024, Carrier's debt and equity metrics are summarized below:
| Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $2,225 |
| Total Debt | $12,432 |
| Total Equity | $15,042 |
| Net Debt (Total Debt - Cash) | $10,207 |
| Total Debt to Total Capitalization | 45% |
Stock Performance and Dividends
During the nine months ended September 30, 2024, Carrier repurchased 6.2 million shares of common stock for approximately $0.4 billion. The company declared dividends totaling $514 million during this period.
Market Trends and Future Outlook
Carrier is positioned to leverage market trends towards energy efficiency and sustainability in the HVAC and refrigeration sectors. The ongoing demand for innovative solutions is expected to drive revenue growth across its segments.
How Carrier Global Corporation (CARR) Makes Money
Overview of Revenue Streams
Carrier Global Corporation primarily generates revenue through two key segments: HVAC (Heating, Ventilation, and Air Conditioning) and Refrigeration. The company focuses on providing innovative products, controls, services, and solutions aimed at enhancing energy efficiency and sustainability.
Financial Performance
For the nine months ended September 30, 2024, Carrier reported total net sales of $17.3 billion, representing an 18% increase from $14.6 billion in the same period of 2023. The breakdown of the revenue growth is as follows:
| Components | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Net Sales | $17,338 | $14,635 | 18% |
| Cost of Products Sold | $(12,701) | $(10,590) | 20% |
| Gross Margin | $4,637 | $4,045 | 15% |
| Operating Expenses | $(2,765) | $(2,424) | 14% |
| Operating Profit | $1,872 | $1,621 | 15% |
| Net Earnings (Loss) | $3,139 | $1,001 | 214% |
HVAC Segment Performance
The HVAC segment accounted for a significant portion of Carrier's revenue. For the nine months ended September 30, 2024, HVAC net sales reached $14.6 billion, which was a 23% increase compared to $11.8 billion in the same period of 2023.
The components of revenue growth in the HVAC segment are as follows:
| HVAC Revenue Components | 2024 (in millions) | Change (%) |
|---|---|---|
| Organic Sales | 3% | — |
| Acquisitions and Divestitures, net | 20% | — |
| Total Change | 23% | — |
Refrigeration Segment Performance
The Refrigeration segment generated net sales of $2.8 billion for the nine months ended September 30, 2024, which was flat compared to $2.8 billion in the same period of 2023. The breakdown is as follows:
| Refrigeration Revenue Components | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Net Sales | $2,795 | $2,794 | 0% |
| Operating Profit | $319 | $327 | -2% |
Cost Structure and Profitability
The cost of products and services sold for the nine months ended September 30, 2024, was $12.7 billion, a 20% increase from $10.6 billion in 2023. The gross margin for this period was $4.6 billion, representing 26.7% of net sales, which was a decrease from 27.6% in the prior year.
Operating expenses increased to $2.8 billion, up 14% from $2.4 billion in the same period of 2023, reflecting higher selling, general, and administrative expenses as well as increased research and development costs.
Recent Acquisitions
On January 2, 2024, Carrier completed the acquisition of the VCS Business for $14.2 billion, significantly impacting revenue and operational capabilities. This acquisition contributed approximately 20% to net sales during the three months ended September 30, 2024.
Cash and Capital Management
As of September 30, 2024, Carrier reported cash and cash equivalents of $2.2 billion, down from $9.9 billion at the end of 2023. Total debt stood at $12.4 billion, with a total equity of $15.0 billion, demonstrating a significant shift in the company's capital structure following the acquisition of the VCS Business.
| Financial Position (as of September 30, 2024) | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $2,225 |
| Total Debt | $12,432 |
| Total Equity | $15,042 |
| Net Debt | $10,207 |
| Total Capitalization | $27,474 |
Dividends and Share Repurchases
During the nine months ended September 30, 2024, Carrier paid a total of $514 million in dividends. The company also repurchased 6.2 million shares of common stock for an aggregate price of $0.4 billion, with an additional $3 billion share repurchase program approved in October 2024.
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Article updated on 8 Nov 2024
Resources:
- Carrier Global Corporation (CARR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Carrier Global Corporation (CARR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Carrier Global Corporation (CARR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.