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PALM BEACH GARDENS - On Thursday, Carrier Global Corporation (NYSE:CARR) reported fourth quarter results that missed analyst expectations, with weakness in residential markets offsetting growth in commercial HVAC.
The intelligent climate and energy solutions provider’s shares fell 4.33% in pre-market trading after the results.
The company reported fourth quarter adjusted earnings per share of $0.34, falling short of analyst estimates of $0.37. Revenue came in at $4.84 billion, below the consensus forecast of $5 billion and down 6% from $5.15 billion in the same period last year. Organic sales declined 9% YoY, partially offset by a 3% benefit from foreign currency translation.
"We continue to drive outsized growth in commercial HVAC with Q4 orders up nearly 50% driven by key data center wins," said Carrier Chairman & CEO David Gitlin. "We continue to control the controllables, reducing discretionary costs and building backlog in our long-cycle businesses to mitigate residential market challenges."
The company’s Climate Solutions Americas segment was hit hardest, with sales declining 17% organically as residential sales plunged 38% and light commercial sales fell 20%, though commercial HVAC grew by double digits.
For fiscal year 2026, Carrier forecasts adjusted earnings per share of approximately $2.80, below the analyst consensus of $2.88. The company expects flat to low-single-digit organic sales growth, with continued double-digit growth in global commercial HVAC and aftermarket businesses while residential and light commercial markets remain weak.
Free cash flow for the fourth quarter was $909 million, compared to negative $89 million in the prior-year period. For the full year 2025, Carrier reported sales of $21.75 billion, down 3% from 2024, with organic sales declining 1%.
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