Carrier’s shares fell 1.3% after earnings, a roughly flat reaction. The quarter showed double-digit sales and profit growth, alongside rising orders and backlog; the transcript excerpt does not include the full outlook or the remainder of management’s comments on the Climate Solutions Europe impairment, limiting assessment of those factors.
- Organic sales grew 15%; adjusted operating profit rose about 35%, with adjusted operating margin expanding 260 basis points.
- Adjusted EPS increased 30%, or about 15% excluding IEEPA refunds; year-to-date free cash flow was $1.5 billion.
- Global orders rose 35%, including more than 60% growth in global commercial orders. Data center orders increased 300%, and year-to-date data center orders exceeded $3 billion.
- Data center sales topped $550 million in the quarter, above the company’s target; Carrier reiterated its $2 billion full-year commitment. Backlog reached more than $8.5 billion.
- Residential markets also improved: CSA residential sales grew more than 30%, and the CSA residential market is now expected to track at 7.5 million to 8 million units, versus the company’s earlier expectation of below 7 million.
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