Carrier Global (CARR) FY2025 10-K Annual Report

Filed: Feb 5, 2026
Industrials
Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig EquipSEC EDGAR

Carrier Global (CARR) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 5, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Carrier Global FY2025 10-K Analysis

Business Overview

  • Core business: Intelligent climate and energy solutions with digitally enabled lifecycle services for heating, cooling, ventilation, and cold chain markets
  • New emphasis: Acquisition of Viessmann's climate solutions business expands sustainable HVAC offerings in Europe; announced sale of Riello business for $430 million
  • Strategic shift: Restructured segments in 2025 to four global climate solution regions; focusing on pure-play climate and energy with electrification and digital platforms like Abound and Lynx
  • Quantitative highlight: Net sales $21.7B (2025), operating profit $2.2B; approx. 47,000 employees across 52 countries, with 52% international sales
  • Noteworthy fact: Initiated simplification via divestitures (fire security, commercial refrigeration) and acquired Viessmann's business to accelerate portfolio transformation

Management Discussion & Analysis

  • Revenue $21.7B, down 3% YoY ($739M decrease), organic sales down 1%, impacted by Climate Solutions Americas and Europe segments
  • Gross margin 25.9% vs 26.6%, fell 6% YoY ($357M decrease) due to lower volumes and full amortization of VCS Business inventory step-up
  • Best segment: Climate Solutions Americas with $2.15B operating profit but 7% decline; Worst segment: Climate Solutions Transportation 17% sales decline, 7% profit drop to $452M
  • Cash and cash equivalents $1.56B (down $2.4B), total debt reduced by ~$1.0B to $11.8B, net debt increased to $10.3B; repaid $1.2B debt in 2025
  • Management expects cash flows and credit facilities sufficient for operations, notes risks from market conditions, plans portfolio optimization including Riello sale for $430M closing in H1 2026

Risk Factors

  • U.S. AIM Act of 2020 and Kigali Amendment tariff/tax risks on HVAC refrigerants requiring capital expenditures to meet regulations
  • 52% net sales from international ops exposed to volatile exchange rates and trade policy conflicts with China, Mexico, U.S. tariffs
  • Reliance on joint ventures with Midea Group and Watsco, Inc., risking operational control loss and restrictions on market competition
  • Competitive threat from rapidly evolving HVAC technologies, with risk of product obsolescence amid tighter climate regulations
  • Debt obligations and additional borrowings could impair profitability and ability to meet financial commitments

Carrier Global FY2025 Key Financial Metrics
XBRL

Revenue

$21.7B

-3.3% YoY

Net Income

$1.5B

-73.5% YoY

Operating Margin

10.0%

-178bp YoY

Net Margin

6.8%

-1810bp YoY

ROE

10.5%

-2843bp YoY

Total Assets

$37.2B

-0.6% YoY

EPS (Diluted)

$1.72

-72.0% YoY

Operating Cash Flow

$2.5B

+346.4% YoY

Source: XBRL data from Carrier Global FY2025 10-K filing on SEC EDGAR. All figures in USD.

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