PALM BEACH GARDENS, United States, 6 February 2024: Carrier Global Corporation, intelligent climate and energy solutions provider, announced financial results for the fourth quarter and full year of 2023. Making the announcement through a Press release, the company said projects continued solid organic growth in 2024 supported by a projected fourth consecutive year of double-digit aftermarket growth, innovation, and significant secular tailwinds.

David Gitlin, Chairman & CEO, Carrier, said: “Our fourth quarter results continue to show Carrier’s ability to perform while transforming with strong operating profit growth and EPS up over 30% compared to the prior year. For 2023, we grew gross margins 210 basis points on three per cent organic sales growth with operating and free cash flow up about 50% compared to the prior year. In addition to delivering results ahead of our projections for the year, we completed our game-changing combination with Viessmann Climate Solutions in January and reached definitive agreements to sell both our Global Access Solutions and Commercial Refrigeration businesses for close to USD 6 billion combined. Looking forward to 2024, our solid backlog levels and sustainability leadership position Carrier for another year of strong financial performance.”

Carrier said fourth-quarter sales of USD 5.1 billion were flat compared to the prior year, including flat organic sales growth, a one per cent tailwind from currency translation and a one per cent net negative impact from acquisitions and divestitures. The company said sales in the HVAC segment were down one per cent organically. Furthermore, Carrier said North America Residential & Light Commercial HVAC sales declined by high single digits due to weaker-than-expected residential sales as distributors reduced inventory levels. The company added that this was offset by high single-digit growth in Commercial HVAC globally. The Refrigeration segment, Carrier said, returned to growth this quarter, with organic sales up six per cent, driven by growth in Transport Refrigeration. Fire and Security organic sales were down one per cent, driven by Global Access Solutions and Residential Fire, partially offset by growth in Industrial Fire.

Carrier said GAAP operating profit in the quarter of USD 607 million was up 40% from the fourth quarter of 2022. Adjusted operating profit of USD 557 million was up eight per cent. The company said net income and adjusted net income were USD 420 million and USD 452 million, respectively. Furthermore, the company said, GAAP EPS of USD 0.49 and adjusted EPS of USD 0.53 benefitted from operating margin expansion and lower effective tax rates. Carrier said net cash flows provided by operating activities for the quarter were approximately USD 1.1 billion, and capital expenditures were USD 233 million, resulting in free cash flow of USD 829 million.

Carrier said that its 2023 sales of USD 22.1 billion increased eight per cent compared to the prior year, including organic sales growth of three per cent and a five per cent impact from acquisitions and divestitures. The company added that gross margins increased 210 basis points compared to the prior year. The company said GAAP operating profit of USD 2.3 billion decreased by 49% due to the previous year’s gains on the sale of Chubb and the acquisition of Toshiba Carrier, while adjusted operating profit increased by 11% to USD 3.2 billion. Carrier said its operating margin decreased due to the prior year’s impact of the Chubb and Toshiba Carrier-related gains and added that adjusted operating margin increased despite the impact from the consolidation of Toshiba Carrier. Strong price realisation more than offset continued inflation, and productivity savings more than offset strategic incremental investments.

Carrier said, GAAP EPS was USD 1.58 and adjusted EPS was USD 2.73. Net income was USD 1.3 billion, and adjusted net income was USD 2.3 billion. The company said net cash flows provided by operating activities were USD 2.6 billion, and capital expenditures were USD 469 million, resulting in free cash flow of USD 2.1 billion. During the quarter, the company said, it had issued USD 5.6 billion of debt related to the acquisition of Viessmann Climate Solutions.

According to Carrier, the outlook for 2024 is as follows:

*Note: When the company provides expectations for organic sales, adjusted operating profit, adjusted operating margin, 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 February 6, 2024