Carrier reported strong third-quarter demand and sales growth, led by commercial HVAC and data-center orders, and said its backlog reached a record level. The company also signed long-term agreements worth multiple billions of dollars that include minimum volume commitments, which it says are additive to backlog.
The results included a sharp split between adjusted and GAAP earnings: Carrier reported an adjusted profit, but a large GAAP operating loss. The company attributed the difference to a goodwill impairment charge and also noted that refunds tied to the International Emergency Economic Powers Act (IEEPA) affected results.
Key details
- Sales increased: Third-quarter net sales were $6.26 billion, up 12% from a year earlier. Organic sales rose 15%.
- Orders and backlog strengthened: Total orders increased about 35%, excluding NORESCO. Commercial HVAC orders rose about 60%, while data-center orders were up roughly 300%. Backlog topped $8.5 billion, up 60% year over year.
- Long-term agreements add committed volume: Carrier signed long-term agreements valued at multiple billions of dollars that include minimum volume commitments. Those minimums are additional to the reported backlog.
- Adjusted operating performance improved: Adjusted operating profit rose 33% to $1.09 billion, and the adjusted operating margin expanded to 17.4% from 14.8% a year earlier.
- GAAP results included a substantial impairment: Carrier reported an operating loss of $2.27 billion, compared with operating profit of $539 million in the prior-year quarter. Its GAAP loss per share was $3.16; adjusted earnings per share were 87 cents.
- Refunds affected adjusted EPS: Adjusted EPS included an estimated 10-cent benefit from IEEPA refunds, partly offset by an approximately 2-cent impact from noncontrolling interests. The company did not provide the goodwill impairment amount in the supplied results excerpt.
- Cash generation and shareholder returns: Net cash from operating activities was $813 million, and free cash flow was $674 million. Carrier returned about $600 million to shareholders through dividends and share repurchases.
- 2026 outlook: Chief Executive David Gitlin said Carrier expects double-digit organic sales and adjusted EPS growth for 2026. He also said the record backlog supports confidence in sustaining momentum into 2027 and beyond.
The clearest operating signals were stronger sales, higher adjusted profitability and substantial growth in orders, particularly in data centers. The GAAP loss, by contrast, reflects the impairment charge noted by the company and should be distinguished from its adjusted earnings measure.