EX-99 2 a8-kerexhibit99xq42024.htm EX-99 Document

Exhibit 99
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Carrier Reports Strong 2024 Results and Announces 2025 Outlook


Fourth Quarter 2024 Highlights
•Sales of $5.1 billion, up 19% compared to 2023 including 6% organic growth
•GAAP EPS from continuing operations of ($0.05); adjusted EPS from continuing operations of $0.54, up 50%
•Operating margin expansion of 250 basis points and adjusted operating margin expansion of 370 basis points

Full Year 2024 Highlights
•Sales of $22.5 billion, up 19% compared to 2023 including 3% organic growth
•GAAP EPS from continuing operations of $1.22; adjusted EPS from continuing operations of $2.56 up 16%
•Operating margin expansion of 40 basis points and adjusted operating margin expansion of 180 basis points
•Returned ~$2.6 billion to shareholders, including ~$0.7 billion in dividends and ~$1.9 billion shares repurchased

PALM BEACH GARDENS, Fla., February 11, 2025 – Carrier Global Corporation (NYSE:CARR), global leader in intelligent climate and energy solutions, today reported strong financial results for the fourth quarter and full year of 2024.
“We capped a transformational year for Carrier with robust fourth quarter financial results including 6% organic growth, significant adjusted operating profit margin expansion of 370 basis points and 50% adjusted EPS growth. The quarter also marked the completion of our portfolio transformation, which resulted in total divestiture proceeds of over $10 billion,” said Carrier Chairman & CEO David Gitlin. “We successfully acquired and integrated Viessmann Climate Solutions in 2024, giving us the most comprehensive and differentiated global portfolio in our industry. We are well-positioned to deliver strong results in 2025, reinforced by our growing global commercial HVAC backlog supported by the acceleration in data centers, commitment to double-digit aftermarket growth, and leading positions across our
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businesses. We remain laser focused on delivering value for our customers, employees and shareholders.”
Fourth Quarter 2024 Results
Carrier’s fourth quarter sales of $5.1 billion increased 19% versus the prior year, including 6% organic growth and a 13% net contribution from acquisitions and divestitures.
Sales in the HVAC segment increased 11% organically. Americas sales were up high-teens organically driven by continued strength in Commercial and North America Residential, both up double-digits, partially offset by declines in Light Commercial. EMEA sales were flat organically, with double-digit growth in Commercial offsetting a decline in Residential and Light Commercial. Asia Pacific sales were slightly positive, driven by strength in Japan and South Asia partially offset by declines in residential light commercial in China.
Refrigeration sales were down 6% organically, mostly driven by declines in North America truck and trailer, with flat sales growth across the remainder of the segment.
GAAP operating profit in the quarter of $774 million was up 44% from last year, primarily due to the gain on the sale of Commercial Refrigeration. Adjusted operating profit of $678 million from continuing operations increased 65%, driven by the contribution of Viessmann Climate Solutions, the benefit of organic growth, and productivity.
GAAP net loss from continuing operations was $48 million primarily driven by a tax charge of approximately $650 million related to an internal business re-organization which was more than offset by a related tax benefit recorded in discontinued operations. Adjusted net earnings from continuing operations was $492 million. GAAP EPS and adjusted EPS from continuing operations were ($0.05) and $0.54, respectively.
Full-Year 2024 Results
Carrier’s 2024 sales of $22.5 billion increased 19% compared to the prior year including organic sales growth of 3% and a 16% impact from acquisitions and divestitures. GAAP operating profit of $2.6 billion from continuing operations increased 23%. Adjusted operating profit of $3.5 billion from continuing operations increased 34%, driven by the addition of Viessmann Climate Solutions and strong operational performance.
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GAAP net earnings and adjusted net earnings from continuing operations were $1.1 billion and $2.3 billion, respectively. GAAP EPS and adjusted EPS from continuing operations were $1.22 and $2.56, respectively.

Full-Year 2025 Guidance
The Company projects accelerated organic growth in 2025 supported by secular tailwinds, continued innovation and double-digit aftermarket growth.
•Mid-single-digit organic* growth; Reported sales of $22.5 – $23.0 billion
•Commercial Refrigeration divestiture represents a ~$750 million sales headwind versus prior year
•Adjusted operating margin* of 16.5% – 17.0% up ~100 basis points compared to 2024
•Adjusted EPS* of $2.95 – $3.05, up mid to high-teens
•Free cash flow* of $2.4 – $2.6 billion
•Expect to repurchase ~$3 billion in shares


2025 Guidance
Sales
$22.5 – $23.0 billion
~$750 million revenue headwind from CCR exit
Organic* up MSD
FX (1%)
Acquisitions 0%
Divestitures (3%)
Adjusted Operating Margin*
16.5% – 17.0%
 + ~100 bps Y/Y
Adjusted EPS*
$2.95 – $3.05
+ ~15-20% Y/Y
Free Cash Flow*
$2.4 – $2.6 billion

*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.




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Conference Call
Carrier will host a webcast of its earnings conference call today, Tuesday, February 11, 2025, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at ir.carrier.com/news-and-events/events-and-presentations or to listen to the earnings call by phone, participants must pre-register at Carrier Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing access to the live call.
Discontinued Operations
In 2023, the Company announced plans to exit its Fire & Security and Commercial Refrigeration businesses over the course of 2024. The announced plan to exit the Fire & Security segment represented a single disposal plan to separately divest multiple businesses over different reporting periods. Upon the Commercial and Residential Fire Business qualifying as held for sale during the three months ended September 30, 2024, the components of the Fire & Security segment in aggregate met the criteria to be presented as discontinued operations in the Company’s unaudited condensed consolidated statement of operations and unaudited condensed consolidated statement of cash flows. In addition, the assets and liabilities of the Commercial and Residential Fire Business have been reclassified to held for sale at December 31, 2023. The results of the Commercial Refrigeration business did not meet the criteria to be presented in discontinued operations. Accordingly, all financial measures presented herein, including non-GAAP financial measures, are associated with Carrier's continuing operations unless specifically noted. See “Use and Definitions of Non-GAAP Financial Measures” below.

Cautionary Statement
This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. These forward-looking statements are intended to provide management's current expectations or plans for Carrier's future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, Carrier's plans with respect to its indebtedness and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see Carrier's reports on Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission from time to time. Any forward-looking statement speaks only as of the date on which it is made, and Carrier assumes no
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obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

About Carrier

Carrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating solutions that matter for people and our planet for generations to come. From the beginning, we've led in inventing new technologies and entirely new industries. Today, we continue to lead because we have a world-class, diverse workforce that puts the customer at the center of everything we do. For more information, visit corporate.carrier.com or follow Carrier on social media at @Carrier.


Contact:    
Investor Relations
Michael Rednor
561-365-2020
Investor.Relations@Carrier.com

Media Inquiries
Jason Shockley
561-542-0207
Jason.Shockley@Carrier.com



SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS

Following are tables that present selected financial data of Carrier Global Corporation. Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures.

Use and Definitions of Non-GAAP Financial Measures
Carrier Global Corporation (“we” or "our") reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

Organic sales, adjusted operating profit, adjusted operating margin, incremental margins / earnings conversion, earnings before interest, taxes and depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted net earnings (loss), adjusted earnings per share (“EPS”), adjusted interest expense, net, adjusted effective tax rate and net debt are non-GAAP financial measures and are associated with Carrier's continuing operations unless specifically noted.

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Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a nonoperational nature (hereinafter referred to as “other significant items”). Adjusted operating profit represents operating profit (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of net sales (a GAAP measure). Incremental margins / earnings conversion represents the year-over-year change in adjusted operating profit divided by the year-over-year change in net sales. EBITDA represents net earnings (loss) attributable to common shareholders (a GAAP measure), adjusted for interest income and expense, income tax expense, and depreciation and amortization. Adjusted EBITDA represents EBITDA, as calculated above, excluding non-service pension benefit, non-controlling interest in subsidiaries’ earnings from operations, restructuring costs and other significant items. Adjusted net earnings (loss) represents net earnings (loss) attributable to common shareowners (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted interest expense, net represents interest expense (a GAAP measure) and interest income (a GAAP measure), net excluding other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure). For the business segments, when applicable, adjustments of operating profit and operating margins represent operating profit, excluding restructuring, amortization of acquired intangibles and other significant items.

Free cash flow is a non-GAAP financial measure that represents net cash flows provided by operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing our ability to fund its activities, including the financing of acquisitions, debt service, repurchases of our common stock and distribution of earnings to shareowners.

Orders are contractual commitments with customers to provide specified goods or services for an agreed upon price and may not be subject to penalty if cancelled.

When we provide our expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted interest expense, net, adjusted effective tax rate, incremental margins/earnings conversion, 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 (expected net sales, operating profit, operating margin, interest expense, effective tax rate, incremental operating margin, diluted EPS and net cash flows provided by operating activities) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.







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Carrier Global Corporation
Consolidated Statement of Operations
(Unaudited)
Three Months Ended December 31,Year Ended December 31,
(In millions, except per share amounts)2024202320242023
Net sales
Product sales$4,530 $3,726 $19,990 $16,665 
Service sales618 590 2,496 2,286 
Total Net sales5,148 4,316 22,486 18,951 
Costs and expenses
Cost of products sold(3,335)(2,733)(14,580)(12,002)
Cost of services sold(469)(466)(1,925)(1,787)
Research and development(162)(138)(686)(493)
Selling, general and administrative(803)(737)(3,197)(2,607)
Total Costs and expenses(4,769)(4,074)(20,388)(16,889)
Equity method investment net earnings44 40 231 211 
Other income (expense), net351 257 317 (113)
Operating profit774 539 2,646 2,160 
Non-service pension benefit (expense)— (1)(1)(1)
Interest (expense) income, net(81)(34)(371)(160)
Earnings before income taxes693 504 2,274 1,999 
Income tax (expense) benefit(723)(68)(1,062)(521)
Earnings from continuing operations(30)436 1,212 1,478 
Discontinued operations, net of tax2,599 3 4,496 (38)
Net earnings (loss)$2,569 $439 $5,708 $1,440 
Less: Non-controlling interest in subsidiaries'18 19 104 91 
Net earnings (loss) attributable to common shareowners2,551 420 5,604 1,349 
Amounts attributable to common shareowners:
Continuing operations(48)417 1,108 1,387 
Discontinued operations2,599 3 4,496 (38)
Net earnings (loss) attributable to common shareowners2,551 420 5,604 1,349 
Earnings per share
Basic:
Continuing operations$(0.05)$0.50 $1.23 $1.66 
Discontinued operations2.92 — 5.01 (0.05)
Net earnings (loss)$2.87 $0.50 $6.24 $1.61 
Diluted:
Continuing operations$(0.05)$0.49 $1.22 $1.63 
Discontinued operations2.87 — 4.93 (0.05)
Net earnings (loss)$2.82 $0.49 $6.15 $1.58 
Weighted-average number of shares outstanding
Basic890.1839.6898.2837.3
Diluted903.4854.2911.7853.0


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Carrier Global Corporation
Consolidated Balance Sheet
(Unaudited)
As of December 31,
(In millions)20242023
Assets
Cash and cash equivalents$3,969 $9,852 
Accounts receivable, net2,651 2,080 
Inventories, net2,299 1,823 
Assets held for sale— 5,093 
Other assets, current972 728 
Total current assets9,891 19,576 
Future income tax benefits1,131 718 
Fixed assets, net2,999 2,160 
Operating lease right-of-use assets554 421 
Intangible assets, net6,432 945 
Goodwill14,601 7,520 
Pension and post-retirement assets43 32 
Equity method investments1,194 1,140 
Other assets558 310 
Total Assets$37,403 $32,822 
Liabilities and Equity
Accounts payable$2,458 $2,483 
Accrued liabilities4,182 2,997 
Liabilities held for sale— 1,450 
Current portion of long-term debt1,252 51 
Total current liabilities7,892 6,981 
Long-term debt11,026 14,242 
Future pension and post-retirement obligations214 149 
Future income tax obligations2,015 523 
Operating lease liabilities432 333 
Other long-term liabilities1,429 1,589 
Total Liabilities23,008 23,817 
Equity
Common stock, par value $0.01; 4,000,000,000 shares authorized; 948,068,772 and 883,068,393 shares issued; 878,337,677 and 839,910,275 outstanding as of December 31, 2024 and 2023, respectively9 9 
Treasury stock(3,915)(1,972)
Additional paid-in capital8,610 5,535 
Retained earnings11,483 6,591 
Accumulated other comprehensive loss(2,106)(1,486)
Non-controlling interest314 328 
Total Equity14,395 9,005 
Total Liabilities and Equity$37,403 $32,822 

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Carrier Global Corporation
Consolidated Statement of Cash Flows
(Unaudited)
Year Ended December 31,
(In millions)20242023
Operating Activities
Net earnings (loss)$5,708 $1,440 
Discontinued operations, net of tax(4,496)38 
Adjustments for non-cash items, net:
Depreciation and amortization1,232 491 
Deferred income tax provision(352)(243)
Stock-based compensation cost86 71 
Equity method investment net earnings(231)(211)
(Gain) loss on extinguishment of debt(82)— 
(Gain) loss on sale of investments / deconsolidation(322)(19)
Changes in operating assets and liabilities
Accounts receivable, net(40)(161)
Inventories, net292 123 
Accounts payable and accrued liabilities87 541 
Distributions from equity method investments46 129 
Other operating activities, net(357)53 
Net cash flows provided by (used in) continuing operating activities1,571 2,252 
Net cash flows provided by (used in) discontinued operating activities(1,008)355 
Net cash flows provided by (used in) operating activities563 2,607 
Investing Activities
Capital expenditures(519)(439)
Investment in businesses, net of cash acquired(10,890)(84)
Dispositions of businesses634 54 
Settlement of derivative contracts, net(264)(50)
Other investing activities, net14 15 
Net cash flows provided by (used in) continuing investing activities(11,025)(504)
Net cash flows provided by (used in) discontinued investing activities9,000 (156)
Net cash flows provided by (used in) investing activities(2,025)(660)
Financing Activities
(Decrease) increase in short-term borrowings, net50 (5)
Issuance of long-term debt3,412 5,609 
Repayment of long-term debt(5,345)(111)
Repurchases of common stock(1,944)(62)
Dividends paid on common stock(670)(620)
Dividends paid to non-controlling interest(84)(58)
Other financing activities, net(30)(121)
Net cash flows provided by (used in) continuing financing activities(4,611)4,632 
Net cash flows provided by (used in) discontinued financing activities(25)(20)
Net cash flows provided by (used in) financing activities(4,636)4,612 
Effect of foreign exchange rate changes on cash and cash equivalents(103)88 
Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale(6,201)6,647 
Less: Change in cash balances classified as assets held for sale(320)97 
Net increase (decrease) in cash and cash equivalents and restricted cash (5,881)6,550 
Cash, cash equivalents and restricted cash, beginning of period9,853 3,303 
Cash, cash equivalents and restricted cash, end of period3,972 9,853 
Less: restricted cash3 1 
Cash and cash equivalents, end of period$3,969 $9,852 

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Carrier Global Corporation
Segment Net Sales and Operating Profit
(Unaudited)
Three Months Ended December 31,Year Ended December 31,
2024202320242023
(In millions)ReportedAdjustedReportedAdjustedReportedAdjustedReportedAdjusted
Net sales
HVAC$4,509$4,509$3,293$3,293$19,078$19,078$15,139$15,139
Refrigeration6806801,0241,0243,4753,4753,8183,818
Segment sales5,1895,1894,3174,31722,55322,55318,95718,957
Eliminations and other(41)(41)(1)(1)(67)(67)(6)(6)
Net sales$5,148$5,148$4,316$4,316$22,486$22,486$18,951$18,951
Operating profit
HVAC$451$658$335$397$2,308$3,370$2,275$2,511
Refrigeration39682101108715416428449
Segment operating profit8477404365053,0233,7862,7032,960
Eliminations and other(11)(4)224(38)(95)(42)(200)(91)
General corporate expenses(62)(58)(121)(56)(282)(202)(343)(220)
Operating profit$774$678$539$411$2,646$3,542$2,160$2,649
Operating margin
HVAC10.0 %14.6 %10.2 %12.1 %12.1 %17.7 %15.0 %16.6 %
Refrigeration58.2 %12.1 %9.9 %10.5 %20.6 %12.0 %11.2 %11.8 %
Total Carrier15.0 %13.2 %12.5 %9.5 %11.8 %15.8 %11.4 %14.0 %

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Carrier Global Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP)
Operating Profit

(Unaudited)
Three Months Ended December 31, 2024
(In millions)HVACRefrigerationEliminations and OtherGeneral Corporate ExpensesCarrier
Net sales$4,509 $680 $(41)$— $5,148 
Segment operating profit$451 $396 $(11)$(62)$774 
Reported operating margin10.0 %58.2 %15.0 %
Adjustments to segment operating profit:
Restructuring costs$1 $3 $7 $— $11 
Amortization of acquired intangibles172 — — — 172 
Acquisition step-up amortization (1)
30 1 — — 31 
Acquisition/divestiture-related costs4 — — 4 8 
CCR gain— (318)— — (318)
Total adjustments to operating profit$207 $(314)$7 $4 $(96)
Adjusted operating profit$658 $82 $(4)$(58)$678 
Adjusted operating margin14.6 %12.1 %13.2 %


(Unaudited)
Three Months Ended December 31, 2023
(In millions)HVACRefrigerationEliminations and OtherGeneral Corporate ExpensesCarrier
Net sales$3,293 $1,024 $(1)$— $4,316 
Segment operating profit$335 $101 $224 $(121)$539 
Reported operating margin10.2 %9.9 %12.5 %
Adjustments to segment operating profit:
Restructuring costs$17 $7 $8 $— $32 
Amortization of acquired intangibles35 — — — 35 
Acquisition step-up amortization (1)
10 — — — 10 
Acquisition/divestiture-related costs— — — 65 65 
Bridge loan financing costs— — 2 — 2 
Viessmann-related hedges— — (272)— (272)
Total adjustments to operating profit$62 $7 $(262)$65 $(128)
Adjusted operating profit$397 $108 $(38)$(56)$411 
Adjusted operating margin12.1 %10.5 %9.5 %
(1) Amortization of the step-up to fair value of acquired inventory and backlog.
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Carrier Global Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP)
Operating Profit

(Unaudited)
Year Ended December 31, 2024
(In millions)HVACRefrigerationEliminations and OtherGeneral Corporate ExpensesCarrier
Net sales$19,078 $3,475 $(67)$— $22,486 
Segment operating profit$2,308 $715 $(95)$(282)$2,646 
Reported operating margin12.1 %20.6 %11.8 %
Adjustments to segment operating profit:
Restructuring costs$87 $8 $13 $— $108 
Amortization of acquired intangibles689 — — — 689 
Acquisition step-up amortization (1)
281 1 — — 282 
Acquisition/divestiture-related costs5 10 — 80 95 
CCR gain— (318)— — (318)
Viessmann-related hedges— — 86 — 86 
Gain on liability adjustment (2)
— — (46)— (46)
Total adjustments to operating profit$1,062 $(299)$53 $80 $896 
Adjusted operating profit$3,370 $416 $(42)$(202)$3,542 
Adjusted operating margin17.7 %12.0 %15.8 %

(Unaudited)
Year Ended December 31, 2023
(In millions)HVACRefrigerationEliminations and OtherGeneral Corporate ExpensesCarrier
Net sales$15,139 $3,818 $(6)$— $18,951 
Segment operating profit$2,275 $428 $(200)$(343)$2,160 
Reported operating margin15.0 %11.2 %11.4 %
Adjustments to segment operating profit:
Restructuring costs$44 $21 $10 $— $75 
Amortization of acquired intangibles143 — — — 143 
Acquisition step-up amortization (1)
41 — — — 41 
Acquisition/divestiture-related costs— — — 123 123 
Bridge loan financing costs— — 3 — 3 
TCC acquisition-related gain (3)
8 — — — 8 
Viessmann-related hedges— — 96 — 96 
Total adjustments to operating profit$236 $21 $109 $123 $489 
Adjusted operating profit$2,511 $449 $(91)$(220)$2,649 
Adjusted operating margin16.6 %11.8 %14.0 %
(1) Amortization of the step-up to fair value of acquired inventory and backlog.
(2) Gain associated with an adjustment to our tax-related liability owed to UTC.
(3) The carrying value of our previously held TCC equity investments were recognized at fair value and subsequently adjusted.
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Carrier Global Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results
Net Earnings (Loss), Earnings Per Share, and Effective Tax Rate

(Unaudited)
Three Months Ended December 31, 2024Year Ended December 31, 2024
(In millions, except per share amounts)ReportedAdjustmentsAdjustedReportedAdjustmentsAdjusted
Net sales$5,148 $— $5,148 $22,486 $— $22,486 
Operating profit$774 (96)a$678 $2,646 896 a$3,542 
Operating margin15.0 %13.2 %11.8 %15.8 %
Earnings before income taxes$693 (87)a,b$606 $2,274 831 a,b$3,105 
Income tax (expense) benefit$(723)627 c$(96)$(1,062)400 c$(662)
Effective tax rate104.3 %15.8 %46.7 %21.3 %
Earnings from continuing operations attributable to common shareowners$(48)$540 $492 $1,108 $1,231 $2,339 
Summary of Adjustments:
Restructuring costs$11 a$108 a
Amortization of acquired intangibles172 a689 a
Acquisition step-up amortization (1)
31 a282 a
Acquisition/divestiture-related costs8 a95 a
CCR gain(318)a(318)a
Viessmann-related hedges— a86 a
Gain on liability adjustment (2)
— a(46)a
Debt extinguishment (gain)— b(97)b
Debt prepayment costs9 b32 b
Total adjustments$(87)$831 
Tax effect on adjustments above$(35)$(262)
Tax specific adjustments (3)
662 662 
Total tax adjustments$627 c$400 c
Diluted shares outstanding903.4 903.4 911.7 911.7 
Diluted earnings per share:
Continuing operations$(0.05)$0.54 $1.22 $2.56 
(1) Amortization of the step-up to fair value of acquired inventory and backlog.
(2) Gain associated with an adjustment to our tax-related liability owed to UTC.
(3) Tax expense associated with the integration of the Viessmann and Carrier legal entity structure.
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Carrier Global Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results
Net Earnings (Loss), Earnings Per Share, and Effective Tax Rate

(Unaudited)
Three Months Ended December 31, 2023Year Ended December 31, 2023
(In millions, except per share amounts)ReportedAdjustmentsAdjustedReportedAdjustmentsAdjusted
Net sales$4,316 $— $4,316 $18,951 $— $18,951 
Operating profit$539 (128)a$411 $2,160 489 a$2,649 
Operating margin12.5 %9.5 %11.4 %14.0 %
Earnings before income taxes$504 (111)a,b$393 $1,999 538 a,b$2,537 
Income tax (expense) benefit$(68)(3)c$(71)$(521)(47)c$(568)
Effective tax rate13.5 %18.1 %26.1 %22.4 %
Earnings from continuing operations attributable to common shareowners$417 $(114)$303 $1,387 $491 $1,878 
Summary of Adjustments:
Restructuring costs$32 a$75 a
Amortization of acquired intangibles35 a143 a
Acquisition step-up amortization (1)
10 a41 a
Acquisition/divestiture-related costs65 a123 a
Viessmann-related hedges(272)a96 a
TCC acquisition-related gain (2)
— a8 a
Bridge loan financing costs (3)
19 a,b52 a,b
Total adjustments$(111)$538 
Tax effect on adjustments above$(20)$(83)
Tax specific adjustments17 36 
Total tax adjustments$(3)c$(47)c
Diluted shares outstanding854.2 854.2 853.0 853.0 
Diluted earnings per share:
Continuing operations$0.49 $0.36 $1.63 $2.20 
(1) Amortization of the step-up to fair value of acquired inventory and backlog.
(2) The carrying value of our previously held TCC equity investments were recognized at fair value and subsequently adjusted.
(3) Includes commitment fees recognized in Operating profit.
14

Carrier Global Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results


Components of Changes in Net Sales

Three Months Ended December 31, 2024 Compared with Three Months Ended December 31, 2023

(Unaudited)
Factors Contributing to Total % change in Net Sales
OrganicFX TranslationAcquisitions / Divestitures, netOtherTotal
HVAC 11%—%26%—%37%
Refrigeration(6)%—%(27)%—%(33)%
Consolidated6%—%13%—%19%

Year Ended December 31, 2024 Compared with Year Ended December 31, 2023

(Unaudited)
Factors Contributing to Total % change in Net Sales
OrganicFX TranslationAcquisitions / Divestitures, netOtherTotal
HVAC 5%—%21%—%26%
Refrigeration(1)%—%(8)%—%(9)%
Consolidated3%—%16%—%19%


Free Cash Flow Reconciliation
(Unaudited)
Year Ended
December 31,
(In millions)20242023
Net cash flows provided by operating activities$563 $2,607 
Less: Capital expenditures - continuing operations(519)(439)
Less: Capital expenditures - discontinued operations(14)(30)
Free cash flow$30 $2,138 

Net Debt Reconciliation
(Unaudited)
As of December 31,
(In millions)20242023
Long-term debt$11,026 $14,242 
Current portion of long-term debt1,252 51 
Less: Cash and cash equivalents3,969 9,852 
Net debt$8,309 $4,441 

15

Carrier Global Corporation
Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results

Discontinued operations, net of tax Reconciliation
(Unaudited)
Year Ended
December 31,
(In millions, except per share amounts)2024
Discontinued operations, net of tax$4,496 
Summary of adjustments, net of tax:
Divestiture-related costs$154 
Restructuring15 
Gain on sale of discontinued businesses(5,176)
AFFF legal reserve565 
Tax specific adjustments250 
Total adjustments$(4,192)
Adjusted Discontinued operations, net of tax$304 
Adjusted diluted earnings per share$0.34 


Diluted EPS Reconciliation - Adjusted
(Unaudited)
Year Ended
December 31,
2024
Continuing operations$2.56 
Discontinued operations0.34 
Total$2.90 
16