Carrier Global Q2 Results Surpass Street View

  • Carrier Global Corp CARR reported a second-quarter FY22 net sales decline of 4% year-over-year to $5.21 billion, beating the consensus of $5.17 billion.
  • The sales decline was driven by the Chubb divestiture, but organic sales grew 7%.
  • Adjusted EPS was $0.69, beating the consensus of $0.62.
  • Sales by segments: HVAC $3.39 billion (+8.6% Y/Y), Refrigeration $1.04 billion (+2% Y/Y), and Fire & Security $887 million (-36.8% Y/Y).
  • Adjusted operating margin expanded by 130 bps to 16.4%. Segment operating margin expanded by 132 bps to 15.7%.
  • During the quarter, Carrier repurchased $273 million of its common stock.  
  • "We now expect to be price/cost positive for the full year and will continue to invest in differentiated technology to address key secular trends such as sustainability and healthy indoor environments. We are also excited for the opportunities that our combined Carrier and Toshiba Carrier Corporation portfolio and enhanced market position present in the fast-growing Variable Refrigerant Flow, international light commercial and heat pump markets," commented Carrier Chairman & CEO David Gitlin.
  • CARR reported net cash used in operating activities year-to-date of $(170) million versus cash generated of $745 million in 2Q21. It held cash and equivalents of $3.02 billion at the end of the quarter.
  • FY22 Outlook, Including Toshiba Carrier Corporation: Carrier Global expects Sales of about $20.8 billion versus the consensus of $19.82 billion, with high single-digit organic sales growth; Adjusted operating margin up ~40 bps.
  • It expects an adjusted EPS of $2.25 - $2.35, versus the consensus of $2.28, and Free cash flow of ~$1.65 billion.
  • Price Action: CARR shares are trading lower by 0.35% at $39.40 on the last check Thursday.
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