Carrier Global Corporation, global leader in intelligent climate and energy solutions, today reported strong financial results for the third quarter of 2023 and raised its full year adjusted operating margin and adjusted EPS guidance.
“Carrier continues to perform while transforming, delivering another strong quarter highlighted by an over 400 basis points increase in gross margins and solid cash flow growth,” said Carrier Chairman & CEO David Gitlin. “Traction with our digitally enabled life-cycle solutions continues to build as we delivered another quarter of double-digit aftermarket growth. We are again raising our full year guidance for adjusted operating margin and adjusted EPS. We remain on track to complete the transformational combination with Viessmann Climate Solutions in early January 2024, and we are pleased with the interest level in our strategic business exits. I could not be more proud of the team as we continue to make progress on our mission to become the global leader in intelligent climate and energy solutions.”
Third Quarter 2023 Results
Carrier’s third quarter sales of $5.7 billion were up 5% compared to the prior year and organic sales grew 3% over the same period. Organic sales strength continued with 4% growth in the HVAC segment with commercial HVAC up high-single-digits and North America residential and light commercial HVAC up 5% organically. Fire and Security sales were up 6% organically while Refrigeration sales were down 3% organically driven by declines in container and commercial refrigeration only partially offset by strength in global truck and trailer.
GAAP operating profit in the quarter of $645 million was down 58% from last year, mainly due to the absence of last year’s $732 million gain related to the acquisition of Toshiba Carrier Corporation. Adjusted operating profit of $1.0 billion was up 21% compared to last year.
Net income was $357 million and adjusted net income was $765 million. GAAP EPS was $0.42 and adjusted EPS was $0.89. Net cash flows generated in operating activities were $1.04 billion and capital expenditures were $92 million, resulting in free cash flow of $949 million.
