Carrier Global Corporation, global leader in intelligent climate and energy solutions, reported strong financial results for the second quarter of 2023 and raised its full year revenue, adjusted operating margin and adjusted EPS guidance.
“We delivered another quarter of strong financial performance led by double-digit growth in commercial and light commercial HVAC, global truck and trailer, aftermarket and controls, which shows the strength of our execution, end-markets and backlog. Given our strong performance in the first half of 2023, we are now raising full year guidance for organic revenue growth, adjusted operating margin, and adjusted EPS,” said Carrier Chairman & CEO David Gitlin. “The more we learn about Viessmann Climate Solutions, the more excited we are for the impact of this game-changing combination. We continue to anticipate a close around year-end and expect the majority of the businesses we plan to exit to be in the market over the course of the next few months. After the completion of these portfolio actions, Carrier will become a pure play, high-growth global climate champion.”
Carrier’s second quarter sales of $6.0 billion were up 15% compared to the prior year and organic sales grew 6% over the same period. Organic sales strength continued in the HVAC segment with commercial HVAC up high-teens and North America residential and light commercial HVAC up 5% organically. Fire and Security sales were up 9% organically while Refrigeration sales were down 6% organically driven by lower volumes in container and commercial refrigeration only partially offset by strength in global truck and trailer demand.
GAAP operating profit in the quarter of $489 million was down 40% from last year largely due to the one-time loss of $293 million associated with the deconsolidation of KFI following its Chapter 11 filing and the $111 million unrealized loss on the mark-to-market valuation of forward contracts associated with the Viessmann Climate Solutions acquisition. Adjusted operating profit of $964 million was up 12% compared to last year.
Net income was $199 million and adjusted net income was $670 million. GAAP EPS was $0.23 and adjusted EPS was $0.79. Net cash flows generated in operating activities were $384 million and capital expenditures were $74 million, resulting in free cash flow of $310 million.
