11:07 AM EDT, 09/12/2025 (MT Newswires) -- Carrier Global's ( CARR ) widely anticipated preannouncement of weakness in its Americas residential heating, ventilation, and air conditioning, which accounts for about half of its revenue, prompted RBC Capital Markets to lower its estimates.

Carrier's Q3 guidance for the segment, initially set 13% below consensus in July, has now been reset to 30% below, the brokerage said in a Thursday note. The company attributed the weakness to softer consumer demand and dealer destocking, while emphasizing it was not due to share loss or execution issues.

Dealer destocking is expected to continue into Q4, with a revenue impact of $75 million to $100 million and an earnings per share reduction of about 5 cents.

RBC noted an additional 5 to 10 cents of EPS headwinds from weaker productivity and Viessmann-related softness. The Asia and Transportation businesses are expected to perform in line with expectations, though weakness in China persists.

In response to lower volumes, Carrier plans $100 million in cost reductions, split between Europe and corporate overhead. The firm said the full benefits are expected to start in the first half of 2026.

To reflect these pressures, the brokerage lowered its Q3, Q4, and 2025 estimates by 31%, 17%, and 12%, respectively.

RBC maintained the company's stock rating at outperform and lowered the price target to $75 from $87.

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