Carrier Global Corp ( CARR ) shares are trading lower after the company reported mixed fourth-quarter results.

Net sales rose 19% year over year to $5.148 billion, missing the consensus of $5.275 billion. Net sales included 6% organic growth and 13% net contribution from acquisitions and divestitures.

HVAC sales grew 11% organically, led by strong growth in America. EMEA remained flat organically, while Asia Pacific saw slight gains, driven by Japan and South Asia.

Refrigeration sales declined 6% organically, mainly due to lower North America truck and trailer sales, while other segments remained flat.

GAAP operating profit of $774 million was up over 44% from last year, boosted by a Commercial Refrigeration sale. Adjusted operating profit grew 65% to $678 million, driven by Viessmann, organic growth, and productivity gains.

The operating margin expanded by 255 bps to 15%, and the adjusted operating margin expanded by 370 bps to 13.2%.

The company reported adjusted EPS of $0.54 (+50% YoY), beating the consensus of $0.50.

Operating cash flow for fiscal 2024 totaled $563 million, and capital expenditures were $519 million, resulting in a free cash flow of $30 million.

The company exited the quarter with cash and cash equivalents worth $3.969 billion and net debt of $8.309 billion.

“The quarter also marked the completion of our portfolio transformation, which resulted in total divestiture proceeds of over $10 billion,” stated 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 businesses,” added Gitlin.

2025 Outlook: Carrier projects accelerated organic growth in 2025 supported by secular tailwinds, continued innovation and double-digit aftermarket growth.

The company expects mid-single-digit organic growth with reported sales between $22.5 billion and $23.0 billion versus the consensus of $23.008 billion. This is offset by a $750 million impact from the Commercial Refrigeration divestiture.

CARR sees adjusted EPS of $2.95 – $3.05 versus the consensus of $2.99, reflecting mid- to high-teens growth and an adjusted operating margin of 16.5%—17.0%.

The company forecasts free cash flow of $2.4 billion—$2.6 billion and plans to repurchase approximately $3 billion in shares.

Price Action: CARR shares are trading lower by 3.34% at $64.02 at the last check Tuesday.

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