CARRIER GLOBAL Corp Q1 FY2025 earnings call

• Thanks teammates for strong quarter. Introduced Michael Gierges leading Climate Solutions in APAC, MEA. Orders up, backlog up. Climate Solutions America sales in residential and commercial up ~20% each. Global aftermarket on track for double-digit growth. Drove margin expansion, 27% adjusted EPS growth, strong free cash flow and share repurchases. Introduced products like air-cooled commercial heat pump in Europe, smart device app for Lynx Fleet. Partnered with Google for HEMS and Viessmann's Profi in Europe.

CSA Segment: Organic sales growth of 9%. Adjusted operating margins expanded 420 basis points. Commercial ex NORESCO and residential were strong, with organic sales in both up around 20%, while light commercial was down ~35%. CSE Segment: Organic sales down 7%, with mid-single-digit growth in commercial offset by ~10% decline in ROC. Adjusted operating margin declined 390 basis points. CS AME Segment: Organic sales down 6%, but adjusted operating margin expanded 240 basis points due to productivity. CST Segment: Organic sales up 2%, driven by container up 20%, with adjusted operating margin expanding 210 basis points.

• Increased full-year adjusted EPS guide to $3 to $3.10, up ~20% y-o-y. Expect mid-single-digit organic sales growth. Q2 sales expected ~$6 billion, 100 basis points margin expansion, ~20% adjusted EPS growth. Americas expected mid-teens organic sales growth in Q2; Europe segment Q2 low to mid-single digits; Asia low single-digit organic sales decline; transportation to see mid-single-digit organic growth full year.

• Tariff exposure, with ~$300 million mitigated via price. Macroeconomic uncertainty. Supply chain issues, including potential impacts from tariffs and seasonality.

Q: Confirm guidance for Q2 EPS and organic growth?

A: Patrick Goris said Q2 expected mid-single digits organic growth, sales ~$6 billion, 100 basis points margin expansion, ~20% adjusted EPS growth.

Q: Drill into Americas segment resi and commercial drivers?

A: David Gitlin said resi was strong start, up ~20%, light commercial softer, with Q2 on track 15%-20%, full year high single-digit to low double-digit.

Q: Update on Viessmann outlook?

A: David Gitlin said flat for the year expected, mix up offsetting some volume decline, aftermarket up double-digits.

Q: Color on commercial HVAC Americas and data center?

A: David Gitlin said commercial HVAC strong, data center on track for $500 million growth, global commercial HVAC up double digits.