Carrier Global's Mixed Bag In Q4: Flat Sales, Solid Profits, And Big Moves In Business Strategy

Carrier Global Corp CARR reported fourth-quarter fiscal 2023 net sales of $5.10 billion, flat year-over-year, missing the consensus of $5.23 billion.

CARR reported adjusted EPS of $0.53 (+33% Y/Y), beating the consensus of $0.51.

Adjusted operating profit of $557 million was up 8% YoY, with a margin of 10.9%, up 80 bps.

Net cash provided by operating activities for the fiscal year totaled $2.61 billion compared to $1.74 billion in 2022.

For Q4, cash inflows from operating activities were $1.1 billion vs. $1.12 billion YoY, and free cash flow generation was $829 million.

The company exited the quarter with cash and equivalents worth $10.01 billion.

“In addition to delivering results ahead of our projections for the year, we completed our game-changing combination with Viessmann Climate Solutions in January and reached definitive agreements to sell both our Global Access Solutions and Commercial Refrigeration businesses for close to $6B combined,” commented Carrier Chairman & CEO David Gitlin.    

2024 Outlook: Carrier sees Adj. EPS of ~$2.80-$2.90 versus the $2.86 estimate. The company expects sales of ~$26.5 billion versus $24.54 billion estimate, with mid-single-digit organic growth.

CARR’s outlook assumes ~$4.5 billion net proceeds from business exits are used for debt reduction. The company sees an adjusted operating margin of 15% – 15.5%, up > 50 basis points compared to 2023, and a free cash flow of ~$0.7 billion.

Price Action: CARR shares are trading lower by 1.58% at $55.37 on the last check Tuesday.