On this page of StockholderLetter.com we present the latest annual shareholder letter from CARRIER GLOBAL Corp — ticker symbol CARR. Reading current and past CARR letters to shareholders can bring important insights into the investment thesis.
2025 ANNUAL REPORT For the World We Share
Our Company Carrier is a global leader in intelligent climate and energy solutions focused on providing differentiated, digitally enabled lifecycle solutions to our customers. Through our performance-driven culture, we focus on creating long-term shareowner value by investing strategically to strengthen our position in homes, buildings and across the cold chain to drive profitable growth. Countries ~150 Brands 40+ Employees ~47,000 2025 Financial Performance Net sales $21.75B Adjusted operating margin1 Share repurchase 1 15.1% ~$2.9B See page 123 for additional information regarding non-GAAP measures. Adjusted operating profit1 Adjusted diluted earnings per share1 Long-term debt paydown $3.3B $2.59 $1.2B
David L. Gitlin Chairman & Chief Executive Officer Dear Fellow Shareowners, Since becoming a public company in 2020, we have been tenaciously building the foundation for long-term market leadership as a focused and differentiated climate solutions company. We often describe ourselves as a 100-year-old startup. The century before our public company debut gave us market-leading brands, strong customer relationships and deep technological expertise. Over the past five years as a standalone company, we have been equally intentional in how we have built on that legacy. We have been purposeful in positioning ourselves for the future through three distinct phases. Phase One (2020-2022) was about putting the fundamentals in place: establishing the team, operating rigor, processes and performance culture required of a world-class public company. Phase Two (2023-2024) focused on sharpening our strategic direction, anchored in our vision to be the global leader in intelligent climate and energy solutions. This phase included a significant portfolio transformation, highlighted by the acquisitions of Viessmann Climate Solutions and Toshiba HVAC businesses, along with the divestitures of our Fire & Security and stationary refrigeration businesses. We exited Phase Two as a simplified, focused and balanced company with market leadership positions across our businesses. By design, our focused portfolio is aligned with powerful secular tailwinds, including demand for climate control, electrification and grid constraints, which position us well for sustained long-term growth. In 2025, we entered Phase Three with a clear and deliberate focus on growth. At our Investor Day in May, we reaffirmed our value creation framework and outlined our strategy anchored in market leadership and our three growth vectors: product, aftermarket and systems. We delivered meaningful progress across all three vectors. 2025 Annual Report 1
In product, we continued to invest in differentiated innovation across our brands and channels to drive share gains in key segments. For example, we have made significant investments in commercial HVAC since our spin and have tripled our market share in water-cooled chillers in the Americas, contributing to five years of double-digit organic growth1 for this business. We are well positioned to continue to expand our market share in air-cooled chillers as we introduced new products sought after by our customers. As a result of our investments in technology, our dedicated and talented team, and supported by strong market demand, we doubled our global data center revenue to $1 billion in 2025 and entered 2026 with a strong backlog, setting us up for 50% growth in this important vertical. We are making similar investments in differentiated technology across our portfolio, including in our residential HVAC and refrigerated transportation businesses, the latter benefiting from the successful launch of the OptimaLINETM container refrigeration unit. In aftermarket, our performance remained equally compelling. Following five consecutive years of double-digit growth1, we continue to operate with a double-digit forever mindset. Our playbook is working. We are improving replacement parts capture rates, expanding long-term service agreements, increasing attachment rates, scaling digital capabilities and delivering differentiated offerings that support modernizations and upgrades in the field. While we are proud of our progress, we are still in the early innings and well positioned for continued double-digit aftermarket growth in 2026 and beyond. 1 2 Excluding NORESCO. Carrier Global Corporation Systems represent a new and important frontier for Carrier. Here, we are moving beyond standalone equipment to delivering integrated solutions that place us at the center of intelligent climate and energy management while further increasing customer intimacy. In the Americas, Carrier Energy s Home Energy Management System (HEMS) offering is advancing through field trials as we continue to develop intelligent HVAC energy management capabilities designed to improve grid flexibility and lower costs for homeowners. We expect to introduce this differentiated offering in 2026, addressing rising electricity costs driven by grid constraints. In Europe, with System Profi, installers provide homeowners with a differentiated integrated system that includes heat pumps, solar photovoltaic, batteries, domestic hot water and energy management. In commercial HVAC applications, our Carrier QuantumLeapTM offering promotes scalable, high-efficiency liquid cooling and thermal solutions for data centers, an area of growing long-term demand. That said, our overall financial performance in 2025 was disappointing, as weak market conditions significantly impacted our shortercycle residential and light commercial businesses across the Americas, Europe and China, as well as our refrigerated transportation business. We are treating this past year as an opportunity to learn and make the necessary adjustments to perform through cycles, while continuing to make meaningful progress against our growth strategy. We have taken decisive actions to adjust our cost base, while maintaining investments in our strategic priority areas that will fuel future growth in 2026 and beyond. I remain deeply confident in our strategy and in our ability to resume our track record of strong results and market leadership.
Long-term market leadership is ultimately sustained by our people and our culture. We are a purpose-driven team guided by our enduring culture, The Carrier Way. In 2025, we formally launched our purpose enhancing the lives we live and the world we share which reinforces why and how we show up for our customers, our people, the planet and our communities, while delivering value to our shareowners. Our nearly 50,000 colleagues around the world are the reason we continue to win, deliver differentiated solutions and help build a more sustainable future. We know where we are going, we know how we will get there and we are focused on executing, consistently and with discipline. I want to thank our teams for their resilience, commitment and performance throughout a challenging year. Because of their efforts, we entered 2026 with a clear strategy, a strong portfolio and renewed momentum. Sincerely, I also want to thank our shareowners for your continued confidence and long-term support. Building on more than 100 years of innovation, we remain guided by the same spirit that inspired Willis Carrier: to solve meaningful problems, to lead through change and to create lasting value for our customers, for future generations and for the world we share. David L. Gitlin Chairman & Chief Executive Officer Carrier Global Corporation 2025 Annual Report 3
 • shareholder letter icon 3/3/2026 Letter Continued (Full PDF)
 • stockholder letter icon 3/7/2023 CARR Stockholder Letter
 • stockholder letter icon 3/5/2024 CARR Stockholder Letter
 • stockholder letter icon 2/25/2025 CARR Stockholder Letter
 • stockholder letter icon More "Metals Fabrication & Products" Category Stockholder Letters
 • Benford's Law Stocks icon CARR Benford's Law Stock Score = 87


CARR Shareholder/Stockholder Letter Transcript:

2025 ANNUAL REPORT
For the World
We Share

Our Company
Carrier is a global leader in intelligent climate and energy solutions focused on providing
differentiated, digitally enabled lifecycle solutions to our customers. Through our performance-driven
culture, we focus on creating long-term shareowner value by investing strategically to strengthen our
position in homes, buildings and across the cold chain to drive profitable growth.
Countries
~150
Brands
40+
Employees
~47,000
2025 Financial Performance
Net sales
$21.75B
Adjusted
operating margin1
Share
repurchase
1
15.1%
~$2.9B
See page 123 for additional information regarding non-GAAP measures.
Adjusted
operating profit1
Adjusted diluted
earnings per share1
Long-term
debt paydown
$3.3B
$2.59
$1.2B

David L. Gitlin
Chairman & Chief Executive Officer
Dear Fellow Shareowners,
Since becoming a public company in 2020, we
have been tenaciously building the foundation
for long-term market leadership as a focused
and differentiated climate solutions company.
We often describe ourselves as a 100-year-old
startup. The century before our public company
debut gave us market-leading brands, strong
customer relationships and deep technological
expertise. Over the past five years as a standalone company, we have been equally intentional
in how we have built on that legacy. We have
been purposeful in positioning ourselves for
the future through three distinct phases.
Phase One (2020-2022) was about putting the
fundamentals in place: establishing the team,
operating rigor, processes and performance
culture required of a world-class public company.
Phase Two (2023-2024) focused on
sharpening our strategic direction, anchored
in our vision to be the global leader in
intelligent climate and energy solutions.
This phase included a significant portfolio
transformation, highlighted by the acquisitions of
Viessmann Climate Solutions and Toshiba HVAC
businesses, along with the divestitures of our Fire
& Security and stationary refrigeration businesses.
We exited Phase Two as a simplified, focused
and balanced company with market leadership
positions across our businesses. By design,
our focused portfolio is aligned with powerful
secular tailwinds, including demand for climate
control, electrification and grid constraints, which
position us well for sustained long-term growth.
In 2025, we entered Phase Three with a clear
and deliberate focus on growth. At our Investor
Day in May, we reaffirmed our value creation
framework and outlined our strategy anchored in
market leadership and our three growth vectors:
product, aftermarket and systems. We delivered
meaningful progress across all three vectors.
2025 Annual Report
1

In product, we continued to invest in differentiated
innovation across our brands and channels to
drive share gains in key segments. For example, we
have made significant investments in commercial
HVAC since our spin and have tripled our market
share in water-cooled chillers in the Americas,
contributing to five years of double-digit organic
growth1 for this business. We are well positioned to
continue to expand our market share in air-cooled
chillers as we introduced new products sought
after by our customers.
As a result of our investments in technology, our
dedicated and talented team, and supported by
strong market demand, we doubled our global
data center revenue to $1 billion in 2025 and
entered 2026 with a strong backlog, setting us up
for 50% growth in this important vertical.
We are making similar investments in
differentiated technology across our portfolio,
including in our residential HVAC and refrigerated
transportation businesses, the latter benefiting
from the successful launch of the OptimaLINETM
container refrigeration unit.
In aftermarket, our performance remained equally
compelling. Following five consecutive years of
double-digit growth1, we continue to operate with
a    double-digit forever    mindset. Our playbook
is working. We are improving replacement parts
capture rates, expanding long-term service
agreements, increasing attachment rates, scaling
digital capabilities and delivering differentiated
offerings that support modernizations and
upgrades in the field. While we are proud of our
progress, we are still in the early innings and well
positioned for continued double-digit aftermarket
growth in 2026 and beyond.
1
2
Excluding NORESCO.
Carrier Global Corporation
Systems represent a new and important frontier
for Carrier. Here, we are moving beyond standalone equipment to delivering integrated solutions
that place us at the center of intelligent climate
and energy management while further increasing
customer intimacy. In the Americas, Carrier
Energy   s Home Energy Management System
(HEMS) offering is advancing through field trials as
we continue to develop intelligent HVAC energy
management capabilities designed to improve
grid flexibility and lower costs for homeowners.
We expect to introduce this differentiated
offering in 2026, addressing rising electricity
costs driven by grid constraints. In Europe, with
System Profi, installers provide homeowners
with a differentiated integrated system that
includes heat pumps, solar photovoltaic, batteries,
domestic hot water and energy management.
In commercial HVAC applications, our Carrier
QuantumLeapTM offering promotes scalable,
high-efficiency liquid cooling and thermal
solutions for data centers, an area of growing
long-term demand.
That said, our overall financial performance
in 2025 was disappointing, as weak market
conditions significantly impacted our shortercycle residential and light commercial businesses
across the Americas, Europe and China, as well
as our refrigerated transportation business. We
are treating this past year as an opportunity to
learn and make the necessary adjustments to
perform through cycles, while continuing to make
meaningful progress against our growth strategy.
We have taken decisive actions to adjust our
cost base, while maintaining investments in our
strategic priority areas that will fuel future growth
in 2026 and beyond. I remain deeply confident in
our strategy and in our ability to resume our track
record of strong results and market leadership.

Long-term market leadership is ultimately
sustained by our people and our culture. We are
a purpose-driven team guided by our enduring
culture, The Carrier Way. In 2025, we formally
launched our purpose     enhancing the lives we
live and the world we share     which reinforces
why and how we show up for our customers, our
people, the planet and our communities, while
delivering value to our shareowners. Our nearly
50,000 colleagues around the world are the
reason we continue to win, deliver differentiated
solutions and help build a more sustainable future.
We know where we are going, we know how
we will get there and we are focused on
executing, consistently and with discipline.
I want to thank our teams for their resilience,
commitment and performance throughout
a challenging year. Because of their efforts,
we entered 2026 with a clear strategy, a
strong portfolio and renewed momentum.
Sincerely,
I also want to thank our shareowners for your
continued confidence and long-term support.
Building on more than 100 years of innovation,
we remain guided by the same spirit that
inspired Willis Carrier: to solve meaningful
problems, to lead through change and to create
lasting value     for our customers, for future
generations and for the world we share.
David L. Gitlin
Chairman & Chief Executive Officer
Carrier Global Corporation
2025 Annual Report
3


shareholder letter icon 3/3/2026 Letter Continued (Full PDF)
 

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