Understanding Carrier Global net worth provides insights into what fuels its growth.
With recent expansions, acquisitions, and efficient cost management, Carrier’s financial journey reflects resilience and strategic evolution.
Join Ando Money as we uncover the driving factors behind Carrier’s solid financial standing and how it stands out in the market.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Carrier Global |
| Full Name | Carrier Global Corporation |
| Industry | Climate and Energy Solutions |
| Traded as | NYSE: CARR |
| ISIN | N/A |
| Founded | June 26, 1915 |
| Founders | Willis Carrier |
| Country/Territory | United States |
| Headquarters | Palm Beach Gardens, Florida |
| Chief Executive Officer | David Gitlin |
| Number of Employees | 52,000 |
| Market Cap | $71.63 Billion |
| Total Assets | $40,424 million |
| Total Equity | $14,079 million |
| Revenue | $12,871 million (H1 2024) |
| Net Income | $2,606 million (H1 2024) |
What is the Net Worth/Market Cap Of Carrier Global in 2024?
As of October 2024, Carrier Global’s market cap stands at $71.63 billion. This impressive valuation places Carrier amongst the prominent players in the industry.
To understand where Carrier stands, it’s helpful to compare it with some other significant brands. Below is a list of similar companies that are relevant:
- Viessmann Climate Solutions
- Fire & Security
- Refrigeration
- HVAC Systems
- Access Solutions
- NYSE
- U.S. Securities and Exchange Commission
- Palm Beach Gardens, Florida
- David Gitlin
- HVAC Segment
To explore how Carrier ranks among the top-valued firms, it’s fascinating to see where it fits alongside some of the richest in the market.
Financial Performance Overview
Key Drivers of Revenue Growth
Carrier‘s revenue growth is largely attributed to its diversified portfolio of products and solutions in the HVAC, Refrigeration, and Fire & Security segments.
In the second quarter of 2024, Carrier reported net sales of $6.7 billion, reflecting a 12% increase from the previous year.
This was fueled by organic growth of 2%, with the remaining uplift coming from acquisitions such as Viessmann Climate Solutions. Each of these business segments plays a unique role.
For example, the HVAC segment, which represents $4,970 million in sales, was driven by continued strength in commercial and residential offerings, showcasing its leading position in the climate solutions market.
Contributions from Major Acquisitions and Divestitures
Acquisitions and divestitures have been key components of Carrier’s growth strategy. The Viessmann Climate Solutions acquisition made significant contributions to overall growth, providing around 12% of the year-on-year increase in sales for Q2 2024.
On the other hand, the divestiture of Access Solutions allowed Carrier to recognize substantial gains, contributing to an adjusted operating profit increase by 26% in Q2 2024.
These strategic moves not only improved revenue streams but also enhanced Carrier’s focus on core segments that yield higher returns.
Regional Revenue Insights and Performance
Carrier’s performance across various regions indicates an effective adaptation to market needs. In the Americas, HVAC sales showed mid-single-digit growth, propelled by strength in both the Commercial and Light Commercial businesses.
The EMEA region saw a mixed performance, with Commercial HVAC experiencing mid-teens growth, whereas residential HVAC had a slight decline.
In Asia-Pacific, the picture was nuanced; while residential and light commercial sales in China showed some decline, the company’s Southeast Asia market surged, registering double-digit growth.
These figures emphasize Carrier’s adaptability across different geographical demands.
Contribution of Product and Service Sales
Revenue for Carrier is generated through both product and service sales. Product sales amounted to $6,004 million in Q2 2024, while service sales contributed $685 million.
This highlights Carrier’s balanced revenue generation approach, catering not only to direct product markets but also to value-added services.
The HVAC sales were notably strong, with both Commercial and Residential HVAC showing significant gains, particularly in North America.
In contrast, service-related revenues continue to represent a smaller, yet reliable component of the overall income.
Revenue Growth through Portfolio Transformation
Carrier has been undergoing a strategic portfolio transformation by exiting non-core businesses and focusing on high-growth areas.
Notably, two of the four planned business exits were completed, yielding proceeds that Carrier effectively used to reduce net debt by approximately $5 billion.
This portfolio adjustment is aimed at enhancing its focus on areas that are likely to deliver sustainable growth, hence driving future revenue expansion.
Influence of Cost Management and Efficiency on Profitability
Carrier’s cost management efforts have had a substantial impact on profitability. The GAAP operating profit for Q2 2024 stood at $3.7 billion, a leap of over 650% compared to the previous year.
The expansion in operating margin by 200 basis points is largely due to effective restructuring costs management and the integration of acquired entities, which brought synergies in cost savings.
Carrier’s strategic actions, such as restructuring and managing its operational efficiency, played a pivotal role in achieving better financial outcomes and boosting adjusted operating profit to $1.2 billion in Q2 2024.
Cash Flow Contributions to Financial Stability
The financial stability of Carrier is also reflected in its robust cash flow management.
In Q2 2024, the company generated $660 million in cash flows from operating activities, with a resultant free cash flow of $549 million after accounting for capital expenditures.
These cash flows were effectively utilized to reduce long-term debt, bringing down the company’s net debt to $10,403 million as of June 2024.
Additionally, Carrier plans to repurchase $1 billion of its shares in the latter half of 2024, which should further bolster shareholder value.
Future Revenue Expectations and Guidance
Carrier remains optimistic about its future performance and has reaffirmed its adjusted EPS guidance for 2024 in the range of $2.80 – $2.90.
Total sales are expected to reach approximately $25.5 billion, with organic growth of mid-single digits.
This optimistic outlook is based on the anticipated steady performance of the Commercial Refrigeration and Fire & Security segments.
By strategically focusing on high-margin areas and optimizing its portfolio, Carrier aims to maintain growth momentum throughout 2024.
FAQs About Carrier Global
What Are Carrier’s Primary Business Segments?
Carrier’s primary business segments include HVAC, Refrigeration, and Fire & Security. Each of these contributes significantly to the company’s overall revenue, with HVAC being the largest.
How Did Acquisitions Impact Carrier’s Financials in 2024?
The acquisition of Viessmann Climate Solutions significantly boosted Carrier’s revenue in 2024, contributing around 12% to the total sales increase for the second quarter.
Where Is Carrier Global’s Headquarters?
Carrier Global is headquartered in Palm Beach Gardens, Florida, USA.
What Was Carrier’s Adjusted Operating Profit in Q2 2024?
Carrier reported an adjusted operating profit of $1.2 billion in Q2 2024, an increase of 26% over the previous year.
How Much Cash Flow Did Carrier Generate in Q2 2024?
Carrier generated $660 million in cash flows from operating activities during Q2 2024, resulting in a free cash flow of $549 million.
Conclusion
Carrier Global’s financial trajectory reveals a strategic balance of growth and efficiency.
From acquisition impacts to regional performance, it’s clear that Carrier’s financial health is solid. Interested readers are encouraged to explore more insights or share your thoughts on Ando Money’s website.
