Carrier Global Corporation Reports 4% Net Sales Increase but 15% Drop in Net Earnings for Q2 2026

Carrier Global Corporation reported its financial results for the second quarter and first half of 2026, revealing a net sales increase of 4% to $6.35 billion for the three months ended June 30, compared to $6.11 billion in the same period of 2025. For the first half of 2026, net sales rose 3% to $11.69 billion, up from $11.33 billion in the prior year. However, net earnings attributable to common shareholders decreased by 15% to $501 million, or $0.60 per diluted share, from $591 million, or $0.68 per diluted share, in the previous year. The decline in profitability was attributed to higher input costs, including tariffs, and an impairment charge of $46 million related to the sale of the Riello business.

The company experienced a notable increase in operating expenses, which rose 4% to $903 million for the second quarter and 12% to $1.89 billion for the first half of 2026. This increase was driven by higher selling, general, and administrative expenses, as well as costs associated with restructuring initiatives. The operating profit for the second quarter was $825 million, down 9% from $903 million in the same quarter of 2025, while the operating profit for the first half fell 29% to $1.08 billion from $1.53 billion.

In terms of strategic developments, Carrier completed the sale of its Riello business to Ariston Group on July 1, 2026, for expected gross proceeds of approximately $430 million. The assets and liabilities of Riello were classified as held for sale in the financial statements as of June 30, 2026. Additionally, the company is in the process of selling its Noresco business, with the transaction expected to close in the third quarter of 2026. These divestitures are part of Carrier's strategy to streamline operations and focus on core segments.

Operationally, Carrier's Climate Solutions Americas segment reported a 4% increase in net sales to $3.37 billion for the second quarter, driven by improved demand in residential and light commercial markets. However, the segment's operating profit decreased by 6% to $823 million. The Climate Solutions Europe segment also saw a 6% increase in net sales to $1.32 billion, but its operating profit fell by 4% to $95 million. The Asia Pacific, Middle East & Africa segment reported a 4% increase in net sales to $917 million, with a significant 20% decrease in operating profit to $108 million. The Transportation segment's net sales increased by 2% to $738 million, while its operating profit decreased by 8% to $118 million.

Looking ahead, Carrier remains focused on leveraging its strong brand portfolio and investing in product innovation to drive growth. The company anticipates continued demand for its climate and energy solutions, supported by favorable market trends. However, it will also need to navigate challenges such as rising input costs and potential impacts from ongoing tariff policies. Carrier's management expressed confidence in the company's ability to adapt and maintain its competitive position in the market.