Carrier Q1 Sales Rise 2% as Data Center Orders Surge 500% but EPS Declines
CARR•Carrier posted Q1 net sales of $5.34B, up 2% year-over-year with organic sales down 1%, while GAAP EPS slid 40% to $0.28 and adjusted EPS fell 12% to $0.57. Global Commercial HVAC orders jumped 35%, aided by data center orders surging over 500%, and free cash flow was negative $15M.
1. Q1 Financial Performance
Carrier reported net sales of $5.34 billion in the first quarter, a 2% increase over prior year, while organic sales fell 1%. GAAP operating profit dropped 59% to $259 million and adjusted operating profit declined 30% to $594 million. GAAP EPS was $0.28 with adjusted EPS of $0.57.
2. Order Growth and Segment Trends
Total company orders climbed 11%, driven by a 35% rise in Commercial HVAC orders and a more than 500% surge in data center orders. Segment performance varied: European sales grew 11% with flat organic growth, Asia Pacific sales edged up 1% despite China headwinds, and Transportation sales rose 10% led by a 38% jump in container solutions.
3. Cash Flow, Shareholder Returns, Outlook
Net cash from operations was $79 million and capital expenditures were $94 million, resulting in negative free cash flow of $15 million. The company returned approximately $500 million to shareholders through dividends and repurchases. Full-year guidance was reaffirmed at roughly $22 billion in sales, $2.80 adjusted EPS and $2 billion in free cash flow, with the Riello divestiture now expected to close by end of Q2.
