Carrier Global Corporation (NYSE:CARR) shares dropped more than 4% in premarket trading on Thursday after the company reported fourth-quarter results that fell short of analyst expectations, as weakness in residential markets outweighed strong growth in commercial HVAC demand.
The climate and energy solutions provider reported adjusted earnings per share of $0.34 for the fourth quarter, below analyst estimates of $0.37. Revenue totalled $4.84 billion, missing the consensus forecast of $5 billion and declining 6% compared with $5.15 billion in the same period last year. Organic sales decreased 9% year-on-year, partly offset by a 3% positive impact from foreign currency translation.
“We continue to drive outsized growth in commercial HVAC with Q4 orders up nearly 50% driven by key data center wins,” said Carrier Chairman and CEO David Gitlin. “We continue to control the controllables, reducing discretionary costs and building backlog in our long-cycle businesses to mitigate residential market challenges.”
Carrier’s Climate Solutions Americas segment experienced the steepest decline, with organic sales falling 17%. Residential sales dropped 38%, while light commercial sales declined 20%, although commercial HVAC posted double-digit growth during the quarter.
For fiscal 2026, Carrier forecast adjusted earnings per share of about $2.80, below analyst expectations of $2.88. The company expects organic sales growth to range from flat to low single digits, supported by continued double-digit expansion in global commercial HVAC and aftermarket services, while residential and light commercial segments are expected to remain under pressure.
Carrier reported fourth-quarter free cash flow of $909 million, a significant improvement compared with negative $89 million recorded in the same period a year earlier. For full-year 2025, the company reported total revenue of $21.75 billion, representing a 3% decline from 2024, while organic sales slipped 1% over the period.