Carrier FY26 Q3: sales up 12.3%, but a $3.1 billion write-down steals the show
Carrier’s quarter tells two stories: 15.0% organic sales growth, orders up ~35% and a record $8.5 billion backlog on one side, and a $3.1 billion non-cash goodwill write-down that turned GAAP EPS into a $3.16 loss on the other. Adjusted EPS of $0.87 beat the $0.7817 consensus, but about $0.10 of that came from one-off IEEPA refunds. Read the demand signals and the cash flow as the real story.
1 · Expected vs. Actual
Free preview belowGAAP EPS was -$3.16 versus $0.47 a year ago, and the entire swing is the $3.1 billion goodwill impairment tied to the Climate Solutions Europe unit. Adjusted EPS of $0.87 against $0.67 is a 30% increase and an 11.3% beat of the $0.7817 consensus. Roughly $0.10 a share came from IEEPA refunds, so the underlying figure of about $0.77–$0.79 was closer to in line than ahead.
Sales of $6.26 billion rose 12.3% from $5.58 billion, and organic growth was 15.0% once the Riello and NORESCO exits took 3.0% off the top line. Climate Solutions Americas did the heavy lifting at $3.35 billion, up 24.0%, with residential up over 30% and commercial over 25%. Transportation was the only shrinking segment at $0.73 billion, down 3.0% on Truck and Trailer.
Management lifted full-year sales to $23.8–$24.0 billion from about $23 billion but left adjusted operating profit at ~$3.5 billion and free cash flow at ~$2 billion untouched. Adjusted EPS guidance of $2.85–$2.90 brackets the prior ~$2.90 rather than clearing it. So roughly $0.9 billion of extra sales arrives with no extra profit dollars in the plan.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
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