Carrier Earnings: HVAC Segment Drives Strong Performance; Transformative Deals Set for 2024

After reviewing Carrier’s third-quarter financial results, we’ve maintained our $49 per share fair value estimate. The narrow-moat-rated manufacturer of heating, ventilation, and air conditioning, refrigeration, and fire and security products reported good results. Reported revenue increased 5% year over year (3% organic) to $5.7 billion, adjusted operating margin expanded 240 basis points to 18.2%, and free cash flow increased 36% to $949 million.