| Geographical Segment | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **United States** ($ million) | **2,860**  **[0001783180-23-000038_carr-20230331.htm:19]**  | **3,389**  **[0001783180-23-000056_carr-20230630.htm:21]**  | **3,335**  **[0001783180-23-000065_carr-20230930.htm:24]**  | N/A | **2,967**  **[0001783180-24-000044_carr-20240331.htm:23]**  | **3,477**  **[0001783180-24-000077_carr-20240630.htm:25]**  | **3,154**  **[0001783180-24-000088_carr-20240930.htm:30]**  | N/A |
| **Europe** ($ million) | **1,196**  **[0001783180-23-000038_carr-20230331.htm:19]**  | **1,205**  **[0001783180-23-000056_carr-20230630.htm:21]**  | **1,124**  **[0001783180-23-000065_carr-20230930.htm:24]**  | N/A | **1,971**  **[0001783180-24-000044_carr-20240331.htm:23]**  | **1,889**  **[0001783180-24-000077_carr-20240630.htm:25]**  | **1,723**  **[0001783180-24-000088_carr-20240930.htm:30]**  | N/A |
| **Asia Pacific** ($ million) | **1,033**  **[0001783180-23-000038_carr-20230331.htm:19]**  | **1,194**  **[0001783180-23-000056_carr-20230630.htm:21]**  | **1,061**  **[0001783180-23-000065_carr-20230930.htm:24]**  | N/A | **1,040**  **[0001783180-24-000044_carr-20240331.htm:23]**  | **1,104**  **[0001783180-24-000077_carr-20240630.htm:25]**  | **923**  **[0001783180-24-000088_carr-20240930.htm:30]**  | N/A |
| **Other** ($ million) | **184**  **[0001783180-23-000038_carr-20230331.htm:19]**  | **204**  **[0001783180-23-000056_carr-20230630.htm:21]**  | **211**  **[0001783180-23-000065_carr-20230930.htm:24]**  | N/A | **204**  **[0001783180-24-000044_carr-20240331.htm:23]**  | **219**  **[0001783180-24-000077_carr-20240630.htm:25]**  | **184**  **[0001783180-24-000088_carr-20240930.htm:30]**  | N/A |

fd63359f37f0269c63a121a9920189c75e139ae4257ead743b6fc010f3ded5e5

Current Assets

Cash and Cash Equivalents

Accounts Receivable

Inventory

Non-Current Assets

Property, Plant, and Equipment (PP&E)

Goodwill

Intangible Assets

Current Liabilities

Accounts Payable

Short-term Debt

Accrued Expenses

Non-Current Liabilities

Long-term Debt

Lease Liabilities

Deferred Tax Liabilities

Shareholders' Equity

Retained Earnings

Common Stock

Additional Paid-in Capital

b8c30734ee9c6f758deb6b17d43d6c56ff4774e6ac99075faa5b8cdf12ff69d0

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

3899f7140a4e0592dfc3297761f2ddcef6fea863c8a623c6b9745d248cec60fc

Organic Net Sales Percentage Change for Consolidated (percentage)

Net Sales Percentage Change from Acquisitions and Divestitures for Consolidated (percentage)

Total Net Sales Percentage Change for Consolidated (percentage)

Net Sales Percentage Change from Foreign Currency Translation for Consolidated (percentage)

Organic Net Sales Percentage Change for Refrigeration segment (percentage)

Net Sales Percentage Change from Foreign Currency Translation for Refrigeration segment (percentage)

Total Net Sales Percentage Change for Refrigeration segment (percentage)

Organic Net Sales Percentage Change for HVAC segment (percentage)

Net Sales Percentage Change from Acquisitions and Divestitures for HVAC segment (percentage)

Total Net Sales Percentage Change for HVAC segment (percentage)

cfb0ff34b5322fddab05dc050469881d5dd25035da261e640972e8a0e040d3d7

Carrier Global Corporation is a global leader in intelligent climate and energy solutions, focusing on providing differentiated, digitally-enabled lifecycle solutions **[0001783180-24-000077_carr-20240630.htm:33]** **[0001783180-24-000088_carr-20240930.htm:39]** **[0001783180-24-000009_carr-20231231.htm:53]** **[0001783180-24-000054_exhibit1012024.htm:1]** **[0001783180-24-000044_carr-20240331.htm:5]** **[0001783180-24-000009_carr-20231231.htm:80]** **[0001783180-24-000077_carr-20240630.htm:6]** **[0001783180-24-000088_carr-20240930.htm:7]** **[0001140361-24-002385_ny20018857x1_s4.htm:8]**. The company's operations are divided into three main segments: HVAC, Refrigeration, and Fire & Security **[0001783180-24-000077_carr-20240630.htm:33]** **[0001783180-24-000088_carr-20240930.htm:39]** **[0001783180-24-000009_carr-20231231.htm:53]** **[0001783180-24-000054_exhibit1012024.htm:1]** **[0001783180-24-000044_carr-20240331.htm:5]** **[0001783180-24-000009_carr-20231231.htm:80]** **[0001783180-24-000077_carr-20240630.htm:6]** **[0001783180-24-000088_carr-20240930.htm:7]** **[0001140361-24-002385_ny20018857x1_s4.htm:8]**. Carrier's product portfolio includes industry-leading brands such as Carrier, Toshiba, Automated Logic, Carrier Transicold, Kidde, Edwards, and LenelS2, offering innovative heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies **[0001783180-24-000077_carr-20240630.htm:33]** **[0001783180-24-000088_carr-20240930.htm:39]** **[0001783180-24-000009_carr-20231231.htm:53]** **[0001783180-24-000054_exhibit1012024.htm:1]** **[0001783180-24-000044_carr-20240331.htm:5]** **[0001783180-24-000009_carr-20231231.htm:80]** **[0001783180-24-000077_carr-20240630.htm:6]** **[0001783180-24-000088_carr-20240930.htm:7]** **[0001140361-24-002385_ny20018857x1_s4.htm:8]**.

1. **HVAC** - Provides products and services to meet heating, cooling, and ventilation needs, leveraging industry-leading brands to deliver innovative solutions.
2. **Refrigeration** - Focuses on cold chain solutions for food, medicine, and other perishable cargo, ensuring safe and efficient transportation and storage.
3. **Fire & Security** - Includes fire safety and security solutions, although Carrier plans to exit this segment **[0001783180-24-000009_carr-20231231.htm:53]** **[0001783180-24-000064_filename1.htm:1]**.

7fb2923d8eff8f2a1ea530e69b8180fd7f969e3ebb2d32bb3a7a4ce2b10c4076

6539f83234151d2872a3da4536d80d1c7a8a3cb353e4f47f9b9dfa794e34a9f0

| Segment / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **HVAC Segment (in millions)** | N/A | **$3,622**  **[0001783180-23-000038_carr-20230331.htm:33]**  | **$4,216**  **[0001783180-23-000056_carr-20230630.htm:21]**  | **$4,008**  **[0001783180-23-000065_carr-20230930.htm:42]**  | N/A | **$4,541**  **[0001783180-24-000044_carr-20240331.htm:23]**  | **$4,970**  **[0001783180-24-000077_carr-20240630.htm:42]**  | **$5,058**  **[0001783180-24-000088_carr-20240930.htm:49]**  |
| **Refrigeration Segment (in millions)** | N/A | **$898**  **[0001783180-23-000038_carr-20230331.htm:33]**  | **$972**  **[0001783180-23-000056_carr-20230630.htm:21]**  | **$924**  **[0001783180-23-000065_carr-20230930.htm:42]**  | N/A | **$884**  **[0001783180-24-000044_carr-20240331.htm:23]**  | **$973**  **[0001783180-24-000077_carr-20240630.htm:42]**  | **$938**  **[0001783180-24-000088_carr-20240930.htm:50]**  |
| **Fire & Security Segment (in millions)** | N/A | **$869**  **[0001783180-23-000038_carr-20230331.htm:33]**  | **$932**  **[0001783180-23-000056_carr-20230630.htm:21]**  | **$923**  **[0001783180-23-000065_carr-20230930.htm:42]**  | N/A | **$887**  **[0001783180-24-000044_carr-20240331.htm:23]**  | **$871**  **[0001783180-24-000077_carr-20240630.htm:42]**  | N/A |

d88d6204a4b1b211f15fb33f7467cf77b810bcaa7bdb6fd659e4c395568b7732

1. **Given the anticipated decline of **15%** in light commercial HVAC in Q4 due to inventory adjustments, how do you plan to manage channel inventory levels to avoid impacting sales next year?**  **[CARR_3403603_19]** 
2. **With your strategy to price R-454B units **10%** higher than R-410A units amid the SEER transition, how confident are you that this price increase won't negatively affect demand or market share, especially considering potential competitor pricing actions?**  **[CARR_3403603_18]** 
3. **You mentioned targeting over **$200 million** in cost synergies from the Viessmann acquisition by **2026**; can you provide more details on the specific initiatives to achieve these synergies and the risks that could prevent you from realizing them?**  **[CARR_3403603_3]** 
4. **Given that organic orders are up over **20%** despite headwinds in residential and light commercial HVAC in Europe and China, how sustainable is this growth, and what strategies do you have in place to mitigate these regional market challenges?**  **[CARR_3403603_1]** 
5. **Regarding the anticipated AFFF settlement and the potential to collect beyond the initial **$615 million**, what are the remaining liabilities, and how might they impact your future financial performance and ability to invest in key strategic areas?**  **[CARR_3403603_16]** 

8aca9fff028a00a50d843af1011c743ac59ce767aa008fd0f175388ceb2ff8a0

HVAC

- Product

- Service

Refrigeration

Fire & Security

Eliminations and Other

Total Revenue

be95b63e7b40e1515a1218728f5918b8b7f1b1cb4e6f5acbc8d97ee7a8a7bc6f

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

United States

Europe

Asia Pacific

Other

c1bc41514977a0002807c6bbef2e9dcfd762f69c6263c5a5c98c79756c726f04

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year Sales**: Expected to be roughly **$22.5 billion**, with underlying organic growth of about **3%**  **[CARR_3403603_5]** .
  2. **Adjusted Operating Margin**: Roughly **15.5%**, up **150 basis points** year-over-year  **[CARR_3403603_5]** .
  3. **Adjusted EPS**: About **$2.50** for continuing operations  **[CARR_3403603_5]** .
  4. **Free Cash Flow**: Expected outflow of **$200 million**  **[CARR_3403603_5]** .
  5. **Capital Expenditures**: About **$500 million**  **[CARR_3403603_6]** .
  6. **Cash Restructuring**: Closer to **$150 million**  **[CARR_3403603_6]** .
  7. **Net Leverage**: About **2x** at year-end  **[CARR_3403603_6]** .
  8. **Share Repurchases**: About **$5 billion** between H2 2024 and end of 2025  **[CARR_3403603_6]** .
  9. **Dividend Payout**: Targeting about a **30% payout**  **[CARR_3403603_6]** .
  10. **Q4 2024 Adjusted EPS**: A little less than **$0.50**  **[CARR_3403603_10]** .
  11. **HVAC Segment**: Close to **10%** growth in Q4 2024  **[CARR_3403603_10]** .
  12. **Refrigeration Segment**: Down mid-single digits in Q4 2024  **[CARR_3403603_10]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year Sales**: Roughly **$25.5 billion**  **[CARR_3394271_6]** .
  2. **Adjusted Operating Margin**: Roughly **15.5%**  **[CARR_3394271_6]** .
  3. **Adjusted EPS**: **$2.80 to $2.90**  **[CARR_3394271_6]** .
  4. **Interest Expense**: About **$510 million**  **[CARR_3394271_6]** .
  5. **Free Cash Flow**: **$400 million**  **[CARR_3394271_6]** .
  6. **Third Quarter Sales**: About **$6.6 billion**  **[CARR_3394271_7]** .
  7. **Third Quarter Adjusted EPS**: About **$0.80**  **[CARR_3394271_7]** .
  8. **Adjusted Effective Tax Rate**: Up **500 basis points**  **[CARR_3394271_7]** .
  9. **Viessmann Climate Solutions**: EBITDA mid-teens  **[CARR_3394271_13]** .
  10. **Third Quarter Margins**: Down about **100 basis points**  **[CARR_3394271_12]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year Sales**: A little less than **$26 billion**  **[CARR_3380730_5]** .
  2. **Adjusted Operating Margin**: Roughly **15.5%**  **[CARR_3380730_5]** .
  3. **Adjusted EPS**: Maintained despite a $0.05 headwind  **[CARR_3380730_5]** .
  4. **Interest Expense**: About **$25 million** lower  **[CARR_3380730_5]** .
  5. **HVAC Segment Margins**: About **17.5%**  **[CARR_3380730_4]** .
  6. **Refrigeration Segment**: Up low-single digits  **[CARR_3380730_4]** .
  7. **Free Cash Flow**: **$400 million**  **[CARR_3380730_6]** .
  8. **Viessmann Climate Solutions Sales**: Flat to down **5%**  **[CARR_3380730_2]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Sales**: About **$26.5 billion**  **[CARR_3371991_5]** .
  2. **Adjusted Operating Margin**: Between **15% and 15.5%**  **[CARR_3371991_5]** .
  3. **Adjusted EPS**: **$2.80 to $2.90**  **[CARR_3371991_5]** .
  4. **Free Cash Flow**: About **$700 million**  **[CARR_3371991_6]** .
  5. **Organic Growth**: Mid-single-digit in all segments  **[CARR_3371991_6]** .
  6. **Fire & Security Operating Margin**: About **14%**  **[CARR_3371991_6]** .
  7. **Viessmann Climate Solutions**: Neutral to operating margin  **[CARR_3371991_5]** .
  8. **Seasonality**: Low single-digit organic revenue growth in Q1  **[CARR_3371991_6]** .
  9. **Capital Deployment**: Focus on deleveraging  **[CARR_3371991_6]** .
  10. **CapEx**: About **$550 million**  **[CARR_3371991_17]** .

34395f8ea0fe433c4c74112b87d61e462b883c26b5f3a56c81083e8cffa6b7d1

| Name               | Position                                           | Start Date          | Short Bio                                                                                                                                                                                                 |
|--------------------|----------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| David Gitlin       | Chairman and Chief Executive Officer               | June 2019           | David Gitlin has been serving as the **Chairman of the Board** since **April 2021** and as the **President and Chief Executive Officer** since **June 2019**. He was previously with United Technologies Corporation (UTC)  **[0001783180-24-000009_carr-20231231.htm:127]** **[0001783180-24-000027_carr-20240304.htm:29]** **[0001783180-24-000027_carr-20240304.htm:21]** .            |
| Ajay Agrawal       | Senior Vice President, Global Services and Healthy Buildings | March 2021          | Ajay Agrawal was appointed to this position in **March 2021**. He previously served as Senior Vice President, Strategy & Services for Carrier from **October 2019 to March 2021** and held positions at Collins Aerospace  **[0001783180-24-000009_carr-20231231.htm:127]** **[0001783180-23-000012_carr-20221231.htm:126]** .                |
| Kyle Crockett      | Vice President, Controller                         | January 2020        | Kyle Crockett was appointed as **Vice President, Controller** in **January 2020**. Before joining Carrier, he held several positions at General Motors  **[0001783180-24-000009_carr-20231231.htm:127]** .                                                                                     |
| Patrick Goris      | Senior Vice President and Chief Financial Officer  | November 2020       | Patrick Goris was appointed as the **Senior Vice President and Chief Financial Officer** in **November 2020**. He previously served as the CFO of Rockwell Automation, Inc.  **[0001783180-24-000009_carr-20231231.htm:127]** .                                                                |
| Kevin J. O'Connor  | Senior Vice President, Chief Legal Officer         | 2020                | Kevin J. O'Connor was appointed as **Senior Vice President and Chief Legal Officer** in **2020**. He joined Carrier from Point72 Asset Management and is set to step down on **January 1, 2025**  **[0000950142-24-002874_eh240563582_8k.htm:1]** **[0001783180-24-000009_carr-20231231.htm:127]** .                                        |
| Jurgen Timperman   | President, Fire & Security                         | February 2019       | Jurgen Timperman was appointed as **President, Fire & Security** in **February 2019**. He previously served as President, Global Fire & Security Products  **[0001783180-24-000009_carr-20231231.htm:127]** **[0001783180-23-000012_carr-20221231.htm:126]** .                                                                               |
| Nadia Villeneuve   | Senior Vice President, Chief Human Resources Officer | 2015                | Nadia Villeneuve was appointed as **Senior Vice President, Chief Human Resources Officer** in **2015**. She previously served as Vice President and Chief Human Resources Officer for Pratt & Whitney  **[0001783180-24-000009_carr-20231231.htm:127]** **[0001783180-23-000012_carr-20221231.htm:126]** .                                   |
| Timothy White      | President, Refrigeration                           | August 2021         | Timothy White was appointed as **President, Refrigeration** in **August 2021**. Before joining Carrier, he was CEO, Onshore Wind Americas for General Electric  **[0001783180-24-000009_carr-20231231.htm:127]** **[0001783180-23-000012_carr-20221231.htm:126]** .                                                                          |
| Francesca Campbell | Senior Vice President and Chief Legal Officer      | January 1, 2025     | Francesca Campbell was appointed as **Senior Vice President and Chief Legal Officer**, with the announcement made on **December 2, 2024**. She will assume her role following Kevin O'Connor's departure on **January 1, 2025**  **[0000950142-24-002874_eh240563582_8k.htm:1]** .            |

4fa76376fabb6b3c30420ca39f64eee5e06b4f7d4a9e5adbd180d67c43ae5098

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

67c26b8cf34d81970240de61f7615858b28ea8fcf35feb8194e33b8098ea0911

| Program Details         | Program 1       | Program 2       |
|-------------------------|-----------------|-----------------|
| Approval Date           | February 2021  **[0001783180-24-000088_carr-20240930.htm:20]** **[0001783180-24-000088_carr-20240930.htm:56]**  | October 2024  **[0001783180-24-000088_carr-20240930.htm:20]** **[0001783180-24-000088_carr-20240930.htm:56]** **[0001783180-24-000088_carr-20240930.htm:62]**  |
| End Date/Duration       | N/A             | N/A             |
| Total Additional Amount | **$4.1 billion**  **[0001783180-24-000088_carr-20240930.htm:20]** **[0001783180-24-000088_carr-20240930.htm:56]**  | **$3 billion**  **[0001783180-24-000088_carr-20240930.htm:20]** **[0001783180-24-000088_carr-20240930.htm:56]** **[0001783180-24-000088_carr-20240930.htm:62]**  |
| Remaining Authorization | **$400 million**  **[0001783180-24-000088_carr-20240930.htm:20]** **[0001783180-24-000088_carr-20240930.htm:56]**  | **$1.7 billion**  **[0001783180-24-000088_carr-20240930.htm:20]** **[0001783180-24-000088_carr-20240930.htm:56]** **[0001783180-24-000088_carr-20240930.htm:62]**  |
| Details                 | Initial authorization  **[0001783180-24-000088_carr-20240930.htm:20]** **[0001783180-24-000088_carr-20240930.htm:56]**  | Additional authorization  **[0001783180-24-000088_carr-20240930.htm:20]** **[0001783180-24-000088_carr-20240930.htm:56]** **[0001783180-24-000088_carr-20240930.htm:62]**  |

6e83c74b50a2f8bed9e32654d6c68e56ac3a6326d2180d704230a957561e1e80

**Quarterly guidance for Q4 2024:**
- **Adjusted EPS**: < $0.50  **[CARR_3403603_10]**  (no prior guidance)  
- **HVAC Segment**: ~10% growth  **[CARR_3403603_10]**  (no prior guidance)  
- **Refrigeration Segment**: Down mid-single digits  **[CARR_3403603_10]**  (no prior guidance)  

**Annual guidance for FY 2024:**
- **Full Year Sales**: $22.5 billion  **[CARR_3403603_5]**  (lowered from $25.5 billion  **[CARR_3394271_6]** )  
- **Adjusted Operating Margin**: 15.5%  **[CARR_3403603_5]**  (no change from 15.5%  **[CARR_3394271_6]** )  
- **Adjusted EPS**: $2.50  **[CARR_3403603_5]**  (lowered from $2.80–$2.90  **[CARR_3394271_6]** )  
- **Free Cash Flow**: -$200 million  **[CARR_3403603_5]**  (lowered from $400 million  **[CARR_3394271_6]** )  
- **Capital Expenditures**: $500 million  **[CARR_3403603_6]**  (no prior guidance)  
- **Cash Restructuring**: $150 million  **[CARR_3403603_6]**  (no prior guidance)  
- **Net Leverage**: ~2x  **[CARR_3403603_6]**  (no prior guidance)  
- **Share Repurchases**: $5 billion  **[CARR_3403603_6]**  (no prior guidance)  
- **Dividend Payout**: ~30%  **[CARR_3403603_6]**  (no prior guidance)  

b575c670bb774f56fb30a53e380e56f91d849c01c14e6c3a2b68e7b1581a3f09

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 2019  **[0001783180-24-000009_carr-20231231.htm:76]**    | Present  | Current auditor   |

6402cfc9fc467c3f3eff5d1fa26db95265afe6fcd32e9aff10c645f551db5a58

421aa0ae36ab9b932ec4a812dc437b5d5c6cc3370af7e3dc57e823b5b0e2f29e

- Total Revenue: $5,984 million (+4% YoY)  **[0001783180-24-000088_carr-20240930.htm:48]** **[0001783180-24-000088_carr-20240930.htm:42]** **[0001783180-24-000088_carr-20240930.htm:2]**   
- HVAC Segment: $5,058 million (up from $4,008 million, **+26% YoY**)  **[0001783180-24-000088_carr-20240930.htm:48]** **[0001783180-24-000088_carr-20240930.htm:42]** **[0001783180-24-000088_carr-20240930.htm:2]**   
- United States: $3,154 million (down from $3,335 million, -5% YoY)  **[0001783180-24-000088_carr-20240930.htm:30]**   
- Europe: $1,723 million (up from $1,124 million, **+53% YoY**)  **[0001783180-24-000088_carr-20240930.htm:30]**   
- Asia Pacific: $923 million (down from $1,061 million, **-13% YoY**)  **[0001783180-24-000088_carr-20240930.htm:30]**   
- Operating Income (EBIT): -$2,319 million (down from $645 million, **-459% YoY**)  **[0001783180-24-000088_carr-20240930.htm:2]**   
- Net Income: $447 million (up from $357 million, **+25% YoY**)  **[0001783180-24-000088_carr-20240930.htm:2]**   

44b357f5dfea2f0ac4f6d06a360c385c41882ed60044eaad1e46f5ef4966c63d

| Year | Amount Due (Millions) | Debt Type       | Interest Rate (%) | % of Total Debt                                                                 |
|----------|---------------------------|---------------------|-----------------------|------------------------------------------------------------------------------------|
| 2025     | 1,200 **[0001783180-24-000088_carr-20240930.htm:12]**             | 2.242% Notes        | 2.242 **[0001783180-24-000088_carr-20240930.htm:12]**         | 9.7% = (1,200 / 12,432) * 100 **[0001783180-24-000088_carr-20240930.htm:12]**                                             |
| 2025     | 836 **[0001783180-24-000088_carr-20240930.htm:12]**               | 4.375% Notes        | 4.375 **[0001783180-24-000088_carr-20240930.htm:12]**         | 6.7% = (836 / 12,432) * 100 **[0001783180-24-000088_carr-20240930.htm:12]**                                              |
| 2027     | 900 **[0001783180-24-000088_carr-20240930.htm:12]**               | 2.493% Notes        | 2.493 **[0001783180-24-000088_carr-20240930.htm:12]**         | 7.2% = (900 / 12,432) * 100 **[0001783180-24-000088_carr-20240930.htm:12]**                                              |
| 2028     | 836 **[0001783180-24-000088_carr-20240930.htm:12]**               | 4.125% Notes        | 4.125 **[0001783180-24-000088_carr-20240930.htm:12]**         | 6.7% = (836 / 12,432) * 100 **[0001783180-24-000088_carr-20240930.htm:12]**                                              |
| 2030     | 2,000 **[0001783180-24-000088_carr-20240930.htm:12]**             | 2.722% Notes        | 2.722 **[0001783180-24-000088_carr-20240930.htm:12]**         | 16.1% = (2,000 / 12,432) * 100 **[0001783180-24-000088_carr-20240930.htm:12]**                                           |
| 2031     | 750 **[0001783180-24-000088_carr-20240930.htm:12]**               | 2.700% Notes        | 2.700 **[0001783180-24-000088_carr-20240930.htm:12]**         | 6.0% = (750 / 12,432) * 100 **[0001783180-24-000088_carr-20240930.htm:12]**                                              |
| 2032     | 948 **[0001783180-24-000088_carr-20240930.htm:12]**               | 4.500% Notes        | 4.500 **[0001783180-24-000088_carr-20240930.htm:12]**         | 7.6% = (948 / 12,432) * 100 **[0001783180-24-000088_carr-20240930.htm:12]**                                              |
| 2034     | 875 **[0001783180-24-000088_carr-20240930.htm:12]**               | 5.900% Notes        | 5.900 **[0001783180-24-000088_carr-20240930.htm:12]**         | 7.0% = (875 / 12,432) * 100 **[0001783180-24-000088_carr-20240930.htm:12]**                                              |
| 2040     | 1,500 **[0001783180-24-000088_carr-20240930.htm:12]**             | 3.377% Notes        | 3.377 **[0001783180-24-000088_carr-20240930.htm:12]**         | 12.1% = (1,500 / 12,432) * 100 **[0001783180-24-000088_carr-20240930.htm:12]**                                           |
| 2050     | 1,400 **[0001783180-24-000088_carr-20240930.htm:12]**             | 3.577% Notes        | 3.577 **[0001783180-24-000088_carr-20240930.htm:12]**         | 11.3% = (1,400 / 12,432) * 100 **[0001783180-24-000088_carr-20240930.htm:12]**                                           |
| 2054     | 650 **[0001783180-24-000088_carr-20240930.htm:12]**               | 6.200% Notes        | 6.200 **[0001783180-24-000088_carr-20240930.htm:12]**         | 5.2% = (650 / 12,432) * 100 **[0001783180-24-000088_carr-20240930.htm:12]**                                              |

e16b3a5dbc961240d3639eadd7c1ad53c425857b6ecf5cf67817a11493043f6c

2213a880fc2c10b014c98acd34c0e0776ad36a1d86fa5876ff33d3cac8cff65f

- **Significant sales declines in Viessmann Climate Solutions products**, with **heat pumps down about 30% year-over-year in Q2**, and **solar PV sales down 60% in Q2 and projected to be down around 40% for the full year**, which could negatively impact Carrier's performance.  **[CARR_3394271_31]**
- **Expected margin pressures in Q3**, as **adjusted operating margins are projected to decline by approximately 100 basis points compared to the prior year**, due to dilution from the Viessmann acquisition, loss of operating profit from divestitures, and tax headwinds.  **[CARR_3394271_12]**
- **Weakness in China's and Europe's residential and light commercial HVAC markets**, with sales **down mid-teens** in both regions, potentially affecting Carrier's growth prospects in these important markets.  **[CARR_3394271_22]**

4298622bc0f5700883934d7c7e44db6ea7a46253533e6c8dbd26eb8771f05c51

1. **Viessmann Outlook**  
   **Q:** How will Viessmann perform in 2024?  
   **A:** Management expects **mid-single-digit sales growth** for Viessmann in 2024, with sales weighted towards the second half due to increased heat pump demand and supply chain synergies. They anticipate **EBITDA margins in the mid-teens**, slightly accretive to the company's overall margins.  **[CARR_3371991_16]** ,  **[CARR_3371991_20]** 

2. **Residential HVAC Growth**  
   **Q:** What's the 2024 outlook for residential HVAC?  
   **A:** Residential HVAC sales are expected to be up **high single digits** in 2024, with a few points of price and the rest from volume mix. Inventory levels have been reduced by **16%** year-over-year, returning to normal levels and positioning the business for more typical sales patterns.  **[CARR_3371991_12]** ,  **[CARR_3371991_10]** 

3. **Heat Pump Demand**  
   **Q:** What's driving heat pump demand in Europe?  
   **A:** Clarified German legislation with subsidies ranging from **40% to 70%**, along with new EU regulations targeting **90% renewables by 2040**, are boosting heat pump applications. Viessmann introduced new products covering over **90%** of the single-family residential market, supporting expected growth in heat pump sales.  **[CARR_3371991_7]** ,  **[CARR_3371991_11]** 

4. **Commercial HVAC Orders**  
   **Q:** How are commercial HVAC orders trending?  
   **A:** Orders remain robust, with strong demand from data centers, education, healthcare, and industrial projects. Orders in the Americas and Europe were up double digits, and management expects this strength to continue into 2024.  **[CARR_3371991_13]** ,  **[CARR_3371991_14]** 

5. **China Growth**  
   **Q:** What are your expectations for China in 2024?  
   **A:** Despite weaker property markets, Carrier anticipates **high single-digit growth** in China due to strong demand in EV production, data centers, and infrastructure projects. Orders in China were up around **20%** in the fourth quarter.  **[CARR_3371991_26]** 

6. **Residential HVAC Inventory**  
   **Q:** What's the status of residential HVAC inventory?  
   **A:** Inventory levels have been purposefully reduced by **16%** year-over-year, achieving the target of mid-teens reduction. This sets the stage for more normal sales and movement alignment in 2024.  **[CARR_3371991_12]** 

7. **Light Commercial Outlook**  
   **Q:** What's the outlook for light commercial HVAC?  
   **A:** Light commercial HVAC sales are expected to be down **mid-single digits** in 2024 due to tough comparisons and some inventory adjustments, but coverage and backlog remain strong heading into the second quarter.  **[CARR_3371991_13]** 

8. **Refrigeration Segment Growth**  
   **Q:** What drives the growth in the Refrigeration segment?  
   **A:** Mid-single-digit organic growth is expected, driven by a strong rebound in the container business (growth **north of double digits**) and stability in truck and trailer markets, despite industry forecasts showing declines.  **[CARR_3371991_16]** 

9. **Free Cash Flow Conversion**  
   **Q:** What's the outlook for free cash flow conversion?  
   **A:** Carrier targets over **100%** free cash flow conversion when adjusting for restructuring and M&A-related fees. Capital expenditures in 2024 will be elevated at around **$550 million** due to Viessmann projects, but underlying conversion remains strong.  **[CARR_3371991_17]** 

10. **Fire and Security Exits**  
    **Q:** What's the progress on exiting Fire and Security businesses?  
    **A:** Carrier is prioritizing closing the security and commercial refrigeration exits, aiming to announce a deal for industrial fire within months. Preparation for commercial and residential fire exits is ongoing, considering options for sale or public market exit to maximize shareholder value.  **[CARR_3371991_22]** 

650a6936efd6adae2a7e509edcbe626394e9855b3db2d3fdc7ffa7e625198ce6

- **Carrier is experiencing strong growth in data center HVAC orders**, with **large orders in Q2** and ongoing discussions with major customers. They are **ramping up capacity** in the US and Mexico to meet demand and building out an **aftermarket strategy** for this critical sector.  **[CARR_3394271_16]**
- Despite weaknesses in Europe and China, **Carrier expects growth to pick up in the second half**, with the **Americas expected to be up double digits**, and **EMEA and Asia Pacific up high single digits**.  **[CARR_3394271_22]**
- **Carrier has gained approximately 120 basis points of market share over the last 12 months** and is confident of continuing to see **outsized growth** due to having the **right products at the right price when customers need them**.  **[CARR_3394271_32]**

62f8e142d49f8fd6cb822e4ff2539ca1744f0c023536e5c890d7a726defdf001

1. **CEO Commitment**  
   **Q:** Will you stay at Carrier or are you considering leaving?  
   **A:** Dave Gitlin stated he is **100% committed** to Carrier and has removed his name from consideration as Boeing's CEO.  **[CARR_3380730_10]**  He is excited about the transformational journey at Carrier and plans to continue leading the company.  **[CARR_3380730_10]** 

2. **Fire Business Sale**  
   **Q:** What's the update on selling the fire business?  
   **A:** Carrier is prioritizing the sale of its residential and commercial fire business, expecting to issue an offering memorandum in **two weeks** and aiming to close by year-end.  **[CARR_3380730_9]**  The business is performing extremely well, with EBITDA tracking **much higher** than last year.  **[CARR_3380730_9]** 

3. **Viessmann Integration**  
   **Q:** How is the Viessmann acquisition progressing amid European market conditions?  
   **A:** Viessmann is performing well, introducing new products expanding the TAM by **$5 billion**.  **[CARR_3380730_17]**  Despite market challenges, they expect heat pump orders to pick up in May and June, positioning for the heating season.  **[CARR_3380730_15]**  They are aggressively managing costs and anticipate revenue synergies in the **hundreds of millions**.  **[CARR_3380730_17]** 

4. **Refrigerant Transition Pricing**  
   **Q:** What's the impact of A2L refrigerant transition on pricing?  
   **A:** Carrier reaffirms a **15–20% price increase** over two years due to the A2L transition.  **[CARR_3380730_20]**  They are already shipping A2L units and expect a higher than **60%** mix of new refrigerant units next year.  **[CARR_3380730_20]** 

5. **Data Center Growth**  
   **Q:** Can you discuss Carrier's position in the data center market?  
   **A:** Carrier is experiencing exponential growth in data centers, with backlog **doubling**.  **[CARR_3380730_11]**  They have low share in the U.S. but are well-positioned technologically and are expanding capacity.  **[CARR_3380730_11]**  Investments in liquid cooling and a dedicated team are helping them capitalize on this unique market moment.  **[CARR_3380730_11]** 

6. **Productivity and Margins**  
   **Q:** How sustainable is the productivity improvement seen in Q1?  
   **A:** Carrier feels it's the best since Dave Gitlin has been at the company.  **[CARR_3380730_12]**  They achieved **100% incrementals**, with materials contributing **50%** of productivity.  **[CARR_3380730_12]**  They are confident in sustaining gains and offsetting material costs.  **[CARR_3380730_12]** 

7. **Light Commercial HVAC Trends**  
   **Q:** What's the outlook for light commercial HVAC in Americas?  
   **A:** Despite a significant drop in orders, Carrier expects performance better than initial guidance of down mid-single digits.  **[CARR_3380730_19]**  Strength in key verticals and share gains are contributing factors.  **[CARR_3380730_19]** 

8. **European Heat Pump Competition**  
   **Q:** Are new entrants threatening Viessmann's heat pump market share in Europe?  
   **A:** Viessmann, a top German brand, plays in the premium market and is less impacted by low-cost competitors.  **[CARR_3380730_16]**  The combination with Carrier enhances their position, and they are seeing price tailwinds.  **[CARR_3380730_16]** 

9. **Applied HVAC Strengths**  
   **Q:** Beyond data centers, what's driving applied HVAC demand?  
   **A:** Applied growth is supported by strong verticals like higher education and healthcare.  **[CARR_3380730_18]**  While commercial office remains weak, data centers and other sectors continue to drive demand globally.  **[CARR_3380730_18]** 

10. **Container Business Recovery**  
    **Q:** Is the container business on the rebound?  
    **A:** Yes, container sales were up about **50%** in Q1.  **[CARR_3380730_26]**  They expect full-year growth around **30%**, aided by new digital offerings generating subscription-based recurring revenue.  **[CARR_3380730_26]** 

6dd95c2f3b4d3cd9dc6baa63d266c3809a109d9a1265acbabad08e2b03965e6f

- **Carrier expects double-digit adjusted EPS growth in 2025**, driven by strong organic growth across key businesses like Commercial HVAC and Residential HVAC, which have shown strong performance and increasing backlogs.  **[CARR_3403603_11]**
- **Operating margin is expected to increase by over 300 basis points year-over-year in Q4 2024**, due to stronger volume and mix, good pricing, and productivity improvements.  **[CARR_3403603_10]**
- Carrier plans to benefit from **significant share repurchases**, elimination of stranded costs, and net interest tailwinds, which will further enhance EPS growth in 2025.  **[CARR_3403603_11]**

d1f184a067086c9e96c74dec465b95f8e579172a12b4c85c7a30e415445681da

- **Light commercial HVAC orders were down significantly in Q1, declining roughly 35%, which could indicate potential weakness in future sales.**  **[CARR_3380730_25]** **[CARR_3380730_14]**
- **Viessmann Climate Solutions reported operating margins of approximately 12.5% in Q1, below the HVAC segment average, resulting in margin dilution and raising concerns about the path to higher margins.**  **[CARR_3380730_20]**
- **The adoption of new refrigerant units (454B) is expected to be slower than previously anticipated, which may impact sales volumes and the realization of expected price increases.**  **[CARR_3380730_13]**

113c38c9de1d78362ab5cf4e396feec05eda8d869536a574c5c128d675956436

- Orders in the light commercial HVAC business are experiencing significant swings, with orders down **30% or 40%** in certain quarters, indicating potential demand instability.  **[CARR_3371991_26]**
- The North American truck and trailer market is expected to decline by **double digits** in 2024, which may negatively impact Carrier's Refrigeration segment.  **[CARR_3371991_22]**
- Political uncertainty and regulatory delays in Germany have caused delays in orders for Viessmann Climate Solutions, potentially impacting growth in the first half of 2024.  **[CARR_3371991_7]**

287f6bfbd0124a1c74bef5103762e13b69b0769d89a11e18842622bb8ee3fc84

- Carrier is **well-positioned to capitalize on mega projects and data centers**, with a **central group targeting major customers** and experiencing **unbelievably strong demand** in this area.  **[CARR_3371991_15]**
- The **Viessmann acquisition** is expected to be **EBITDA-accretive, potentially exceeding the original business case**, with activity picking up and **synergies accumulating in the second half of the year**.  **[CARR_3371991_7]**
- Carrier is seeing **strong growth in China**, particularly in the **EV production and data center sectors**, with a strategic shift from property to industrial markets, expecting **high single-digit growth in China in 2024**.  **[CARR_3371991_26]** **[CARR_3371991_13]**

5fc2455ab4091d276fe10a150a76d99d15e08a09a9db50ebece93b436c2ed935

- **Margin headwinds from the Viessmann Climate Solutions (VCS) acquisition:** VCS represented about a **200 basis point margin headwind** in the HVAC segment in Q3  **[CARR_3403603_4]** , and is expected to be a **0.5 point headwind** in Q4  **[CARR_3403603_13]** . Additionally, VCS's adjusted operating margin for the full year is approximately **11%**, which may be lower than anticipated  **[CARR_3403603_20]** .
- **Weakness in residential and light commercial HVAC markets in Europe and China:** Organic sales in EMEA were up low single digits, but this was offset by a **decline in residential and light commercial sales**, reflecting continued market weakness in that segment  **[CARR_3403603_4]** . Sales in Asia Pacific were down low single digits, driven by **continued weakness in residential and light commercial markets in China**  **[CARR_3403603_4]** .
- **Expected decline in light commercial business in Q4:** Carrier expects the light commercial business to be down **15% in the fourth quarter**, due to efforts to balance inventory levels  **[CARR_3403603_19]** . This indicates ongoing challenges in that segment.

16671e897367b267b8e8a4d4512d7a44262e7e9dd31c5f353712d01a164b55b5

- **Carrier's container business experienced significant recovery, with sales up **50%** in Q1 and expected full-year growth around **30%**.** This strong performance is complemented by the introduction of the new digital platform **Lynx**, which has garnered **130,000 subscriptions** and generated subscription-based recurring revenues.  **[CARR_3380730_26]**
- **Light Commercial HVAC sales are outperforming expectations, increasing over **20%** in Q1.** Management sees upside to original guidance due to strong performance in key verticals like K-12 education, healthcare, and value-based retail, along with market share gains driven by technology differentiation.  **[CARR_3380730_25]** **[CARR_3380730_14]**
- **Carrier is capitalizing on strong global demand for data centers, a key growth driver for the applied HVAC segment.** Data centers are "very, very strong" globally, and the company expects this trend to continue, benefiting from growth in AI and related cooling needs.  **[CARR_3380730_18]**

e2348197cf344c43af902fc726934a116e1bd82484d777f28416f35d787448b4

1. **2025 Outlook and Growth Visibility**  
   **Q:** Do you have high visibility on 2025 growth prospects?  
   **A:** Management expects **double-digit EPS growth** in 2025 driven by organic growth, particularly in Commercial HVAC and Residential HVAC segments, and is confident due to a **double-digit increase in backlog** exiting Q3.  **[CARR_3403603_11]** 

2. **Share Buyback Plans**  
   **Q:** What are your plans for the $4.7 billion share buyback?  
   **A:** Carrier has repurchased about **$400 million** in Q3 and plans to complete about **$1 billion** in buybacks this year. The company is considering open market purchases as well as an ASR and may do more depending on proceeds from divestitures and market conditions.  **[CARR_3403603_14]** 

3. **Viessmann Outlook**  
   **Q:** Can you give an update on Viessmann's outlook into 2025?  
   **A:** While not confident enough to call a bottom, management notes that Viessmann's **September orders were up about 10%**, and October orders have been even stronger. There are signs of turning a corner, supported by subsidy applications in Germany.  **[CARR_3403603_7]** 

4. **Residential HVAC Pre-Buy and R-454B Transition**  
   **Q:** Is there a pre-buy of R-410A units occurring, and how is the R-454B transition affecting pricing?  
   **A:** Carrier does not see a material pre-buy of R-410A units this year but expects to sell a fair amount in Q1 next year. The base price of R-454B units will be **10% higher** than R-410A, with expected total increases of **15%-20% over two years** due to escalation.  **[CARR_3403603_8]** **[CARR_3403603_18]** 

5. **Market Share Gains in Residential and Light Commercial**  
   **Q:** How have you performed in residential and light commercial markets?  
   **A:** Carrier has gained over **100 basis points** of market share in residential HVAC, partly due to better support with R-410A units. Light commercial also saw share gains, with the business expected to be up low single digits this year.  **[CARR_3403603_12]** 

6. **Q4 Guidance and Segment Margins**  
   **Q:** Can you provide guidance on Q4 margins by segment?  
   **A:** For Q4, Carrier expects an overall operating margin of about **12.5%**, with HVAC margins at **15%-15.5%** and refrigeration around **13%**. Viessmann's impact on Q4 margins will be flat overall but a headwind of about **0.5 percentage points** on the HVAC segment.  **[CARR_3403603_13]** 

7. **AFFF Settlement**  
   **Q:** What’s the status of the AFFF settlement and potential insurance recoveries?  
   **A:** Carrier has effectively put AFFF-related liabilities behind them, subject to court approval. The company has insurance coverage exceeding **$2.5 billion** and may collect more depending on negotiations. This positions Carrier to focus on growth going forward.  **[CARR_3403603_16]** 

8. **Refrigeration Margins Excluding CCR**  
   **Q:** What is the margin profile for refrigeration excluding CCR entering 2025?  
   **A:** Refrigeration margins excluding CCR are up about **300 basis points** this year. The exit of CCR will remove **$750 million** in revenue but with immaterial operating profit, leading to an expected **50 basis point** increase in operating margin next year.  **[CARR_3403603_21]** 

9. **Viessmann Cost Synergies**  
   **Q:** How are Viessmann cost synergies tracking for this year and next?  
   **A:** Carrier expects about **$75 million** in cost synergies from Viessmann this year, potentially a bit more. Synergies are expected to be realized ratably, contributing to future margin expansion.  **[CARR_3403603_22]** 

10. **Light Commercial Outlook and ESSER Funding**  
    **Q:** How is ESSER funding impacting the light commercial business?  
    **A:** ESSER funding continues to support the K-12 segment and is expected to drive strength through 2025. Carrier assumes a **15% decline** in light commercial in Q4 to balance inventory but remains optimistic due to ongoing funding and potential pent-up demand.  **[CARR_3403603_19]** **[CARR_3403603_23]** 

11. **Data Center Business and Aftermarket Opportunity**  
    **Q:** Can you elaborate on the data center business and the 5x aftermarket multiplier?  
    **A:** Carrier is experiencing significant wins in the data center market, especially with hyperscalers. The aftermarket opportunity is transformational, with service revenues expected to be at least **5 times** the equipment value due to extensive aftermarket services.  **[CARR_3403603_15]** 

12. **Orders Growth and Softness**  
    **Q:** Did orders soften in September compared to earlier in the year?  
    **A:** Overall orders were up around **20%**, slightly lower than earlier indications of 20%-30%, primarily due to swings in residential orders for R-410A units, which slowed in September.  **[CARR_3403603_25]** 

13. **Aftermarket 2.0 Strategy**  
    **Q:** How does the Aftermarket 2.0 strategy differ from your current approach?  
    **A:** The Aftermarket 2.0 strategy focuses on greater sophistication, including rotable pools, better algorithms for inventory placement, and enhanced digital connectivity. This initiative aims to capitalize on the aftermarket's **10% higher margin** compared to the base business.  **[CARR_3403603_26]** 

14. **Residential HVAC Growth in Q3 and Q4**  
    **Q:** How did residential HVAC perform in Q3 and what's expected for Q4?  
    **A:** Residential HVAC was up **11%** in Q3 and is expected to be up **20%-30%** in Q4 due to an easy comparison from last year's **20%** decline. The increase is not driven by pre-buy activity.  **[CARR_3403603_17]** 

15. **Viessmann Margins**  
    **Q:** What are Viessmann's adjusted operating margins?  
    **A:** Viessmann's adjusted operating margin is around **11%** for the full year, with EBITDA margins in the mid-teens.  **[CARR_3403603_20]** 

16. **Free Cash Flow Expectations for 2025**  
    **Q:** Should we expect any one-time items affecting free cash flow in 2025?  
    **A:** Management does not foresee significant one-time items and aims for free cash flow conversion of **100%** of adjusted income, accounting for cash restructuring charges.  **[CARR_3403603_24]** 

4052c5508b90aeab8d97588a9c0893de400b5b99a423d903546ad65d7beea7b4

1. **Viessmann Guidance and Margins**  
   **Q:** How does Viessmann's outlook impact your guidance?  
   **A:** David Gitlin explained they have derisked the forecast for Viessmann, expecting about **15% to 20% growth in the second half over the first half**.  **[CARR_3394271_8]**  They anticipate third-quarter Viessmann sales to be down high teens year-over-year, with fourth-quarter sales expected to be flat.  **[CARR_3394271_13]** **[CARR_3394271_18]**  They project Viessmann's full-year margins to be **mid-teens for EBITDA**, with operating margins a few points lower.  **[CARR_3394271_13]** **[CARR_3394271_18]** 

2. **Data Center Growth**  
   **Q:** Can you elaborate on data center opportunities?  
   **A:** David Gitlin stated they are enthusiastic about the data center market, with a dedicated team focused on this vertical.  **[CARR_3394271_16]**  They've seen significant order growth, with **data center orders in the first half exceeding last year's total**.  **[CARR_3394271_28]**  Data centers currently represent over **10% of Commercial HVAC sales**, expected to increase to **15% next year** on a higher base.  **[CARR_3394271_28]** 

3. **Residential Orders and Share Gains**  
   **Q:** What drove the strong residential orders and share gains?  
   **A:** David Gitlin noted residential orders were up over **100%**, and even after adjusting for extended lead times, they were up **60%**.  **[CARR_3394271_9]**  They've gained about **120 basis points of share over the last 12 months**.  **[CARR_3394271_9]**  Strong order trends position them well for high single-digit, possibly **10%** growth in residential this year.  **[CARR_3394271_9]** 

4. **Refrigerant Transition Impact**  
   **Q:** How is the refrigerant transition affecting your business?  
   **A:** David Gitlin mentioned that this year only about **5%** of units will use the new 454B refrigerant, lower than previously expected.  **[CARR_3394271_15]**  Next year, they anticipate **closer to 80%** adoption of 454B.  **[CARR_3394271_15]**  The transition will involve a **10% to 15% base price increase**, aligning with a **15% to 20% cumulative increase over two years**.  **[CARR_3394271_20]** 

5. **Margin Expectations and Viessmann Dilution**  
   **Q:** What are your margin expectations considering Viessmann's impact?  
   **A:** Patrick Goris indicated that third-quarter margins are expected to be down about **100 basis points** year-over-year, with Viessmann remaining dilutive.  **[CARR_3394271_12]** **[CARR_3394271_18]**  They expect Viessmann to contribute approximately **$550 million in EBITDA** for the full year.  **[CARR_3394271_18]** 

6. **Divestitures and Stranded Costs**  
   **Q:** How are you addressing stranded costs from divestitures?  
   **A:** Patrick Goris stated they proactively executed an **$80 million cost reduction program** to eliminate stranded costs.  **[CARR_3394271_26]**  They're aligning the overhead structure with a simpler, more focused company, expecting G&A expenses to be lower in 2024 and beyond.  **[CARR_3394271_26]** 

7. **Residential Growth Outlook**  
   **Q:** What's the outlook for residential sales in Q3 and Q4?  
   **A:** David Gitlin expects strong residential sales, with **high single-digit growth in Q3** and potentially **double-digit growth in Q4**.  **[CARR_3394271_27]**  He noted they are well booked for the second half, and inventory levels are down over **10% year-over-year**.  **[CARR_3394271_27]** 

8. **Light Commercial Outlook**  
   **Q:** How is the light commercial segment performing?  
   **A:** David Gitlin reported that light commercial sales were up **20% in Q1**, **10% in Q2**, and they now expect full-year sales to be up low single digits, an improvement from the prior guide of down low single digits.  **[CARR_3394271_17]**  They also saw the first positive orders in several quarters, up about **5%**.  **[CARR_3394271_17]** 

9. **China and Europe Weakness**  
   **Q:** How are sales in China and Europe affecting HVAC growth?  
   **A:** Patrick Goris explained that in Q2, HVAC sales in Asia Pacific were down mid-teens due to weakness in China.  **[CARR_3394271_22]**  In Europe, residential and light commercial segments were down mid-teens, though commercial HVAC grew mid-teens driven by data centers.  **[CARR_3394271_22]** 

10. **Share Repurchase Plan**  
    **Q:** Will you repurchase Viessmann-related shares?  
    **A:** David Gitlin confirmed it is reasonable to expect that all of the Viessmann dilutive shares could be taken back out of the float by the end of next year.  **[CARR_3394271_21]** 

11. **Pricing Outlook**  
    **Q:** Do you need additional pricing actions this year?  
    **A:** Patrick Goris stated they are pretty much set on pricing for the year, with annual increases already in place.  **[CARR_3394271_25]** 

12. **Competitive Landscape**  
    **Q:** Any changes due to competitors' recent moves?  
    **A:** David Gitlin doesn't see any material change in the competitive landscape with Bosch's acquisition or Lennox's JV with Samsung.  **[CARR_3394271_29]**  He remains confident in their team's performance and offerings.  **[CARR_3394271_29]** 

13. **Consumer Behavior in Residential Market**  
    **Q:** Are customers opting to repair instead of replace units?  
    **A:** David Gitlin noted they have not seen customers opting to repair instead of replace; no material trend in that direction.  **[CARR_3394271_31]** 

14. **K-12 Market Outlook**  
    **Q:** What's the outlook for the K-12 vertical?  
    **A:** David Gitlin mentioned K-12 remains strong, aided by ESSER funds.  **[CARR_3394271_24]**  While funds need to be committed by September, many states have applied for extensions, allowing spending to continue potentially beyond March 2026.  **[CARR_3394271_24]** 

15. **Mega Project Outlook**  
    **Q:** Any updates on mega project bids?  
    **A:** David Gitlin said they have had significant activity and key wins in mega projects related to the Chips Act and other large initiatives.  **[CARR_3394271_30]**  They are positioning well with dedicated program teams.  **[CARR_3394271_30]** 

16. **Data Center Technology Trends**  
    **Q:** How is data center technology evolving?  
    **A:** David Gitlin explained they have both air-cooled and water-cooled chiller technology suitable for data centers.  **[CARR_3394271_23]**  They are developing liquid cooling solutions and partnering with companies like STL for future technologies.  **[CARR_3394271_23]** 

17. **Competitor Supply Issues Impacting Share Gains**  
    **Q:** Are competitor supply issues helping you gain share?  
    **A:** David Gitlin acknowledged hearing anecdotal reports of competitors' supply issues but focuses on serving their customers, which has contributed to share gains of about **120 basis points**.  **[CARR_3394271_32]** 

18. **Stranded Costs from Divestitures**  
    **Q:** How are you managing stranded costs from divestitures?  
    **A:** Patrick Goris reiterated that they are executing cost reductions and aligning overhead with the simpler company structure, planning to lower G&A expenses.  **[CARR_3394271_26]** 

19. **Prebuying Ahead of Refrigerant Transition**  
    **Q:** Is there significant prebuying before the refrigerant transition?  
    **A:** David Gitlin stated it's not clear how much prebuying will occur; distributors are deciding how much 410A refrigerant units they want on hand going into next year.  **[CARR_3394271_19]** 

20. **Pricing Impact of Refrigerant Transition**  
    **Q:** Will the refrigerant transition affect pricing?  
    **A:** David Gitlin confirmed a **10% to 15% base price increase** due to the transition to 454B refrigerant, contributing to a **15% to 20% cumulative price increase over two years**, including annual increases.  **[CARR_3394271_20]** 

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Carrier Global Corp (CARR)

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