Q2 2024 Carrier Global Corp Earnings Call Transcript
Key Points
- Carrier Global Corp (CARR) reported a strong Q2 with organic orders up roughly 30% year over year.
- Q2 adjusted operating margins expanded by 200 basis points to 18.1%, reflecting significant margin expansion.
- The company achieved strong free cash flow of about $550 million in the quarter.
- Carrier Global Corp (CARR) is initiating a multibillion-dollar share buyback, with $1 billion targeted for the second half of the year.
- The company continues to innovate with new product launches, including a low GWP variant of the Aqua Edge water-cooled chiller and new rooftop units with low GWP refrigerants.
- Weakness in residential and light commercial (LC) businesses in Europe and China impacted overall performance.
- Visteon Climate Solutions (VCS) Q2 sales were down about 30% year over year, with a revised outlook assuming a 15% drop in year-over-year sales.
- The residential market in Europe has been weaker than expected, affecting overall sales.
- Carrier Global Corp (CARR) expects a higher year-over-year adjusted effective tax rate, which will impact earnings.
- The company faces headwinds from lower earnings at Visteon Climate Solutions and the earlier timing of the Access Solutions exit.
Good morning, and welcome to carrier second quarter 2024 earnings conference call. I would like to introduce your host for today's conference, Sam Pearlstein, Vice President of Investor Relations. I'm CFO of the Fire & Security segment. Please go ahead, sir.
Thank you and good morning, and welcome to Carrier's Second Quarter 2024 earnings conference call. With me here today, are David GreatLand, Chairman and Chief Executive Officer, and Patrick Goris, Chief Financial Officer. We will be discussing certain non-GAAP measures on this call, which management believes are relevant in assessing the financial performance of the business. These non-GAAP measures are reconciled to GAAP figures in our earnings presentation, which is available to download from Carrier's website at ir.carrier.com.
The Company reminds listeners that the sales, earnings and cash flow expectations and any other forward-looking statements provided during the call are subject to risks and uncertainties. Carrier's
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