Reefer Demand Drop Fails to Cool Carrier Q4 Earnings Growth
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Carrier Global overcame weaker demand for refrigeration units from the North American trucking sector to post higher profit and sales in the fourth quarter of 2024, the company said Feb. 11.
The parent of Carrier Transicold also benefited from the demand for heating, ventilation and air conditioning units at data centers, the sale of its commercial refrigeration business and purchase of Viessmann Climate Solutions.
Palm Beach Gardens, Fla.-based Carrier posted a profit of $2.551 billion in Q4, compared with net income of $420 million in the year-ago period, with a large chunk of the increase attributed to the sale of the company’s commercial refrigeration unit, which did not include disposing of Carrier Transicold.
In 2023, Carrier said it planned to sell its fire and security and commercial refrigeration businesses in 2024. The company closed the $3 billion sale of the former in December to Lone Star Funds, while the latter was sold to long-term partner Haier for $775 million in October.
Carrier delivered strong full year and Q4 #earnings results, here are some of the overarching highlights for the quarter. Read the full release here: https://t.co/bcO2hng0m9 pic.twitter.com/VuEpIt6UFi — Carrier (@carrier) February 11, 2025
Carrier’s sales in the most recent quarter totaled $5.148 billion, up 19% compared with $4.316 billion in Q4 2023, much of the increase powered by Viessmann.
Europe-centric Viessmann focuses on boilers, solar thermal systems and domestic hot water tanks plus advanced biomass heating and control technology.
Carrier beat analysts’ earnings expectations, although the company’s share price fell in the hours immediately after the results were released.
The company’s remaining refrigeration business, centered on Carrier Transicold, saw sales of $680 million in the most recent quarter, down 33% year over year from $1.024 billion, according to a presentation accompanying the company’s quarterly investor call.
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The unit posted operating profit of $82 million in Q4, down 24% compared with $108 million in the year-ago period.
Carrier Transicold’s 2024 sales fell 9% year over year to $3.475 billion from $3.818 billion in 2023.
RELATED: Carrier Adds 8811MT TRU for Center-Split Reefer Trailers
In the most recent quarter, the unit’s global truck and trailer refrigeration sales fell 10%, with a high percentage of the decline coming in North America, the parent company said.
The unit’s sales so far in the first quarter of 2025 have been flat, Chief Financial Officer Patrick Goris said during the company’s quarterly call.
Carrier’s mantra in 2023 and 2024 was “performing while transforming,” CEO David Gitlin said on the call, and 2025 would be the start of a new phase of accelerated growth, including through enhancing its value proposition to customers, including at Carrier Transicold. “For cold chain solutions, we are transitioning from solely selling reefers to providing end-to-end systems, enabled by our Lynx digital platform and Sensitech technologies. Selling complete, integrated systems provides us with a new and important opportunity for differentiation, customer value and increased revenue streams,” he told analysts.
Today we shared our full year 2024 and Q4 #earnings results. Here’s Chairman & CEO David Gitlin’s take on our full year performance. $CARR pic.twitter.com/lcZLPwtW1j — Carrier (@carrier) February 11, 2025
Sensitech allows cold chain logistics players to track and monitor the products being shipped.
However, the key factor in the company’s earnings in 2025 is likely to be a growing global commercial HVAC backlog, said Gitlin.
Carrier expects full-year sales of $22.5 billion to $23 billion in 2025. The company’s 2024 sales totaled $22.486 billion.
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