Carrier Orders Jump About 35% on Data Center Demand, Lifting Backlog to Record

Carrier Global said Thursday that third-quarter orders jumped about 35%, led by a roughly 300% surge in data center orders, pushing its backlog to a record of more than $8.5 billion, even as a $3.1 billion goodwill write-down in Europe swung the company to a GAAP loss.

The heating, cooling and climate solutions maker raised its 2026 sales forecast to $23.8 billion to $24.0 billion, from about $23 billion, with organic growth now expected at about 10%, according to the earnings release it filed with an 8-K on Thursday. It set adjusted EPS guidance at $2.85 to $2.90, compared with about $2.90 previously, while holding adjusted operating profit at about $3.5 billion and free cash flow at about $2 billion.

Orders and backlog surge

Excluding the divested NORESCO business, Commercial HVAC orders rose about 60%, the company said. Backlog is up 60% from a year earlier, and Carrier said it signed long-term agreements "valued at multiple billions of dollars with minimum volume commitments" that are additive to backlog.

"Organic orders were up ~35%, with data center orders up ~300%, resulting in over $8.5 billion of backlog, up 60% versus last year," Chairman and CEO David Gitlin said in the release. He said Carrier expects double-digit organic sales and adjusted EPS growth in 2026.

Sales up, impairment drives the loss

Net sales rose 12% to $6.3 billion, and organic sales increased 15%, with divestitures a 3% headwind. Adjusted operating profit climbed 33% to $1.091 billion, and the adjusted operating margin widened 260 basis points to 17.4%.

Adjusted EPS rose 30% to $0.87 from $0.67. That figure includes a benefit of about $0.10 from IEEPA refunds, net of about $0.02 of noncontrolling interest impact, the company said. Carrier recorded about $130 million of operating profit benefit from those refunds.

On a GAAP basis, Carrier posted an operating loss of $2.273 billion and a loss from continuing operations of $3.16 a share, compared with earnings of $0.47 a share a year earlier. The swing reflects a non-cash goodwill impairment charge of $3.1 billion tied to its Climate Solutions Europe reporting unit.

Americas leads the segments

Climate Solutions Americas, the largest segment, grew sales 24% to $3.354 billion, with organic sales up 25% on Residential growth of more than 30% and Commercial growth of 25%. Segment operating profit rose 40% to $745 million, helped by about $120 million of IEEPA refunds.

Climate Solutions Europe sales rose 3% to $1.335 billion as 12% organic growth was offset by divestitures and currency. Residential heat pump and air conditioning sales each rose about 35%, more than offsetting high-single-digit declines in boilers. Transportation sales slipped 3% to $726 million as Container growth was more than offset by Truck and Trailer.

Cash and capital returns

Operating cash flow was $813 million and free cash flow reached $674 million, up from $224 million a year earlier. Carrier returned about $600 million to shareowners through dividends and repurchases in the quarter and expects to return about $2.3 billion for the full year.

By the numbers

• About 35%: increase in total company orders
• More than $8.5 billion: record backlog, up 60%
• $6.3 billion: net sales, up 12%
• $0.87: adjusted EPS, up 30%
• $3.1 billion: goodwill impairment for Climate Solutions Europe

Sources

1. Carrier Global Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001783180-26-000035)

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