Carrier Cuts Full-Year Revenue and EPS Guidance

Carrier posted Q3 FY2025 adjusted EPS of $0.67, about 22% above consensus, while revenue was $5.58 billion, down 6.8% year over year. The company trimmed full‑year guidance, lowering the revenue midpoint to $22.5 billion (from $23.0 billion) and cutting FY adjusted EPS guidance to a $2.65 midpoint (from $3.00–3.10). Operating margin narrowed to 9.7% from 12.7% a year earlier, while free cash flow improved to $224 million versus -$356 million a year ago. Segment results were mixed: Commercial HVAC and aftermarket drove double‑digit growth (Commercial Americas up roughly 30%), Residential volumes fell about 30%, and Transportation revenue declined largely due to a commercial refrigeration divestiture even as container sales grew. R&D spending fell about 12% to $151 million, and the stock ticked up roughly 3% intraday but has underperformed year‑to‑date, down in the mid‑teens versus the S&P 500.