Carrier Global Corporation reported financial results for the third quarter of 2026, highlighting record backlog levels and significant growth in orders and sales. The company announced total company orders increased approximately 35%, with commercial HVAC orders up approximately 60% and data center orders up approximately 300%. This momentum resulted in a record backlog of over $8.5 billion, a 60% increase compared to the prior year.
For the three months ended September 30, 2026, net sales were $6.263 billion, representing a 12% increase from the prior year. Organic sales grew 15%, while divestitures acted as a headwind of 3%. Adjusted operating profit was $1.091 billion, up 33% year-over-year, with an adjusted operating margin of 17.4%, an increase of 260 basis points.
GAAP diluted earnings per share from continuing operations were ($3.16), while adjusted EPS was $0.87. The company reported net cash flows from operating activities of $813 million and free cash flow of $674 million. During the quarter, Carrier returned approximately $600 million to shareholders through dividends and share repurchases.
Regarding segment performance, Climate Solutions Americas (CSA) saw net sales increase 24% to $3.354 billion, with organic sales up 25%. Climate Solutions Europe (CSE) reported net sales of $1.335 billion, up 3% with organic sales growth of 12%. Climate Solutions Asia Pacific, Middle East & Africa (CSAME) reported net sales of $848 million, up 2%, and Climate Solutions Transportation (CST) reported net sales of $726 million, down 3%.
Carrier also provided full-year 2026 guidance. The company expects sales of nearly $24 billion, with organic growth of approximately 10%. Adjusted EPS is expected to be between $2.85 and $2.90, and free cash flow is expected to be approximately $2 billion. The company anticipates returning approximately $2.3 billion to shareholders through dividends and share repurchases.
During the quarter, the company recorded a non-cash goodwill impairment charge of $3.1 billion related to its Climate Solutions Europe reporting unit. Additionally, the company completed the divestitures of Riello and NORESCO during the third quarter.
