Strong demand for HVAC systems, fueled by a global data center construction boom, propelled Carrier Global, a leader in intelligent climate and energy solutions, to report first-quarter adjusted profits that exceeded Wall Street expectations, leading to a rise in its stock price.
Financial results revealed Carrier's first-quarter net sales reached $5.34 billion, slightly higher than the $5.22 billion reported in the same period last year and surpassing analyst estimates of approximately $5 billion. Adjusted earnings per share were 57 cents, beating the average market expectation of 51 cents, although this was down from 65 cents a year earlier.
The data center business was the standout performer this quarter. Orders for Carrier's global commercial HVAC business increased by 35% year-over-year, with data center orders surging by more than 500%. The company's Chairman and CEO stated, "Global commercial HVAC orders grew 35%, with the data center business being the primary driver. The strong double-digit sequential growth in the commercial HVAC backlog gives us confidence in achieving double-digit growth for this business for the sixth consecutive year." The company's current data center order backlog fully covers its projected 2026 data center sales target of $1.5 billion.
Regionally, residential business sales in the US market declined by 12%, but light commercial business sales grew by 9%. The European market saw growth in its residential business. Strong performance in India and Australia within the Asia-Pacific and Middle East & Africa markets partially offset weakness in the Chinese market.
Carrier reaffirmed its full-year performance guidance, anticipating annual sales of approximately $22 billion and adjusted earnings per share of about $2.80. Following the earnings release, Carrier's stock price surged more than 10% for the day.
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