📈 Carrier Global Corp. (NYSE:CARR) is transforming the HVAC industry, focusing on high-margin opportunities driven by electrification, data center growth, and improved air quality. The sale of its Fire & Security and Commercial Refrigeration businesses aims to align Carrier’s valuation with its HVAC-focused peers.
🔍 The divestments were swift, with Access Solutions sold to Honeywell and Industrial Fire to a private equity firm. The sale of the Commercial Refrigeration business is expected by Q3’s end, and the Commercial and Residential Fire business by year-end. Carrier maintains a diversified mix within HVAC, ensuring smooth and predictable earnings growth despite concentrating on one line of business.
💡 The acquisition of Viessmann Climate Solutions, despite initial challenges, is significant for Carrier. Viessmann focuses on green technology like residential heat pumps and solar systems, aligning with global sustainability trends. Though sales dipped 30% in Q2, the integration has yielded cost synergies and cross-selling opportunities. Carrier’s ability to capitalize on long-term green energy trends makes this acquisition strategic.
📉 Not all regions are booming. Asia Pacific, particularly China, has shown weaker order trends due to a shift in focus from infrastructure to high-quality growth sectors like healthcare and technology. Conversely, the North American residential market is thriving, driven by regulatory changes phasing out R-410A refrigerants. This transition, coupled with favorable housing trends, supports robust growth in Carrier’s Residential HVAC segment.
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IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.