Carrier Global · Earnings release

Carrier Reports Strong Third Quarter 2024 Results

•Fire & Security segment now reported as discontinued operations making prior guidance not comparable

•Net sales of $6.0 billion up 21% versus third quarter 2023; organic sales up 4%

•GAAP EPS from continuing operations of $0.62 and adjusted EPS from continuing operations of $0.77

•Total GAAP EPS of $0.49 and adjusted EPS of $0.83

•Final business exit on-track to close around year end

•Board increases remaining share repurchase authorization to $4.7 billion

•Updated full year guidance to reflect the impact of discontinued operations

PALM BEACH GARDENS, Fla., October 24, 2024 – Carrier Global Corporation (NYSE:CARR), global leader in intelligent climate and energy solutions, today reported strong financial results for the third quarter of 2024 and adjusted its full year guidance to reflect the move of the Fire & Security segment to discontinued operations. The guidance now only reflects continuing operations.

“We delivered another quarter of strong financial performance while making significant progress on our portfolio transformation," said Carrier Chair & CEO David Gitlin. “Organic sales growth was up mid-single digits – with aftermarket up 10% – and we grew orders roughly 20% as we continue to gain share across key segments. Strong operating performance driven by Carrier Excellence led to very strong core earnings conversion. Carrier continues to create tremendous value for our shareholders as we become a higher growth and more focused global leader in intelligent climate and energy solutions. Our new share repurchase authorization reflects our commitment to deliver shareholder value through disciplined capital allocation. We plan to have all our divestitures complete by the end of this year and we are very pleased with the recently announced settlements related to aqueous film-forming foam (AFFF). With all of our transformational actions now

1

substantially behind us we can even further increase our focus on customers and delivering continued superior financial performance.

Carrier’s third quarter sales of $6.0 billion were up 21% compared to the prior year including 4% organic growth and approximately 17% contribution from acquisitions, driven by Viessmann Climate Solutions. Foreign currency translation had no impact on sales growth. Organic sales in the HVAC segment were up 6%. HVAC sales in the Americas were up high-single-digits driven by continued strength in Commercial HVAC, which was up almost 20%, and double-digit growth in North America Residential HVAC. HVAC organic sales in EMEA were up low-single-digits, with Commercial HVAC up double-digits offsetting a decline in Residential and Light Commercial HVAC sales. These organic figures exclude the sales contribution of Viessmann Climate Solutions which was up 8% sequentially and down around 25% year-over-year.

HVAC sales in Asia Pacific were down low-single-digits driven by declines in residential light commercial in China, partially offset by strength in Commercial HVAC and other countries in Asia. Refrigeration sales were up 1% organically driven by over 30% growth in container, mostly offset by declines in North America truck and trailer.

GAAP operating profit in the quarter of $0.8 billion was up 50% from last year primarily due to operational performance and the addition of Viessmann Climate Solutions. Adjusted operating profit of over $1.0 billion from continuing operations was up 19%, mostly driven by organic growth, price and productivity, and the addition of Viessmann Climate Solutions. Net income from continuing operations was $564 million and adjusted net earnings from continuing operations was $705 million. GAAP EPS from continuing operations was $0.62 and adjusted EPS from continuing operations was $0.77. GAAP EPS from discontinued operations was ($0.13) and adjusted EPS from discontinued operations was $0.06.

Year to date, preliminary net cash flows generated from operating activities were $431 million and capital expenditures were $312 million, resulting in preliminary free cash flow of $119 million. This includes cash tax payments of approximately $1 billion on the

2

gains of the business exits and approximately $300 million of transaction and restructuring costs.

Share Repurchase Authorization

On October 21, 2024, Carrier Global Corporation's Board of Directors approved a $3 billion share repurchase authorization. With the remaining portion of the prior authorization, Carrier currently has about $4.7 billion of repurchase authorization. Share repurchases, if any, will take place at the company’s discretion in the open market or through one or more other public or private transactions, subject to, among other things, market conditions, share price, compliance with securities laws and regulatory requirements and other factors. The stock repurchase authorization has no time limit and may be modified, suspended or discontinued at any time. This authorization is a key component of the company's capital allocation plans, which also includes acquisitions and dividends to help position the company for strategic growth and to generate attractive shareowner returns.

3

Carrier's updated guidance for 2024 now only reflects continuing operations with the exception of free cash flow.

Current Guidance**

G1Sales

G2Organic* up ~3%

FX (0%)

Acquisitions +18%

Divestitures (2%)

G3Adjusted Operating Margin*

G4Adjusted EPS*

G5Free Cash Flow*

Includes the expected results of continuing operations and discontinued operations.

Includes ~$2.6B of expected tax payments on the gains from the announced business exits, restructuring, and transaction-related costs

*Note: When the company provides expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort. See “Use and Definitions of Non-GAAP Financial Measures” below for additional information.

Conference Call

Carrier will host a webcast of its earnings conference call today, Thursday, October 24, 2024, at 7:30 a.m. ET. To access the webcast, visit the Events & Presentations section of the Carrier Investor Relations site at ir.carrier.com/news-and-events/events-and-presentations or to listen to the earnings call by phone, participants must pre-register at Carrier Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing access to the live call.

Discontinued Operations

In 2023, the Company announced plans to exit its Fire & Security and Commercial Refrigeration businesses over the course of 2024. The announced plan to exit the Fire & Security segment represents a single disposal plan to separately divest multiple businesses over different reporting periods. Upon the Commercial and Residential Fire Business qualifying as held for sale during the three months ended September 30, 2024, the components of the Fire & Security segment in aggregate met the criteria to be presented as

4

discontinued operations in the Company’s unaudited condensed consolidated statement of operations and unaudited condensed consolidated statement of cash flows. In addition, the assets and liabilities of the Commercial and Residential Fire Business have been reclassified to held for sale at December 31, 2023. The results of the Commercial Refrigeration business did not meet the criteria to be presented in discontinued operations. Accordingly, all financial measures presented herein, including non-GAAP financial measures, are associated with Carrier's continuing operations unless specifically noted. See “Use and Definitions of Non-GAAP Financial Measures” below.

Cautionary Statement

This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. These forward-looking statements are intended to provide management's current expectations or plans for Carrier's future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "preliminary," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, our portfolio transformation and the use of the anticipated proceeds thereof, potential future investments, Carrier's plans with respect to its indebtedness and other statements that are not historical facts.

This communication also contains estimated net cash flow and free cash flow results for the quarter ended September 30, 2024. These estimated net cash flow and free cash results are preliminary and subject to completion and may change as a result of management’s continued review. Such preliminary results are subject to the finalization of quarter-end financial and accounting procedures. The preliminary net cash flow and free cash flow financial results represent management estimates that constitute forward-looking statements.

All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see Carrier's reports on Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission from time to time. Any forward-looking statement speaks only as of the date on which it is made, and Carrier assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

About Carrier

Carrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating solutions that matter for people and our planet for generations to come. From the beginning, we've led in inventing new technologies and entirely new industries. Today, we continue to lead because we have a world-class, diverse workforce

5

that puts the customer at the center of everything we do. For more information, visit corporate.carrier.com or follow Carrier on social media at @Carrier.

CARR-IR

Contact:

Investor Relations

Investor.Relations@Carrier.com

Media Inquiries

Rob Six

Rob.Six@Carrier.com

6

SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS

Following are tables that present selected financial data of Carrier Global Corporation (“Carrier”). Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures.

Use and Definitions of Non-GAAP Financial Measures

Carrier reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

Organic sales, adjusted operating profit, adjusted operating margin, incremental margins / earnings conversion, earnings before interest, taxes and depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted net income, adjusted earnings per share (“EPS”), adjusted interest expense, net, adjusted effective tax rate and net debt are non-GAAP financial measures and are associated with Carrier's continuing operations unless specifically noted.

Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a nonoperational nature (hereinafter referred to as “other significant items”). Adjusted operating profit represents operating profit (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of net sales (a GAAP measure). Incremental margins / earnings conversion represents the year-over-year change in adjusted operating profit divided by the year-over-year change in net sales. EBITDA represents net income attributable to common shareholders (a GAAP measure), adjusted for interest income and expense, income tax expense, and depreciation and amortization.

Adjusted EBITDA represents EBITDA, as calculated above, excluding non-service pension benefit, non-controlling interest in subsidiaries’ earnings from operations, restructuring costs and other significant items. Adjusted net income represents net income attributable to common shareowners (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted interest expense, net represents interest expense (a GAAP measure) and interest income (a GAAP measure), net excluding other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items.

Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure). For the business segments, when applicable, adjustments of operating profit and operating margins represent operating profit, excluding restructuring, amortization of acquired intangibles and other significant items.

Free cash flow is a non-GAAP financial measure that represents net cash flows provided by continuing operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Carrier’s ability to fund its activities, including the financing of acquisitions, debt service, repurchases of Carrier's common stock and distribution of earnings to shareowners.

Orders are contractual commitments with customers to provide specified goods or services for an agreed upon price and may not be subject to penalty if cancelled.

When Carrier provides our expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted interest expense, net, adjusted effective tax rate, incremental margins/earnings conversion, EBITDA, adjusted EBITDA, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures (expected net sales, operating profit, operating margin, interest expense, effective tax rate, incremental operating margin, net income attributable to common shareowners, diluted EPS and net cash flows provided by operating activities) generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

7

Carrier Global Corporation

Condensed Consolidated Statement of Operations

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(In millions, except per share amounts)

Net sales

Product sales

$

$

$

$

Service sales

Total Net sales

Costs and expenses

Cost of products sold

Cost of services sold

Research and development

Selling, general and administrative

Total Costs and expenses

Equity method investment net earnings

Other income (expense), net

(9)

Operating profit

Non-service pension (expense) benefit

(1)

—

(1)

—

Interest (expense) income, net

8

Earnings before income taxes

Income tax (expense) benefit

Earnings from continuing operations

Discontinued operations, net of tax

Net earnings (loss)

Less: Non-controlling interest in subsidiaries'

Net earnings (loss) attributable to common shareowners

$

$

$

$

Amounts attributable to common shareowners:

Continuing operations

$

$

$

$

Discontinued operations

Net earnings (loss) attributable to common shareowners

$

$

$

$

Earnings per share

Basic:

Continuing operations

$

$

$

$

Discontinued operations

Net earnings (loss)

$

$

$

$

Diluted:

Continuing operations

$

$

$

$

Discontinued operations

Net earnings (loss)

$

$

$

$

Weighted-average number of shares outstanding

Basic

Diluted

8

Carrier Global Corporation

Condensed Consolidated Balance Sheet

(Unaudited)

(In millions)

Assets

Cash and cash equivalents

$

$

Accounts receivable, net

Inventories, net

Assets held for sale

Other current assets

Total current assets

Future income tax benefits

Fixed assets, net

Operating lease right-of-use assets

Intangible assets, net

Goodwill

Pension and post-retirement assets

Equity method investments

Other assets

Total Assets

$

$

Liabilities and Equity

Accounts payable

$

$

Accrued liabilities

Liabilities held for sale

Current portion of long-term debt

Total current liabilities

Long-term debt

Future pension and post-retirement obligations

Future income tax obligations

Operating lease liabilities

Other long-term liabilities

Total Liabilities

Equity

Common stock

9

9

Treasury stock

Additional paid-in capital

Retained earnings

Accumulated other comprehensive loss

Non-controlling interest

Total Equity

Total Liabilities and Equity

$

$

9

Carrier Global Corporation

Condensed Consolidated Statement of Cash Flows

(Unaudited)

Nine Months Ended September 30,

(In millions)

Operating Activities

Net earnings (loss)

$

$

Discontinued operations, net of tax

Adjustments for non-cash items, net:

Depreciation and amortization

Deferred income tax provision

Stock-based compensation costs

Equity method investment net earnings

(Gain) loss on extinguishment of debt

—

(Gain) loss on sale of investments / deconsolidation

(2)

Changes in operating assets and liabilities

Accounts receivable, net

Inventories, net

Accounts payable and accrued liabilities

Distributions from equity method investments

Other operating activities, net

Preliminary net cash flows provided by (used in) continuing operating activities

Preliminary net cash flows provided by (used in) discontinued operating activities

Preliminary net cash flows provided by (used in) operating activities

Investing Activities

Capital expenditures

Investment in businesses, net of cash acquired

Dispositions of businesses

—

Settlement of derivative contracts, net

Other investing activities, net

Net cash flows provided by (used in) continuing investing activities

Net cash flows provided by (used in) discontinued investing activities

Net cash flows provided by (used in) investing activities

Financing Activities

Increase (decrease) in short-term borrowings, net

Issuance of long-term debt

Repayment of long-term debt

Repurchases of common stock

Dividends paid on common stock

Dividends paid to non-controlling interest

Other financing activities, net

Net cash flows provided by (used in) continuing financing activities

Net cash flows provided by (used in) discontinued financing activities

Net cash flows provided by (used in) financing activities

Effect of foreign exchange rate changes on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale

Less: Change in cash balances classified as assets held for sale

(5)

Net increase (decrease) in cash and cash equivalents and restricted cash

Cash, cash equivalents and restricted cash, beginning of period

Cash, cash equivalents and restricted cash, end of period

Less: restricted cash

4

Cash and cash equivalents, end of period

$

$

Carrier Global Corporation

Segment Net Sales and Operating Profit

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(In millions)

Reported

Adjusted

Reported

Adjusted

Reported

Adjusted

Reported

Adjusted

Net sales

HVAC

$

$

$

$

$

$

$

$

Refrigeration

Segment sales

Eliminations and other

3

3

(5)

(5)

Net sales

$

$

$

$

$

$

$

$

Operating profit

HVAC

$

$

$

$

$

$

$

$

Refrigeration

Segment operating profit

Eliminations and other

6

General corporate expenses

Operating profit

$

$

$

$

$

$

$

$

Operating margin

HVAC

%

%

%

%

%

%

%

%

Refrigeration

%

%

%

%

%

%

%

%

Total Carrier

%

%

%

%

%

%

%

%

Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP)

Operating Profit

(Unaudited)

(In millions)

HVAC

Refrigeration

Eliminations and Other

General Corporate Expenses

Carrier

Net sales

$

$

$

$

—

$

Segment operating profit

$

$

$

$

$

Reported operating margin

%

%

%

Adjustments to segment operating profit:

Restructuring costs

$

$

4

$

2

$

—

$

Amortization of acquired intangibles

—

—

—

Acquisition step-up amortization (1)

—

—

—

Acquisition/divestiture-related costs

—

4

—

Total adjustments to operating profit

$

$

8

$

2

$

$

Adjusted operating profit

$

$

$

$

$

Adjusted operating margin

%

%

%

(Unaudited)

(In millions)

HVAC

Refrigeration

Eliminations and Other

General Corporate Expenses

Carrier

Net sales

$

$

$

3

$

—

$

Segment operating profit

$

$

$

$

$

Reported operating margin

%

%

%

Adjustments to segment operating profit:

Restructuring costs

$

$

4

$

—

$

—

$

Amortization of acquired intangibles

—

—

—

Acquisition step-up amortization (1)

—

—

—

Acquisition/divestiture-related costs

—

—

—

Bridge loan financing costs

—

—

1

—

1

Viessmann-related hedges

—

—

—

Total adjustments to operating profit

$

$

4

$

$

$

Adjusted operating profit

$

$

$

6

$

$

Adjusted operating margin

%

%

%

(1) Amortization of the step-up to fair value of acquired inventory and backlog.

Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP)

Operating Profit

(Unaudited)

(In millions)

HVAC

Refrigeration

Eliminations and Other

General Corporate Expenses

Carrier

Net sales

$

$

$

$

—

$

Segment operating profit

$

$

$

$

$

Reported operating margin

%

%

%

Adjustments to segment operating profit:

Restructuring costs

$

$

5

$

6

$

—

$

Amortization of acquired intangibles

—

—

—

Acquisition step-up amortization (1)

—

—

—

Acquisition/divestiture-related costs

1

—

Viessmann-related hedges

—

—

—

Gain on liability adjustment (2)

—

—

—

Total adjustments to operating profit

$

$

$

$

$

Adjusted operating profit

$

$

$

$

$

Adjusted operating margin

%

%

%

(Unaudited)

(In millions)

HVAC

Refrigeration

Eliminations and Other

General Corporate Expenses

Carrier

Net sales

$

$

$

(5)

$

—

$

Segment operating profit

$

$

$

$

$

Reported operating margin

%

%

%

Adjustments to segment operating profit:

Restructuring costs

$

$

$

2

$

—

$

Amortization of acquired intangibles

—

—

—

Acquisition step-up amortization (1)

—

—

—

Acquisition/divestiture-related costs

—

—

—

Bridge loan financing costs

—

—

1

—

1

Viessmann-related hedges

—

—

—

TCC acquisition-related gain (3)

8

—

—

—

8

Total adjustments to operating profit

$

$

$

$

$

Adjusted operating profit

$

$

$

$

$

Adjusted operating margin

%

%

%

(1) Amortization of the step-up to fair value of acquired inventory and backlog.

(2) Gain associated with an adjustment to our tax-related liability owed to UTC.

(3) The carrying value of our previously held TCC equity investments were recognized at fair value and subsequently adjusted.

Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results

Net Income, Earnings Per Share and Effective Tax Rate

(Unaudited)

(In millions, except per share amounts)

Reported

Adjustments

Adjusted

Reported

Adjustments

Adjusted

Net sales

$

$

—

$

$

$

—

$

Operating profit

$

a

$

$

a

$

Operating margin

%

%

%

%

Earnings before income taxes

$

a,b

$

$

a,b

$

Income tax (expense) benefit

$

c

$

$

c

$

Effective tax rate

%

%

%

%

Earnings from continuing operations attributable to common shareowners

$

$

$

$

$

$

Summary of Adjustments:

Restructuring costs

$

a

$

a

Amortization of acquired intangibles

a

a

Acquisition step-up amortization (1)

a

a

Acquisition/divestiture-related costs

a

a

Viessmann-related hedges

—

a

a

Gain on liability adjustment (2)

—

a

a

Debt extinguishment (gain)

b

b

Debt prepayment costs

b

b

Total adjustments

$

$

Tax effect on adjustments above

$

$

Tax specific adjustments

—

—

Total tax adjustments

$

c

$

c

Diluted shares outstanding

Diluted earnings per share:

Continuing operations

$

$

$

$

(1) Amortization of the step-up to fair value of acquired inventory and backlog.

(2) Gain associated with an adjustment to our tax-related liability owed to UTC.

Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results

Net Income, Earnings Per Share and Effective Tax Rate

(Unaudited)

(In millions, except per share amounts)

Reported

Adjustments

Adjusted

Reported

Adjustments

Adjusted

Net sales

$

$

—

$

$

$

—

$

Operating profit

$

a

$

$

a

$

Operating margin

%

%

%

%

Earnings before income taxes

$

a,b

$

$

a,b

$

Income tax (expense) benefit

$

c

$

$

c

$

Effective tax rate

%

%

%

%

Earnings from continuing operations attributable to common shareowners

$

$

$

$

$

$

Summary of Adjustments:

Restructuring costs

$

a

$

a

Amortization of acquired intangibles

a

a

Acquisition step-up amortization (1)

a

a

Acquisition/divestiture-related costs

a

a

Viessmann-related hedges

a

a

TCC acquisition-related gain (2)

—

a

8

a

Bridge loan financing costs (3)

a,b

a,b

Total adjustments

$

$

Tax effect on adjustments above

$

$

Tax specific adjustments

Total tax adjustments

$

c

$

c

Diluted shares outstanding

Diluted earnings per share:

Continuing operations

$

$

$

$

(1) Amortization of the step-up to fair value of acquired inventory and backlog.

(2) The carrying value of our previously held TCC equity investments were recognized at fair value at the TCC acquisition date.

(3) Includes commitment fees recognized in Selling, general and administrative.

Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results

Components of Changes in Net Sales

Three Months Ended September 30, 2024 Compared with Three Months Ended September 30, 2023

(Unaudited)

Factors Contributing to Total % change in Net Sales

Organic

FX Translation

Acquisitions / Divestitures, net

Other

Total

HVAC

6

%

—

%

%

—

%

%

Refrigeration

1

%

—

%

—

%

—

%

1

%

Consolidated

4

%

—

%

%

—

%

%

Nine Months Ended September 30, 2024 Compared with Nine Months Ended September 30, 2023

(Unaudited)

Factors Contributing to Total % change in Net Sales

Organic

FX Translation

Acquisitions / Divestitures, net

Other

Total

HVAC

3

%

—

%

%

—

%

%

Refrigeration

—

%

—

%

—

%

—

%

—

%

Consolidated

2

%

(1)

%

%

—

%

%

Preliminary Free Cash Flow Reconciliation

(Unaudited)

Nine Months Ended September 30,

(In millions)

Preliminary net cash flows provided by (used in) operating activities

$

$

Less: Capital expenditures (1)

Free cash flow

$

$

(1) Includes $10 million and $19 million of capital expenditures related to discontinued operations, respectively.

Net Debt Reconciliation

(Unaudited)

(In millions)

Long-term debt

$

$

Current portion of long-term debt

Less: Cash and cash equivalents

Net debt

$

$

Carrier Global Corporation

Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results

Discontinued operations, net of tax Reconciliation

(Unaudited)

Three Months Ended September 30,

(In millions, except per share amounts)

Discontinued operations, net of tax

$

Summary of adjustments, net of tax:

Divestiture-related costs

$

Gain on sale of Industrial business

AFFF legal reserve

Tax specific adjustments

Total adjustments

$

Adjusted Discontinued operations, net of tax

$

Adjusted diluted earnings per share

$

Diluted EPS Reconciliation - Adjusted

(Unaudited)

Three Months Ended September 30,

Continuing operations

$

Discontinued operations

Total

$