CARRIER GLOBAL Corp recently released its 10-Q report for the quarter ended June 30, 2026. Carrier Global Corporation provides climate and energy solutions across the United States, Europe, Asia Pacific, the Middle East and Africa, and other international markets. Its business is organized into four segments: Climate Solutions Americas, Climate Solutions Europe, Climate Solutions Asia Pacific, Middle East & Africa, and Climate Solutions Transportation.
In Item 2, management said second-quarter net sales rose 4% to $6.351 billion from $6.113 billion a year earlier, with organic sales up 3% and foreign currency adding 1 point. The company said the organic gain was driven mainly by Climate Solutions Americas, where improved end-market demand lifted volumes, while Europe and Asia Pacific, Middle East & Africa also improved; Transportation was flat. Gross margin fell to $1.728 billion from $1.769 billion, and gross margin as a percentage of sales dropped to 27.2% from 28.9%, as higher input costs, including tariffs, and unfavorable mix outweighed volume gains and productivity actions.
Operating profit declined 9% to $825 million from $903 million. Operating expenses increased 4% to $903 million, with selling, general and administrative expenses essentially flat at $810 million and research and development down to $148 million from $161 million. Equity method investment net earnings fell to $58 million from $78 million, and the company recorded a $46 million impairment on its Riello business in Europe.
Non-operating expense widened to $104 million from $91 million, with interest expense rising to $126 million from $115 million because of commercial paper borrowings. The effective tax rate increased to 25.0% from 20.0%, reflecting the non-deductible Riello impairment and a higher German tax rate. Net earnings attributable to common shareowners fell 15% to $501 million from $591 million.
For the first six months, net sales increased 3% to $11.692 billion from $11.331 billion, with organic sales up 1% and foreign currency translation adding 2 points. Gross margin dropped 8% to $2.972 billion, operating profit fell 29% to $1.083 billion, and net earnings attributable to common shareowners declined 26% to $739 million from $1.003 billion. Management also said it fully mitigated the 2025 impact of tariffs through supply-chain changes, productivity initiatives and pricing actions, and said neither the 2025 tariffs nor the updated Section 232 tariffs had materially affected the business to date. The market has reacted to these announcements by moving the company's shares -9.19% to a price of $62.96. For more information, read the company's full 10-Q submission here.
