Security

Carrier HVAC and Fire & Security 2022 Business Examined

In this Research Note, we examine the HVAC and Fire & Security business of Carrier, based on their 2022 10K Report, investor presentations and building technology-related digital business throughout 2022. Carrier Global Corporation is a global provider of healthy, safe, sustainable and intelligent building and cold chain solutions with a focus on providing differentiated, digitally-enabled lifecycle solutions. Their portfolio includes brands such as Carrier, Toshiba and Automated Logic in their HVAC and building automation business and Kidde, Edwards and LenelS2 in their fire and security business. They also provide a broad array of related building services, including audit, design, installation, system integration, repair, maintenance and monitoring. Carrier's full-year 2022 sales of $20.4 billion decreased 1% compared to the prior year including organic sales growth of 8%, a 3% headwind from currency translation and a 6% net negative impact from acquisitions and divestitures. GAAP operating profit of $4.5 billion increased 71% and adjusted operating profit increased […]

Stay ahead of the pack

with the latest independent smart building research and thought leadership.

Have an account? Login

Subscribe Now for just $200 per year per user (just $17 USD per month) for Access to Quality Independent Smart Building Research & Analysis!

What Exactly Do you Get?

  • Access to Website Articles and Notes. Unlimited Access to the Library of over 1,700 Articles Spanning 10 Years.
  • 10% discount on ALL Memoori Research reports for Subscribers! So if you only buy ONE report you will get your subscription fee back!
  • Industry-leading Analysis Every Week, Direct to your Inbox.
  • AND Cancel at any time
Subscribe Now

In this Research Note, we examine the HVAC and Fire & Security business of Carrier, based on their 2022 10K Report, investor presentations and building technology-related digital business throughout 2022.

Carrier Global Corporation is a global provider of healthy, safe, sustainable and intelligent building and cold chain solutions with a focus on providing differentiated, digitally-enabled lifecycle solutions. Their portfolio includes brands such as Carrier, Toshiba and Automated Logic in their HVAC and building automation business and Kidde, Edwards and LenelS2 in their fire and security business. They also provide a broad array of related building services, including audit, design, installation, system integration, repair, maintenance and monitoring.

Carrier's full-year 2022 sales of $20.4 billion decreased 1% compared to the prior year including organic sales growth of 8%, a 3% headwind from currency translation and a 6% net negative impact from acquisitions and divestitures. GAAP operating profit of $4.5 billion increased 71% and adjusted operating profit increased 3% to $2.9 billion. Adjusted operating profit increased despite lower reported sales due to the Chubb divestiture and persistent supply chain challenges.

Their operations are classified into three segments: HVAC, Refrigeration and Fire & Security.

Carrier 10K 2022 Revenue Report
Carrier 10K 2022 Report, 7th February 2023

Carrier HVAC Segment

For the year ended December 31, 2022, net sales in the HVAC segment were $13.4 billion, an 18% increase compared with the same period of 2021.  The organic increase in net sales of 12% was driven by continued strong results across each of the segment's businesses.  Increased sales in their Commercial HVAC business (up 9%) benefited from pricing improvements and ongoing customer demand in our end markets. The business saw growth in North America and Asia while growth in Europe was tempered by current economic conditions and inflationary cost pressures which impacted end-market demand.

On August 1, 2022, the Commercial HVAC business acquired a majority ownership interest in TCC, a VRF and light commercial HVAC joint venture between Carrier and Toshiba Corporation. The transaction added 7% to net sales.

Carrier Fire & Security Segment

For the year ended December 31, 2022, net sales in the Fire & Security segment were $3.6 billion, a 35% decrease compared with the same period of 2021, mainly due to the divestment of Chubb Fire & Security. The organic increase in net sales of 5% was primarily driven by pricing improvements compared with the prior year. The segment primarily saw growth in both residential and commercial sales in the Americas and Europe as sales in China decreased as a result of current economic conditions and reduced end-market demand.

On January 3, 2022, Carrier completed the Chubb Fire & Security sale for net proceeds of $2.9 billion and recognized a gain on the sale of $1.1 billion in 2022.

Aftermarket and Digital Business

One of the pillars of growth for Carrier is to grow its aftermarket and digital business. Their strategy is focused on digital capabilities to drive the evolution of their hardware in order to enable cloud connectivity, modernize legacy software and launch new platforms, products and services. They expect that these solutions will increase their total available market opportunity, enhance their predictive service and maintenance capabilities, strengthen their customer intimacy as well as fuel their aftermarket growth.

Abound Platform

Abound is a cloud-based building platform that unlocks and unites building data to create more healthy, safe, sustainable and intelligent solutions for indoor spaces. It gathers data from disparate systems, sensors and sources; identifies opportunities to optimize performance; and works with healthy building solutions to improve occupant experiences.

The Abound platform now monitors over 1 billion square feet, and Carrier recently onboarded over 100 commercial office sites for a key large-scale customer. They have recently released Abound Net Zero Management, a digitally-enabled lifecycle sustainability Solution which provides customers with an easy way to view, track and analyze energy usage and emissions data across their global footprint and proactively identify conservation measures.

In October 2022, Carrier launched Abound Predictive Insights to reduce downtime and extend the life of building equipment. Abound Predictive Insights connects to HVAC and building automation assets through any BACnet-enabled building automation system (BAS), including Carrier’s i-Vu and Automated Logic’s WebCTRL systems. HVAC assets of all types are supported, from chillers to rooftop units, air handlers to variable air volume boxes, unit heaters, heat pumps, fan coil units and air conditioners. Supported building assets include refrigerated cases and walk-in freezers. Supported building automation assets include BAS servers, controllers and routers.

Further details of Carrier’s strategic priorities can be found in our previous article, Mapping the Strategic Direction of Carrier in the Smart Buildings Space.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.

Most Popular Articles

Net Zero Buildings Timber IHS
Energy

Net Zero Buildings Explored: International House Sydney, Australia

As the first timber structure of its scale in Australia, International House Sydney (IHS) occupies an important position in the nation’s architectural history. Completed in mid-2017, IHS gained a 6 Star Green Star for office design and achieved As Built (v3) rating, alongside many other awards for design, operation, and especially embodied carbon. The six-story […]

Subscribe to the Newsletter & get all our Articles & Research Delivered Straight to your Inbox.

Please enter a valid email

Please enter your name

Please enter company name

By signing up you agree to our privacy policy