Carrier Global Corporation (NYSE: CARR) made headlines on June 5, 2025, by repurchasing 4,267,425 shares of its common stock from Viessmann Traeger HoldCo GmbH, a company controlled by Carrier board member Maximilian Viessmann, for a total of \(300 million. This transaction was executed at a price of \)70.30 per share, which represented a 1.54% discount to the stock’s closing price on the repurchase date. The repurchase aligns with Carrier’s ongoing share repurchase authorization and underscores the company’s strategic capital allocation approach focused on value maximization and financial flexibility. Source Document
This share repurchase follows Carrier’s transformative acquisition of Viessmann Climate Solutions, completed in early 2024, which valued the deal at approximately \(14.2 billion including \)11.2 billion in cash and 58.6 million shares issued. This high-growth acquisition strategically positioned Carrier as a global leader in intelligent climate and energy solutions with a dominant presence in Europe’s premium heat pump and renewable energies market.
Carrier’s acquisition plays a pivotal role in the company’s accelerated revenue and EBITDA growth strategy. The acquisition is expected to contribute over 100 basis points to Carrier’s overall revenue and EBITDA growth profile, reinforcing its outlook of high single-digit free cash flow yield from year five. Furthermore, analysts affirm Carrier’s strong investment-grade credit ratings, reflecting confidence from Moody’s, S&P, and Fitch post-acquisition.
Carrier demonstrates balance sheet strength with a total debt-to-capital ratio of approximately 43.9% as of fiscal year 2024 and an operating margin of 12.69%. The company maintains robust free cash flow generation, posting $44 million in free cash flow for FY 2024, underscoring its healthy liquidity and operational efficiency.
Viessmann Climate Solutions, acquired by Carrier, is the premier player in residential heat pumps and integrated renewable energy solutions in Europe. With over 11,000 employees and a century-long legacy, Viessmann’s portfolio features leading heat pumps, solar PV, battery systems, and cutting-edge hydrogen-ready boilers. It operates primarily in high-growth European markets including Germany, France, Poland, and Italy where heat pump adoption is expanding at an annual growth rate of about 20%.
The combination is projected to yield EUR 200 million in cost synergies by year three through procurement optimizations and insourcing, enhancing margins by over 200 basis points. Revenue synergy opportunities exist beyond current forecasts by leveraging Viessmann’s digital ecosystem and multi-tier offerings throughout Carrier’s global channels. This integration advances Carrier’s addressable market opportunity to over $35 billion in fast-growing energy transition sectors.
Carrier has demonstrated impressive growth metrics post-spin-off with an 8% compound annual growth rate (CAGR) in sales since 2020 and a 19% adjusted EPS CAGR since 2021, alongside margin expansion by 150 basis points. The company also successfully reduced net debt by 50%, returning value to shareholders via $2 billion in share buybacks and elevating dividend payout ratios from 17% in 2020 to a targeted 30% in 2025.
The recent 4.3 million share repurchase from Viessmann Traeger HoldCo is consistent with Carrier’s disciplined capital return strategy following the capital-intensive acquisition phase. Carrier plans proactive deleveraging to achieve approximately 2 times net leverage in 2025, post which it aims to resume aggressive share repurchases including repurchasing a number of shares equivalent to those issued to Viessmann’s founding family.
Carrier is consolidating its position as a global climate champion with a focused portfolio concentrated in HVAC and integrated renewables. Despite some short-term market headwinds in Europe’s residential segment linked to economic factors and adoption rates, Carrier’s diverse solutions platform and operational excellence drive resilience.
The company is committed to realizing EBITDA and free cash flow accretion from the Viessmann acquisition while pursuing substantial synergies and innovation-led revenue enhancements. Carrier’s strategic focus places it at the forefront of climate-friendly energy solutions, poised for sustained profitable growth in a rapidly evolving regulatory and market environment.
Tags: CARR, Carrier Global Corporation, FY2024, ViessmannAcquisition, ShareRepurchase, RenewableEnergyMarket