Carrier Global Corporation (CARR) Fell in Q3 Despite Good Results

Bristol Gate Capital Partners, an investment management company, published its Q3 2025 investor letter for the “US Equity Strategy”. A copy of the letter can be downloaded here. The strategy underperformed the benchmark, the S&P 500® Total Return Index, this quarter, but still surpassed the index in dividend growth. The underperformance was due to a lack of significant exposure to the AI/TMT sector or the Value sector, which provides advantages stemming from the Federal Reserve’s rate cut. The portfolio returned 15% dividend growth over the trailing 12 months, driven by the strong underlying fundamentals. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Bristol Gate US Equity Strategy highlighted stocks such as Carrier Global Corporation (NYSE:CARR). Carrier Global Corporation (NYSE:CARR) is an intelligent climate and energy solutions provider that operates through Heating, Ventilating, and Air Conditioning (HVAC) and Refrigeration. The one-month return of Carrier Global Corporation (NYSE:CARR) was -0.72%, and its shares lost 21.73% of their value over the last 52 weeks. On December 30, 2025, Carrier Global Corporation (NYSE:CARR) stock closed at $53.43 per share, with a market capitalization of $45.47 billion.

Bristol Gate US Equity Strategy stated the following regarding Carrier Global Corporation (NYSE:CARR) in its third quarter 2025 investor letter:

“Carrier Global Corporation (NYSE:CARR), Accenture and Intuit were the main detractors from an absolute perspective. While Carrier’s quarterly results were in line to better than consensus estimates, the stock dropped as investors focused on the underlying weakness in US residential HVAC orders lagging sales in certain international markets and negative product mix affecting margins. The stock dropped further in September after David Gitlin, CEO, warned at a Morgan Stanley industry conference that Q3 volume would be lower than previously forecasted, citing industry data showing a nearly 30% reduction in industry volumes for July and projected similar declines for August and September. High interest rates pressuring consumer spending and dealer destocking were the primary headwinds driving the lower outlook.”

In another article, we covered Carrier Global Corporation (NYSE:CARR) and shared Impax Global Environmental Markets Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.