CHARLOTTE, N.C. - Carrier Global Corporation (NYSE: NYSE:CARR), a leader in climate and energy solutions, has announced a partnership with the U.S. Department of Energy (DOE) to develop advanced heat pump technologies for light commercial buildings. This initiative is part of the Better Buildings Commercial Heat Pump Accelerator program, which targets the reduction of greenhouse gas (GHG) emissions and energy costs by up to 50% in comparison to traditional natural gas-burning models.
The collaboration aims to expedite the transition from lab to market for sustainable electrification technologies, focusing on heat pump packaged rooftop units (RTUs) suitable for schools, retail spaces, and office buildings.
Carrier's involvement in the accelerator includes working with the DOE's National Renewable Energy Laboratory to test and validate product claims. The company is also a participant in the DOE's Cold Climate Heat Pump Challenge and expects to commercialize advanced technology units later in 2024.
Heidi Gehring, Managing Director of Light Commercial at Carrier, mentioned the company's legacy of innovation in HVAC since its inception over a century ago. Gehring expressed Carrier's commitment to leading the industry in efficiency and affordability with the anticipated market launch of the next-generation light commercial heat pumps by 2027.
The DOE highlights the significant energy expenditure in the U.S., costing around $800 billion annually, with an estimated 20% to 30% of energy wasted. Initiatives like the Accelerator seek to reduce this waste through improved design, equipment, and operations, thereby contributing to national energy efficiency and decarbonization goals.
Maria Vargas, Director of DOE's Better Buildings Initiative, recognized Carrier's leadership and collaborative spirit as an inaugural partner in the Accelerator. The initiative is seen as a crucial step towards enhancing energy efficiency in the country's buildings.
The information for this news article is based on a press release statement. Carrier continues to focus on providing sustainable and energy-efficient solutions for various sectors, including residential, commercial, retail, and food service. For more details on Carrier's light commercial products, interested parties are directed to the company's website.
In other recent news, Carrier Global Corporation has made significant strides in its financial performance and strategic repositioning. The company recently reported robust financial results for Q1 2024, with a 17% increase in reported sales to $6.2 billion and a 44% rise in adjusted operating profit to $927 million.
Adjusted earnings per share saw a 19% increase, indicating strong momentum. These developments follow the company's recent divestiture of its security business, Global Access Solutions, to Honeywell (NASDAQ:HON) for $4.95 billion, a move that marks a crucial step in Carrier's ongoing transformation to focus on core businesses.
Carrier intends to use the net proceeds from this sale and future sales to reduce its debt, with a goal to achieve a net leverage ratio of approximately 2x EBITDA by the end of 2024. Additionally, the company plans to resume its share repurchase program within the same timeframe. These recent developments reflect Carrier's strategic focus on high-growth areas and commitment to financial stability.
InvestingPro Insights
Carrier Global Corporation (NYSE: CARR) has not only been at the forefront of climate and energy solution innovations but has also demonstrated a strong financial performance. With a market capitalization of $57.91 billion, Carrier is a significant player in the Building Products industry.
One of the notable InvestingPro Tips for Carrier is its consistent track record of raising its dividend, which it has done for 4 consecutive years, indicating a commitment to returning value to shareholders. Moreover, analysts have a positive outlook on the company's financial health, with net income expected to grow this year and 9 analysts revising their earnings upwards for the upcoming period.
From a valuation standpoint, Carrier's P/E ratio stands at 42.36, which is high, reflecting a robust earnings multiple. The company's Price / Book ratio is also on the higher end at 4.93, suggesting that investors are willing to pay a premium for Carrier's equity compared to its book value. In terms of performance, Carrier has been profitable over the last twelve months, with a return on assets of 3.99%. These metrics underscore Carrier's financial stability and growth prospects, aligning with its strategic initiatives like the partnership with the U.S. Department of Energy.
Investors and stakeholders looking for more comprehensive analysis and additional InvestingPro Tips can find them at https://www.investing.com/pro/CARR. There are currently 11 more tips listed on InvestingPro, providing deeper insights into Carrier's financial and market performance. To access these tips and enjoy a suite of advanced investment tools, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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