Investment Adviser Boosts Stake in Carrier Global Corporation
Telos Capital Management, Inc. has revealed a significant investment in Carrier Global Corporation, acquiring $4.15 million in shares during the second quarter of 2025. According to their latest Form 13-F filing, the investment firm increased its holdings by purchasing an additional 61,200 shares, bringing its total to 172,026 shares valued at approximately $12.59 million as of June 30, 2025.
Key Insights on the Acquisition
The recent acquisition has raised Telos Capital’s position in Carrier to 1.3% of the fund’s total assets amounting to $982.21 million reported in 13F filings. As of August 4, 2025, Carrier’s shares were trading at $66.54, reflecting a modest increase of 0.7% compared to the previous year. However, this performance has lagged behind the S&P 500 by 14.36 percentage points during the same timeframe. The company also offers a dividend yield of 1.3% as of August 5, 2025, with a forward price-to-earnings (P/E) ratio of 21.82.
Company Overview
Carrier Global Corporation is a leading provider of heating, ventilation, and air conditioning (HVAC) systems, refrigeration solutions, and fire and security technologies for various markets worldwide, including residential, commercial, and industrial sectors. The company generates revenue through the sale of equipment, aftermarket parts, services, and digital automation solutions across its HVAC, Refrigeration, and Fire & Security divisions. Carrier serves a broad clientele, including building owners, contractors, transportation and logistics firms, and facility managers who seek advanced climate control and safety solutions. With a diverse range of proprietary brands and technologies, Carrier maintains a strong competitive edge in the industry.
Market Performance and Future Outlook
Carrier Global is a well-established name in the HVAC industry, widely recognized for its innovative products. Over the last five years, the company’s shareholders have benefited from an average annual stock return of 17%, despite some inconsistencies along the way. The company’s prospects appear promising, underpinned by a renewed focus on innovation since 2020, which has seen a 50% increase in research and development (R&D) spending. This investment has led to the introduction of advanced products such as heat pumps and high-efficiency containers, contributing to improved profit margins.
Management is also eyeing substantial growth opportunities in aftermarket sales for its existing installed base, currently capturing only about 25% of this $5.1 billion market projected for 2024. Although Carrier’s stock has dipped by 2.75% in 2025, this decline does not reflect fundamental weaknesses in the business but rather a broader market trend favoring lower-risk investments amid inflation concerns and macroeconomic uncertainties. Carrier’s management has reaffirmed its 2025 guidance during a recent earnings call.
Valuation Insights
From a valuation perspective, Carrier’s stock is considered attractively priced at 14 times its trailing-12-month earnings, a decrease from 22 times earnings in October 2024. This favorable valuation is complemented by a robust return on equity of 27% and a manageable debt-to-capital ratio of 43%, which has improved from 80% in 2020. Given these fundamentals, it is not surprising that Telos Capital has chosen to further increase its investment in Carrier.
Glossary
13F assets under management (AUM): The total value of U.S. equity securities reported by institutional investment managers in SEC Form 13F filings.
Form 13-F: A quarterly SEC filing required from institutional investment managers to disclose their equity holdings.
Dividend yield: The annual dividends per share divided by the current share price, expressed as a percentage.
Forward P/E ratio: The current share price divided by projected earnings per share over the next 12 months.
Stake: The total number of shares or percentage ownership that an investor holds in a company.
Portfolio: A collection of financial assets, such as stocks, held by an individual or institution.
TTM: The 12-month period ending with the most recent quarterly report.
Aftermarket parts and services: Products and maintenance provided after the initial sale of equipment, supporting ongoing customer needs.
Cold chain solutions: Technologies and processes used to maintain temperature-sensitive products throughout storage and transportation.
Proprietary brands: Brands owned and controlled exclusively by a company, not licensed from others.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a financial institution.
