Investment Firm Expands Stake in Carrier Global Corporation
Telos Capital Management, Inc. has recently announced a significant purchase of shares in Carrier Global Corporation, an industry leader in air-conditioning and refrigeration solutions. According to their latest Form 13-F filing, the investment adviser acquired an additional $4.15 million worth of shares, increasing its ownership by 61,200 shares during the second quarter of 2025. Following this acquisition, Telos Capital now holds a total of 172,026 shares in Carrier, which are valued at approximately $12.59 million as of June 30, 2025.
Key Details to Note
The increased stake in Carrier has raised the investment firm’s total position to 1.3% of its total 13F assets, which amount to $982.21 million. As of August 4, 2025, Carrier’s shares were trading at $66.54, reflecting a modest 0.7% increase over the past year. However, this performance has lagged behind the S&P 500 by 14.36 percentage points during the same period. The company’s dividend yield stands at 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 prominent provider of heating, ventilation, and air-conditioning (HVAC) systems, refrigeration solutions, and fire and security technologies across residential, commercial, and industrial sectors worldwide. The company generates its revenue through equipment sales, aftermarket parts and services, and digital automation solutions, serving a wide range of customers, including building owners, contractors, and logistics providers. Carrier operates as a diversified company with a broad portfolio of proprietary brands and technologies, which enhances its competitive edge in the market.
Market Insights
Carrier is one of the most recognizable names in the HVAC industry, and its products are extensively utilized in various settings globally. Over the last five years, the company has rewarded its shareholders with impressive annual stock returns averaging 17%. Despite some fluctuations, the outlook for Carrier’s business remains optimistic. Since 2020, the firm has increased its investment in research and development by 50%, leading to innovative products like heat pumps and higher efficiency containers, which have positively impacted profit margins.
Management has identified a promising opportunity in aftermarket sales, believing that they currently capture only 25% of potential sales within their existing base of products, which could represent a substantial market valued at about $5.1 billion in 2024. Although Carrier’s shares have seen a decline of 2.75% in 2025, this downturn is not attributed to any fundamental issues within the company. Instead, it reflects a broader market trend of caution toward stocks perceived as overvalued amid ongoing inflationary concerns and economic uncertainty.
Management has maintained its guidance for 2025, as reiterated during the latest earnings call. From a valuation perspective, the stock appears to be attractively priced at 14 times trailing-12-month earnings, down from 22 times earnings last October, while boasting a robust return on equity of 27% and a manageable debt-to-capital ratio of 43%, significantly reduced from 80% in 2020. This combination of factors likely influenced Telos Capital’s decision to further increase its investment in Carrier.
Glossary
13F assets under management (AUM): The total value of U.S. equity securities reported by an institutional investment manager in SEC Form 13F filings.
Form 13-F: A quarterly SEC filing required from institutional investment managers to disclose their equity holdings.
Dividend yield: 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.
