CARRCAUTIOUS

Gross Margin

23.3%

Higher than 37% of Industrials sector peers

Updated 438h ago

Sector Performance

37th percentile

CARR

23.3%

Sector Median

29.0%

Sector Avg

662.6%

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Deep Analysis

Carrier's gross margin of 23.3% means that for every dollar of revenue, the company keeps $0.233 after covering the direct costs of producing its heating, ventilation, and air conditioning equipment.

This is below the sector median for Industrials of 29.0%, placing Carrier in the 37th percentile among its peers, indicating weaker cost efficiency than most competitors. The year-over-year change and quarter-over-quarter change are not available, so there is no trend data to assess direction over the past eight quarters. Without a trend, the metric provides only a static snapshot: a below-average margin level suggests limited pricing power or higher input costs, which adds risk. The combination of a low absolute margin with no improving trend implies that current profitability is already constrained, offering little margin of safety if costs rise or competition intensifies. This underperformance relative to peers directly supports the overall CAUTIOUS verdict, as the gross margin does not signal the financial resilience needed for a more favorable outlook.

Frequently Asked Questions

What does the Gross Margin tell investors about CARR?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does CARR's Gross Margin compare to its sector?

CARR's Gross Margin of 23.3% compares to a Industrials sector median of 29.0%, placing it in the 37th percentile.

Who are CARR's closest peers by Gross Margin?

The closest Industrials peers by Gross Margin include: BLDR (28.3%), BE (30.0%), SAVE (31.3%), AAL (26.0%), JOBY (22.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.