A crown made of air... Carrier Global is the king of air conditioners. We know that because its founder, Willis Carrier, literally invented modern air conditioning. The stock has more than 2X'd since April 2020, when Carrier spun out from its former parent company. Though its latest earnings disappointed analysts, Carrier believes the best is yet to come.
"Change is in the air"... according to Carrier's earnings presentation (surprisingly interesting). Three megatrends are bringing favorable winds to Carrier's biz: climate change, urbanization, and a growing middle class. Hotter days, city living, and rising disposable income are expected to keep boosting sales for the entire HVAC industry. Some cool numbers:
Air quality has gained fresh importance.... First, there's the pandemic effect: poor ventilation can increase virus spread — so schools, offices, and hospitals became more focused on air quality (good for HVAC companies). Second, there's the environmental effect: in 2020, companies committed billions of $$$ to fighting climate change and reducing emissions — but 15% of greenhouse gases are from HVAC systems. That's why companies like Carrier are focused on energy-efficiency. Carrier's goal: to save customers 1 gigaton of carbon emissions by 2030. That's equivalent to ~20% of what the US emits in a year.