CARRIER GLOBAL CorpCARR
CARRIER GLOBAL Corp Debt Disclosure
BORROWINGS AND LINES OF CREDIT
As of December 31, 2025, the average maturity of the Company's long-term notes is approximately 10 years and the weighted-average interest rate on its total borrowings is approximately 3.7%. Interest expense associated with long-term debt for the years ended December 31, 2025, 2024 and 2023 was $458 million, $580 million and $306 million, respectively.
Short-term borrowings and current portion of long-term debt consisted of the following:
| (In millions) | 2025 | 2024 | ||||||||||||
| Commercial paper | $ | 325 | $ | — | ||||||||||
| Short-term borrowings | 35 | 84 | ||||||||||||
| Current portion of long-term debt | 108 | 1,252 | ||||||||||||
| Short-term borrowings and current portion of long-term debt | $ | 468 | $ | 1,336 | ||||||||||
Commercial Paper Program
The Company has a $2.0 billion USD-denominated facility and a $500 million Euro-denominated facility as part of an unsecured, unsubordinated commercial paper program, which can be used for general corporate purposes, including the funding of working capital and potential acquisitions. As of December 31, 2025, the Company had $325 million outstanding under its USD-denominated commercial paper facility, with a weighted average rate of 3.98%.
Long-term debt consisted of the following:
| (In millions) | 2025 | 2024 | ||||||||||||
2.242% Notes due 2025 (1) | $ | — | $ | 1,200 | ||||||||||
2.493% Notes due 2027 | 900 | 900 | ||||||||||||
4.125% Notes due 2028 | 883 | 783 | ||||||||||||
2.722% Notes due 2030 | 2,000 | 2,000 | ||||||||||||
2.700% Notes due 2031 | 750 | 750 | ||||||||||||
4.500% Notes due 2032 | 1,001 | 887 | ||||||||||||
5.900% Notes due 2034 | 875 | 875 | ||||||||||||
3.625% Notes due 2037 | 883 | 783 | ||||||||||||
3.377% Notes due 2040 | 1,500 | 1,500 | ||||||||||||
3.577% Notes due 2050 | 1,400 | 1,400 | ||||||||||||
6.200% Notes due 2054 | 650 | 650 | ||||||||||||
| Total long-term notes | 10,842 | 11,728 | ||||||||||||
| Japanese Term Loan Facility | 345 | 342 | ||||||||||||
| Other debt (including project financing obligations and finance leases) | 364 | 296 | ||||||||||||
| Discounts and debt issuance costs | (78) | (88) | ||||||||||||
| Total long-term debt | 11,473 | 12,278 | ||||||||||||
| Less: current portion of long-term debt | 108 | 1,252 | ||||||||||||
| Long-term debt, net of current portion | $ | 11,365 | $ | 11,026 | ||||||||||
(1) 2.242% Notes due February 15, 2025; repaid during February 2025.
Revolving Credit Facility
On December 20, 2024, the Company entered into a revolving credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders, permitting aggregate borrowings of up to $2.5 billion pursuant to an unsecured, unsubordinated revolving credit facility that matures in December 2029 (the "Revolving Credit Facility"). The Revolving Credit Facility supports the Company's commercial paper program and can be used for other general corporate purposes. Borrowings are available in U.S. Dollars and Euros. U.S. Dollar borrowings can bear interest at either a Term SOFR Rate plus 0.10% and a ratings-based margin or, alternatively, at an alternate base rate plus a ratings-based margin. Euro borrowings bear interest at an adjusted EURIBOR rate plus a ratings-based margin. A ratings-based commitment fee is charged on unused commitments. In addition, the Company capitalized $11 million of deferred financing costs which are being amortized over the term of the facility. As of December 31, 2025, there were no borrowings outstanding under the Revolving Credit Facility.
Project Financing Arrangements
The Company is involved in long-term construction contracts in which it arranges project financing with certain customers. As a result, the Company issued $34 million and $53 million of debt during the year ended December 31, 2025 and 2024, respectively. Long-term debt repayments associated with these financing arrangements for the years ended December 31, 2025 and 2024, were zero and $14 million, respectively.
Debt Covenants
The Revolving Credit Facility, the indenture for the long-term notes and the Japanese Term Loan Facility contain affirmative and negative covenants customary for financings of these types, which, among other things, limit the Company's ability to incur additional liens, to make certain fundamental changes and to enter into sale and leaseback transactions. As of December 31, 2025, the Company was in compliance with the covenants under the agreements governing its outstanding indebtedness.
Tender Offers
In July 2024, the Company commenced tender offers to purchase up to $800 million ("Aggregate Tender Cap") aggregate purchase price of certain tranches of the Company's notes. The tender offers included payment of applicable accrued and unpaid interest up to the settlement date, along with a fixed spread for early repayment. Based on several factors, the Company elected to increase the Aggregate Tender Cap and settle the tender offers early. The aggregate principal amount tendered and accepted was approximately $1.1 billion, which included $125 million of notes due 2034, $350 million of notes due 2054 and approximately $600 million of notes due 2050. Upon settlement, the Company recognized a net gain of $97 million and wrote off $11 million of unamortized deferred financing costs within Interest (expense) income, net on the accompanying Consolidated Statement of Operations.
Schedule of Long-term Debt Maturities
Scheduled maturities of long-term debt, excluding amortization of discount, are as follows:
| (In millions) | ||||||||
| 2026 | $ | 108 | ||||||
| 2027 | $ | 1,309 | ||||||
| 2028 | $ | 903 | ||||||
| 2029 | $ | 43 | ||||||
| 2030 | $ | 2,019 | ||||||
| Thereafter | $ | 7,169 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 5, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
| 2023 | Feb 6, 2024 | |
| 2022 | Feb 7, 2023 | |
| 2021 | Feb 8, 2022 | |
| 2020 | Feb 9, 2021 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.