What Carrier Global Corporation told the SEC could break it.

Carrier depends on commodity markets and suppliers for raw materials (copper, aluminum, steel), components (motors, valves), and finished goods, exposing it to price/availability volatility — and it had no commodity hedge contracts in place at Dec 31, 2025.

“Our reliance on suppliers and commodity markets to secure components (such as motors and valves), finished goods (including products purchased directly from suppliers for resale), and raw materials (such as copper, aluminum and steel), as well as on service providers to deliver our products, exposes us to volatility in the prices and availability of these materials, products, and services.”

Carrier inherited (via the 2020 Separation) Kidde Fire Fighting's legacy 'National Foam' AFFF firefighting-foam business — a source of PFAS-related litigation tied to a West Chester, Pennsylvania facility — despite KFI having divested the AFFF business in 2013.

“The lawsuits identified above relate to Kidde Fire Fighting, Inc., which owned the "National Foam" business that manufactured AFFF for sale to government (including the U.S. federal government) and non-government customers in the U.S. at a single facility located in West Chester, Pennsylvania (the "Pennsylvania Site"). Kidde Fire Fighting, Inc. was acquired by a UTC subsidiary in 2005 and merged into KFI in 2007. In 2013, KFI divested the AFFF businesses to an unrelated third party. The Company acquired KFI as part of the Separation in April 2020.”

More restrictive U.S. and foreign trade policies/tariffs (notably China and Mexico) have hurt Carrier in the past; in 2025 it fully mitigated tariff impact via supply-chain adjustments, productivity, and ~$200M of incremental pricing, but future exposure remains.

“Based on our updated analysis, we fully mitigated the impact of tariffs during 2025 through a combination of supply-chain adjustments, productivity initiatives and approximately $200 million of incremental product pricing actions. To date, tariffs have not had a material impact on our business and we are deploying additional strategies, including cost containment measures, to limit future exposure in the current market environment.”

Some key parts and finished goods are available only from a single supplier or a limited group of suppliers, and certain proprietary component parts come from single-source unaffiliated third parties that Carrier would be unable to obtain for an extended period if disrupted.

“Because some key parts and finished goods may be available only from a single supplier or a limited group of suppliers, we are subject to supply and pricing risk. In addition, certain proprietary component parts used in some of our products are provided by single-source unaffiliated third-party suppliers.”