Carrier tightens portfolio amid turbulence

PALM BEACH GARDENS, Fla.— Carrier Global’s recent sale of its commercial and residential fire business is a move calculated to simplify the company’s portfolio and refocus its efforts at a time of international turbulence. 

Other companies inside and outside of the security industry have been similarly streamlining their portfolios. ADT sold its commercial business in 2023 and closed its solar division the following year to focus on its residential security business. 

Similarly, multi-national conglomerate Honeywell is under pressure to spin off its aerospace division, following calls from activist Elliott Investment Management to break up the company. Honeywell has promised to update shareholders on that decision in its Q4 report. 

This transitioning to more compact business models comes at a time of high anxiety for many industries, with the financial outlook for 2025 hinging on the outcome of global political instability.  

“The sale of our Commercial and Residential Fire business is the final step in our strategic portfolio transformation, further simplifying and focusing our company and strengthening our global leadership position in intelligent climate and energy solutions,” a Carrier spokesperson wrote in an email to Security Systems News. “Carrier’s portfolio transformation was announced in April 2023, including plans to exit our Fire & Security and Commercial Refrigeration businesses. The exits of Fire & Security and Commercial Refrigeration bring greater focus to Carrier's strategy and portfolio, while benefiting these businesses' customers and employees.”   

The sale may prove to be a timely divestiture, as a report by Deutsch Bank found that Carrier would be one of the companies in the crosshairs of incoming President Donald Trump's promise to levy a 25% tariff on goods coming to the U.S. from Canada and Mexico. Carrier has a manufacturing facility in Monterrey, Mexico, that stands to be affected. 

Carrier’s spokesperson noted that, as the company enters 2025, it is laser-focused on its customers, growth, innovation and execution. The spokesperson further added that, with its major “transformational actions” in the rear-view mirror, it would be increasing its focus on the HVAC market. But while it maintains an active M&A pipeline, the company doesn’t expect major large-scale acquisitions any time soon.