Quarterly bookings surpassed $5 billion, marking an all-time high with a 17% organic increase.
Organic revenues rose by 14%.
Adjusted operating margins improved by 230 basis points.
Adjusted EPS (Earnings Per Share) increased by 38%.
Commercial HVAC businesses globally led bookings growth, up over 20%, with equipment growth exceeding 30% and services in the mid-teens.
Americas Commercial HVAC business bookings surged by 30%, with equipment bookings soaring by more than 40% and services bookings by more than 15%.
EMEA (Europe, Middle East, and Africa) Commercial HVAC bookings and revenues were up in the low teens, and up high single digits, respectively.
Asia reported strong performance, with bookings and revenues both seeing about a 120% book-to-bill ratio.
Future Guidance
Full year revenue and EPS guidance raised based on Q1 results and expectations for continued strong performance.
Organic revenue growth guidance increased to 8%-9% from the prior 6%-7%.
Adjusted EPS guidance range is now $10.40 to $10.50, up from the previous $10 to $10.30.
Second quarter estimated revenue growth is around 8.5%, with adjusted EPS expected to be approximately $3.05.
Capital deployment for 2024 anticipated to be approximately $2.5 billion in cash.
Trends, Market Conditions, Sentiment
Demand for innovative solutions remains high, with a book-to-bill ratio of 120% on strong organic revenue growth of 14%.
Commercial HVAC remains a key growth driver, particularly in the Americas, showing resilience and aggressive growth across various vertical markets.
Residential sector performed stronger than expected, despite a cautious outlook.
Transport sectors anticipated a softer first half but expected to strengthen in the latter half of 2024.
Demand in data centers and sectors focusing on energy efficiency, decarbonization, and digital transformation underpinning growth.
Global expansion evident, with particular strength in China and across EMEA despite economic fluctuations.
Ongoing investments in product innovation, digital transformation, and automation are fundamental to sustaining growth and market leadership.
Notable Quotes
”Customer demand continues to increase as the need to address climate change becomes more urgent."
"Our purpose is centered on creating a more sustainable world, and our strategy is aligned to powerful mega trends."
"Our relentless innovation, proven business operating system, and high-performing culture enable us to consistently deliver strong value creation."
"Our strong growth profile provides us with excellent optionality to accelerate key investments in 2024 while delivering strong leverage, EPS, and free cash flow."
"Based on our Q1 results and expectations for continued strong performance, we’re raising our full year revenue and EPS guidance.”
