Is CARR (Carrier Global Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, CARR is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (24.46% vs ≤33% threshold), interest income ratio (0.78% vs ≤5% threshold), and cash & securities ratio (3.00% vs ≤33% threshold).

Carrier Global Corporation is a global leader in providing heating, ventilating, and air conditioning (HVAC), refrigeration, and building security technologies. Operating across residential and commercial markets, the company manufactures everything from air conditioners and heating systems to advanced building automation solutions. For Muslim investors, CARR represents a solid Halal investment opportunity, having passed all four AAOIFI Shariah screens. Its core business activities in the industrial and construction sectors are fully permissible, and the company maintains strict compliance across all critical financial ratios. From an Islamic finance perspective, Carrier's balance sheet is well-managed, with a debt-to-market cap ratio of 24.5%, staying safely below the 33% maximum threshold. Additionally, the company relies on its core industrial operations rather than interest-generating activities, evidenced by its minimal 0.78% interest income to revenue ratio. While Carrier is comfortably compliant today, halal investors should periodically monitor its debt levels going forward, particularly if the company pursues large-scale acquisitions or restructuring within the industrial sector. Carrier Global Corporation operates in the Industrials sector under the Construction industry and is headquartered in Palm Beach Gardens, FL, US. The company is led by CEO David L. Gitlin and employs approximately 48,000 people.

CARR was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. CARR passed 4 of these 4 screens.

Although CARR passes all shariah screens, it does earn $169.0M in interest income (0.78% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.78 to purify the income.

CARR was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.