Carrier Global Corp. (NYSE: CARR) is exploring a potential sale or spin-off of its Fire & Security business segment, according to the Wall Street Journal.

Sources told the WSJ that the process is in an early stage and there is no guarantee the company will follow through. The Fire & Security business accounted for about 17% or $3.6 billion of Carrier’s total sales of $20.4 billion in 2022.

Among the company's fire/life-safety brands are the recently rebranded Kidde Commercial and Kidde Fire Systems, Edwards, GST, Autronica, Marigff and Det-Tronics. The security portfolio includes Supra, LenelS2, Aritech and Onity.

UPDATE: Carrier to Exit Fire & Security, Commercial Refrigeration Businesses

In 2021, Palm Beach Gardens, Fla.-based Carrier sold its Chubb fire and security business to APi Group for $3.1 billion. The Chubb business was based in the United Kingdom.

Demand for Carrier’s Fire & Security products, which are used across residential, commercial and industrial properties, was mixed in the most recent quarter, buffeted by slower new construction in some markets, management said on a conference call in February.

These headwinds in various market niches have prompted some company investors and analysts to advocate separating out the division, which they consider a drag on the company’s overall valuation, according to the WSJ.

Carrier shares rose around 4% on news of the WSJ report. As of Tuesday, the company’s market value was estimated to be $36 billion. 

Carrier was formed after United Technologies Corp. (UTC) separated itself into three independent companies in 2020, breaking apart one of the last industrial conglomerates based in the United States. The Otis elevator business was also separated.