Trane Technologies plc

Previous wording

Conditions remain mixed across our served end markets and geographies. Overall Commercial HVAC markets in Americas and EMEA remain strong due to demand for our differentiated customer driven solutions and the benefits of installing energy efficient products and decarbonizing the built environment. In Asia, markets remain dynamic, with weak macro-economic conditions driving soft demand in China balanced by stronger demand in the rest of Asia. Transport refrigeration markets continue to experience soft demand, particularly in the United States. Residential markets in the United States continue to progress through the regulatory transition, while uncertainties remain from economic risks and higher interest rates.

Current wording

Conditions remain mixed across our served end markets and geographies. Overall Commercial HVAC markets in Americas and EMEA remain strong due to demand for our differentiated customer driven solutions and the benefits of installing energy efficient products and decarbonizing the built environment. In Asia, markets remain dynamic with mixed macro-economic conditions across the region. Transport refrigeration markets continue to experience weaker demand, particularly in the United States. Residential markets have weakened considerably throughout 2025 due to navigating a regulatory refrigerant transition, softer consumer demand and elevated channel inventory, while uncertainties remain from economic risks and higher interest rates.

Previous wording

We continue to monitor macroeconomic indicators and uncertainties resulting from the tariffs recently announced and implemented by the United States, as well as the tariffs imposed by other countries in response. These global trade policy changes continue to be dynamic, and as a result, we may experience supply chain challenges, commodity cost volatility, and consumer and economic uncertainty. We believe our business operating system, our in-region for region strategy, and strength in execution will enable us to navigate potential risks stemming from these recent events.

Current wording

We continue to monitor macroeconomic indicators and uncertainties resulting from the tariffs announced and implemented by the United States in 2025, as well as the tariffs imposed by other countries in response. These global trade policy changes continue to be dynamic, and as a result, we may experience supply chain challenges, commodity cost volatility, and consumer and economic uncertainty. We believe our business operating system, our in-region for region strategy, and strength in execution will enable us to navigate potential risks stemming from these recent events.

Previous wording

We define Segment Adjusted EBITDA as net earnings excluding interest expense, income taxes, depreciation and amortization, restructuring, non-cash adjustments for contingent consideration, merger and acquisition-related costs, unallocated corporate expenses, discontinued operations and other non-recurring items. Segment Adjusted EBITDA, and ratios based on it, are used in the development of annual operating plans, including capital expenditure and operational budgets, and in measuring performance against targets for purposes of incentive compensation. Segment Adjusted EBITDA also provides a useful tool for assessing the operating performance and comparability between periods and our ability to generate cash because it excludes the impact of certain non-cash or non-recurring items that can vary significantly from period to period. Segment Adjusted EBITDA is not defined under GAAP and may not be comparable to similarly-titled measures used by other companies and should not be considered a substitute for net earnings or other results as determined in accordance with GAAP.

Current wording

We define Segment Adjusted EBITDA as net earnings excluding interest expense, income taxes, depreciation and amortization, restructuring, non-cash adjustments for contingent consideration, merger and acquisition transaction costs, unallocated corporate expenses, discontinued operations and other non-recurring items. Segment Adjusted EBITDA, and ratios based on it, are used in the development of annual operating plans, including capital expenditure and operational budgets, and in measuring performance against targets for purposes of incentive compensation. Segment Adjusted EBITDA also provides a useful tool for assessing the operating performance and comparability between periods and our ability to generate cash because it excludes the impact of certain non-cash or non-recurring items that can vary significantly from period to period. Segment Adjusted EBITDA is not defined under GAAP and may not be comparable to similarly-titled measures used by other companies and should not be considered a substitute for net earnings or other results as determined in accordance with GAAP.

Previous wording

We define Segment Adjusted Operating Income as operating income adjusted to exclude restructuring costs, merger and acquisition-related costs, non-cash adjustments for contingent consideration and other non-recurring items. Segment Adjusted Operating Income, and ratios based on it, are used to provide a comprehensive view of segment profitability and evaluate efficient returns on assets. Segment Adjusted Operating Income also provides a useful tool for assessing the comparability between periods because it eliminates non-recurring items that can vary from period to period. Segment Adjusted Operating Income is not defined under GAAP and may not be comparable to similarly-titled measures used by other companies and should not be considered a substitute for net earnings or other results as determined in accordance with GAAP.

Current wording

We define Segment Adjusted Operating Income as operating income adjusted to exclude restructuring costs, merger and acquisition transaction costs, non-cash adjustments for contingent consideration and other non-recurring items. Segment Adjusted Operating Income, and ratios based on it, are used to provide a comprehensive view of segment profitability and evaluate efficient returns on assets. Segment Adjusted Operating Income also provides a useful tool for assessing the comparability between periods because it eliminates non-recurring items that can vary from period to period. Segment Adjusted Operating Income is not defined under GAAP and may not be comparable to similarly-titled measures used by other companies and should not be considered a substitute for net earnings or other results as determined in accordance with GAAP.

Previous wording

Net revenuesfor the three months ended June 30, 2025 increased by 8.3%, or $439.0 million, compared with the same period in 2024, which resulted from the following:

Current wording

Net revenuesfor the three months ended September 30, 2025 increased by 5.5%, or $301.3 million, compared with the same period in 2024, which resulted from the following:

Previous wording

The increase in Net revenues was primarily driven by higher volumes as a result of stronger end-customer demand within our Americas and EMEA segments, realization of price increases and incremental revenue from acquisitions. Refer to the "Results by Segment" below for a discussion of Net revenues by segment.

Current wording

The increase in Net revenues was primarily driven by realization of price increases, higher volumes within our EMEA and Asia segments, and incremental revenue from acquisitions. Refer to the "Results by Segment" below for a discussion of Net revenues by segment.

Previous wording

Gross profit margin for the three months ended June 30, 2025 increased 110 basis points to 37.6% compared to 36.5% for the same period of 2024 primarily due to gross productivity and price realization, partially offset by inflation.

Current wording

Gross profit margin for the three months ended September 30, 2025 increased 60 basis points to 36.9% compared to 36.3% for the same period of 2024 primarily due to gross productivity and price realization, partially offset by inflation.

Previous wording

For the three months ended June 30, 2025 and June 30, 2024 our effective tax rate was 19.8% and 21.2%, respectively. The effective tax rate for the three months ended June 30, 2025 was lower than the U.S. statutory rate of 21.0% primarily due to excess tax benefits from employee share-based payments and earnings in non-U.S. jurisdictions, which in aggregate, have a lower effective tax rate, partially offset by U.S. state and local taxes. The effective tax rate for the three months ended June 30, 2024 was consistent with the U.S. statutory rate of 21.0% due to U.S. state and local taxes, partially offset by excess tax benefits from employee share-based payments and earnings in non-U.S. jurisdictions, which in aggregate, have a lower effective tax rate.

Current wording

For the three months ended September 30, 2025 and September 30, 2024 our effective tax rate was 21.2% and 18.7%, respectively. The effective tax rate for the three months ended September 30, 2025 was slightly higher than the U.S. statutory rate of 21.0% primarily due to U.S. state and local taxes and the effects related to the enactment of OBBBA, offset by a discrete tax benefit associated with the filing of the U.S. federal income tax return, and earnings in non-U.S. jurisdictions, which in aggregate, have a lower effective tax rate. The effective tax rate for the three months ended September 30, 2024 was lower than the U.S. statutory rate of 21.0% primarily due to excess tax benefits from employee share-based payments, a discrete tax benefit related to the filing of the U.S. federal income tax return, and earnings in non-U.S. jurisdictions, which in aggregate, have a lower effective tax rate.

Previous wording

Segment Adjusted EBITDA margin for the three months ended June 30, 2025 increased by 120 basis points to 24.0% compared to 22.8% for the same period in 2024 primarily due to price realization and gross productivity, partially offset by inflation and continued business reinvestment.

Current wording

Segment Adjusted EBITDA margin for the three months ended September 30, 2025 increased by 90 basis points to 23.1% compared to 22.2% for the same period in 2024 primarily due to price realization and gross productivity, partially offset by inflation and continued business reinvestment.

Previous wording

The increase inorganic revenue was primarily driven by higher volumes within our Commercial HVAC and Transport refrigeration businesses.

Current wording

The increase inorganic revenue was driven by higher volumes within our Commercial HVAC and Transport refrigeration businesses.

Previous wording

Segment Adjusted EBITDA margin for the three months ended June 30, 2025 decreased by 200 basis points to 18.3% compared to 20.3% for the same period of 2024, primarily due to acquisitions, continued business reinvestment and inflation, partially offset by favorable productivity and higher volume.

Current wording

Segment Adjusted EBITDA margin for the three months ended September 30, 2025 decreased by 60 basis points to 21.0% compared to 21.6% for the same period of 2024, primarily due to integration costs related to acquisitions, continued business reinvestment and inflation, partially offset by favorable productivity and higher volume.

Previous wording

Segment Adjusted EBITDA margin for the three months ended June 30, 2025 decreased by 220 basis points to 23.3% compared to 25.5% for the same period of 2024 primarily due to lower volumes, inflation and continued business reinvestment, partially offset by gross productivity.

Current wording

Segment Adjusted EBITDA margin for the three months ended September 30, 2025 increased by 230 basis points to 23.3% compared to 21.0% for the same period of 2024 primarily due to gross productivity and higher volumes, partially offset by inflation and continued business reinvestment.

Previous wording

Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024 - Consolidated Results

Current wording

Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024 - Consolidated Results

Previous wording

Net revenuesfor the six months ended June 30, 2025 increased by 9.6%, or $911.9 million, compared with the same period in 2024, which resulted from the following:

Current wording

Net revenuesfor the nine months ended September 30, 2025 increased by 8.1%, or $1,213.2 million, compared with the same period in 2024, which resulted from the following:

Previous wording

Gross profit margin for the six months ended June 30, 2025 increased 120 basis points to 36.8% compared to 35.6% for the same period of 2024 primarily due to gross productivity and price realization, partially offset by inflation.

Current wording

Gross profit margin for the nine months ended September 30, 2025 increased 90 basis points to 36.8% compared to 35.9% for the same period of 2024 primarily due to gross productivity and price realization, partially offset by inflation.

Previous wording

Selling and administrative expensesfor the six months ended June 30, 2025 increased by 7.4%, or $127.6 million, compared with the same period of 2024. The increase in Selling and administrative expenses was primarily driven by an increase in human capital costs related to investing in our people, higher sales commissions, incremental selling and administrative expenses of acquired businesses and higher levels of business reinvestment. Additionally, a non-cash adjustment to contingent consideration reduced Selling and administrative expenses for the six months ended June 30, 2025 by $61.2 million. Selling and administrative expenses as a percentage of Net revenues for the six months ended June 30, 2025 decreased 30 basis points from 18.1% to 17.8%. Excluding the effect of the contingent consideration adjustment, Selling and administrative expenses were 18.4% of Net revenues for the six months ended June 30, 2025.

Current wording

Selling and administrative expensesfor the nine months ended September 30, 2025 increased by 4.9%, or $130.7 million, compared with the same period of 2024. The increase in Selling and administrative expenses was primarily driven by an increase in human capital costs related to investing in our people, higher sales commissions, incremental selling and administrative expenses of acquired businesses and higher levels of business reinvestment. Additionally, a non-cash adjustment to contingent consideration reduced Selling and administrative expenses for the nine months ended September 30, 2025 by $61.2 million. Selling and administrative expenses as a percentage of Net revenues for the nine months ended September 30, 2025 decreased 60 basis points from 17.9% to 17.3%. Excluding the effect of the contingent consideration adjustment, Selling and administrative expenses were 17.7% of Net revenues for the nine months ended September 30, 2025.

Previous wording

For the six months ended June 30, 2025 and June 30, 2024 our effective tax rate was 19.1% and 20.4%, respectively. The effective tax rate for the six months ended June 30, 2025 was lower than the U.S. statutory rate of 21.0% primarily due to excess tax benefits from employee share-based payments, a non-taxable adjustment for contingent consideration, and earnings in non-U.S. jurisdictions, which in aggregate, have a lower effective tax rate, partially offset by U.S. state and local taxes. The effective tax rate for the six months ended June 30, 2024 was lower than the U.S. statutory rate of 21.0% primarily due to excess tax benefits from employee share-based payments and earnings in non-U.S. jurisdictions, which in aggregate, have a lower effective tax rate, partially offset by U.S. state and local taxes.

Current wording

For the nine months ended September 30, 2025 and September 30, 2024 our effective tax rate was 19.9% and 19.8%, respectively. The effective tax rate for the nine months ended September 30, 2025 and 2024 was lower than the U.S. statutory rate of 21.0% primarily due to excess tax benefits from employee share-based payments, and earnings in non-U.S. jurisdictions, which in aggregate, have a lower effective tax rate, partially offset by U.S. state and local taxes.

Previous wording

Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024 - Segment Results

Current wording

Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024 - Segment Results

Previous wording

The following discussion compares our results for each of our three reportable segments for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Current wording

The following discussion compares our results for each of our three reportable segments for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Previous wording

The increase inorganic revenue was primarily driven by higher volumes led by strong demand within our Commercial HVAC business and realization of price increases.

Current wording

The increase inorganic revenues was primarily driven by realization of price increases and higher volumes led by strong demand within our Commercial HVAC business, which was partially offset by weaker volume in our Residential business.

Previous wording

Segment Adjusted EBITDA margin for the six months ended June 30, 2025 increased by 130 basis points to 22.1% compared to 20.8% for the same period in 2024 primarily due to price realization and gross productivity, partially offset by inflation and continued business reinvestment.

Current wording

Segment Adjusted EBITDA margin for the nine months ended September 30, 2025 increased by 120 basis points to 22.5% compared to 21.3% for the same period in 2024 primarily due to price realization and gross productivity, partially offset by inflation and continued business reinvestment.

Previous wording

The increase inorganic revenue was primarily driven by higher volumes within our Commercial HVAC and Transport refrigeration businesses.

Current wording

The increase inorganic revenues was driven by higher volumes within our Commercial HVAC and Transport refrigeration businesses.

Previous wording

The increase in revenue from acquisitions primarily relates to acquisitions completed in the first quarter of 2025.

Current wording

The increase in revenue from acquisitions primarily relates to acquisitions completed in the first half of 2025.

Previous wording

Segment Adjusted EBITDA margin for the six months ended June 30, 2025 decreased by 190 basis points to 17.3% compared to 19.2% for the same period of 2024 primarily due to acquisitions, continued business reinvestment and inflation, partially offset by favorable productivity and higher volume.

Current wording

Segment Adjusted EBITDA margin for the nine months ended September 30, 2025 decreased by 140 basis points to 18.7% compared to 20.1% for the same period of 2024 primarily due to integration costs related to acquisitions, continued business reinvestment and inflation, partially offset by favorable productivity and higher volume.

Previous wording

The decrease inorganic revenuewas primarily driven by lower volumes in China, partially offset by higher volumes in the rest of Asia.

Current wording

The decrease inorganic revenueswas primarily driven by lower volumes in China, partially offset by higher volumes in the rest of Asia.

Previous wording

Segment Adjusted EBITDA margin for the six months ended June 30, 2025 decreased by 70 basis points to 23.0% compared to 23.7% for the same period of 2024 primarily due to lower volumes, inflation and continued business reinvestment, partially offset by gross productivity.

Current wording

Segment Adjusted EBITDA margin for the nine months ended September 30, 2025 increased by 20 basis points to 23.1% compared to 22.9% for the same period of 2024 primarily due to gross productivity, partially offset by lower volumes, inflation and continued business reinvestment.

Previous wording

As of June 30, 2025, we had $774.2 million of cash and cash equivalents on hand, of which $625.3 million was held by non-U.S. subsidiaries. Cash and cash equivalents held by our non-U.S. subsidiaries are generally available for use in our U.S. operations via intercompany loans, equity infusions or via distributions from direct or indirectly owned non-U.S. subsidiaries for which we do not assert permanent reinvestment. In general, repatriation of cash to the U.S. can be completed with no significant incremental U.S. tax. However, to the extent that we repatriate funds from non-U.S. subsidiaries for which we assert permanent reinvestment to fund our U.S. operations, we would be required to accrue and pay applicable non-U.S. taxes. As of June 30, 2025, we currently have no plans to repatriate funds from subsidiaries for which we assert permanent reinvestment.

Current wording

As of September 30, 2025, we had $1,125.8 million of cash and cash equivalents on hand, of which $984.8 million was held by non-U.S. subsidiaries. Cash and cash equivalents held by our non-U.S. subsidiaries are generally available for use in our U.S. operations via intercompany loans, equity infusions or via distributions from direct or indirectly owned non-U.S. subsidiaries for which we do not assert permanent reinvestment. In general, repatriation of cash to the U.S. can be completed with no significant incremental U.S. tax. However, to the extent that we repatriate funds from non-U.S. subsidiaries for which we assert permanent reinvestment to fund our U.S. operations, we would be required to accrue and pay applicable non-U.S. taxes. As of September 30, 2025, we currently have no plans to repatriate funds from subsidiaries for which we assert permanent reinvestment.

Previous wording

Share repurchases are made in accordance with our balanced capital allocation strategy, subject to market conditions and regulatory requirements. In February 2022, our Board of Directors authorized the repurchase of up to $3.0 billion of our ordinary shares (2022 Authorization) and in December 2024, our Board of Directors authorized the repurchase of up to an additional $5.0 billion of our ordinary shares (2024 Authorization) upon the conclusion of the 2022 Authorization. During the six months ended June 30, 2025, we repurchased and canceled approximately $880 million of our ordinary shares, leaving $0.4 billion remaining under the 2022 Authorization and $5.0 billion remaining under the 2024 Authorization. Additionally, during the period after June 30, 2025 through July 30, 2025, we repurchased approximately $120 million of our ordinary shares under the 2022 Authorization.

Current wording

Share repurchases are made in accordance with our balanced capital allocation strategy, subject to market conditions and regulatory requirements. In February 2022, our Board of Directors authorized the repurchase of up to $3.0 billion of our ordinary shares (2022 Authorization) and in December 2024, our Board of Directors authorized the repurchase of up to an additional $5.0 billion of our ordinary shares (2024 Authorization) upon the conclusion of the 2022 Authorization. During the nine months ended September 30, 2025, we repurchased and canceled $1.2 billion of our ordinary shares, which exhausted the 2022 Authorization and left $5.0 billion remaining under the 2024 Authorization. Additionally, during the period after September 30, 2025 through October 30, 2025, we repurchased approximately$120 million of our ordinary shares under the 2024 Authorization.

Previous wording

We expect to pay a competitive and growing dividend. Since the launch of Trane Technologies in March 2020, we have increased our quarterly share dividend by 77%, from $0.53 to $0.94 per ordinary share, or $2.12 to $3.76 per share annualized. The first and second quarter 2025 dividends were declared and paid during the six months ended June 30, 2025, and the third quarter 2025 dividend was declared in June 2025 to be paid in September 2025.

Current wording

We expect to pay a competitive and growing dividend. Since the launch of Trane Technologies in March 2020, we have increased our quarterly share dividend by 77%, from $0.53 to $0.94 per ordinary share, or $2.12 to $3.76 per share annualized. The first, second, and third quarter 2025 dividends were declared and paid during the nine months ended September 30, 2025.

Previous wording

In pursuing our business strategy, we routinely conduct discussions, evaluate targets and enter into agreements regarding possible acquisitions, divestitures, joint ventures and equity investments. We have acquired several businesses, entered into joint ventures and invested in companies that complement existing products and services further enhancing our product portfolio. We paid approximately $277 million in cash for acquisitions completed during the six months ended June 30, 2025.

Current wording

In pursuing our business strategy, we routinely conduct discussions, evaluate targets and enter into agreements regarding possible acquisitions, divestitures, joint ventures and equity investments. We have acquired several businesses, entered into joint ventures and invested in companies that complement existing products and services further enhancing our product portfolio. We paid approximately $277 million in cash for acquisitions completed during the nine months ended September 30, 2025.

Previous wording

As of June 30, 2025, our short-term obligations of $694.6 million primarily consist of current maturities of $399.6 million that mature in March 2026 and $295.0 million of fixed rate debentures that contain a put feature that the holders may exercise on each anniversary of the issuance date. If exercised, we are obligated to repay in whole or in part, at the holder's option, the outstanding principal amount (plus accrued and unpaid interest) of the debentures held by the holder. In accordance with notice requirements as specified in the offering documents, holders had the option to exercise puts up to $37.2 million for settlement in February 2025 but did not exercise such option. In accordance with notice requirements as specified in the offering documents, holders will have the option to exercise puts up to $257.8 million for settlement in November 2025. We also maintain a commercial paper program which is used for general corporate purposes. Under the program, the maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, is $2.0 billion. We had no commercial paper outstanding at June 30, 2025 and December 31, 2024. See Note 6, "Debt and Credit Facilities," to the Condensed Consolidated Financial Statements for additional information regarding the terms of our short-term obligations.

Current wording

As of September 30, 2025, our short-term obligations of $694.7 million primarily consist of current maturities of $399.7 million that mature in March 2026 and $295.0 million of fixed rate debentures that contain a put feature that the holders may exercise on each anniversary of the issuance date. If exercised, we are obligated to repay in whole or in part, at the holder's option, the outstanding principal amount (plus accrued and unpaid interest) of the debentures held by the holder. In accordance with notice requirements as specified in the offering documents, holders had the option to exercise puts up to $37.2 million for settlement in February 2025 but did not exercise such option. In accordance with notice requirements as specified in the offering documents, holders had the option to elect to exercise puts up to $257.8 million for settlement in November 2025. As of October 30, 2025, no material amount of puts were elected to be exercised. We also maintain a commercial paper program which is used for general corporate purposes. Under the program, the maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, is $2.0 billion. We had no commercial paper outstanding at September 30, 2025 and December 31, 2024. See Note 6, "Debt and Credit Facilities," to the Condensed Consolidated Financial Statements for additional information regarding the terms of our short-term obligations.

Previous wording

The following table reflects the major categories of cash flows for the six months ended June 30. For additional details, see the Condensed Consolidated Statements of Cash Flows in the Condensed Consolidated Financial Statements.

Current wording

The following table reflects the major categories of cash flows for the nine months ended September 30. For additional details, see the Condensed Consolidated Statements of Cash Flows in the Condensed Consolidated Financial Statements.

Previous wording

Net cash provided by continuing operating activities for the six months ended June 30, 2025 was $1,043.5 million, of which Net earnings provided $1,656.5 million after adjusting for non-cash transactions. Net cash provided by continuing operating activities for the six months ended June 30, 2024 was $958.6 million, of which Net earnings provided $1,457.5 million after adjusting for non-cash transactions. The year-over-year increase in net cash from continuing operating activities was primarily due to higher net earnings.

Current wording

Net cash provided by continuing operating activities for the nine months ended September 30, 2025 was $2,054.1 million, of which Net earnings provided $2,626.1 million after adjusting for non-cash transactions. Net cash provided by continuing operating activities for the nine months ended September 30, 2024 was $2,272.2 million, of which Net earnings provided $2,342.3 million after adjusting for non-cash transactions. The year-over-year decrease in net cash from continuing operating activities was primarily due to increases in inventory and other changes in net working capital.

Previous wording

Cash flows from investing activities represent inflows and outflows regarding the purchase and sale of assets. Primary activities associated with these items include capital expenditures, proceeds from the sale of property, plant and equipment, acquisitions, funding of joint ventures and other equity investments. During the six months ended June 30, 2025, net cash used in investing activities from continuing operations was $486.0 million. The primary drivers of the usage were attributable to capital expenditures of $208.8 million and acquisitions of businesses of $275.5 million, net of cash acquired. During the six months ended June 30, 2024, net cash used in investing activities from continuing operations was $626.6 million. The primary drivers of the usage were attributable to purchases of short-term investments of $450.0 million as a result of the issuance of 5.100% Senior Notes due 2034 and capital expenditures of $156.7 million.

Current wording

Cash flows from investing activities represent inflows and outflows regarding the purchase and sale of assets. Primary activities associated with these items include capital expenditures, proceeds from the sale of property, plant and equipment, acquisitions, funding of joint ventures and other equity investments. During the nine months ended September 30, 2025, net cash used in investing activities from continuing operations was $554.6 million. The primary drivers of the usage were attributable to capital expenditures of $277.2 million and acquisitions of businesses of $276.0 million, net of cash acquired. During the nine months ended September 30, 2024, net cash used in investing activities from continuing operations was $886.6 million. The primary drivers of the usage were attributable to purchases of short-term investments of $450.0 million as a result of the issuance of 5.100% Senior Notes due 2034, capital expenditures of $245.0 million, and acquisitions of businesses of $179.6 million, net of cash acquired.

Previous wording

Cash flows from financing activities represent inflows and outflows that account for external activities affecting equity and debt. Primary activities associated with these actions include paying dividends to shareholders, repurchasing our own shares, net proceeds from debt issuances and proceeds from shares issued in connection with incentive plans. During the six months ended June 30, 2025, net cash used in financing activities from continuing operations was $1,480.9 million. The primary drivers of the outflow related to the repurchase of $879.6 million in ordinary shares, dividends paid to ordinary shareholders of $420.0 million, and the repayment of $157.3 million of Debentures that matured in June 2025. During the six months ended June 30, 2024, net cash used in financing activities from continuing operations was $504.3 million. The primary drivers of the outflow related to the repurchase of $624.4 million in ordinary shares and dividends paid to ordinary shareholders of $379.4 million, partially offset by proceeds from the issuance of 5.100% Senior Notes due 2034 during the period of $498.5 million, which were used to purchase short-term investments of $450.0 million.

Current wording

Cash flows from financing activities represent inflows and outflows that account for external activities affecting equity and debt. Primary activities associated with these actions include paying dividends to shareholders, repurchasing our own shares, net proceeds from debt issuances and proceeds from shares issued in connection with incentive plans. During the nine months ended September 30, 2025, net cash used in financing activities from continuing operations was $2,057.1 million. The primary drivers of the outflow related to the repurchase of $1,250.0 million in ordinary shares, dividends paid to ordinary shareholders of $629.1 million, and the repayment of $157.3 million of Debentures that matured in June 2025. During the nine months ended September 30, 2024, net cash used in financing activities from continuing operations was $990.2 million. The primary drivers of the outflow related to the repurchase of $926.1 million in ordinary shares and dividends paid to ordinary shareholders of $568.8 million, partially offset by proceeds from the issuance of 5.100% Senior Notes due 2034 during the period of $498.5 million, which were used to purchase short-term investments of $450.0 million.

Previous wording

A reconciliation of Net cash provided by (used in) continuing operating activities to free cash flow for the six months ended June 30 is as follows:

Current wording

A reconciliation of Net cash provided by (used in) continuing operating activities to free cash flow for the nine months ended September 30 is as follows:

Previous wording

Management believes there have been no significant changes during the six months ended June 30, 2025, to the items that we disclosed as our critical accounting estimates in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

Management believes there have been no significant changes during the nine months ended September 30, 2025, to the items that we disclosed as our critical accounting estimates in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024.