CARRIER GLOBAL Corp

Previous wording

Preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales and expenses. We believe that the most complex and sensitive judgments, because of their potential significance to the accompanying Unaudited Condensed Consolidated Financial Statements, result primarily from the need to make estimates about the effects of matters that are inherently uncertain. In "Management’s Discussion and Analysis of Financial Condition and Results of Operations" of our 2024 Form 10-K, wedescribe the significant accounting estimates and policies used in the preparation of the accompanying Unaudited Condensed Consolidated Financial Statements. Except as noted below, there have been no significant changes in our critical accounting estimates.

Current wording

Preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales and expenses. We believe that the most complex and sensitive judgments, because of their potential significance to the accompanying Unaudited Condensed Consolidated Financial Statements, result primarily from the need to make estimates about the effects of matters that are inherently uncertain. In "Management’s Discussion and Analysis of Financial Condition and Results of Operations" of our 2024 Form 10-K, wedescribe the significant accounting estimates and policies used in the preparation of the accompanying Unaudited Condensed Consolidated Financial Statements. There have been no significant changes in our critical accounting estimates.

Previous wording

Organic sales for the three months ended June 30, 2025 increased by 6% compared with the same period of 2024. The organic increase was primarily due to our Climate Solutions Americas segment as strong end-market demand continued to drive higher volumes. Results in Climate Solutions Europe were flat as economic uncertainly continued to impact the region. These results were partially offset by lower end-market demand in both Climate Solutions Asia Pacific, Middle East & Africa and Climate Solutions Transportation. Refer to "Segment Review" below for a discussion of Net salesby segment.

Current wording

Organic sales for the three months ended September 30, 2025, decreased by 4% compared with the same period of 2024. The organic decrease was primarily due to our Climate Solutions Americas segment as reduced end-market demand and distributor destocking in our residential business impacted the segment. In addition, lower end-market demand in both our Climate Solutions Europe and Climate Solutions Asia Pacific, Middle East & Africa segments further impacted overall results. These results were partially offset by improved end-market demand in Climate Solutions Transportation. Refer to "Segment Review" below for a discussion of Net salesby segment.

Previous wording

For the three months ended June 30, 2025, gross margin was $1.8 billion, a 12% increase compared with the same period of 2024. The components were as follows:

Current wording

For the three months ended September 30, 2025, gross margin was $1.4 billion, a 14% decrease compared with the same period of 2024. The components were as follows:

Previous wording

Gross margin increased by $254 million compared with the six months ended June 30, 2024. As a result, gross margin as a percentage of Net sales increased by 230 basis points compared with the same period of 2024. The prior period included inventory step-up and backlog amortization resulting from the recognition of acquired assets of the VCS Business at fair value which are now fully amortized. These costs had a 190 basis point unfavorable impact on the prior period gross margin as a percentage of Net sales. In addition, ongoing customer demand, pricing improvements and our continued focus on productivity initiatives further benefited gross margin.

Current wording

Gross margin decreased by $228 million compared with the three months ended September 30, 2024 primarily due to lower volumes in certain end-markets. As a result, gross margin as a percentage of Net sales decreased by 200 basis points compared with the same period of 2024. The prior period included inventory step-up and backlog amortization resulting from the recognition of acquired assets of the VCS Business at fair value which are now fully amortized. These costs had a 50 basis point unfavorable impact on the prior period gross margin as a percentage of Net sales. The decrease was partially offset by ongoing customer demand in certain end-markets and our continued focus on productivity initiatives.

Previous wording

For the three months ended June 30, 2025, operating expenses, including Equity method investment net earnings, were $866 million, a 2% increase compared with the same period of 2024. The components were as follows:

Current wording

For the three months ended September 30, 2025, operating expenses, including Equity method investment net earnings, were $910 million, flat compared with the same period of 2024. The components were as follows:

Previous wording

For the three months ended June 30, 2025, Selling, general and administrative expenses were $813 million, a 3% increase compared with the same period of 2024. The increase primarily relates to foreign currency translation. In addition, employee-related costs associated with our portfolio transformation further impacted results. These costs were partially offset by lower compensation costs and synergies associated with the integration of the VCS Business. The current period also included $9 million of acquisition and divestiture-related costs compared with $24 million during the three months ended June 30, 2024.

Current wording

For the three months ended September 30, 2025, Selling, general and administrative expenses were $803 million, a 1% increase compared with the same period of 2024. The increase primarily relates to foreign currency translation. In addition, employee-related costs associated with our portfolio transformation further impacted results. These costs were partially offset by lower compensation costs and synergies associated with the integration of the VCS Business. The current period also included $13 million of acquisition and divestiture-related costs compared with $15 million during the three months ended September 30, 2024.

Previous wording

Investments over which we do not exercise control, but have significant influence, are accounted for using the equity method of accounting. For the three months ended June 30, 2025, Equity method investment net earnings were $78 million, a 13% decrease compared with the same period of 2024. The decrease was primarily driven by lower earnings in joint ventures in the Asia Pacific region.

Current wording

Investments over which we do not exercise control, but have significant influence, are accounted for using the equity method of accounting. For the three months ended September 30, 2025, Equity method investment net earnings were $60 million, a 9% decrease compared with the same period of 2024. The decrease was primarily driven by lower earnings in joint ventures within Climate Solutions Americas.

Previous wording

Other income (expense), net primarily includes the impact of gains and losses related to the sale of businesses or interests in our equity method investments, foreign currency gains and losses on transactions that are denominated in a currency other than an entity's functional currency and hedging-related activities. During the three months ended June 30, 2025, we finalized the working capital and other adjustments provided in the stock purchase agreement governing the sale of CCR.

Current wording

Other income (expense), net primarily includes the impact of gains and losses related to the sale of businesses or interests in our equity method investments, foreign currency gains and losses on transactions that are denominated in a currency other than an entity's functional currency and hedging-related activities.

Previous wording

For the three months ended June 30, 2025, Non-operating income (expense), net was $91 million, a 42% decrease compared with the same period of 2024. The components were as follows:

Current wording

For the three months ended September 30, 2025, Non-operating income (expense), net was $106 million, a 1,614% decrease compared with the same period of 2024. The components were as follows:

Previous wording

Non-operating income (expense), net includes the results from activities other than normal business operations such as interest expense, interest income and the non-service components of pension and post-retirement obligations. Interest expense is affected by the amount of debt outstanding and the interest rates on that debt. For the three months ended June 30, 2025, Interest expensewas $115 million, a 34% decrease compared with the same period of 2024. Consistent with our capital allocation strategy, we reduced our outstanding debt by approximately $3 billion over the course of 2024 and repaid an additional $1.2 billion in 2025.

Current wording

Non-operating income (expense), net includes the results from activities other than normal business operations such as interest expense, interest income and the non-service components of pension and post-retirement obligations. Interest expense is affected by the amount of debt outstanding and the interest rates on that debt. For the three months ended September 30, 2025, Interest expensewas $116 million, an 11% decrease compared with the same period of 2024. Consistent with our capital allocation strategy, we reduced our outstanding debt by approximately $3 billion over the course of 2024 and repaid an additional $1.2 billion in 2025. During thethree months ended September 30, 2024, our debt repayments resulted in an $11 million write off of unamortized deferred financing costs in Interest expense and recognition of a net gain of $97 million in Interest income.

Previous wording

We account for income tax expense in accordance with ASC 740, which requires an estimate of the annual effective income tax rate for the full year to be applied to the respective interim period, taking into account year-to-date amounts and projected results for the full year. The effective tax rate for the three months ended June 30, 2025 was 20.0% compared with 21.2% for the three months ended June 30, 2024. The effective tax rate for the three months ended June 30, 2025 was lower than the effective tax rate for three months ended June 30, 2024 primarily due to a state tax benefit of$6 million related to the utilization of a capital loss, a tax benefit of $6 million from the conclusion of the UTC 2020 Internal Revenue Service ("IRS") tax audit, areduction in non-deductible interest expense and lower income tax costs associated with U.S. tax on international operations.

Current wording

We account for income tax expense in accordance with ASC 740, which requires an estimate of the annual effective income tax rate for the full year to be applied to the respective interim period, taking into account year-to-date amounts and projected results for the full year. The effective tax rate for the three months ended September 30, 2025, was a 0.2% benefit compared with 22.3% for the three months ended September 30, 2024. The effective tax rate for the three months ended September 30, 2025, was lower than the effective tax rate for the three months ended September 30, 2024, primarily due to a net tax benefit of$64 million from changes to the German effective rate and a statutory reduction to the German corporate tax rate enacted during the current period and a tax benefit of$49 million from the re-organization of a Japanese subsidiary.

Previous wording

For the three months ended June 30, 2025, Net sales were $882 million, a 2% decrease compared with the same period of 2024. The components of the year-over-year change were as follows:

Current wording

For the nine months ended September 30, 2025, Net sales were $16.9 billion, a 2% decrease compared with the same period of 2024. The components of the year-over-year change were as follows:

Previous wording

Organic sales for the six months ended June 30, 2025 increased by 4% compared with the same period of 2024. The organic increase was primarily due to our Climate Solutions Americas segment as strong end-market demand continued to drive higher volumes. In addition, results were flat in our Climate Solutions Transportation segment due to mixed end-market demand. These results were partially offset by lower end-market demand in both Climate Solutions Europe and Climate Solutions Asia Pacific, Middle East & Africa. Refer to "Segment Review" below for a discussion of Net salesby segment.

Current wording

Organic sales for the nine months ended September 30, 2025 increased by 1% compared with the same period of 2024. The organic increase was primarily due to our Climate Solutions Americas segment as ongoing demand in certain end-markets continued to drive higher volumes. In addition, improved end-market demand in our Climate Solutions Transportation segment further benefited results. These amounts were partially offset by lower end-market demand in both Climate Solutions Europe and Climate Solutions Asia Pacific, Middle East & Africa. Refer to "Segment Review" below for a discussion of Net salesby segment.

Previous wording

For the six months ended June 30, 2025, gross margin was $3.2 billion, a 9% increase compared with the same period of 2024. The components were as follows:

Current wording

For the nine months ended September 30, 2025, gross margin was $4.7 billion, a 1% increase compared with the same period of 2024. The components were as follows:

Previous wording

Gross margin increased by $194 million compared with the three months ended June 30, 2024. As a result, gross margin as a percentage of Net sales increased by 240 basis points compared with the same period of 2024. The prior period included inventory step-up and backlog amortization resulting from the recognition of acquired assets of the VCS Business at fair value which are now fully amortized. These costs had a 190 basis point unfavorable impact on the prior period gross margin as a percentage of Net sales. In addition, ongoing customer demand and our continued focus on productivity initiatives further benefited gross margin.

Current wording

Gross margin increased by $26 million compared with the nine months ended September 30, 2024 primarily due to higher volumes in certain end-markets and our continued focus on productivity initiatives. As a result, gross margin as a percentage of Net sales increased by 90 basis points compared with the same period of 2024. The prior period included inventory step-up and backlog amortization resulting from the recognition of acquired assets of the VCS Business at fair value which are now fully amortized. These costs had a 150 basis point unfavorable impact on the prior period gross margin as a percentage of Net sales.

Previous wording

For the six months ended June 30, 2025, operating expenses, including Equity method investment net earnings, were $1.7 billion, a 9% decrease compared with the same period of 2024. The components were as follows:

Current wording

For the nine months ended September 30, 2025, operating expenses, including Equity method investment net earnings, were $2.6 billion, a 6% decrease compared with the same period of 2024. The components were as follows:

Previous wording

For the six months ended June 30, 2025, Selling, general and administrative expenses were $1.5 billion, a 3% decrease compared with the same period of 2024. The decrease relates to productivity initiatives associated with our portfolio transformation and synergies associated with the integration of the VCS Business. These benefits were partially offset by higher foreign currency translation, compensation and other employee-related costs. In addition, the current period also included $20 million of acquisition and divestiture-related costs compared with $72 million during the six months ended June 30, 2024.

Current wording

For the nine months ended September 30, 2025, Selling, general and administrative expenses were $2.3 billion, a 2% decrease compared with the same period of 2024. The decrease relates to productivity initiatives associated with our portfolio transformation and synergies associated with the integration of the VCS Business. These benefits were partially offset by higher foreign currency translation, compensation and other employee-related costs. In addition, the current period also included $33 million of acquisition and divestiture-related costs compared with $87 million during the nine months ended September 30, 2024.

Previous wording

Investments over which we do not exercise control, but have significant influence, are accounted for using the equity method of accounting. For the six months ended June 30, 2025, Equity method investment net earnings were $122 million, a 1% increase compared with the same period of 2024. Equity method earnings increased within Climate Solutions America and Climate Solutions Europe and was partially offset by lower equity earnings in Climate Solutions Asia Pacific, Middle East & Africa.

Current wording

Investments over which we do not exercise control, but have significant influence, are accounted for using the equity method of accounting. For the nine months ended September 30, 2025, Equity method investment net earnings were $182 million, a 3% decrease compared with the same period of 2024. The decrease was primarily driven by lower earnings in joint ventures within Climate Solutions Americas.

Previous wording

Other income (expense), net primarily includes the impact of gains and losses related to the sale of businesses or interests in our equity method investments, foreign currency gains and losses on transactions that are denominated in a currency other than an entity's functional currency and hedging-related activities. During the six months ended June 30, 2025, we finalized the working capital and other adjustments provided in the stock purchase agreement governing the sale of CCR. In connection with the acquisition of the VCS Business, we recognized an $86 million loss during the six months ended June 30, 2024 on the mark-to-market valuation of our window forward contracts associated with the expected cash outflows of the Euro-denominated purchase price of the VCS Business. In addition, we recognized a $46 million gain associated with the TMA and UTC's conclusion of certain income tax matters from their 2017 and 2018 tax audit with the Internal Revenue Service ("IRS").

Current wording

Other income (expense), net primarily includes the impact of gains and losses related to the sale of businesses or interests in our equity method investments, foreign currency gains and losses on transactions that are denominated in a currency other than an entity's functional currency and hedging-related activities. During the nine months ended September 30, 2025, we finalized the working capital and other adjustments provided in the stock purchase agreement governing the sale of CCR. In connection with the acquisition of the VCS Business, we recognized an $86 million loss during the nine months ended September 30, 2024, on the mark-to-market valuation of our window forward contracts associated with the expected cash outflows of the Euro-denominated purchase price of the VCS Business. In addition, we recognized a $46 million gain associated with the TMA and UTC's conclusion of certain income tax matters from their 2017 and 2018 tax audit with the Internal Revenue Service ("IRS").

Previous wording

For the six months ended June 30, 2025, Non-operating income (expense), net was $172 million, a 42% decrease compared with the same period of 2024. The components were as follows:

Current wording

For the nine months ended September 30, 2025, Non-operating income (expense), net was $278 million, a 5% decrease compared with the same period of 2024. The components were as follows:

Previous wording

Non-operating income (expense), net includes the results from activities other than normal business operations such as interest expense, interest income and the non-service components of pension and post-retirement obligations. Interest expense is affected by the amount of debt outstanding and the interest rates on that debt. For the six months ended June 30, 2025, Interest expensewas $227 million, a 31% decrease compared with the same period of 2024. Consistent with our capital allocation strategy, we reduced our outstanding debt by approximately $3 billion over the course of 2024 and repaid an additional $1.2 billion during 2025.

Current wording

Non-operating income (expense), net includes the results from activities other than normal business operations such as interest expense, interest income and the non-service components of pension and post-retirement obligations. Interest expense is affected by the amount of debt outstanding and the interest rates on that debt. For the nine months ended September 30, 2025, Interest expensewas $343 million, a 26% decrease compared with the same period of 2024. Consistent with our capital allocation strategy, we reduced our outstanding debt by approximately $3 billion over the course of 2024 and repaid an additional $1.2 billion during 2025. During the nine months ended September 30, 2024, our debt repayments resulted in a make-whole premium of $8 million in Interest expense, an $11 million write off of unamortized deferred financing costs in Interest expense and recognition of a net gain of $97 million in Interest income.

Previous wording

We account for income tax expense in accordance with ASC 740, which requires an estimate of the annual effective income tax rate for the full year to be applied to the respective interim period, taking into account year-to-date amounts and projected results for the full year. The effective tax rate was 20.1% for thesix months ended June 30, 2025, compared with 20.6% for thesix months ended June 30, 2024. The year-over-year decrease was primarily driven by a$12 million tax benefit generated by the purchase of investment tax credits from a third-party, a state tax benefit of$6 million related to the utilization of a capital loss, a tax benefit of $6 million from the conclusion of the UTC 2020 IRS tax audit, a reduction in non-deductible interest expense and lower income tax costs associated with U.S. tax on international operations. These amounts were partially offset by the absence of a$21 million tax benefit associated with the TMA and UTC's conclusion of certain income tax matters from their 2017 and 2018 tax audit with the IRS recognized during the six months ended June 30, 2024.

Current wording

We account for income tax expense in accordance with ASC 740, which requires an estimate of the annual effective income tax rate for the full year to be applied to the respective interim period, taking into account year-to-date amounts and projected results for the full year. The effective tax rate was 15.2% for thenine months ended September 30, 2025, compared with 21.4% for thenine months ended September 30, 2024. The year-over-year decrease was primarily driven by a net tax benefit of$64 million from changes to the German effective rate and a statutory reduction to the German corporate tax rate enacted during the current period, a tax benefit of$49 million from the re-organization of a Japanese subsidiary and a$16 million tax benefit generated by the purchase of investment tax credits from a third-party. These amounts were partially offset by the absence of a$21 million tax benefit associated with the TMA and UTC's conclusion of certain income tax matters from their 2017 and 2018 tax audit with the IRS recognized during thenine months ended September 30, 2024.

Previous wording

For the three months ended June 30, 2025, Net sales were $1.3 billion, a 5% increase compared with the same period of 2024. The components of the year-over-year change were as follows:

Current wording

For the three months ended September 30, 2025, Net sales were $1.3 billion, a 4% increase compared with the same period of 2024. The components of the year-over-year change were as follows:

Previous wording

Organic Net sales were flat as a result of mixed results across geographies compared with the prior year. Results in our residential and light commercial business were down (down 1%) due to lower volumes across the region as economic conditions, inflationary cost pressures and regulatory uncertainty impacted end-market demand. These results were offset by continued growth in our commercial business (up 2%) as a result of ongoing end-market demand and pricing improvements.

Current wording

The organic decrease in Net salesof 3% was driven by volume reductions in each of the segment's businesses compared with the prior year. Results in our commercial business were down (down 4%) due to lower volumes across the region, partially offset by improved price. In addition, results in our residential and light commercial business were down (down 2%) due to lower volumes across the region as economic conditions, inflationary cost pressures and regulatory uncertainty impacted end-market demand.

Previous wording

For the three months ended June 30, 2025, Segment operating profit was $128 million, a 7% decrease compared with the same period of 2024. The components of the year-over-year change were as follows:

Current wording

For the three months ended September 30, 2025, Segment operating profit was $120 million, a 7% decrease compared with the same period of 2024. The components of the year-over-year change were as follows:

Previous wording

The segment operational profit increase of 2% was primarily attributable to ongoing customer demand in certain end-markets and favorable productivity initiatives. In addition, business integration synergies associated with the acquisition of the VCS Business further benefited the segment. These amounts were partially offset by volume reductions in certain end-markets, unfavorable product and geographical mix as well as higher selling, general and administrative costs.

Current wording

The segment operational profit decrease of 11% was primarily attributable to volume reductions in each of the segment's businesses compared with the prior year. In addition, unfavorable product and geographical mix further impacted the segment. These amounts were partially offset by integration synergies associated with the acquisition of the VCS Business and lower selling, general and administrative costs.

Previous wording

The organic decrease in Net salesof 5% was driven by volume reductions within certain end-markets compared with the prior year. Results in China decreased (down 11%) as residential end-markets experienced economic challenges impacting demand. These results were partially offset by growth within commercial end-markets in China and improved end-market demand in the remaining geographies in the region.

Current wording

The organic decrease in Net salesof 2% was driven by volume reductions within certain end-markets compared with the prior year. Results in China decreased (down 8%) as residential end-markets experienced economic challenges impacting both demand and price. These results were partially offset by growth within commercial end-markets in China. In addition, ongoing end-market demand and improved price in the region's remaining geographies further benefitted the segment.

Previous wording

The segment operational profit decrease of 18% was primarily attributable to volume reductions in certain end-markets compared with the prior year. In addition, the segment was impacted by lower earnings from equity method investments. These reductions were partially offset by favorable productivity initiatives and lower selling, general and administrative expenses.

Current wording

The segment operational profit decrease of 13% was primarily attributable to volume reductions in certain end-markets compared with the prior year. In addition, unfavorable price and product mix further impacted segment results. These reductions were partially offset by favorable productivity initiatives, lower selling, general and administrative expenses and higher earnings from equity method investments.

Previous wording

For the three months ended June 30, 2025, Net sales were $726 million, a 25% decrease compared to the same period of 2024. The components of the year-over-year change were as follows:

Current wording

For the three months ended September 30, 2025, Net sales were $745 million, a 20% decrease compared to the same period of 2024. The components of the year-over-year change were as follows:

Previous wording

Organic Net sales were flat as a result of mixed results within the segment compared with the prior year. Container results increased (up 12%) due to improved end-market demand and pricing improvements. These results were offset by our global truck and trailer business (down 4%) as lower end-market demand in Europe more than offset improved end-market demand in Asia and North America.

Current wording

The organic increase in Net sales of 6% was primarily driven by volume growth within certain end-markets compared with the prior year. Container results increased (up 50%) due to ongoing end-market demand and improved price. These results were partially offset by lower volume in our global truck and trailer business (down 4%) primarily due to reduced end-market demand.

Previous wording

The segment operational profit increase of 28% was primarily attributable to ongoing customer demand in certain end-markets compared with the prior year. In addition, favorable productivity initiatives, pricing improvements and higher earnings from equity method investments further benefited segment results. These benefits more than offset volume reductions in certain end-markets and higher selling, general and administrative expenses.

Current wording

The segment operational profit increase of 6% was primarily attributable to ongoing customer demand in certain end-markets compared with the prior year. In addition, favorable productivity initiatives, pricing improvements and product mix further benefited segment results. These benefits were partially offset by volume reductions in certain end-markets, lower earnings from equity method investments and higher selling, general and administrative expenses.

Previous wording

The organic decrease in Net salesof 4% was driven by ongoing challenges in certain end-markets compared with the prior year. Results in our residential and light commercial business decreased (down 6%) due to lower volumes across the region as economic conditions, inflationary cost pressures and regulatory uncertainty impacted end-market demand. These results were partially offset by continued growth in our commercial business (up 3%) as a result of strong end-market demand and pricing improvements.

Current wording

The organic decrease in Net salesof 3% was driven by ongoing challenges in certain end-markets compared with the prior year. Results in our residential and light commercial business decreased (down 5%) due to lower volumes across the region as economic conditions, inflationary cost pressures and regulatory uncertainty impacted end-market demand. These results were partially offset by growth in our commercial business (up 1%) as a result of end-market demand and improved price.

Previous wording

The segment operational profit decrease of 22% was primarily attributable to volume reductions in certain end-markets compared with the prior year. These amounts were partially offset by favorable material costs, business integration synergies associated with the acquisition of the VCS Business and lower selling, general and administrative expenses. In addition, ongoing end-market demand in certain markets further benefited the segment.

Current wording

The segment operational profit decrease of 18% was primarily attributable to volume reductions in certain end-markets compared with the prior year. In addition, unfavorable product mix and geographical mix further impacted the segment. These amounts were partially offset by favorable productivity initiatives and business integration synergies associated with the acquisition of the VCS Business.

Previous wording

The organic decrease in Net salesof 4% was driven by volume reductions within certain end-markets compared with the prior year. Results in China decreased (down 11%) as residential end-markets experienced economic challenges impacting demand. These results were partially offset by growth within commercial end-markets in China and improved end-market demand in the remaining geographies in the region.

Current wording

The organic decrease in Net salesof 4% was driven by volume reductions within certain end-markets compared with the prior year. Results in China decreased (down 10%) as residential end-markets experienced economic challenges impacting both demand and price. These results were partially offset by growth within commercial end-markets in China. In addition, ongoing end-market demand and improved price in the region's remaining geographies further benefited the segment.

Previous wording

For the six months ended June 30, 2025, Net sales were $1,377 million, a 26% decrease compared to the same period of 2024. The components of the year-over-year change were as follows:

Current wording

For the nine months ended September 30, 2025, Net sales were $2,122 million, a 24% decrease compared to the same period of 2024. The components of the year-over-year change were as follows:

Previous wording

The organic decrease in Net sales of 1% was primarily driven by volume reductions within certain end-markets compared with the prior year. Container results increased (up 6%) due to improved end-market demand and pricing improvements. These results were more than offset by our global truck and trailer business (down 4%) as lower end-market demand in Europe and Asia more than offset improved end-market demand in North America.

Current wording

The organic increase in Net sales of 2% was primarily driven by volume growth within certain end-markets compared with the prior year. Container results increased (up 25%) due to ongoing end-market demand and improved price. These results were partially offset by our global truck and trailer business (down 4%) as lower end-market demand in Asia and Europe more than offset flat results in North America.

Previous wording

The decrease in segment operational profit of 9% was primarily driven by volume reductions in certain end-markets. In addition, unfavorable mix and higher costs associated with warranty-related issues further impacted the segment. These amounts were partially offset by by higher volumes in certain end-markets, favorable productivity initiatives and lower selling, general and administrative expenses.

Current wording

The decrease in segment operational profit of 10% was primarily driven by volume reductions in certain end-markets. In addition, costs associated with warranty-related issues further impacted the segment. These amounts were partially offset by favorable productivity initiatives, lower selling, general and administrative costs and higher volumes in certain end-markets. However, the higher volumes led to an unfavorable mix in the segment.

Previous wording

As of June 30, 2025, we had cash and cash equivalents of $1.8 billion, of which approximately 82% was held by our foreign subsidiaries. We manage our worldwide cash requirements by reviewing available funds and the cost effectiveness with which we can access funds held by foreign subsidiaries. On occasion, we are required to maintain cash deposits in connection with contractual obligations related to acquisitions, divestitures or other legal obligations. As of June 30, 2025 and December 31, 2024, the amount of such restricted cash was approximately $3 million and $3 million, respectively.

Current wording

As of September 30, 2025, we had cash and cash equivalents of $1.4 billion, of which approximately 94% was held by our foreign subsidiaries. We manage our worldwide cash requirements by reviewing available funds and the cost effectiveness with which we can access funds held by foreign subsidiaries. On occasion, we are required to maintain cash deposits in connection with contractual obligations related to acquisitions, divestitures or other legal obligations. As of September 30, 2025 and December 31, 2024, the amount of such restricted cash was approximately $3 million and $3 million, respectively.

Previous wording

We maintain a $2.0 billion USD-denominated unsecured, unsubordinated commercial paper program which we can use for general corporate purposes, including the funding of working capital and potential acquisitions. In addition, we maintain a$2.5 billion revolving credit agreement with various banks (the "Revolving Credit Facility")that matures in December 2029 which supports our commercial paper borrowing program and can be used for general corporate purposes. A ratings-based commitment fee is charged on unused commitments. As of June 30, 2025, we had no borrowings outstanding under our commercial paper program or our Revolving Credit Facility.

Current wording

We maintain a $2.0 billion USD-denominated facility and a $500 million Euro-denominated facility as part of an unsecured, unsubordinated commercial paper program which we can use for general corporate purposes, including the funding of working capital and potential acquisitions. In addition, we maintain a$2.5 billion revolving credit agreement with various banks (the "Revolving Credit Facility")that matures in December 2029 which supports our commercial paper borrowing program and can be used for general corporate purposes. A ratings-based commitment fee is charged on unused commitments. As of September 30, 2025, we had $415 million and zero borrowings outstanding under our commercial paper program and our Revolving Credit Facility, respectively.

Previous wording

During the six months ended June 30, 2025, we repurchased 28.8 million shares of common stock for an aggregate purchase price of $1.9 billion, which included shares repurchased from Viessmann. As a result, we had approximately $1.3 billion remaining under the current authorization at June 30, 2025.

Current wording

During the nine months ended September 30, 2025, we repurchased 36.3 million shares of common stock for an aggregate purchase price of $2.4 billion, which included shares repurchased from Viessmann. As a result, we had approximately $811 million remaining under the current authorization at September 30, 2025. In October 2025, our Board of Directors approved a $5 billion increase to our existing share repurchase program.