CARRIER GLOBAL CORP, 10-K filed on 2/5/2026
Annual Report
v3.25.4
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2025
Jan. 30, 2026
Jun. 30, 2025
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-39220    
Entity Registrant Name CARRIER GLOBAL CORPORATION    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 83-4051582    
Entity Address, Address Line One 13995 Pasteur Boulevard    
Entity Address, City or Town Palm Beach Gardens    
Entity Address, State or Province FL    
Entity Address, Postal Zip Code 33418    
City Area Code (561)    
Local Phone Number 365-2000    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Emerging Growth Company false    
Entity Small Business false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction Flag false    
Entity Shell Company false    
Entity Public Float     $ 58.5
Entity Common Stock, Shares Outstanding   835,843,882  
Documents Incorporated by Reference
Part III hereof incorporates by reference portions of the Registrant's definitive proxy statement related to its 2026 annual meeting of shareowners.
    
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001783180    
Common Stock      
Document Information [Line Items]      
Title of each class Common Stock ($0.01 par value)    
Trading Symbol(s) CARR    
Name of each exchange on which registered NYSE    
4.125% Notes due 2028      
Document Information [Line Items]      
Title of each class 4.125% Notes due 2028    
Trading Symbol(s) CARR28    
Name of each exchange on which registered NYSE    
4.500% Notes due 2032      
Document Information [Line Items]      
Title of each class 4.500% Notes due 2032    
Trading Symbol(s) CARR32    
Name of each exchange on which registered NYSE    
3.625% Notes due 2037      
Document Information [Line Items]      
Title of each class 3.625% Notes due 2037    
Trading Symbol(s) CARR37    
Name of each exchange on which registered NYSE    
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Miami, Florida
Auditor Firm ID 238
v3.25.4
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Net sales      
Total Net sales $ 21,747 $ 22,486 $ 18,951
Costs and expenses      
Research and development (625) (686) (493)
Selling, general and administrative (3,092) (3,197) (2,607)
Total Costs and expenses (19,840) (20,388) (16,889)
Equity method investment net earnings 229 231 211
Other income (expense), net 36 317 (113)
Operating profit 2,172 2,646 2,160
Non-service pension benefit (expense) (10) (1) (1)
Interest (expense) income, net (364) (371) (160)
Earnings before income taxes 1,798 2,274 1,999
Income tax (expense) benefit (240) (1,062) (521)
Earnings from continuing operations 1,558 1,212 1,478
Discontinued operations, net of tax 29 4,496 (38)
Net earnings (loss) 1,587 5,708 1,440
Less: Non-controlling interest in subsidiaries' 103 104 91
Net earnings (loss) attributable to common shareowners 1,484 5,604 1,349
Amounts attributable to common shareowners:      
Continuing operations 1,455 1,108 1,387
Discontinued operations 29 4,496 (38)
Net earnings (loss) attributable to common shareowners $ 1,484 $ 5,604 $ 1,349
Basic:      
Continuing operations, Basic (in dollars per share) $ 1.71 $ 1.23 $ 1.66
Discontinued operations, Basic (in dollars per share) 0.03 5.01 (0.05)
Net earnings (loss), Basic (in dollars per share) 1.74 6.24 1.61
Diluted:      
Continuing operations, Diluted (in dollars per share) 1.69 1.22 1.63
Discontinued operations, Diluted (in dollars per share) 0.03 4.93 (0.05)
Net earnings (loss), Diluted (in dollars per share) $ 1.72 $ 6.15 $ 1.58
Weighted-average number of shares outstanding      
Basic (in shares) 852.4 898.2 837.3
Diluted (in shares) 862.4 911.7 853.0
Product      
Net sales      
Total Net sales $ 19,173 $ 19,990 $ 16,665
Costs and expenses      
Cost of goods sold (14,232) (14,580) (12,002)
Service      
Net sales      
Total Net sales 2,574 2,496 2,286
Costs and expenses      
Cost of goods sold $ (1,891) $ (1,925) $ (1,787)
v3.25.4
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net earnings (loss) $ 1,587 $ 5,708 $ 1,440
Foreign currency translation:      
Foreign currency translation adjustments arising during period 1,836 (1,173) 157
Divestitures 0 564 0
Foreign currency translation adjustments arising during period 1,836 (609) 157
Pension and post-retirement benefit plans:      
Net actuarial gain (loss) arising during period 12 (15) (17)
Amortization of actuarial (gain) loss and prior service credit 3 2 1
Divestitures 0 7 0
Pension and post-retirement benefit plans adjustments arising during period, before tax 15 (6) (16)
Tax (expense) benefit (1) (1) 0
Pension and post-retirement benefit plans adjustments arising during period 14 (7) (16)
Change in unrealized cash flow hedging:      
Unrealized cash flow hedging gain (loss) arising during period 0 0 58
Amortization of unrealized cash flow hedging gain (loss) (6) (6) 0
Unrealized cash flow hedging gain arising during period, after reclassification, before tax (6) (6) 58
Tax (expense) benefit 1 2 0
Change in unrealized cash flow hedging adjustments arising during period (5) (4) 58
Other comprehensive income (loss), net of tax 1,845 (620) 199
Comprehensive income (loss) 3,432 5,088 1,639
Less: Comprehensive income (loss) attributable to non-controlling interest (111) (104) (88)
Comprehensive income (loss) attributable to common shareowners $ 3,321 $ 4,984 $ 1,551
v3.25.4
CONSOLIDATED BALANCE SHEET - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Assets    
Cash and cash equivalents $ 1,555 $ 3,969
Accounts receivable, net 2,639 2,651
Inventories, net 2,483 2,299
Assets held for sale 592 0
Other assets, current 1,264 972
Total current assets 8,533 9,891
Future income tax benefits 1,074 1,131
Fixed assets, net 3,165 2,999
Operating lease right-of-use assets 546 554
Intangible assets, net 6,326 6,432
Goodwill 15,501 14,601
Pension and post-retirement assets 56 43
Equity method investments 1,321 1,194
Other assets 668 558
Total assets 37,190 37,403
Liabilities and Equity    
Accounts payable 2,702 2,458
Accrued liabilities 3,774 4,098
Liabilities held for sale 170 0
Short-term borrowings and current portion of long-term debt 468 1,336
Total current liabilities 7,114 7,892
Long-term debt 11,365 11,026
Future pension and post-retirement obligations 192 214
Future income tax obligations 1,833 2,015
Operating lease liabilities 418 432
Other long-term liabilities 2,140 1,429
Total Liabilities 23,062 23,008
Commitments and contingent liabilities (Note 23)
Equity    
Common stock, par value $0.01; 4,000,000,000 shares authorized; 950,633,287 and 948,068,772 shares issued; 836,141,122 and 878,337,677 outstanding as of December 31, 2025 and 2024, respectively 10 9
Treasury stock - 114,891,176 and 70,093,639 common shares, respectively (6,795) (3,915)
Additional paid-in capital 8,665 8,610
Retained earnings 12,193 11,483
Accumulated other comprehensive income (loss) (269) (2,106)
Non-controlling interest 324 314
Total Equity 14,128 14,395
Total Liabilities and Equity $ 37,190 $ 37,403
v3.25.4
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Equity    
Common stock, par or stated value per share (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 4,000,000,000 4,000,000,000
Common stock, shares, issued (in shares) 950,633,287 948,068,772
Common stock, shares, outstanding (in shares) 836,141,122 878,337,677
Treasury shares (in shares) 114,891,176 70,093,639
v3.25.4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($)
$ in Millions
Total
Viessmann Holdco
Accumulated Other Comprehensive Income (Loss)
Common Stock
Treasury Stock
Treasury Stock
Viessmann Holdco
Additional Paid-In Capital
Retained Earnings
Non-Controlling Interest
Balance as of beginning of period at Dec. 31, 2022 $ 8,076   $ (1,688) $ 9 $ (1,910)   $ 5,481 $ 5,866 $ 318
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net earnings (loss) 1,440             1,349 91
Other comprehensive income (loss), net of tax 199   202           (3)
Dividends declared on common stock (624)             (624)  
Shares issued under incentive plans, net (27)           (27)    
Stock-based compensation 81           81    
Acquisition (sale) of non-controlling interest, net (22)               (22)
Dividends attributable to non-controlling interest (56)               (56)
Treasury stock repurchase (62)       (62)        
Balance as of end of period at Dec. 31, 2023 9,005   (1,486) 9 (1,972)   5,535 6,591 328
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net earnings (loss) 5,708             5,604 104
Other comprehensive income (loss), net of tax (620)   (620)           0
Dividends declared on common stock (712)             (712)  
Shares issued under incentive plans, net (25)           (25)    
Stock-based compensation 100           100    
Acquisition of VCS Business 3,000           3,000    
Acquisition (sale) of non-controlling interest, net (36)               (36)
Dividends attributable to non-controlling interest (82)               (82)
Treasury stock repurchase (1,943)       (1,943)        
Balance as of end of period at Dec. 31, 2024 14,395   (2,106) 9 (3,915)   8,610 11,483 314
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net earnings (loss) 1,587             1,484 103
Other comprehensive income (loss), net of tax 1,845   1,837           8
Dividends declared on common stock (774)             (774)  
Shares issued under incentive plans, net (18)           (18)    
Stock-based compensation       1          
Stock-based compensation 74           73    
Dividends attributable to non-controlling interest (101)               (101)
Treasury stock repurchase (2,580)       (2,580)        
Share repurchase with Viessmann   $ (300)       $ (300)      
Balance as of end of period at Dec. 31, 2025 $ 14,128   $ (269) $ 10 $ (6,795)   $ 8,665 $ 12,193 $ 324
v3.25.4
CONSOLIDATED STATEMENT OF CHANGES EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Stockholders' Equity [Abstract]      
Common stock dividends, declared (in dollars per share) $ 0.675 $ 0.795 $ 0.745
v3.25.4
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Activities      
Net earnings (loss) $ 1,587 $ 5,708 $ 1,440
Discontinued operations, net of tax (29) (4,496) 38
Adjustments for non-cash items, net:      
Depreciation and amortization 1,274 1,232 491
Deferred income tax provision (401) (352) (243)
Stock-based compensation cost 74 86 71
Equity method investment net earnings (229) (231) (211)
(Gain) loss on extinguishment of debt 0 (82) 0
(Gain) loss on sale of investments / deconsolidation (32) (322) (19)
Changes in operating assets and liabilities      
Accounts receivable, net (98) (40) (161)
Inventories, net (81) 292 123
Accounts payable and accrued liabilities (219) 87 541
Distributions from equity method investments 201 46 129
Other operating activities, net 42 (357) 53
Net cash flows provided by (used in) continuing operating activities 2,089 1,571 2,252
Net cash flows provided by (used in) discontinued operating activities 424 (1,008) 355
Net cash flows provided by (used in) operating activities 2,513 563 2,607
Investing Activities      
Capital expenditures (392) (519) (439)
Investment in businesses, net of cash acquired (107) (10,890) (84)
Dispositions of businesses 27 634 54
Settlement of derivative contracts, net 105 (264) (50)
Other investing activities, net 24 14 15
Net cash flows provided by (used in) continuing investing activities (343) (11,025) (504)
Net cash flows provided by (used in) discontinued investing activities 36 9,000 (156)
Net cash flows provided by (used in) investing activities (307) (2,025) (660)
Financing Activities      
(Decrease) increase in short-term borrowings, net 275 50 (5)
Issuance of long-term debt 48 3,412 5,609
Repayment of long-term debt (1,212) (5,345) (111)
Repurchases of common stock (2,892) (1,944) (62)
Dividends paid on common stock (772) (670) (620)
Dividends paid to non-controlling interest (101) (84) (58)
Other financing activities, net (18) (30) (121)
Net cash flows provided by (used in) continuing financing activities (4,672) (4,611) 4,632
Net cash flows provided by (used in) discontinued financing activities 0 (25) (20)
Net cash flows provided by (used in) financing activities (4,672) (4,636) 4,612
Effect of foreign exchange rate changes on cash and cash equivalents 76 (103) 88
Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale (2,390) (6,201) 6,647
Less: Change in cash balances classified as assets held for sale 25 (320) 97
Net increase (decrease) in cash and cash equivalents and restricted cash (2,415) (5,881) 6,550
Cash, cash equivalents and restricted cash, beginning of period 3,972 9,853 3,303
Cash, cash equivalents and restricted cash, end of period 1,557 3,972 9,853
Less: restricted cash 2 3 1
Cash and cash equivalents, end of period $ 1,555 $ 3,969 $ 9,852
v3.25.4
BASIS OF PRESENTATION
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
BASIS OF PRESENTATION BASIS OF PRESENTATION
The accompanying Consolidated Financial Statements reflect the consolidated operations of the Company and have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") as defined by the Financial Accounting Standards Board ("FASB") within the FASB Accounting Standards Codification ("ASC"). Inter-company accounts and transactions have been eliminated. Related party transactions between the Company and its equity method investees have not been eliminated.

The accompanying Consolidated Financial Statements include all majority-owned subsidiaries of the Company. A non-controlling interest in a subsidiary is considered an ownership interest in a majority-owned subsidiary that is not attributable to the parent. The Company includes Non-controlling interest as a component of Total equity in the accompanying Consolidated Balance Sheet and the Non-controlling interest in subsidiaries' earnings from operations are presented as an adjustment to Earnings before income taxes used to arrive at Net earnings (loss) attributable to common shareowners in the accompanying Consolidated Statement of Operations. Partially-owned equity affiliates represent 20 to 50% ownership interests in investments where the Company demonstrates significant influence, but does not have a controlling financial interest. Partially-owned equity affiliates are accounted for under the equity method.

Sale of Riello Business

On December 16, 2025, the Company entered into a stock purchase agreement to sell its Riello business ("Riello") to Ariston Group with expected gross proceeds of approximately $430 million. Riello, predominantly reported in the Company's Climate Solutions Europe segment, is a leading international manufacturer that designs, produces and integrates a comprehensive portfolio of thermal solutions including burners, boilers, heat pumps, cooling systems and aftermarket services for residential, commercial and industrial applications, with a strong focus on energy efficiency, innovation and a global distribution network. As a result, the assets and liabilities of Riello are presented as held for sale in the accompanying Consolidated Balance Sheet as of December 31, 2025 and recorded at the lower of their carrying value or fair value less estimated cost to sell. See Note 20 - Divestitures for additional information.

Portfolio Transformation

On April 25, 2023, the Company announced that it entered into a Share Purchase Agreement (the “Agreement”) to acquire the climate solutions business (the "VCS Business") of Viessmann Group GmbH & Co. KG (“Viessmann”), a privately-held company. The acquisition was completed on January 2, 2024. As a result, the assets, liabilities and results of operations of the VCS Business are consolidated in the accompanying Consolidated Financial Statements as of the date of acquisition and reported primarily within the Company’s Climate Solutions Europe segment. See Note 19 - Acquisitions for additional information.
During 2024, the Company divested its Commercial and Residential Fire ("CRF Business"), Access Solutions ("Access Solutions") and Industrial Fire ("Industrial Fire") businesses which were historically reported in its Fire & Security segment. The transactions represented a single disposal plan to separately divest multiple businesses over different reporting periods and met the criteria to be presented as discontinued operations in the accompanying Consolidated Statement of Operations and Consolidated Statement of Cash Flows. In addition, the Company also divested its Commercial Refrigeration business (“CCR”). CCR, which was historically reported in the Climate Solutions Transportation segment (previously named Refrigeration), did not meet the criteria to be presented as discontinued operations. See Note 20 - Divestitures for additional information.

Segment Reorganization

As a result of the Company's portfolio transformation, the Company revised its reportable segments during 2025 to better align the reporting structure with the Company's business strategy, resource allocation and performance assessment. Under the revised segment structure, the Company has three new regional heating, ventilating and air conditioning ("HVAC") operating segments. Combined with the Climate Solutions Transportation operating segment, the four operating segments also serve as the Company's reportable segments. This model is designed to create a simplified, more focused and customer-centric organization across the globe. Each segment reports through separate management teams which regularly review their operating results with the Company's Chief Operating Decision Maker (the "CODM") determined in accordance with applicable accounting guidance. In connection with the revised structure, the CODM changed the measure used to evaluate segment profitability from Operating profit to Segment operating profit. All prior period comparative information has been recast to reflect the revised segment structure. See Note 21 - Segment Financial Data for additional information.

Deconsolidation of Kidde-Fenwal, Inc.

On May 14, 2023, Kidde-Fenwal, Inc. ("KFI"), an indirect wholly-owned subsidiary of the Company, filed a petition for voluntary reorganization under Chapter 11 of the United States Bankruptcy Code ("Chapter 11") in the United States Bankruptcy Court for the District of Delaware. KFI, an industrial fire detection and suppression business historically reported in the Company's Fire & Security segment, filed a voluntary petition with the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) seeking relief under chapter 11 of the Bankruptcy Code. As of the petition date, KFI was deconsolidated and its respective assets and liabilities were derecognized from the Company's Consolidated Financial Statements.

Separation from United Technologies
On April 3, 2020 (the "Distribution Date"), United Technologies Corporation ("UTC"), since renamed RTX Corporation ("Raytheon Technologies Corporation" or "RTX"), completed the spin-off of Carrier into an independent, publicly traded company (the "Separation") through a pro rata distribution (the "Distribution") on a one-for-one basis of all of the outstanding shares of common stock of Carrier to UTC shareowners who held shares of UTC common stock as of the close of business on March 19, 2020, the record date for the Distribution. In addition, the Company entered into several agreements with UTC and Otis Worldwide Corporation ("Otis") that govern various aspects of the relationship among the Company, UTC and Otis. As of December 31, 2025, only certain portions of the Tax Matters Agreement ("TMA") remain in effect.
v3.25.4
DESCRIPTION OF THE BUSINESS
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
DESCRIPTION OF THE BUSINESS DESCRIPTION OF THE BUSINESS
Carrier Global Corporation (the "Company") is a global leader in intelligent climate and energy solutions with a focus on providing differentiated, digitally-enabled lifecycle solutions to its customers. The Company's portfolio includes industry-leading brands such as Carrier, Viessmann, Toshiba, Automated Logic and Carrier Transicold, among others, that offer innovative heating, cooling and cold chain solutions to enhance the lives we live and the world we share. The Company also provides a broad array of related building services, including audit, design, installation, system integration, repair, maintenance and monitoring. The Company's operations are classified into four segments: Climate Solutions Americas, Climate Solutions Europe, Climate Solutions Asia Pacific, Middle East & Africa and Climate Solutions Transportation.
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A summary of significant accounting policies used in the preparation of the accompanying Consolidated Financial Statements is as follows:

Use of Estimates. The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Estimates are based on several factors including the facts and circumstances available at the time the estimates are made, historical experience and various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.
Currency Translation. Assets and liabilities of non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, have been translated at year-end exchange rates, and income and expense accounts have been translated using average exchange rates throughout the year. Adjustments resulting from the process of translating an entity’s financial statements into the U.S. dollar have been recorded in the equity section of the Consolidated Balance Sheet within Accumulated other comprehensive income (loss). Transactions that are denominated in a currency other than an entity’s functional currency are subject to changes in exchange rates with the resulting gains and losses recorded in Net earnings (loss).

Cash and Cash Equivalents. Cash and cash equivalents include cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less. On occasion, the Company is required to maintain restricted cash deposits with certain banks due to contractual or other legal obligations. Restricted cash of $2 million and $3 million is included in Other assets, current as of December 31, 2025 and 2024, respectively.

Accounts Receivable. Accounts receivable consist of billed amounts owed for products shipped to or services performed for customers. Amounts are recorded net of an allowance for expected credit losses which represents the best estimate of probable loss inherent in the Company's accounts receivable portfolio. The allowance is determined using a combination of factors including a reserve based on the aging of the outstanding accounts receivable portfolio and the Company's historical credit loss experience with its end markets, customer base and products. In addition, the Company considers knowledge of specific customers, current market conditions as well as reasonable and supportable forecasts of future events and economic conditions. As of December 31, 2025 and 2024, the allowance for expected credit losses was $81 million and $97 million, respectively. These estimates and assumptions are reviewed periodically with the effects of changes, if any, reflected in the Consolidated Statement of Operations in the period that they are determined.

Fixed Assets. Property, plant and equipment are stated at cost less accumulated depreciation. Assets placed in service are recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset. Assets acquired in a business combination are recorded at fair value at the date of acquisition. Major expenditures for replacements and significant improvements that increase asset values and extend useful lives are capitalized. Repairs and maintenance expenditures that do not extend the useful life of an asset are charged to expense as incurred.

Per ASC 360, Property, Plant and Equipment ("ASC 360"), the Company assesses the recoverability of the carrying value of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying value of an asset group may not be recoverable. Recoverability is measured by a comparison of the carrying value of an asset group to the future net undiscounted cash flows expected to be generated by the asset group. If the undiscounted cash flows are less than the carrying value of the asset group, an impairment loss is recognized for the amount by which the carrying value of the asset group exceeds the fair value of the asset group.

Equity Method Investments. Investments in which the Company has the ability to exercise significant influence, but does not control, are accounted for under the equity method of accounting and are presented on the Consolidated Balance Sheet. Under this method of accounting, the Company’s share of the net earnings or losses of the investee is presented within Operating profit on the Consolidated Statement of Operations since the activities of the investee are closely aligned with the operations of the Company. The Company evaluates its equity method investments whenever events or changes in circumstance indicate that the carrying values of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. Distributions received from equity method investees are presented in the Consolidated Statement of Cash Flows based on the cumulative earnings approach.

Goodwill and Intangible Assets. The Company records goodwill as the excess of the purchase price over the fair value of the net assets acquired in a business combination. In accordance with ASC 350, Intangibles - Goodwill and Other ("ASC 350"), goodwill is tested and reviewed annually for impairment on July 1 or whenever there is a material change in events or circumstances that indicates that the fair value of the reporting unit may be less than its carrying value.
Impairment of goodwill is assessed at the reporting unit level and begins with a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether it is necessary to perform the goodwill impairment test under ASC 350. For those reporting units that bypass or fail the qualitative assessment, the test compares the carrying value of the reporting unit to its estimated fair value. Fair value of a reporting unit is estimated using a discounted cash flow method under the income approach. The approach relies on estimates of future cash flows, revenue growth rates, earnings before interest and income taxes margins, discount rates, and terminal growth rates and explicitly addressed factors such as timing, growth and margins with due consideration given to forecasting, market and geographic risk. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired. To the extent that the carrying value of the reporting unit exceeds its estimated fair value, an impairment loss will be recognized for the amount by which the reporting unit's carrying value exceeds its fair value, not to exceed the carrying value of goodwill in that reporting unit.

Intangible assets such as patents, service contracts, monitoring lines and customer relationships with finite useful lives are amortized based on the pattern in which the economic benefits of the intangible assets are consumed. If a pattern of economic benefit cannot be reliably determined or if straight-line amortization approximates the pattern of economic benefit, a straight-line amortization may be used.

The range of useful lives approximate the following (in years):

Customer relationships
1 to 30
Patents and trademarks
5 to 40
Technology and other
1 to 50

The Company assesses the recoverability of the carrying value of its intangible assets with finite useful lives whenever events or changes in circumstances indicate that the carrying value of the asset group may not be recoverable. Recoverability is measured by a comparison of the carrying value of an asset group to the future net undiscounted cash flows expected to be generated by the asset group. If the undiscounted cash flows are less than the carrying value of the asset group, an impairment loss is recognized for the amount by which the carrying value of the asset group exceeds the fair value of the asset group.

Leases. The Company accounts for leases in accordance with ASC 842, Leases ("ASC 842"), which requires a lessee to record a right-of-use ("ROU") asset and a lease liability on the Consolidated Balance Sheet for all leases with terms longer than 12 months. ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company generally uses its incremental borrowing rate, which is based on information available at the lease commencement date, to determine the present value of lease payments except when an implicit interest rate is readily determinable. The lease term may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company has elected not to recognize ROU assets and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less.

Income Taxes. The Company accounts for income taxes in accordance with ASC 740, Income Taxes ("ASC 740"). Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. The Company recognizes future tax benefits to the extent that realizing these benefits is considered in its judgment to be more likely than not. For those jurisdictions where the expiration date of tax carryforwards or the projected operating results indicate that realization is not likely, a valuation allowance is provided. The Company reviews the realizability of its deferred tax asset valuation allowances on a quarterly basis, or whenever events or changes in circumstances indicate that a review is required and will adjust its estimate if significant events so dictate. To the extent that the ultimate results differ from the Company's original or adjusted estimates, the effect will be recorded in the provision for income taxes in the period that the matter is finally resolved.

In the ordinary course of business, there is inherent uncertainty in quantifying the Company's income tax positions. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the Consolidated Financial Statements.
Pension and Post-retirement Obligations. The Company provides a range of benefit plans to eligible current and former employees. The Company accounts for its benefit plans in accordance with ASC 715, Compensation - Retirement Benefits ("ASC 715") which requires balance sheet recognition of the overfunded or underfunded status of pension and post-retirement benefit plans. Determining the amounts associated with these benefits are performed by actuaries and dependent on various actuarial assumptions including discount rates, expected return on plan assets, compensation increases, mortality and health care cost trends. Actual results may differ from the actuarial assumptions and are generally recorded in Accumulated other comprehensive income (loss) and amortized into Net earnings (loss) over future periods. The Company reviews its actuarial assumptions at each measurement date and makes modifications to the assumptions based on current rates and trends, if appropriate. See Note 10 – Employee Benefit Plans for additional information.

Business Combinations. In accordance with ASC 805, Business Combinations ("ASC 805"), acquisitions that meet the definition of a business are recorded using the acquisition method of accounting. The Company recognizes and measures identifiable assets acquired, liabilities assumed and any non-controlling interest as of the acquisition date at fair value. The valuation of intangible assets is determined by an income approach methodology, using assumptions such as projected future revenues, customer attrition rates, royalty rates, tax rates and discount rates. The excess, if any, of total consideration transferred in a business combination over the fair value of identifiable assets acquired, liabilities assumed and any non-controlling interest is recognized as goodwill. Costs incurred as a result of a business combination other than costs related to the issuance of debt or equity securities are recorded in the period the costs are incurred.

Asset Retirement Obligations. The Company records the fair value of legal obligations associated with the retirement of tangible long-lived assets in the period in which a liability is determined to exist, if a reasonable estimate of fair value can be made. Upon initial recognition of a liability, the Company capitalizes the cost of the asset retirement obligation by increasing the carrying value of the related long-lived asset. Over time, the liability is increased for changes in its present value and the capitalized cost is depreciated over the useful life of the related asset.

Research and Development. The Company conducts research and development activities with a focus on new product development and technology innovation. These costs are charged to expense as incurred. For the years ended December 31, 2025, 2024 and 2023, these costs amounted to $625 million, $686 million and $493 million, respectively.

Recent Pronouncements

The FASB ASC is the sole source of authoritative GAAP other than United States Securities and Exchange Commission ("SEC') issued rules and regulations that apply only to SEC registrants. The FASB issues Accounting Standards Updates ("ASU") to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. ASUs not referenced below were assessed and determined to be either not applicable or are not expected to have a material impact on the Consolidated Financial Statements.

Recently Issued and Adopted Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which requires public entities to disclose disaggregated information about their effective tax rate reconciliation as well as information on income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 prospectively for the period ending December 31, 2025.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE) ("ASU 2024-03"), which requires public entities to disclose disaggregated information about expenses by nature on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently assessing the impact of this ASU on its financial statements.
v3.25.4
INVENTORIES, NET
 12 Months Ended
Dec. 31, 2025
Inventory Disclosure [Abstract]  
INVENTORIES, NET INVENTORIES, NET
Inventories are stated at the lower of cost or estimated net realizable value. Cost is primarily determined based on the first-in, first-out inventory method ("FIFO") or average cost methods, which approximates current replacement cost. However, certain Carrier entities use the last-in, first-out inventory method ("LIFO").
Inventories, net consisted of the following:

(In millions)20252024
Raw materials$666 $625 
Work-in-process245 213 
Finished goods1,572 1,461 
Inventories, net$2,483 $2,299 

The Company performs periodic assessments utilizing customer demand, production requirements and historical usage rates to determine the existence of excess and obsolete inventory and records necessary provisions to reduce such inventories to the lower of cost or estimated net realizable value. Raw materials, work-in-process and finished goods are net of valuation reserves of $337 million and $215 million as of December 31, 2025 and 2024, respectively.

Certain entities use LIFO to determine the cost of inventory. If inventories that were valued using the LIFO method had been valued under the FIFO method, the net book value of the inventories would have been higher by $289 million and $238 million as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, approximately 36% and 39%, respectively, of all inventory utilized the LIFO method.
v3.25.4
FIXED ASSETS, NET
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
FIXED ASSETS, NET FIXED ASSETS, NET
Fixed assets, net consisted of the following:

(In millions)Estimated Useful Lives (Years)20252024
Land$165 $169 
Buildings and improvements
20 to 40
1,535 1,325 
Machinery, tools and equipment
3 to 25
3,344 2,947 
Rental assets
3 to 12
351 355 
Other, including assets under construction613 715 
Fixed assets, gross6,008 5,511 
Accumulated depreciation(2,843)(2,512)
Fixed assets, net$3,165 $2,999 

Depreciation expense was $383 million, $385 million and $270 million for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
GOODWILL AND INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
The Company records goodwill as the excess of the purchase price over the fair value of the net assets acquired in a business combination. Goodwill is tested and reviewed annually for impairment on July 1 or whenever there is a material change in events or circumstances that indicates that the fair value of the reporting unit may be less than its carrying value.
The changes in the carrying value of goodwill were as follows:

(In millions)Climate Solutions AmericasClimate Solutions EuropeClimate Solutions Asia Pacific, Middle East & AfricaClimate Solutions TransportationTotal
Balance at December 31, 2023$4,543 $703 $1,237 $1,037 $7,520 
Goodwill resulting from business combinations (1)
526 6,861 235 33 7,655 
Foreign currency translation(10)(529)(92)57 (574)
Balance at December 31, 2024$5,059 $7,035 $1,380 $1,127 $14,601 
Goodwill resulting from business combinations (1)
12 3 6 44 65 
Reclassified to held for sale (2)
— (175)— — (175)
Foreign currency translation4 945 24 37 1,010 
Balance as of December 31, 2025$5,075 $7,808 $1,410 $1,208 $15,501 
(1) See Note 19 - Acquisitions for additional information.
(2) See Note 20 - Divestitures for additional information.

Identifiable intangible assets consisted of the following:

20252024
(In millions)Gross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet Amount
Customer relationships$6,143 $(1,573)$4,570 $5,607 $(939)$4,668 
Patents and trademarks945 (191)754 885 (147)738 
Technology and other1,692 (690)1,002 1,530 (504)1,026 
Total intangible assets$8,780 $(2,454)$6,326 $8,022 $(1,590)$6,432 

Amortization of intangible assets was $884 million, $843 million and $221 million for the years ended December 31, 2025, 2024 and 2023, respectively.

The estimated future amortization of intangible assets is as follows:

(In millions)20262027202820292030Thereafter
Future amortization$868 $818 $742 $655 $599 $2,644 

Impairment Test

In connection with its revised segment structure, the Company performed a quantitative goodwill impairment test on its reporting units prior to the reorganization to determine if any impairment existed. The tests did not indicate any goodwill impairment. The Company then reassigned goodwill among its new reporting units using a relative fair value approach. Based on these analyses, the Climate Solutions Europe reporting unit had a fair value of 10% above its carrying value. This constitutes the entire Climate Solutions Europe segment. All other reporting units had fair values substantially in excess of their carrying values.

The Company tested its goodwill for impairment on July 1 as part of its annual assessment. For each test, except the Climate Solutions Europe reporting unit, the Company qualitatively assessed all relevant events or circumstances that could impact the estimate of fair value and determined the fair value of each reporting unit substantially exceeded their carrying value. For the remaining test, the Company's Climate Solutions Europe reporting unit, the Company performed a quantitative goodwill impairment test to determine if any impairment existed. Upon completion of the test, the reporting unit had a fair value of approximately 14% above its carrying value. Key assumptions used in estimating future cash flows included the revenue growth rate, earnings before interest and income taxes margin, discount rate, and terminal growth rate, among others. As a result, the test did not indicate any goodwill impairment.
v3.25.4
BORROWINGS AND LINES OF CREDIT
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
BORROWINGS AND LINES OF CREDIT BORROWINGS AND LINES OF CREDIT
Short-term borrowings and current portion of long-term debt consisted of the following:

(In millions)20252024
Commercial paper$325 $— 
Short-term borrowings35 84 
Current portion of long-term debt108 1,252 
Short-term borrowings and current portion of long-term debt$468 $1,336 

Commercial Paper Program

The Company has a $2.0 billion USD-denominated facility and a $500 million Euro-denominated facility as part of an unsecured, unsubordinated commercial paper program, which can be used for general corporate purposes, including the funding of working capital and potential acquisitions. As of December 31, 2025, the Company had $325 million outstanding under its USD-denominated commercial paper facility, with a weighted average rate of 3.98%.

Long-term debt consisted of the following:

(In millions)20252024
2.242% Notes due 2025 (1)
$— $1,200 
2.493% Notes due 2027
900 900 
4.125% Notes due 2028
883 783 
2.722% Notes due 2030
2,000 2,000 
2.700% Notes due 2031
750 750 
4.500% Notes due 2032
1,001 887 
5.900% Notes due 2034
875 875 
3.625% Notes due 2037
883 783 
3.377% Notes due 2040
1,500 1,500 
3.577% Notes due 2050
1,400 1,400 
6.200% Notes due 2054
650 650 
Total long-term notes10,842 11,728 
Japanese Term Loan Facility345 342 
Other debt (including project financing obligations and finance leases)364 296 
Discounts and debt issuance costs(78)(88)
Total long-term debt11,473 12,278 
Less: current portion of long-term debt108 1,252 
Long-term debt, net of current portion$11,365 $11,026 
(1) 2.242% Notes due February 15, 2025; repaid during February 2025.

Revolving Credit Facility

On December 20, 2024, the Company entered into a revolving credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders, permitting aggregate borrowings of up to $2.5 billion pursuant to an unsecured, unsubordinated revolving credit facility that matures in December 2029 (the "Revolving Credit Facility"). The Revolving Credit Facility supports the Company's commercial paper program and can be used for other general corporate purposes. Borrowings are available in U.S. Dollars and Euros. U.S. Dollar borrowings can bear interest at either a Term SOFR Rate plus 0.10% and a ratings-based margin or, alternatively, at an alternate base rate plus a ratings-based margin. Euro borrowings bear interest at an adjusted EURIBOR rate plus a ratings-based margin. A ratings-based commitment fee is charged on unused commitments. In addition, the Company capitalized $11 million of deferred financing costs which are being amortized over the term of the facility. As of December 31, 2025, there were no borrowings outstanding under the Revolving Credit Facility.
Project Financing Arrangements

The Company is involved in long-term construction contracts in which it arranges project financing with certain customers. As a result, the Company issued $34 million and $53 million of debt during the year ended December 31, 2025 and 2024, respectively. Long-term debt repayments associated with these financing arrangements for the years ended December 31, 2025 and 2024, were zero and $14 million, respectively.

Debt Covenants

The Revolving Credit Facility, the indenture for the long-term notes and the Japanese Term Loan Facility contain affirmative and negative covenants customary for financings of these types, which, among other things, limit the Company's ability to incur additional liens, to make certain fundamental changes and to enter into sale and leaseback transactions. As of December 31, 2025, the Company was in compliance with the covenants under the agreements governing its outstanding indebtedness.

Tender Offers

In July 2024, the Company commenced tender offers to purchase up to $800 million ("Aggregate Tender Cap") aggregate purchase price of certain tranches of the Company's notes. The tender offers included payment of applicable accrued and unpaid interest up to the settlement date, along with a fixed spread for early repayment. Based on several factors, the Company elected to increase the Aggregate Tender Cap and settle the tender offers early. The aggregate principal amount tendered and accepted was approximately $1.1 billion, which included $125 million of notes due 2034, $350 million of notes due 2054 and approximately $600 million of notes due 2050. Upon settlement, the Company recognized a net gain of $97 million and wrote off $11 million of unamortized deferred financing costs within Interest (expense) income, net on the accompanying Consolidated Statement of Operations.

Schedule of Long-term Debt Maturities

Scheduled maturities of long-term debt, excluding amortization of discount, are as follows:

(In millions)
2026$108 
2027$1,309 
2028$903 
2029$43 
2030$2,019 
Thereafter$7,169 
As of December 31, 2025, the average maturity of the Company's long-term notes is approximately 10 years and the weighted-average interest rate on its total borrowings is approximately 3.7%. Interest expense associated with long-term debt for the years ended December 31, 2025, 2024 and 2023 was $458 million, $580 million and $306 million, respectively.
v3.25.4
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
ASC 820, Fair Value Measurement ("ASC 820"), defines fair value as the price that would be received if an asset is sold or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-level fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability as follows:

•Level 1: Observable inputs such as quoted prices in active markets;
•Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
•Level 3: Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions.

ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.
In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors, including foreign currency and commodity price risk. These exposures are managed through operational strategies and the use of undesignated hedging contracts. The Company's derivative assets and liabilities are measured at fair value on a recurring basis using internal models based on observable market inputs, such as forward, interest, contract and discount rates with changes in fair value reported in Other income (expense), net in the accompanying Consolidated Statement of Operations.

The Company enters into external cross currency swaps in order to manage foreign currency translation risk on assets denominated in a functional currency other than the U.S. Dollar. The swaps have an aggregate notional amount of $3.1 billion and are measured at fair value on a recurring basis using observable market inputs, such as forward, discount and interest rates. The Company designates the cross currency swaps as a partial hedge of its investment in certain subsidiaries whose functional currency is not the U.S. Dollar. As a result, changes in the fair value of the swaps are recorded in Equity in the accompanying Consolidated Balance Sheet.

During 2023, the Company entered into several interest rate swap contracts to mitigate interest rate exposure on the forecasted issuance of long-term debt. The contracts had an aggregate notional amount of $1.5 billion and were designated as cash flow hedges with changes in fair value reported in Equity in the accompanying Consolidated Balance Sheet. Fair value was measured on a recurring basis using observable market inputs, such as forward, discount and interest rates. In November 2023, the contracts were settled upon the issuance of the underlying debt. As a result, the Company deferred a net unrecognized gain of $58 million in Equity which will be subsequently recognized in Interest expense over the term of the related notes which range from 2034 to 2044. The amount expected to be amortized during 2026 is a net gain of $4 million.

In connection with the acquisition of the VCS Business, the Company entered into window forward contracts with Bank of America N.A. and JPMorgan Chase Bank N.A. to mitigate the foreign currency risk of the expected cash outflows associated with the Euro-denominated purchase price. The instruments have an aggregate notional amount of €7 billion and are measured at fair value on a recurring basis using observable market inputs, such as forward, discount and interest rates with changes in fair value reported in Other income (expense), net in the accompanying Consolidated Statement of Operations. During the year ended December 31, 2023, the Company recognized a $96 million loss on the mark-to-market valuation of its window forward contracts. The Company settled the window forward contracts on January 2, 2024, upon the acquisition of the VCS Business and recognized an additional $86 million loss.

The following tables provide the valuation hierarchy classification of assets and liabilities that are recorded at fair value and measured on a recurring basis in the accompanying Consolidated Balance Sheet:

(In millions)TotalLevel 1Level 2Level 3
December 31, 2025
Fair value measurement:
Derivative assets (1)
$129 $— $129 $— 
Derivative liabilities (2)
$(166)$— $(166)$— 
December 31, 2024
Fair value measurement:
Derivative assets (1)
$82 $— $82 $— 
Derivative liabilities (2)
$(41)$— $(41)$— 
(1) Included in Other assets, current and Other assets on the accompanying Consolidated Balance Sheet.
(2) Included in Accrued liabilities and Other long-term liabilities on the accompanying Consolidated Balance Sheet.

The following table provides the carrying values and fair values of the Company's long-term notes that are not recorded at fair value in the accompanying Consolidated Balance Sheet:

20252024
(In millions)Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Total long-term notes (1)
$10,842 $10,167 $11,728 $10,798 
(1) Excludes debt discount and issuance costs.
The fair value of the Company's long-term debt is measured based on observable market inputs which are considered Level 1 within the fair value hierarchy. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings approximate fair value due to the short-term nature of these accounts and would be classified as Level 1 in the fair value hierarchy. The Company's financing leases and project financing obligations, included in Long-term debt and Current portion of long-term debt on the accompanying Consolidated Balance Sheet, approximate fair value and are classified as Level 3 in the fair value hierarchy.
v3.25.4
LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
LEASES LEASES
The Company enters into operating and finance leases for the use of real estate, vehicles, information technology equipment and certain other equipment. At contract inception, the Company determines a lease exists if the arrangement conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all of the economic benefits from the use of an identified asset as well as the right to direct the use of that asset. If a contract is considered to be a lease, the Company recognizes a lease liability based on the present value of the future lease payments with an offsetting entry to recognize a right-of-use asset.

Operating lease right-of-use assets and liabilities are reflected on the Consolidated Balance Sheet as follows:

(In millions)20252024
Operating lease right-of-use assets$546 $554 
Accrued liabilities$(142)$(135)
Operating lease liabilities(418)(432)
Total operating lease liabilities$(560)$(567)
Weighted-Average Remaining Lease Term (in years)6.46.8
Weighted-Average Discount Rate4.6 %4.5 %

Where applicable, the Company accounts for each separate lease component of a contract and its associated non-lease component as a single lease component.

Supplemental cash flow and lease expense information related to operating leases were as follows:

(In millions)202520242023
Operating cash flows for measurement of operating lease liabilities$179 $173 $135 
Operating lease ROU assets obtained in exchange for operating lease obligations$100 $112 $50 
Operating lease expense$184 $175 $127 

Operating lease expense is recognized on a straight-line basis over the lease term. In addition, the Company has certain leases that contain variable lease payments which are based on an index, a rate referenced in the lease or on the actual usage of the leased asset. These payments are not included in the right-of-use asset or lease liability and are expensed as incurred as variable lease expense.
Undiscounted maturities of operating lease liabilities as of December 31, 2025, are as follows:

(In millions)
2026$163 
2027124 
202895 
202970 
203050 
Thereafter147 
Total undiscounted lease payments649 
Less: imputed interest(89)
Total discounted lease payments$560 
LEASES LEASES
The Company enters into operating and finance leases for the use of real estate, vehicles, information technology equipment and certain other equipment. At contract inception, the Company determines a lease exists if the arrangement conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all of the economic benefits from the use of an identified asset as well as the right to direct the use of that asset. If a contract is considered to be a lease, the Company recognizes a lease liability based on the present value of the future lease payments with an offsetting entry to recognize a right-of-use asset.

Operating lease right-of-use assets and liabilities are reflected on the Consolidated Balance Sheet as follows:

(In millions)20252024
Operating lease right-of-use assets$546 $554 
Accrued liabilities$(142)$(135)
Operating lease liabilities(418)(432)
Total operating lease liabilities$(560)$(567)
Weighted-Average Remaining Lease Term (in years)6.46.8
Weighted-Average Discount Rate4.6 %4.5 %

Where applicable, the Company accounts for each separate lease component of a contract and its associated non-lease component as a single lease component.

Supplemental cash flow and lease expense information related to operating leases were as follows:

(In millions)202520242023
Operating cash flows for measurement of operating lease liabilities$179 $173 $135 
Operating lease ROU assets obtained in exchange for operating lease obligations$100 $112 $50 
Operating lease expense$184 $175 $127 

Operating lease expense is recognized on a straight-line basis over the lease term. In addition, the Company has certain leases that contain variable lease payments which are based on an index, a rate referenced in the lease or on the actual usage of the leased asset. These payments are not included in the right-of-use asset or lease liability and are expensed as incurred as variable lease expense.
Undiscounted maturities of operating lease liabilities as of December 31, 2025, are as follows:

(In millions)
2026$163 
2027124 
202895 
202970 
203050 
Thereafter147 
Total undiscounted lease payments649 
Less: imputed interest(89)
Total discounted lease payments$560 
v3.25.4
EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
The Company sponsors U.S. and international defined benefit pension and defined contribution plans. In addition, the Company contributes to various U.S. and international multi-employer defined benefit pension plans.

Pension Plans

Qualified U.S. pension plan benefits covering collectively bargained employees comprise approximately 37% of the projected benefit obligation. This noncontributory defined benefit plan provides benefits on a flat dollar formula based on an employee's location and is closed to new entrants. The non-U.S. plans comprise approximately 63% of the projected benefit obligation; certain of these plans provide participants with one-time payments upon separation of employment rather than a retirement annuity. The plans' benefits are based on plan specific parameters. Non-qualified U.S. pension plans provide supplementary retirement benefits to certain employees and are not a material component of the projected benefit obligation.

The following table details information regarding the Company's pension plans:

(In millions)20252024
Change in Benefit Obligation
Benefit obligation at beginning of year$657 $575 
Service cost13 14 
Interest cost28 26 
Actuarial (gain) loss(14)(9)
Benefits paid(19)(24)
Curtailment, settlements and special termination benefits(39)(13)
Other, including expenses paid37 (25)
Acquisitions (2)
— 113 
Benefit obligation at end of year$663 $657 
Change in Plan Assets
Fair value at beginning of year$507 $468 
Actual return on plan assets38 1 
Company contributions36 34 
Benefits paid(19)(24)
Settlements(46)(13)
Other, including expenses paid24 (15)
Acquisitions (2)
— 56 
Fair value of assets end of year$540 $507 
Funded status of plans$(123)$(150)
Amounts included in the balance sheet:
Other non-current assets$56 $43 
Accrued compensation and benefits(14)(13)
Post-employment and other benefit liabilities(165)(180)
Net amount recognized$(123)$(150)
(1) See Note 20 - Divestitures for additional information.
(2) See Note 19 - Acquisitions for additional information.

The funded status improved primarily due to favorable returns on plan assets. In addition, higher employer contributions related to restructuring activities and increases in discount rates that reduced benefit obligations contributed to the improvement. These factors were partially offset by curtailment losses and unfavorable foreign currency movements.
The pretax amounts recognized in Accumulated other comprehensive (income) loss are:

(In millions)Prior Service Cost (Benefit)Net Actuarial (Gain) LossTotal
As of December 31, 2024$4 $130 $134 
Current year changes recorded in AOCI— (12)(12)
Amortization reclassified to earnings(1)(2)(3)
Settlement/curtailment reclassified to earnings(2)(10)(12)
Currency translation and other— 8 8 
As of December 31, 2025$1 $114 $115 

Information for pension plans with accumulated benefit obligations in excess of plan assets:

(In millions)20252024
Projected benefit obligation$255 $481 
Accumulated benefit obligation$232 $456 
Fair value of plan assets$76 $288 

Information for pension plans with projected benefit obligations in excess of plan assets:

(In millions)20252024
Projected benefit obligation$255 $481 
Accumulated benefit obligation$232 $456 
Fair value of plan assets$76 $288 

The accumulated benefit obligation for all defined benefit plans was $639 million and $631 million as of December 31, 2025 and 2024, respectively.

Pension benefit payments, including amounts to be paid from corporate assets, and reflecting expected future service, as appropriate, are expected to be paid as follows:

(In millions)
2026$39 
2027$48 
2028$45 
2029$47 
2030$48 
2031 through 2035$251 

For the years ended December 31, 2025, 2024 and 2023, the Company made $36 million, $34 million and $33 million, respectively, of cash contributions to its defined benefit pension plans. The Company expects to make required funding contributions of approximately $5 million to its defined benefit pension plans in 2026.
The components of net periodic pension expense (benefit) for the defined benefit pension plans are as follows:

(In millions)2025
2024
2023
Service cost$13 $14 $15 
Interest cost28 26 31 
Expected return on plan assets(33)(36)(32)
Amortization of prior service cost1 1 3 
Recognized actuarial net loss2 1 (2)
Net settlement, curtailment and special termination benefit loss12 4 1 
Net periodic pension expense (benefit)$23 $10 $16 

Major assumptions used in determining the benefit obligation and net cost for pension plans are presented in the following table as weighted-averages:

Benefit ObligationNet Costs
20252024202520242023
Discount rate
Projected benefit obligation4.5%4.3 %4.3%4.3 %4.2 %
Interest cost (1)
—%— %4.1%4.2 %4.1 %
Service cost (1)
—%— %3.8%4.5 %4.5 %
Salary scale2.4%2.6 %2.6%2.2 %2.4 %
Expected return on plan assets—%— %5.2%6.3 %5.7 %
(1) The 2025 and 2024 discount rates used to measure the service cost and interest cost apply to the significant plans of the Company. The projected benefit obligation discount rate is used for the service cost and interest cost measurements for non-significant plans.

The expected long-term rate of return on plan assets is determined by considering the relative weighting of plan assets, the historical performance of total plan assets, individual asset classes, economic and other indicators of future performance. Return projections are assessed for reasonableness using a simulation model that incorporates yield curves, credit spreads and risk premiums to project long-term prospective returns.

The Company's investment objective is to provide liquidity and asset levels needed to meet current and future benefit payments, while maintaining a prudent degree of portfolio diversification considering interest rate risk and market volatility. Globally, investment strategies target a mix of approximately 20% of growth seeking assets and 80% of income generating and hedging assets using a wide diversification of asset types, fund strategies and investment managers.

The growth seeking allocation consists of global public equities in developed and emerging countries and alternative asset class strategies. The income generating assets primarily consist of government and broadly diversified high quality corporate bonds. In addition, the Company's investment strategies seek to reduce interest rate risk and have incorporated liability hedging programs as part of the long-term investment strategy. Under this objective, the income generating and hedging assets typically increase as the plans' funded status improves. The Company monitors plan funded status and asset allocation regularly in addition to investment manager performance.
The fair values of pension plan assets by asset category are as follows:

(In millions)Quoted Prices in Active Markets for Identical AssetsSignificant Observable InputsSignificant Unobservable InputsNot Subject
to Leveling		Total
Asset Category(Level 1)(Level 2)(Level 3)
Public Equities:
Global Equities$— $25 $— $— $25 
Global Equity Funds at net asset value (1) (2)
— — — 120 120 
Fixed Income Securities:
Governments— 56 — 27 83 
Corporate Bonds— 92 — — 92 
Fixed Income Securities (2)
— — — 146 146 
Real Estate (3)
— 1 — — 1 
Other (4) (5)
— 15 — 7 22 
Cash & Cash Equivalents (2)(6)
— 40 — 9 49 
Subtotal$— $229 $— $309 $538 
Other assets and liabilities (7)
2 
Total as of December 31, 2025
$540 
(In millions)Quoted Prices in Active Markets for Identical AssetsSignificant Observable InputsSignificant Unobservable InputsNot Subject
to Leveling		Total
Asset Category(Level 1)(Level 2)(Level 3)
Public Equities:
Global Equities$— $23 $— $— $23 
Global Equity Funds at net asset value (1) (2)
— — — 125 125 
Fixed Income Securities:
Governments— 23 — 25 48 
Corporate Bonds— 93 — — 93 
Fixed Income Securities (2)
— — — 156 156 
Real Estate (3)
— 1 — — 1 
Other (4)(5)
— 15 — 8 23 
Cash & Cash Equivalents (2)(6)
— 28 — 9 37 
Subtotal$— $183 $— $323 $506 
Other assets and liabilities (7)
1 
Total as of December 31, 2024
$507 
(1) Represents commingled funds that invest primarily in common stocks.
(2) In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets.
(3) Represents investments in real estate, including commingled funds and directly held properties.
(4) Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities.
(5) Includes fixed income repurchase agreements entered into for purposes of pension asset and liability matching.
(6) Represents short-term commercial paper, bonds and other cash or cash-like instruments.
(7) Represents trust receivables and payables that are not leveled.

Derivatives in the plan are primarily used to manage risk and gain asset class exposure while still maintaining liquidity. Derivative instruments mainly consist of fixed income repurchase agreements, interest rate swaps, total return swaps and currency forward contracts.
Quoted market prices are used to value investments when available. Investments in securities traded on exchanges, including listed futures and options, are valued at the last reported sale prices on the last business day of the year or, if not available, the last reported bid prices. Fixed income securities are primarily measured using a market approach pricing methodology, whereby observable prices are obtained by market transactions involving identical or comparable securities of issuers with similar credit ratings. Over-the-counter securities and government obligations are valued at the bid prices or the average of the bid and ask prices on the last business day of the year from published sources or, if not available, from other sources considered reliable, including broker quotes. Temporary cash investments are stated at cost, which approximates fair value.

Multiemployer Benefit Plans

The Company contributes to various domestic and foreign multiemployer defined benefit pension plans. The risks of participating in these multiemployer plans are different from those of single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. The Company's contributions to these plans were $15 million for both of the years ended December 31, 2025 and 2024.

Employee Savings Plans

The Company sponsors various employee savings plans. Employer contributions are determined based on criteria specific to each plan and were $118 million, $138 million and $125 million for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
PRODUCT WARRANTIES
 12 Months Ended
Dec. 31, 2025
Guarantees [Abstract]  
PRODUCT WARRANTIES PRODUCT WARRANTIES
In the ordinary course of business, the Company provides standard warranty coverage on its products. Provisions for these amounts are established at the time of sale and estimated primarily based on product warranty terms and historical claims experience. In addition, the Company incurs discretionary costs to service its products in connection with specific product performance issues. Provisions for these amounts are established when they are known and estimable. The Company assesses the adequacy of its initial provisions and will make adjustments as necessary based on known or anticipated claims or as new information becomes available that suggests it is probable that future costs will be different than estimated amounts. Amounts associated with these provisions are classified on the accompanying Consolidated Balance Sheet as Accrued liabilities or Other long-term liabilities based on their anticipated settlement date.

The changes in the carrying value of warranty related provisions are as follows:

(In millions)20252024
Balance as of January 1,$786 $568 
Warranties, performance guarantees issued and changes in estimated liability364 327 
Settlements made(282)(346)
Other32 5 
Acquisitions (1)
— 232 
Reclassified to held for sale (2)
(7)— 
Balance as of December 31,$893 $786 
(1) See Note 19 - Acquisitions for additional information.
(2) See Note 20 - Divestitures for additional information.
v3.25.4
EQUITY
 12 Months Ended
Dec. 31, 2025
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
EQUITY EQUITY
The authorized number of shares of common stock of Carrier is 4,000,000,000 shares of $0.01 par value. As of December 31, 2025 and December 31, 2024, 950,633,287 and 948,068,772 shares of common stock were issued, respectively, which includes 114,891,176 and 70,093,639 shares of treasury stock, respectively.
Share Repurchase Program

The Company may purchase its outstanding common stock from time to time subject to market conditions and at the Company's discretion. Repurchases occur in the open market or through one or more other public or private transactions pursuant to plans complying with Rules 10b5-1 and 10b-18 under the Exchange Act. Shares acquired are recognized at cost and presented separately on the balance sheet as a reduction to Equity. Since the initial authorization in February 2021, the Company's Board of Directors authorized the repurchase of up to $12.1 billion of the Company's outstanding common stock which includes a $5 billion increase approved in October 2025.

In June 2025, the Company repurchased from Viessmann, an entity controlled by one of the Company's directors, an aggregate 4,267,425 shares of the Company's common stock at a price per share of $70.30 for an aggregate purchase price of $300 million. During the year ended December 31, 2025, the Company repurchased 44.8 million shares of common stock for an aggregate purchase price of $2.9 billion, which included shares repurchased from Viessmann under the repurchase agreement. As a result, the Company has approximately $5.3 billion remaining under the current authorization at December 31, 2025.

Accumulated Other Comprehensive Income (Loss)

A summary of changes in the components of Accumulated other comprehensive income (loss) is as follows:

(In millions)Foreign Currency TranslationDefined Benefit Pension and Post-retirement PlansUnrealized Hedging Gains (Losses)Accumulated Other Comprehensive Income (Loss)
Balance as of January 1, 2023$(1,604)$(84)$— $(1,688)
Other comprehensive income (loss) before reclassifications, net160 (17)58 201 
Amounts reclassified, pre-tax— 1 — 1 
Balance as of December 31, 2023$(1,444)$(100)$58 $(1,486)
Other comprehensive income (loss) before reclassifications, net(1,173)(15)— (1,188)
Amounts reclassified, pre-tax— 2 (6)(4)
Tax benefit reclassified— (1)2 1 
Divestitures, net564 7 — 571 
Balance as of December 31, 2024$(2,053)$(107)$54 $(2,106)
Other comprehensive income (loss) before reclassifications, net1,828 12 — 1,840 
Amounts reclassified, pre-tax— 3 (6)(3)
Tax benefit reclassified— (1)1 — 
Balance as of December 31, 2025$(225)$(93)$49 $(269)
v3.25.4
REVENUE RECOGNITION
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
The Company accounts for revenue in accordance with ASC 606: Revenue from Contracts with Customers. Revenue is recognized when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. A significant portion of the Company's performance obligations are recognized at a point-in-time when control of the product transfers to the customer, which is generally the time of shipment. The remaining portion of the Company’s performance obligations are recognized over time as the customer simultaneously obtains control as the Company performs work under a contract, or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment.
Performance Obligations

A performance obligation is a distinct good, service or a bundle of goods and services promised in a contract. Some of the Company's contracts with customers contain a single performance obligation, while others contain multiple performance obligations most commonly when a contract spans multiple phases of a product life-cycle such as production, installation, maintenance and support. The Company identifies performance obligations at the inception of a contract and allocates the transaction price to each distinct performance obligation. Revenue is recognized when or as the performance obligation is satisfied. When there are multiple performance obligations within a contract, the Company allocates the transaction price to each performance obligation based on its relative stand-alone selling price.

The Company primarily generates revenue from the sale of products to customers and recognizes revenue at a point in time when control transfers to the customer. Transfer of control is generally based on the shipping terms of the contract. In addition, the Company recognizes revenue on an over-time basis on installation and service contracts. For over-time performance obligations requiring the installation of equipment, revenue is recognized using costs incurred to date relative to total estimated costs at completion to measure progress. Incurred costs represent work performed, which correspond with and best depict transfer of control to the customer. Contract costs include direct costs such as labor, materials and subcontractors’ costs and where applicable, indirect costs.
External segment sales disaggregated by product and service are as follows:

(In millions)202520242023
Sales Type
Product$9,327 $9,428 $8,538 
Service1,143 1,099 1,077 
Climate Solutions Americas sales10,470 10,527 9,615 
Product4,572 4,652 1,722 
Service472 332 215 
Climate Solutions Europe sales5,044 4,984 1,937 
Product2,606 2,849 3,053 
Service733 651 528 
Climate Solutions Asia Pacific, Middle East & Africa sales3,339 3,500 3,581 
Product2,668 3,061 3,352 
Service226 414 466 
Climate Solutions Transportation sales2,894 3,475 3,818 
Net sales$21,747 $22,486 $18,951 

The transaction price allocated to performance obligations reflects the Company’s expectations about the consideration it will be entitled to receive from a customer. The Company includes variable consideration in the estimated transaction price when there is a basis to reasonably estimate the amount and when it is probable that a significant reversal of revenue recognized would not occur when the uncertainty associated with variable consideration is subsequently resolved. In addition, the Company customarily offers its customers incentives to purchase products to ensure an adequate supply of its products in distribution channels. The principal incentive programs provide reimbursements to distributors for offering promotional pricing for products. The Company accounts for estimated incentive payments as a reduction in sales at the time a sale is recognized.
Contract Balances

Total contract assets and liabilities consisted of the following:

(In millions)20252024
Contract assets, current (included within Other current assets)
$499 $366 
Contract assets, non-current (included within Other assets)
83 65 
Total contract assets582 431 
Contract liabilities, current (included within Accrued liabilities)
(691)(553)
Contract liabilities, non-current (included within Other long-term liabilities)
(203)(164)
Total contract liabilities (894)(717)
Net contract assets (liabilities)$(312)$(286)

The timing of revenue recognition, billings and cash collections results in contract assets and contract liabilities. Contract assets relate to the conditional right to consideration for any completed performance under a contract when costs are incurred in excess of billings under the percentage-of-completion methodology. Contract liabilities relate to payments received in advance of performance under a contract or when the Company has a right to consideration that is conditioned upon transfer of a good or service to the customer. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract.

The Company recognized revenue of $506 million for the year ended December 31, 2025, that was related to contract liabilities as of January 1, 2025. The Company expects a majority of its contract liabilities at the end of the period to be recognized as revenue over the next 12 months. There were no individually significant customers with sales exceeding 10% of total sales for the years ended December 31, 2025, 2024 and 2023.
v3.25.4
STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
The Company accounts for stock-based compensation plans in accordance with ASC 718, Compensation - Stock Compensation, which requires a fair-value based method for measuring the value of stock-based compensation. Fair value is measured at the date of grant and is generally not adjusted for subsequent changes. The Company's stock-based compensation plans include programs for stock appreciation rights, restricted stock and performance share units.

Stock Options and Appreciation Rights

Eligible participants may receive stock options or stock appreciation rights as part of the Company's long-term incentive program. The fair value of each instrument is determined as of the date of grant using a binomial lattice model and expensed on a straight-line basis over the required service period, which is generally a three-year vesting period. However, in the event of retirement, awards held for at least one year may vest and become exercisable (if applicable), subject to certain terms and conditions.

The following table summarizes fair value information for stock options and stock appreciation rights:

2025 (1)
2024 (1)
2023 (1)
Stock options and stock appreciation rights weighted-average fair value per award$17.79 $14.84 $11.64 
Assumptions:
Volatility
31.2% to 33.4%
30.6% to 31.7%
30.9%
Expected term (in years)
5.6
5.6 to 7.8
5.8
Expected dividend yield
1.3%
1.8%
1.8%
Range of risk-free rates
3.7% to 4.3%
4.0% to 4.3%
3.6%
(1) Carrier has limited historical trading data and used peer group data to estimate expected volatility for the 2025, 2024 and 2023 awards.

The Company used historical employee data, including data prior to the Separation and the Distribution, to estimate expected term. The expected dividend yield is consistent with management's expectations. The risk-free rate is based on the term structure of interest rates at the time the awards were granted.
Changes in stock options and stock appreciation rights outstanding were as follows:

Shares Subject to Option
(in thousands)		Weighted-Average Exercise PriceAggregate Intrinsic Value
(in millions)		Weighted- Average Remaining Life
(in years)
As of December 31, 202230,778 $24.53 
Granted 3,494 $46.13 
Exercised(8,432)$20.48 
Cancelled(769)$42.94 
As of December 31, 202325,071 $28.34 
Granted4,187 $56.46 
Exercised(8,041)$23.21 
Cancelled(430)$50.77 
As of December 31, 202420,787 $35.52 
Granted2,072 $64.99 
Exercised(2,785)$26.20 
Cancelled(724)$54.40 
Outstanding as of December 31, 202519,350 $39.31 $299 5.4
Exercisable as of December 31, 202511,909 $28.99 $285 3.7

Restricted Stock Units

Eligible participants may receive restricted stock units ("RSU") as part of the Company's long-term incentive program. The fair value of restricted stock units is based on the closing market price of the Company's common stock on the date of grant and expensed on a straight-line basis over the required service period (which is generally a three-year vesting period). However, in the event of retirement, awards held for at least one year may vest and become exercisable (if applicable), subject to certain terms and conditions. Dividends accrue during the vesting period and are paid in shares of the Company's common stock.

Changes in restricted stock units were as follows:
RSUs
(in thousands)
Weighted-Average Grant Date Fair Value
Outstanding and unvested as of December 31, 20222,067 $29.87 
Granted 577 $45.71 
Vested(1,140)$26.09 
Cancelled(161)$35.09 
Outstanding and unvested as of December 31, 20231,343 $39.22 
Granted264 $59.88 
Vested(448)$38.17 
Cancelled(68)$49.14 
Outstanding and unvested as of December 31, 20241,091 $43.94 
Granted330 $63.70 
Vested(348)$44.83 
Cancelled(92)$42.88 
Outstanding and unvested as of December 31, 2025981 $50.41 
Performance Share Units

The Company has a performance share program for key employees whereby awards are provided in the form of performance share units ("PSU") based on performance against pre-established objectives. The annual target level is expressed as shares of the Company's common stock based on the fair value of its stock on the date of grant. Awards are generally earned over a three-year performance period based equally on a performance condition, measured by the compound annual growth rate of the Company's earnings per share and on a market condition, measured by the Company's relative total shareowner return compared to the total shareowner return of a subset of industrial companies in the S&P 500 Index. The fair value of the market condition is estimated using a Monte Carlo simulation approach. The fair value of the PSU awards is expensed over the required service period, which is generally a three-year vesting period. In the event of retirement, performance share units held for at least one year remain eligible to vest based on actual performance relative to pre-established metrics. Dividends do not accrue on the performance share units during the performance period.

Changes in PSUs were as follows:

PSUs
(in thousands)
Weighted-Average Grant Date Fair Value
Outstanding and unvested as of December 31, 2022
1,930 $35.86 
Granted902 $47.93 
Vested(607)$18.23 
Forfeited(183)$46.52 
Outstanding and unvested as of December 31, 2023
2,042 $45.47 
Granted1,741 $50.75 
Vested(1,339)$41.49 
Forfeited(121)$52.56 
Outstanding and unvested as of December 31, 2024
2,323 $51.35 
Granted836 $57.22 
Vested(845)$46.57 
Forfeited(194)$55.70 
Outstanding and unvested as of December 31, 2025
2,120 $55.17 

Compensation Expense

Stock-based compensation expense, net of estimated forfeitures, is included in Cost of products sold, Selling, general and administrative and Research and development, in the accompanying Consolidated Statement of Operations.

Stock-based compensation cost by award type is as follows:

(In millions)202520242023
Equity compensation costs - equity settled$74 $98 $81 
Equity compensation costs - cash settled (1)
(2)2 3 
Total stock-based compensation cost$72 $100 $84 
Amounts recorded in continuing operations$72 $87 $74 
Amounts recorded in discontinued operations— 13 10 
Total stock-based compensation cost$72 $100 $84 
Income tax benefit$8 $13 $11 
(1) The cash settled awards are classified as liability awards and are measured at fair value at each balance sheet date.
As of December 31, 2025 and 2024, there were $101 million and $112 million of unrecognized stock-based compensation costs related to non-vested awards granted under the plan, respectively, which will be recognized ratably over the awards weighted-average remaining vesting period of 2 years.
v3.25.4
RESTRUCTURING COSTS
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
RESTRUCTURING COSTS RESTRUCTURING COSTS
The Company incurs costs associated with restructuring initiatives intended to improve operating performance, profitability and working capital levels. Actions associated with these initiatives may include improving productivity, workforce reductions and the consolidation of facilities. Due to the size, nature and frequency of these discrete plans, they are fundamentally different from the Company’s ongoing productivity initiatives.
The Company recorded net pre-tax restructuring costs for new and ongoing restructuring actions as follows:

(In millions)202520242023
Climate Solutions Americas$23 $9 $11 
Climate Solutions Europe92 70 10 
Climate Solutions Asia Pacific, Middle East & Africa26 10 23 
Climate Solutions Transportation8 8 21 
Total Segment149 97 65 
Corporate and other29 11 10 
Total restructuring costs (1)
$178 $108 $75 
Cost of sales$42 $42 $13 
Selling, general and administrative136 66 62 
Total restructuring costs (1)
$178 $108 $75 
(1) Restructuring costs include period-related charges.

The following table summarizes changes in the restructuring reserve, included in Accrued liabilities on the accompanying Consolidated Balance Sheet:

(In millions)20252024
Balance as of January 1,$69 $41 
Net pre-tax restructuring costs145 98 
Acquisitions (1)
— 8 
Utilization, foreign exchange and other(110)(78)
Reclassified to held for sale (2)
(2)— 
Balance as of December 31,$102 $69 
(1) See Note 19 - Acquisitions for additional information.
(2) See Note 20 - Divestitures for additional information.

As of December 31, 2025, the Company had $102 million accrued for costs associated with its announced restructuring initiatives. The balance relates to cost reduction efforts, primarily severance, across each of the Company's segments. The Company expects a majority of the balance to be utilized within 12 months.
v3.25.4
OTHER INCOME (EXPENSE), NET
 12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
OTHER INCOME (EXPENSE), NET OTHER INCOME (EXPENSE), NET
Other income (expense), net consisted of the following:

(In millions)202520242023
Viessmann-related hedges$— $(86)$(96)
CCR gain7 318 — 
CST gain on sale of equity method investment6 — — 
TMA-related gain— 46 — 
TCC acquisition-related adjustment— — (8)
Other23 39 (9)
Other income (expense), net$36 $317 $(113)

Other income (expense), net primarily includes the impact of gains and losses related to the sale of businesses or interests in equity method investments, foreign currency gains and losses on transactions that are denominated in a currency other than the entity's functional currency and hedging-related activities. During the year ended December 31, 2025, the Company finalized working capital adjustments provided in the stock purchase agreement governing the sale of CCR and recognized an incremental gain of $7 million.

During the year ended December 31, 2024, the Company completed the sale of CCR and recognized a gain on the sale of $318 million. In addition, the Company recognized a $46 million gain associated with its share of UTC's conclusion of certain income tax matters from their 2017 and 2018 tax audit with the IRS. In connection with the acquisition of the VCS Business, the Company recognized an $86 million loss on the mark-to-market valuation of its window forward contracts associated with the cash outflows of the Euro-denominated purchase price. During the year ended December 31, 2023, the Company recognized a $96 million loss on the mark-to-market valuation of its window forward contracts associated with the cash outflows of the Euro-denominated purchase price of the VCS Business. In addition, the Company recognized an $8 million charge related to the fair value adjustment of Toshiba Carrier Corporation (“TCC”) investments.
v3.25.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income Before Income Taxes

The sources of Income from operations before income taxes are as follows:

(In millions)202520242023
United States$1,536 $1,948 $1,398 
Foreign262 326 601 
Total$1,798 $2,274 $1,999 
Provision for Income Taxes

The income tax expense (benefit) consisted of the following components:

(In millions)202520242023
Current:
United States:
Federal $218 $920 $361 
State86 120 110 
Foreign337 374 293 
641 1,414 764 
Future:
United States:
Federal(28)(90)(135)
State(10)(13)(28)
Foreign(363)(249)(80)
(401)(352)(243)
Income tax expense$240 $1,062 $521 

Reconciliation of Effective Income Tax Rate

Upon adoption of ASU 2023-09, the reconciliation of taxes at the statutory U.S. federal income tax rate to the Company's effective income tax rate is as follows:
(In millions)
2025
Statutory U.S. federal income tax rate$377 21.0 %
State income tax, net of federal income tax effect60 3.4 
Foreign tax effects:
Canada
Statutory tax rate difference(3)(0.2)
Local tax, net of national income tax effect9 0.5 
All Other3 0.2 
China
Statutory tax rate difference4 0.2 
Changes in valuation allowance19 1.1 
All Other6 0.3 
France
Statutory tax rate difference9 0.5 
Changes in valuation allowance(1)(0.1)
Germany
Statutory tax rate difference58 3.2 
Local tax, net of national income tax effect(78)(4.3)
Enactment of new tax laws(130)(7.2)
All Other(9)(0.5)
Ireland
Statutory tax rate difference(13)(0.7)
All Other7 0.4 
Mexico
Statutory tax rate difference10 0.5 
All Other12 0.7 
Other foreign jurisdictions(1)(0.1)
Effect of cross-border tax laws:
U.S. tax on outside basis(64)(3.6)
Net CFC tested income14 0.8 
U.S. tax on deemed dividends(6)(0.4)
Foreign tax credits(21)(1.2)
Tax credits:
R&D tax credits(13)(0.7)
Other tax credits(17)(0.9)
Changes in valuation allowances65 3.6 
Nontaxable or nondeductible items:
Equity income from joint ventures(21)(1.2)
Stock options(11)(0.6)
Other12 0.7 
Changes in unrecognized tax benefits4 0.2 
All Other
Re-organization tax benefit(43)(2.4)
Other2 0.2 
Effective income tax rate$240 13.4 %
The most significant jurisdictions that comprise the U.S. state income tax, net of federal income tax benefit are Florida, California, New Jersey, Illinois, Georgia, Pennsylvania, New York, and Texas.

The differences between the effective income tax rate and the statutory U.S. federal income tax rate, prior to adoption of ASU 2023-09, are as follows:

20242023
Statutory U.S. federal income tax rate21.0 %21.0 %
State income tax2.4 2.4 
Taxes on international activities(0.2)4.9 
CCR divestiture impact(2.0)— 
VCS reorganization impact28.6 — 
Other(3.1)(2.2)
Effective income tax rate46.7 %26.1 %

The effective tax rate for the year ended December 31, 2025, was lower than the Company's statutory U.S. federal income tax rate. The 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 year, 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.

The effective tax rate for the year ended December 31, 2024, was higher than the Company's statutory U.S. federal income tax rate. The increase was primarily driven by a net tax charge of $650 million related to a re-organization of the VCS Business and a non-deductible loss of $86 million on the mark-to-market valuation of the Company's window forward contracts associated with the expected cash outflows of the Euro-denominated purchase price of the VCS Business, partially offset by the lower effective tax rate on the $318 million gain on the sale of CCR and $44 million of foreign tax credits generated and utilized in the current year.

The effective tax rate for the year ended December 31, 2023, was higher than the Company's statutory U.S. federal income tax rate. The increase was primarily driven by a net tax charge of $27 million relating to the re-organization and disentanglement of the CCR businesses in advance of the planned divestiture. In addition, the effective tax rate was impacted by the recognition of a deferred tax liability for withholding tax of $19 million on repatriated foreign earnings, non-deductible divestiture-related costs and a non-deductible loss of $96 million on the mark-to-market valuation of the Company's window forward contracts associated with the expected cash outflows of the Euro-denominated purchase price of the VCS Business.

Deferred Tax Assets and Liabilities

Future income taxes represent the tax effects of transactions, which are reported in different periods for tax and GAAP purposes. These amounts consist of the tax effects of differences between tax and GAAP that are expected to be reversed in the future and tax carryforwards. Future income tax benefits and obligations within the same tax paying component of a particular jurisdiction are offset for presentation in the Consolidated Balance Sheet.
The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and obligations as of December 31, 2025 and 2024, are as follows:

(In millions)20252024
Future income tax benefits:
Insurance and employee benefits$114 $142 
Other assets basis differences519 576 
Other liabilities basis differences773 674 
Tax loss carryforwards256 178 
Tax credit carryforwards1,411 1,404 
Valuation allowances(1,539)(1,442)
Future income tax benefits$1,534 $1,532 
Future income tax obligations:
Goodwill and intangible assets$(1,663)$(1,769)
Other asset basis differences(374)(381)
Future income tax obligations$(2,037)$(2,150)

Valuation allowances have been established primarily for tax credit carryforwards, tax loss carryforwards and certain foreign temporary differences to reduce future income tax benefits to expected realizable amounts.

Changes to valuation allowances consisted of the following:

(In millions)
Balance as of January 1, 2023$83 
Additions charged to income tax expense27 
Reduction credited to income tax expense(22)
Other adjustments1,303 
Reclassified to held for sale(19)
Balance at December 31, 2023$1,372 
Additions charged to income tax expense46 
Reduction credited to income tax expense(41)
Other adjustments 65 
Balance at December 31, 2024$1,442 
Additions charged to income tax expense 110 
Reduction credited to income tax expense(4)
Other adjustments(9)
Balance as of December 31, 2025$1,539 
Tax Credit and Loss Carryforwards

As of December 31, 2025, tax credit carryforwards and tax loss carryforwards were as follows:

(In millions)Tax Loss CarryforwardsTax Credit Carryforwards
Expiration period:
2026-2030$1,179 $18 
2031-203510 1,391 
2036-2045222 — 
Indefinite410 2 
Total$1,821 $1,411 

The Company assesses the realizability of its deferred tax assets on a quarterly basis through an analysis of potential sources of future taxable income, including prior year taxable income available to absorb a carryback of tax losses, reversals of existing taxable temporary differences, tax planning strategies and forecasts of taxable income. The Company considers all negative and positive evidence, including the weight of the evidence, to determine if valuation allowances against deferred tax assets are required. The Company maintains valuation allowances against certain deferred tax assets.

In conjunction with the announced portfolio transformation, the Company is implementing changes to its corporate structure, including a re-organization of a subsidiary in Switzerland. As operations in the Swiss subsidiary expand within the next 12 months, it is possible that there may be sufficient positive evidence to release a portion of the $1.4 billion valuation allowance applied against a tax credit in Switzerland. A partial release of this valuation allowance would result in a benefit to income tax expense for the period the release is recorded, which could have a material impact on net earnings. The timing and amount of the potential valuation allowance release are subject to significant management judgment, as well as prospective earnings in Switzerland.

Unrecognized Tax Benefits

As of December 31, 2025, the Company had unrecognized tax benefits of $322 million, all of which, if recognized, would impact its effective tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits and related interest expense is as follows:

(In millions)202520242023
Balance at beginning of period$365 $382 $291 
Additions for tax positions related to the current year10 34 37 
Additions for tax positions of prior years (1)
12 30 81 
Reductions for tax positions of prior years(3)(7)— 
Settlements(29)(68)(27)
Reclassified to other accounts (2)
(33)(6)— 
Balance at end of period$322 $365 $382 
Gross interest expense related to unrecognized tax benefits$18 $19 $18 
Total accrued interest balance at end of period$71 $57 $64 
(1) Includes $73 million during the year ended December 31, 2023, related to acquisitions.
(2) Includes $33 million during the year ended December 31, 2025, related to held for sale.
The Company conducts business globally and, as a result, the Company and its subsidiaries file income tax returns in the U.S. federal, various state and foreign jurisdictions. In certain jurisdictions, the Company's operations were included in UTC's combined tax returns for the periods through the date of the Separation and Distribution. The IRS finalized the examination of UTC's tax year 2020 resulting in the recognition of a tax benefit of $6 million in the second quarter of 2025. The U.S. Federal statute of limitations for Carrier's tax year 2021 expired during the three months ended December 31, 2025 resulting in a recognized tax benefit of $5 million. The IRS is examining Carrier's tax year 2022 with the examination progressing slowly due to IRS turnover and the U.S. government shutdown. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including the U.S., Australia, Belgium, Canada, China, France, Germany, India, Italy, Malaysia, Poland, Singapore, Spain, and the United Kingdom. The Company is no longer subject to U.S. federal income tax examination for years prior to 2022 and, with few exceptions, is no longer subject to U.S. state and local and foreign income tax examinations for tax years before 2013.

In the ordinary course of business, there is inherent uncertainty in quantifying the Company's income tax positions. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. The Company believes that it is reasonably possible that a net decrease in unrecognized tax benefits of $10 million to $95 million may occur within 12 months as a result of additional uncertain tax positions, the revaluation of uncertain tax positions arising from examinations, appeals, court decisions or the closure of tax statutes.

As a result of the Tax Cuts and Jobs Act ("TCJA"), the Company no longer intends to reinvest certain undistributed earnings of its international subsidiaries including some earnings which have been previously taxed in the U.S. As such, the Company has recorded tax liabilities associated with the future remittance of these earnings. For the remainder of the Company's undistributed international earnings, unless it becomes tax effective to repatriate, the Company intends to continue to permanently reinvest these earnings. It is not practicable to estimate the amount of tax that might be payable on the remaining amounts. The One Big Beautiful Bill Act subjects the Company to a tax on net CFC tested income, which the Company accounts for as a period cost.
v3.25.4
EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
Earnings per share is computed by dividing Net earnings (loss) attributable to common shareowners by the weighted-average number of shares of common stock outstanding during the period (excluding treasury stock). Diluted earnings per share is computed by giving effect to all potentially dilutive stock awards that are outstanding. The computation of diluted earnings per share excludes the effect of the potential exercise of stock-based awards, including stock appreciation rights and stock options, when the effect of the potential exercise would be anti-dilutive.

The following table summarizes the weighted-average number of shares of common stock outstanding for basic and diluted earnings per share calculations:

(In millions, except per share amounts)202520242023
Net earnings (loss) attributable to common shareowners$1,484 $5,604 $1,349 
Basic weighted-average number of shares outstanding852.4 898.2 837.3 
Stock awards and equity units (share equivalent)10.0 13.5 15.7 
Diluted weighted-average number of shares outstanding862.4 911.7 853.0 
Antidilutive shares excluded from computation of diluted earnings per share1.9 0.1 2.0 
v3.25.4
ACQUISITIONS
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS ACQUISITIONS
During the year ended December 31, 2025, the Company acquired consolidated and minority-owned businesses. The aggregate cash paid, net of cash acquired, totaled $107 million. Acquisitions are recorded using the acquisition method of accounting in accordance with ASC 805. As a result, the aggregate purchase price has been allocated to assets acquired and liabilities assumed based on the estimate of fair market value of such assets and liabilities at the date of acquisition. The excess purchase price over the estimated fair value of net assets acquired is recognized as goodwill.
Viessmann Climate Solutions

On January 2, 2024, the Company completed the acquisition of the VCS Business from Viessmann for total consideration of $14.2 billion. The purchase price consisted of (i) $11.2 billion in cash and (ii) 58,608,959 shares of the Company's common stock, subject to certain lock-up provisions and anti-dilution protection. The Company funded the cash portion of the purchase price with a combination of cash on hand and proceeds from various borrowing facilities.

The VCS Business develops intelligent, integrated and sustainable technologies, including heat pumps, boilers, photovoltaic systems, home battery storage and digital solutions, primarily for residential customers in Europe. The Company believes that secular trends in these areas will drive significant, sustained future growth. In addition, the Company anticipates realizing significant operational synergies including savings through supplier rationalization and leverage, reduced manufacturing costs and lower general and administrative costs. Longer term, the Company expects to benefit from synergies related to service revenue expansion, leverage of distribution channels and cross-selling opportunities.

The components of the purchase price are as follows:

(In millions)January 2, 2024
Cash$11,156 
Common shares (58,608,959 shares at $51.20 per share)
3,001 
Total consideration$14,157 

The preliminary allocation of the purchase price is as follows:

(In millions)Preliminary January 2, 2024Measurement Period AdjustmentsAs Adjusted January 2, 2024
Cash and cash equivalents$394 $(1)$393 
Accounts receivable408 5 413 
Inventories948 (28)920 
Other current assets17 — 17 
Fixed assets913 6 919 
Intangible assets6,640 5 6,645 
Other assets284 15 299 
Accounts payable(288)(2)(290)
Other liabilities, current(626)(37)(663)
Future income tax obligations(1,825)15 (1,810)
Other liabilities(284)(17)(301)
Total identifiable net assets6,581 (39)6,542 
Goodwill7,576 31 7,607 
Total consideration$14,157 $(8)$14,149 

The excess purchase price over the estimated fair value of the net identifiable assets acquired was recognized as goodwill and totaled $7.6 billion, which is not deductible for tax purposes. Accounts receivable and current liabilities were stated at their historical carrying value, which approximates fair value given the short-term nature of these assets and liabilities. The estimate of fair value for inventory and fixed assets was based on an assessment of the acquired assets' condition as well as an evaluation of the current market value of such assets.
The Company recorded intangible assets based on its estimate of fair value which consisted of the following:

(In millions)Estimated Useful Life (in years)Intangible Assets Acquired
Customer relationships17$4,787 
Technology
10 - 20
1,051 
Trademark40679 
Backlog1123 
Other505 
Total intangible assets acquired$6,645 

The valuation of intangible assets was determined using an income approach methodology including the multi-period excess earnings method and the relief from royalty method. Key assumptions used in estimating future cash flows included projected short-term revenue growth rates, research and development expenses, EBITDA margins, income tax rates, discount rates, customer attrition rates, royalty rates, contributory asset charge and obsolescence rates among others. The projected future cash flows are discounted to present value using an appropriate discount rate. The Company finalized the process of allocating the purchase price and valuing the acquired assets and liabilities during the year ended December 31, 2024.

The Company incurred $40 million of acquisition-related costs during 2024. During 2023, $80 million of acquisition-related costs were incurred. These acquisition costs are reflected within Selling, general and administrative in the Consolidated Statement of Operations.
The assets, liabilities and results of operations of the VCS Business are consolidated in the accompanying Consolidated Financial Statements as of the date of acquisition and primarily reported within the Company's Climate Solutions Europe segment.
v3.25.4
DIVESTITURES
 12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
DIVESTITURES DIVESTITURES
On December 16, 2025, the Company entered into a stock purchase agreement to sell its Riello business to Ariston Group with expected gross proceeds of approximately $430 million. Riello, predominantly reported in the Company's Climate Solutions Europe segment, is a leading international manufacturer that designs, produces, and integrates a comprehensive portfolio of thermal solutions—including burners, boilers, heat pumps, cooling systems, and aftermarket services—for residential, commercial, and industrial applications, with a strong focus on energy efficiency, innovation, and a global distribution network. As a result, the assets and liabilities of Riello are presented as held for sale in the accompanying Consolidated Balance Sheet as of December 31, 2025, and recorded at the lower of their carrying value or fair value less estimated cost to sell. This transaction is expected to close in the first half of 2026 and is subject to customary closing conditions and regulatory approvals.
The following table summarizes assets and liabilities classified as held for sale:
December 31, 2025
(In millions)Riello
Cash and cash equivalents$25 
Accounts receivable, net103 
Inventories, net98 
Other current assets2 
Fixed assets, net77 
Intangible assets, net18 
Goodwill175 
Operating lease right-of-use assets7 
Other assets87 
Total assets held for sale$592 
Accounts payable$91 
Accrued liabilities45 
Contract liabilities3 
Future pension and post-retirement obligations7 
Future income tax obligations9 
Operating lease liabilities4 
Other long-term liabilities11 
Total liabilities held for sale$170 

Discontinued Operations

During 2024, the Company exited its Fire & Security segment in multiple transactions that represented a single disposal plan to separately divest multiple businesses over different reporting periods. As a result, the components of the Fire & Security segment in aggregate met the criteria to be presented as discontinued operations in the accompanying Consolidated Statement of Operations and Consolidated Statement of Cash Flows. Amounts reported during 2023 and 2024 include the operating results of each component through their respective date of sale and related gain on sale or loss on deconsolidation. Amounts reported during 2025 relate to retained obligations from these business divestitures.

The components of Discontinued operations, net of tax are as follows:

(In millions)202520242023
Net sales$— $2,323 $3,147 
Costs of sales— (1,390)(1,926)
Research and development— (86)(124)
Selling, general and administrative(6)(564)(690)
Other income (expense), net(3)(584)26 
Gain (loss) on divestitures and deconsolidation(22)5,176 (297)
Interest (expense) income, net— (41)(51)
Earnings before income taxes(31)4,834 85 
Income tax (expense) benefit55 1,391 (128)
Tax on divestitures and deconsolidation5 (1,729)5 
Discontinued operations, net of tax$29 $4,496 $(38)
Portfolio Transformation

On June 2, 2024, the Company completed the sale of Access Solutions for cash proceeds of $5.0 billion. Access Solutions, historically reported in the Company's Fire & Security segment, is a global supplier of physical security and digital access solutions supporting the hospitality, commercial, education and military markets. The Company recognized a net gain on the sale of $1.8 billion, which is included in Discontinued operations, net of tax on the accompanying Consolidated Statement of Operations.

On July 1, 2024, the Company completed the sale of Industrial Fire for cash proceeds of $1.4 billion. Industrial Fire, historically reported in the Company's Fire & Security segment, is a leading manufacturer of a full spectrum of fire detection and suppression solutions and services in critical high-hazard environments, including oil and gas, power generation, marine and offshore facilities, automotive, data centers and aircraft hangars. The Company recognized a net gain on the sale of $319 million, which is included in Discontinued operations, net of tax on the accompanying Consolidated Statement of Operations.

On October 1, 2024, the Company completed the sale of CCR for cash proceeds of $679 million. CCR, historically reported in the Company's Climate Solutions Transportation segment, is a global supplier of turnkey solutions for commercial refrigeration systems and services, with a primary focus on serving food retail customers, cold storage facilities and warehouses. The Company recognized a gross gain on the sale of $318 million, which is included in Other income (expense), net on the accompanying Consolidated Statement of Operations. During 2025, the Company finalized the working capital and other adjustments provided in the stock purchase agreement governing the sale of CCR.
On December 2, 2024, the Company completed the sale of the CRF Business for cash proceeds of $2.9 billion. The CRF Business, historically reported in the Company's Fire & Security segment, is a leading manufacturer of fire detection and alarm solutions for both commercial and residential applications. The Company recognized a net gain on the sale of $1.4 billion, which is included in Discontinued operations, net of tax on the accompanying Consolidated Statement of Operations.
v3.25.4
SEGMENT FINANCIAL DATA
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT FINANCIAL DATA SEGMENT FINANCIAL DATA
The Company conducts its operations through four reportable operating segments. In accordance with ASC 280 - Segment Reporting, the Company's segments maintain separate financial information for which results of operations are evaluated on a regular basis by the Company's CODM in deciding how to allocate resources and in assessing performance.

•Climate Solutions Americas ("CSA") provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in North and South America while enhancing building performance, health, energy efficiency and sustainability.
•Climate Solutions Europe ("CSE") provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in Europe while enhancing building performance, health, energy efficiency and sustainability.
•Climate Solutions Asia Pacific, Middle East & Africa ("CSAME") provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in Asia Pacific, the Middle East and Africa while enhancing building performance, health, energy efficiency and sustainability.
•Climate Solutions Transportation ("CST") includes global transport refrigeration and monitoring products, services and digital solutions for trucks, trailers, shipping containers, intermodal and rail.

The Corporate and other category primarily includes corporate administrative functions such as tax, treasury, internal audit, legal and human resources. A portion of these costs and costs associated with shared service centers that provide transaction processing, accounting and other business support functions are allocated to the reportable segments.

Segment operating profit is the measure of profit and loss that the Company’s CODM, the Chief Executive Officer (“CEO”), uses to evaluate the financial performance of the business and as the basis for resource allocation, performance reviews and compensation. It represents operating profit (a GAAP measure) adjusted to exclude restructuring costs, amortization of acquired intangible assets and other significant items of a nonoperational nature. Targets are established on an annual basis and used by the CODM throughout the year to compare with actual results. Quarterly forecasts supplement annual targets and provide incremental information utilized to assess the performance of a segment. Variance analysis further provides insight into segment end-markets and operational cost optimization. These results also support the CODM to manage the Company’s business portfolio.
Consistent with the management approach for segment reporting, the tables below present reported external net sales and significant expense categories for each of the Company’s segments that are regularly provided to the CODM and included in its reported measure of segment profit or loss. The Company manages research and development costs on a global basis and allocates these costs to the reportable segments.

A summary of results by reportable segment are as follows:

For the Year Ended December 31, 2025
(In millions)CSACSECSAMECSTSegment Total
Net sales$10,470 $5,044 $3,339 $2,894 $21,747 
Cost of goods sold(7,073)(3,494)(2,499)(2,112)(15,178)
Research and development(347)(75)(61)(66)(549)
Selling, general and administrative(1,036)(1,039)(476)(287)(2,838)
Equity method investment net earnings126 (3)100 6 229 
Other income (expense), net10 11 45 17 83 
Segment operating profit$2,150 $444 $448 $452 $3,494 

For the Year Ended December 31, 2024
(In millions)CSACSECSAMECSTSegment Total
Net sales$10,527 $4,984 $3,500 $3,475 $22,486 
Cost of goods sold(6,997)(3,368)(2,579)(2,540)(15,484)
Research and development(390)(81)(69)(80)(620)
Selling, general and administrative(962)(1,062)(520)(369)(2,913)
Equity method investment net earnings135 (1)92 6 232 
Other income (expense), net10 (3)42 (7)42 
Segment operating profit$2,323 $469 $466 $485 $3,743 

For the Year Ended December 31, 2023
(In millions)CSACSECSAMECSTSegment Total
Net sales$9,615 $1,937 $3,581 $3,818 $18,951 
Cost of goods sold(6,629)(1,410)(2,697)(2,854)(13,590)
Research and development(294)(28)(52)(74)(448)
Selling, general and administrative(974)(327)(573)(431)(2,305)
Equity method investment net earnings145 — 61 6 212 
Other income (expense), net(32)5 41 29 43 
Segment operating profit$1,831 $177 $361 $494 $2,863 
(In millions)202520242023
Reconciliation to Earnings before income taxes
Segment operating profit$3,494 $3,743 $2,863 
Corporate and other(202)(201)(214)
Restructuring costs(178)(108)(75)
Amortization of acquired intangibles(856)(689)(143)
Acquisition step-up amortization— (282)(41)
Acquisition/divestiture-related costs(55)(95)(123)
Viessmann-related hedges— (86)(96)
CCR gain7 318 — 
VCS pre-acquisition product replacement cost(38)— — 
Gain on liability adjustment— 46 — 
Bridge loan financing costs— — (3)
TCC Acquisition-related adjustment— — (8)
Non-service pension (expense) benefit(10)(1)(1)
Interest (expense) income, net(364)(371)(160)
Earnings before income taxes$1,798 $2,274 $1,999 

Segment operating profit is not defined under GAAP and may not be comparable to similarly titled measures used by other companies. Measures of capital expenditures, depreciation expense, amortization expense and total assets by reportable segment are not provided to the CODM and therefore not disclosed.

Total assets are not presented for each segment as they are not presented to or reviewed by the CODM. Segment assets in the following table represent Accounts receivable, net and Inventories, net. These assets are regularly reviewed by management and are therefore reported in the following table as segment assets. All other remaining assets and liabilities for all periods presented are managed on a company-wide basis.

Segment AssetsCapital ExpendituresDepreciation & Amortization
(In millions)20252024202520242023202520242023
CSA$1,472 $1,405 $151 $198 $179 $133 $134 $120 
CSE1,660 1,590 135 197 63 878 813 56 
CSAME988 952 39 48 74 198 213 241 
CST915 818 25 32 30 26 35 34 
Total Segment5,035 4,765 350 475 346 1,235 1,195 451 
Corporate and other87 185 42 44 93 39 37 40 
Consolidated$5,122 $4,950 $392 $519 $439 $1,274 $1,232 $491 
Cash and cash equivalents1,555 3,969 
Other assets, current1,264 972 
Assets held for sale592 — 
Total current assets $8,533 $9,891 
Geographic External Sales

Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. With the exception of the U.S. as presented in the following table, there were no individually significant countries with sales exceeding 10% of total sales for the years ended December 31, 2025, 2024 and 2023.

External SalesLong-Lived Assets
(In millions)20252024202320252024
United States Operations$11,136 $11,294 $10,457 $789 $807 
International Operations
Europe6,092 6,687 3,910 1,404 1,253 
Asia Pacific3,841 3,817 3,949 482 486 
Other678 688 635 490 453 
Consolidated$21,747 $22,486 $18,951 $3,165 $2,999 
v3.25.4
RELATED PARTIES
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
RELATED PARTIES RELATED PARTIES
Equity Method Investments

The Company sells products to and purchases products from unconsolidated entities accounted for under the equity method and, therefore, these entities are considered to be related parties. The Company has 28 directly owned unconsolidated domestic and foreign affiliates as of December 31, 2025, of which 56% relates to Climate Solutions Americas, and 40% relates to Climate Solutions Asia Pacific, Middle East & Africa. The Company periodically reviews the carrying value of its equity method investments to determine if there has been an other-than-temporary decline in fair value.

Amounts attributable to equity method investees are as follows:

(In millions)202520242023
Sales to equity method investees included in Product sales
$2,874 $2,956 $2,920 
Purchases from equity method investees included in Cost of products sold
$227 $237 $214 

The Company had receivables from and payables to equity method investees as follows:

(In millions)20252024
Receivables from equity method investees included in Accounts receivable, net
$220 $363 
Payables to equity method investees included in Accounts payable
$40 $32 

Summarized Financial Information. Pursuant to Rule 3-10 and Rule 4-08(g) of Regulation S-X under the Securities Act, the Company presents summarized financial information of the combined accounts of its non-consolidated joint ventures accounted for by the equity method.
Summarized unaudited financial information for equity method investments is as follows:

(In millions)20252024
Current assets$11,835 $12,823 
Non-current assets2,418 2,396 
Total assets14,253 15,219 
Current liabilities(9,675)(11,053)
Non-current liabilities(236)(210)
Total liabilities(9,911)(11,263)
Total net equity of investees$4,342 $3,956 

(In millions)202520242023
Net sales$18,154 $17,567 $16,180 
Gross profit$3,168 $3,063 $2,862 
Income from continuing operations$676 $700 $655 
Net earnings (loss)$676 $700 $655 
v3.25.4
COMMITMENTS AND CONTINGENT LIABILITIES
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENT LIABILITIES COMMITMENTS AND CONTINGENT LIABILITIES
The Company is involved in various litigation, claims and administrative proceedings, including those related to environmental (including asbestos) and legal matters. In accordance with ASC 450, Contingencies, the Company records accruals for loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These accruals are generally based upon a range of possible outcomes. If no amount within the range is a better estimate than any other, the Company accrues the minimum amount. In addition, these estimates are reviewed periodically and adjusted to reflect additional information when it becomes available. The Company is unable to predict the final outcome of the following matters based on the information currently available, except as otherwise noted. However, the Company does not believe that the resolution of any of these matters will have a material adverse effect upon its results of operations or financial condition.

Environmental Matters

The Company’s operations are subject to environmental regulation by various authorities. The Company has accrued for the costs of environmental remediation activities, including but not limited to, investigatory, remediation, operating and maintenance costs and performance guarantees. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to individual sites, including the technology required to remediate, current laws and regulations and prior remediation experience.

As of December 31, 2025 and 2024, the outstanding liability for environmental obligations are as follows:

(In millions)20252024
Environmental reserves included in Accrued liabilities
$18 $25 
Environmental reserves included in Other long-term liabilities
182 185
Total environmental reserves$200 $210 

For sites with multiple responsible parties, the Company considers its likely proportionate share of the anticipated remediation costs and the ability of other parties to fulfill their obligations in establishing a provision for these costs. Accrued environmental liabilities are not reduced by potential insurance reimbursements and are undiscounted.
Asbestos Matters

The Company has been named as a defendant in lawsuits alleging personal injury as a result of exposure to asbestos allegedly integrated into certain Carrier products or business premises. While the Company has never manufactured asbestos and no longer incorporates it into any currently-manufactured products, certain products that the Company no longer manufactures contained components incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or have been covered in full or in part by insurance or other forms of indemnity. Additional cases were litigated and settled without any insurance reimbursement. The amounts involved in asbestos-related claims were not material individually or in the aggregate in any period.

The Company's asbestos liabilities and related insurance recoveries are as follows:
(In millions)20252024
Asbestos liabilities included in Accrued liabilities
$17 $17 
Asbestos liabilities included in Other long-term liabilities
201 208 
Total asbestos liabilities$218 $225 
Asbestos-related recoveries included in Accounts receivable, net
$6 $7 
Asbestos-related recoveries included in Other assets
86 88 
Total asbestos-related recoveries$92 $95 

The amounts recorded for asbestos-related liabilities are based on currently available information and assumptions that the Company believes are reasonable and are made with input from outside actuarial experts. These amounts are undiscounted and exclude the Company's legal fees to defend the asbestos claims, which are expensed as incurred. In addition, the Company has recorded insurance recovery receivables for probable asbestos-related recoveries.

Aqueous Film Forming Foam Litigation

As of December 31, 2025, the Company, Kidde-Fenwal, Inc. ("KFI") and others have been named as defendants in more than 17,000 lawsuits filed in United States state or federal courts and a single case in Canada alleging that the historic use of Aqueous Film Forming Foam ("AFFF") caused personal injuries and damage to property and water supplies. In December 2018, the U.S. Judicial Panel on Multidistrict Litigation transferred and consolidated all AFFF cases pending in the U.S. federal courts against the Company, KFI and others to the U.S. District Court for the District of South Carolina (the "MDL Proceedings"). Individual plaintiffs in the MDL Proceedings generally seek damages for alleged personal injuries, medical monitoring, diminution in property value and injunctive relief to remediate alleged contamination of water supplies. U.S. state, municipal and water utility plaintiffs in the MDL Proceedings generally seek damages and costs related to the remediation of public property and water supplies.

AFFF is a firefighting foam, developed beginning in the late 1960s pursuant to U.S. military specification, used to extinguish certain types of hydrocarbon-fueled fires. The lawsuits identified above relate to Kidde Fire Fighting, Inc., which owned the “National Foam” business that manufactured AFFF for sale to government (including the U.S. federal government) and non-government customers in the U.S. at a single facility located in West Chester, Pennsylvania (the "Pennsylvania Site"). Kidde Fire Fighting, Inc. was acquired by a UTC subsidiary in 2005 and merged into KFI in 2007. In 2013, KFI divested the AFFF businesses to an unrelated third party. The Company acquired KFI as part of the Separation in April 2020.

The key components that contribute to AFFF's fire-extinguishing capabilities are known as fluorosurfactants. Neither the Company, nor KFI, nor any of the Company's subsidiaries involved in the AFFF litigation manufactured fluorosurfactants. Instead, the National Foam business purchased these substances from unrelated third parties for use in manufacturing AFFF. Plaintiffs in the MDL Proceedings allege that the fluorosurfactants used by various manufacturers in producing AFFF contained, or over time degraded into, compounds known as per- and polyfluoroalkyl substances (referred to collectively as "PFAS"), including perflourooctanesulfonic acid ("PFOS") and perflourooctanoic acid ("PFOA"). Plaintiffs further allege that, as a result of the use of AFFF, PFOS and PFOA were released into the environment and, in some instances, ultimately reached drinking water supplies.
Plaintiffs in the MDL Proceedings have named multiple defendants, including suppliers of chemicals and raw materials used to manufacture fluorosurfactants, fluorosurfactant manufacturers and AFFF manufacturers. The defendants in the MDL Proceedings moved for summary judgment on the government contractor defense, which potentially applies to AFFF sold to or used by the U.S. government. After full briefing and oral argument, on September 16, 2022, the MDL court declined to enter summary judgment for the defendants. The defense, however, remains available at any trial in which it would apply.

On May 14, 2023, KFI filed a voluntary petition with the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) seeking relief under chapter 11 of the Bankruptcy Code, after the Company determined that it would not provide financial support to KFI going forward other than ensuring KFI has access to services necessary for the effective operation of its business. As a result, all litigation against KFI was automatically stayed. By agreement, all AFFF-related litigation against the Company, its other subsidiaries and RTX also was stayed. On November 21, 2023, the Bankruptcy Court ordered certain parties, including the Company, to participate in mediation sessions with respect to claims that might be asserted by and against it in the bankruptcy proceedings.

Following the conclusion of these mediation sessions in October 2024, the Company entered into a Settlement and Plan Support Agreement which contemplates that the Company will subsequently enter into three distinct settlement agreements (collectively, the “Proposed Settlement Agreements”) with KFI, the Official Committee of Unsecured Creditors appointed in KFI’s bankruptcy case (the “Committee”) and the Plaintiffs’ Executive Committee (the “MDL PEC”) appointed in the MDL Proceedings.

The first of the Proposed Settlement Agreements relates to claims that the Company is responsible for liabilities arising from KFI’s manufacture or sale of AFFF (“Estate Claims Settlement”). Upon Bankruptcy Court approval, the Estate Claims Settlement will permanently resolve all present and future claims that the Company is responsible for any liabilities of KFI, including all liabilities arising from KFI’s manufacture and sale of AFFF. The second and third of the Proposed Settlement Agreements release a very substantial amount of current and future direct claims against the Company (the “Direct Claims Settlements”). Direct claims allege that UTC, which indirectly owned KFI’s AFFF business for eight years, engaged in conduct independent of KFI that caused harm to AFFF claimants. The Company agreed to indemnify UTC for these direct claims when it was spun-off from UTC. Upon approval by the MDL Court, the Direct Claims Settlements resolve and enjoin all current and future AFFF-related direct claims against the Company by participating public water providers and airports. Non-settling parties may still assert direct AFFF-related claims, although we expect a vast majority of public water providers and airports will participate in the Direct Claims Settlements.

As part of the Proposed Settlement Agreements, the Company will pay $615 million in cash over five years, 100% of the net sale proceeds from its sale of KFI’s assets to Pacific Avenue Capital Partners, which are estimated to be $115 million, and contribute the right to recover proceeds under certain of its insurance policies. The Company will be entitled to receive up to $2.4 billion of proceeds from those insurance policies and will contribute the first $125 million of such proceeds as additional consideration in the Direct Claims Settlements. The Company also will be entitled to any earnouts payable to KFI under the KFI sale agreement. The Company expects insurance proceeds it receives in the future, in the aggregate, to cover the amount paid under the Proposed Settlement Agreements. As a result of the Proposed Settlement Agreements, the Company recorded a liability in the amount of $565 million during the year December 31, 2024. The amount recognized is in addition to liabilities of $50 million that the Company recorded upon the deconsolidation of KFI on May 14, 2023, as further discussed below. As of December 31, 2025, the Company has not recorded any amounts associated with expected insurance proceeds.

The Company and KFI believe that they have meritorious defenses to the remaining AFFF claims. Given the numerous factual, scientific and legal issues to be resolved relating to these claims, the Company is unable to assess the probability of liability or to reasonably estimate a range of possible loss at this time. There can be no assurance that any such future exposure will not be material in any period.

On November 14, 2024, KFI filed the chapter 11 plan of liquidation (as may be further amended, restated, supplemented, waived, or otherwise modified from time to time, the "Chapter 11 Plan"), which incorporates the Estate Claims Settlement, provides for the treatment of the various creditor classes, and establishes wind-down provisions, among other things, and the disclosure statement for the Chapter 11 Plan (as may be further amended, restated, supplemented, waived, or otherwise modified from time to time, the "Disclosure Statement"). A hearing to approve the Disclosure Statement was held in June 2025. A revised and supplemented Disclosure Statement was filed on August 15, 2025. The Bankruptcy Court held a hearing on that statement on October 6, 2025. Following that hearing, the Bankruptcy Court ordered that the revised and supplemented Disclosure Statement be modified further in two areas, which the parties are addressing.
Deconsolidation Due to Bankruptcy

As of May 14, 2023, the Company no longer controlled KFI as its activities are subject to review and oversight by the Bankruptcy Court. Therefore, KFI was deconsolidated and its respective assets and liabilities were derecognized from the Company’s Consolidated Financial Statements. Upon deconsolidation, the Company determined the fair value of its retained interest in KFI to be zero and accounted for it prospectively using the cost method. As a result of these actions, the Company recognized a net loss of $292 million in its Consolidated Statement of Operations within Discontinued operations, net of tax. In addition, the deconsolidation resulted in an investing cash outflow of $134 million in the Company's Consolidated Statement of Cash Flows within Net cash flows provided by (used in) discontinued investing activities.

In connection with the bankruptcy filing, KFI entered into several agreements with subsidiaries of the Company to ensure they have access to services necessary for the effective operation of their business. All post-deconsolidation activity between the Company and KFI are reported as third-party transactions recorded within the Company's Consolidated Statement of Operations. Since the petition date, there were no material transactions between the Company and KFI other than a $15 million payment during 2024 by the Company to KFI under the terms of a tax sharing arrangement.

Income Taxes

Under the TMA relating to the Separation, the Company is responsible to UTC for its share of the TCJA transition tax associated with foreign undistributed earnings as of December 31, 2017. As a result, a liability of $101 million is included within the accompanying Consolidated Balance Sheet within Accrued liabilities as of December 31, 2025. This obligation is expected to be settled in April 2026. The Company believes that the likelihood of incurring losses materially in excess of this amount is remote.

Self-Insurance

The Company maintains self-insurance for a number of risks, including but not limited to, workers’ compensation, general liability, automobile liability, property and employee-related healthcare benefits. It has obtained insurance coverage for amounts exceeding individual and aggregate loss limits. The Company accrues for known future claims and incurred but not reported losses.

The Company's self-insurance liabilities were as follows:

(In millions)20252024
Self-insurance liabilities included in Accrued liabilities
$159 $173 
Self-insurance liabilities included in Other long-term liabilities
42 43
Total self-insurance liabilities$201 $216 

The Company incurred expenses related to self-insured risks of $157 million, $135 million and $139 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Other Matters

The Company has other commitments and contingent liabilities related to legal proceedings, self-insurance programs and matters arising in the ordinary course of business. The Company accrues for contingencies generally based upon a range of possible outcomes. If no amount within the range is a better estimate than any other, the Company accrues the minimum amount.

In the ordinary course of business, the Company is also routinely a defendant in, party to or otherwise subject to many pending and threatened legal actions, claims, disputes and proceedings. These matters are often based on alleged violations of contract, product liability, warranty, regulatory, environmental, health and safety, employment, intellectual property, tax and other laws. In some of these proceedings, claims for substantial monetary damages are asserted against the Company and could result in fines, penalties, compensatory or treble damages or non-monetary relief. The Company does not believe that these matters will have a material adverse effect upon its competitive position, results of operations, cash flows or financial condition.
v3.25.4
SUPPLEMENTAL CASH FLOW INFORMATION
 12 Months Ended
Dec. 31, 2025
Supplemental Cash Flow Elements [Abstract]  
SUPPLEMENTAL CASH FLOW INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental cash flow information was as follows:

(In millions)202520242023
Interest paid, net of amounts capitalized$422 $610 $320 
Income taxes paid, net of refunds (1)
$729 $2,126 $942 
Non-cash financing activity:
Common stock dividends payable$201 $199 $161 
(1) Following the adoption of ASU 2023-09, for the year ended December 31, 2025, income taxes paid amounted to $284 million for Federal, $118 million for State, $69 million for China, $56 million for France, $53 million for Mexico, and $198 million to other jurisdictions. In addition, refunds received amounted to $49 million for Germany.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Impact of cybersecurity risks on business strategy, results of operations or financial condition.

As discussed under the “Risk Factors” heading in this Annual Report, our business has been and may again in the future be impacted by disruptions to our Technology infrastructure or our third-party providers’ Technology infrastructures from (among other causes) cybersecurity-based risks, including attacks (i) on our Technology infrastructure (ii) targeting the security, integrity and/or availability of hardware and software; (iii) exploiting weaknesses or vulnerabilities in products, or capturing information installed, stored or transmitted in our products (including after the purchase of those products and when they are installed into third-party products); and (iv) on facilities or similar infrastructure.
Risk Management and strategy

We mitigate cybersecurity risks (and other material risks) through our enterprise risk management (“ERM”) program, which is a company-wide effort, managed by senior executives and overseen by our Audit Committee and Board of Directors to identify, assess, manage, report and monitor material risks that may affect our ability to achieve our business objectives.

In connection with the ERM process, cybersecurity risks, including those relating to risks posed by our use of third-party service providers, are assigned to cross-functional management committees responsible for identifying and classifying the cybersecurity risks in accordance with our ERM risk rating methodology, and developing and administering risk mitigation and incident response plans. These cross-functional management committees regularly meet to review current and emerging cybersecurity risks and maintain policies and procedures governing the evaluation and classification of such risks.

Cybersecurity risks deemed to be critical are reviewed by a Critical Threat Committee, which is comprised of members of our senior leadership team including our Executive Vice President, Chief Financial & Strategy Officer; Senior Vice President, Chief Legal Officer; Senior Vice President, Chief Digital Officer; Senior Vice President, Operations; Senior Vice President, Engineering; and Vice President, Controller & Chief Accounting Officer. The Critical Threat Committee reviews the risk and mitigation plan with the applicable cross-functional management team and facilitates notification to the Audit Committee of emerging critical cybersecurity risks. The Audit Committee and the Board of Directors receive regular briefings on cybersecurity risks. See “Governance” below for further discussion of governance of our cybersecurity program.

In the event of a cybersecurity incident, we maintain incident response plans to investigate, classify, respond to, and manage cybersecurity incidents that may compromise the availability or integrity of our information systems, network resources, or data. In accordance with the incident response plans, cross-functional management teams assess and assign a threat level to each cybersecurity incident. A cybersecurity incident (or incidents, if aggregated together) assigned a critical threat level is escalated to the Critical Threat Committee for review.

To ensure that our employees are equipped to identify and mitigate material cybersecurity incidents and to empower them to help us maintain a secure environment for our operations and data assets, we utilize a multifaceted training approach aimed at fostering a culture of security awareness and responsibility among all employees. These tailored programs are designed and updated to address evolving threats and industry best practices. In addition to annual cybersecurity training for employees and contractors and simulated phishing email campaigns, our cybersecurity teams conduct tabletop exercises with our senior management team. Our cybersecurity teams also oversee a security assessment process that is used to screen our third-party service providers for cybersecurity vulnerabilities based on the level of inherent risk they pose to the company or our customers, based on factors including but not limited to the products or services they provide and their ability to access our information systems, network resources, or data.

We engage and retain outside consultants and legal advisors and we are members of several cybersecurity industry groups to keep us apprised of emerging cybersecurity risks, defense and mitigation strategies and governance best practices. Many of our processes and procedures are independently audited and assessed on a periodic basis against leading international cybersecurity standards and programs.
Cybersecurity threats are constantly evolving, are becoming more frequent and more sophisticated and are made by groups of individuals with a wide range of expertise and motives which increases the difficulty of detecting and successfully defending against them. However, to date, cybersecurity threats have not materially affected us, including our business, strategy, results of operations or financial condition.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We mitigate cybersecurity risks (and other material risks) through our enterprise risk management (“ERM”) program, which is a company-wide effort, managed by senior executives and overseen by our Audit Committee and Board of Directors to identify, assess, manage, report and monitor material risks that may affect our ability to achieve our business objectives.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] Cybersecurity risk oversight continues to remain a top priority for the Board of Directors.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Although the Audit Committee maintains primary responsibility for oversight of cybersecurity risks through the ERM program, responsibility related to oversight of cybersecurity risks is also delegated to other committees in alignment with their focus charter responsibilities.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Critical Threat Committee is also responsible for evaluating the materiality of a cybersecurity incident based on criteria that has been reviewed with the Board of Directors, and for determining whether there are disclosure obligations under applicable securities laws. In the event that the Critical Threat Committee determines that a critical cybersecurity incident (or incidents, if aggregated together) is deemed to be material, the Critical Threat Committee will brief the Board of Directors and oversee the disclosure process. For all critical cybersecurity incidents that are not deemed to be material, the Critical Threat Committee will notify the Chairman of the Board to determine whether the Board of Directors will be notified of the critical incident during the next regularly-scheduled cybersecurity update to the Audit Committee, or sooner as circumstances warrant.
Cybersecurity Risk Role of Management [Text Block]
Our cybersecurity programs, including the cross-functional management committees described above are the responsibility of our Chief Information Security Officer. Day-to-day administration of the cybersecurity programs are led by our Chief Information Security Officer and Chief Product Security Officer who collectively possess significant experience related to cybersecurity issues in both the private and government sectors, and possess certifications including but not limited to Certified Information Systems Security Professional ("CISSP") and Certified Information Security Manager ("CISM").
Cybersecurity risk oversight continues to remain a top priority for the Board of Directors. Although the Audit Committee maintains primary responsibility for oversight of cybersecurity risks through the ERM program, responsibility related to oversight of cybersecurity risks is also delegated to other committees in alignment with their focus charter responsibilities. For example, the Technology and Innovation and Governance Committees assist with the cybersecurity programs through their oversight of our technology, digital, and innovation strategies and product integrity program, respectively.
The Critical Threat Committee is also responsible for evaluating the materiality of a cybersecurity incident based on criteria that has been reviewed with the Board of Directors, and for determining whether there are disclosure obligations under applicable securities laws. In the event that the Critical Threat Committee determines that a critical cybersecurity incident (or incidents, if aggregated together) is deemed to be material, the Critical Threat Committee will brief the Board of Directors and oversee the disclosure process. For all critical cybersecurity incidents that are not deemed to be material, the Critical Threat Committee will notify the Chairman of the Board to determine whether the Board of Directors will be notified of the critical incident during the next regularly-scheduled cybersecurity update to the Audit Committee, or sooner as circumstances warrant.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our cybersecurity programs, including the cross-functional management committees described above are the responsibility of our Chief Information Security Officer. Day-to-day administration of the cybersecurity programs are led by our Chief Information Security Officer and Chief Product Security Officer who collectively possess significant experience related to cybersecurity issues in both the private and government sectors, and possess certifications including but not limited to Certified Information Systems Security Professional ("CISSP") and Certified Information Security Manager ("CISM").
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Day-to-day administration of the cybersecurity programs are led by our Chief Information Security Officer and Chief Product Security Officer who collectively possess significant experience related to cybersecurity issues in both the private and government sectors, and possess certifications including but not limited to Certified Information Systems Security Professional ("CISSP") and Certified Information Security Manager ("CISM").
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Critical Threat Committee is also responsible for evaluating the materiality of a cybersecurity incident based on criteria that has been reviewed with the Board of Directors, and for determining whether there are disclosure obligations under applicable securities laws. In the event that the Critical Threat Committee determines that a critical cybersecurity incident (or incidents, if aggregated together) is deemed to be material, the Critical Threat Committee will brief the Board of Directors and oversee the disclosure process. For all critical cybersecurity incidents that are not deemed to be material, the Critical Threat Committee will notify the Chairman of the Board to determine whether the Board of Directors will be notified of the critical incident during the next regularly-scheduled cybersecurity update to the Audit Committee, or sooner as circumstances warrant.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Accounting
The accompanying Consolidated Financial Statements reflect the consolidated operations of the Company and have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") as defined by the Financial Accounting Standards Board ("FASB") within the FASB Accounting Standards Codification ("ASC"). Inter-company accounts and transactions have been eliminated. Related party transactions between the Company and its equity method investees have not been eliminated.

The accompanying Consolidated Financial Statements include all majority-owned subsidiaries of the Company. A non-controlling interest in a subsidiary is considered an ownership interest in a majority-owned subsidiary that is not attributable to the parent. The Company includes Non-controlling interest as a component of Total equity in the accompanying Consolidated Balance Sheet and the Non-controlling interest in subsidiaries' earnings from operations are presented as an adjustment to Earnings before income taxes used to arrive at Net earnings (loss) attributable to common shareowners in the accompanying Consolidated Statement of Operations. Partially-owned equity affiliates represent 20 to 50% ownership interests in investments where the Company demonstrates significant influence, but does not have a controlling financial interest. Partially-owned equity affiliates are accounted for under the equity method.
Use of Estimates The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Estimates are based on several factors including the facts and circumstances available at the time the estimates are made, historical experience and various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.
Currency Translation Assets and liabilities of non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, have been translated at year-end exchange rates, and income and expense accounts have been translated using average exchange rates throughout the year. Adjustments resulting from the process of translating an entity’s financial statements into the U.S. dollar have been recorded in the equity section of the Consolidated Balance Sheet within Accumulated other comprehensive income (loss). Transactions that are denominated in a currency other than an entity’s functional currency are subject to changes in exchange rates with the resulting gains and losses recorded in Net earnings (loss).
Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have original maturities of three months or less. On occasion, the Company is required to maintain restricted cash deposits with certain banks due to contractual or other legal obligations.
Accounts Receivable Accounts receivable consist of billed amounts owed for products shipped to or services performed for customers. Amounts are recorded net of an allowance for expected credit losses which represents the best estimate of probable loss inherent in the Company's accounts receivable portfolio. The allowance is determined using a combination of factors including a reserve based on the aging of the outstanding accounts receivable portfolio and the Company's historical credit loss experience with its end markets, customer base and products. In addition, the Company considers knowledge of specific customers, current market conditions as well as reasonable and supportable forecasts of future events and economic conditions. These estimates and assumptions are reviewed periodically with the effects of changes, if any, reflected in the Consolidated Statement of Operations in the period that they are determined.
Fixed Assets Property, plant and equipment are stated at cost less accumulated depreciation. Assets placed in service are recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset. Assets acquired in a business combination are recorded at fair value at the date of acquisition. Major expenditures for replacements and significant improvements that increase asset values and extend useful lives are capitalized. Repairs and maintenance expenditures that do not extend the useful life of an asset are charged to expense as incurred.
Per ASC 360, Property, Plant and Equipment ("ASC 360"), the Company assesses the recoverability of the carrying value of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying value of an asset group may not be recoverable. Recoverability is measured by a comparison of the carrying value of an asset group to the future net undiscounted cash flows expected to be generated by the asset group. If the undiscounted cash flows are less than the carrying value of the asset group, an impairment loss is recognized for the amount by which the carrying value of the asset group exceeds the fair value of the asset group.
Equity Method Investments Investments in which the Company has the ability to exercise significant influence, but does not control, are accounted for under the equity method of accounting and are presented on the Consolidated Balance Sheet. Under this method of accounting, the Company’s share of the net earnings or losses of the investee is presented within Operating profit on the Consolidated Statement of Operations since the activities of the investee are closely aligned with the operations of the Company. The Company evaluates its equity method investments whenever events or changes in circumstance indicate that the carrying values of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. Distributions received from equity method investees are presented in the Consolidated Statement of Cash Flows based on the cumulative earnings approach.
Goodwill and Intangible Assets The Company records goodwill as the excess of the purchase price over the fair value of the net assets acquired in a business combination. In accordance with ASC 350, Intangibles - Goodwill and Other ("ASC 350"), goodwill is tested and reviewed annually for impairment on July 1 or whenever there is a material change in events or circumstances that indicates that the fair value of the reporting unit may be less than its carrying value.
Impairment of goodwill is assessed at the reporting unit level and begins with a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether it is necessary to perform the goodwill impairment test under ASC 350. For those reporting units that bypass or fail the qualitative assessment, the test compares the carrying value of the reporting unit to its estimated fair value. Fair value of a reporting unit is estimated using a discounted cash flow method under the income approach. The approach relies on estimates of future cash flows, revenue growth rates, earnings before interest and income taxes margins, discount rates, and terminal growth rates and explicitly addressed factors such as timing, growth and margins with due consideration given to forecasting, market and geographic risk. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired. To the extent that the carrying value of the reporting unit exceeds its estimated fair value, an impairment loss will be recognized for the amount by which the reporting unit's carrying value exceeds its fair value, not to exceed the carrying value of goodwill in that reporting unit.

Intangible assets such as patents, service contracts, monitoring lines and customer relationships with finite useful lives are amortized based on the pattern in which the economic benefits of the intangible assets are consumed. If a pattern of economic benefit cannot be reliably determined or if straight-line amortization approximates the pattern of economic benefit, a straight-line amortization may be used.

The range of useful lives approximate the following (in years):

Customer relationships
1 to 30
Patents and trademarks
5 to 40
Technology and other
1 to 50

The Company assesses the recoverability of the carrying value of its intangible assets with finite useful lives whenever events or changes in circumstances indicate that the carrying value of the asset group may not be recoverable. Recoverability is measured by a comparison of the carrying value of an asset group to the future net undiscounted cash flows expected to be generated by the asset group. If the undiscounted cash flows are less than the carrying value of the asset group, an impairment loss is recognized for the amount by which the carrying value of the asset group exceeds the fair value of the asset group.
Leases The Company accounts for leases in accordance with ASC 842, Leases ("ASC 842"), which requires a lessee to record a right-of-use ("ROU") asset and a lease liability on the Consolidated Balance Sheet for all leases with terms longer than 12 months. ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company generally uses its incremental borrowing rate, which is based on information available at the lease commencement date, to determine the present value of lease payments except when an implicit interest rate is readily determinable. The lease term may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company has elected not to recognize ROU assets and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less.
Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes ("ASC 740"). Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. The Company recognizes future tax benefits to the extent that realizing these benefits is considered in its judgment to be more likely than not. For those jurisdictions where the expiration date of tax carryforwards or the projected operating results indicate that realization is not likely, a valuation allowance is provided. The Company reviews the realizability of its deferred tax asset valuation allowances on a quarterly basis, or whenever events or changes in circumstances indicate that a review is required and will adjust its estimate if significant events so dictate. To the extent that the ultimate results differ from the Company's original or adjusted estimates, the effect will be recorded in the provision for income taxes in the period that the matter is finally resolved.
In the ordinary course of business, there is inherent uncertainty in quantifying the Company's income tax positions. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the Consolidated Financial Statements.
Pension and Post-retirement Obligations The Company provides a range of benefit plans to eligible current and former employees. The Company accounts for its benefit plans in accordance with ASC 715, Compensation - Retirement Benefits ("ASC 715") which requires balance sheet recognition of the overfunded or underfunded status of pension and post-retirement benefit plans. Determining the amounts associated with these benefits are performed by actuaries and dependent on various actuarial assumptions including discount rates, expected return on plan assets, compensation increases, mortality and health care cost trends. Actual results may differ from the actuarial assumptions and are generally recorded in Accumulated other comprehensive income (loss) and amortized into Net earnings (loss) over future periods. The Company reviews its actuarial assumptions at each measurement date and makes modifications to the assumptions based on current rates and trends, if appropriate.
Business Combinations In accordance with ASC 805, Business Combinations ("ASC 805"), acquisitions that meet the definition of a business are recorded using the acquisition method of accounting. The Company recognizes and measures identifiable assets acquired, liabilities assumed and any non-controlling interest as of the acquisition date at fair value. The valuation of intangible assets is determined by an income approach methodology, using assumptions such as projected future revenues, customer attrition rates, royalty rates, tax rates and discount rates. The excess, if any, of total consideration transferred in a business combination over the fair value of identifiable assets acquired, liabilities assumed and any non-controlling interest is recognized as goodwill. Costs incurred as a result of a business combination other than costs related to the issuance of debt or equity securities are recorded in the period the costs are incurred.
Asset Retirement Obligations The Company records the fair value of legal obligations associated with the retirement of tangible long-lived assets in the period in which a liability is determined to exist, if a reasonable estimate of fair value can be made. Upon initial recognition of a liability, the Company capitalizes the cost of the asset retirement obligation by increasing the carrying value of the related long-lived asset. Over time, the liability is increased for changes in its present value and the capitalized cost is depreciated over the useful life of the related asset.
Research and Development The Company conducts research and development activities with a focus on new product development and technology innovation. These costs are charged to expense as incurred.
Recently Issued and Adopted Accounting Pronouncements
The FASB ASC is the sole source of authoritative GAAP other than United States Securities and Exchange Commission ("SEC') issued rules and regulations that apply only to SEC registrants. The FASB issues Accounting Standards Updates ("ASU") to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. ASUs not referenced below were assessed and determined to be either not applicable or are not expected to have a material impact on the Consolidated Financial Statements.

Recently Issued and Adopted Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which requires public entities to disclose disaggregated information about their effective tax rate reconciliation as well as information on income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 prospectively for the period ending December 31, 2025.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE) ("ASU 2024-03"), which requires public entities to disclose disaggregated information about expenses by nature on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently assessing the impact of this ASU on its financial statements.
Product Warranties In the ordinary course of business, the Company provides standard warranty coverage on its products. Provisions for these amounts are established at the time of sale and estimated primarily based on product warranty terms and historical claims experience. In addition, the Company incurs discretionary costs to service its products in connection with specific product performance issues. Provisions for these amounts are established when they are known and estimable. The Company assesses the adequacy of its initial provisions and will make adjustments as necessary based on known or anticipated claims or as new information becomes available that suggests it is probable that future costs will be different than estimated amounts.
Revenue Recognition
The Company accounts for revenue in accordance with ASC 606: Revenue from Contracts with Customers. Revenue is recognized when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. A significant portion of the Company's performance obligations are recognized at a point-in-time when control of the product transfers to the customer, which is generally the time of shipment. The remaining portion of the Company’s performance obligations are recognized over time as the customer simultaneously obtains control as the Company performs work under a contract, or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment.
Performance Obligations

A performance obligation is a distinct good, service or a bundle of goods and services promised in a contract. Some of the Company's contracts with customers contain a single performance obligation, while others contain multiple performance obligations most commonly when a contract spans multiple phases of a product life-cycle such as production, installation, maintenance and support. The Company identifies performance obligations at the inception of a contract and allocates the transaction price to each distinct performance obligation. Revenue is recognized when or as the performance obligation is satisfied. When there are multiple performance obligations within a contract, the Company allocates the transaction price to each performance obligation based on its relative stand-alone selling price.

The Company primarily generates revenue from the sale of products to customers and recognizes revenue at a point in time when control transfers to the customer. Transfer of control is generally based on the shipping terms of the contract. In addition, the Company recognizes revenue on an over-time basis on installation and service contracts. For over-time performance obligations requiring the installation of equipment, revenue is recognized using costs incurred to date relative to total estimated costs at completion to measure progress. Incurred costs represent work performed, which correspond with and best depict transfer of control to the customer. Contract costs include direct costs such as labor, materials and subcontractors’ costs and where applicable, indirect costs.
The transaction price allocated to performance obligations reflects the Company’s expectations about the consideration it will be entitled to receive from a customer. The Company includes variable consideration in the estimated transaction price when there is a basis to reasonably estimate the amount and when it is probable that a significant reversal of revenue recognized would not occur when the uncertainty associated with variable consideration is subsequently resolved. In addition, the Company customarily offers its customers incentives to purchase products to ensure an adequate supply of its products in distribution channels. The principal incentive programs provide reimbursements to distributors for offering promotional pricing for products. The Company accounts for estimated incentive payments as a reduction in sales at the time a sale is recognized.
The timing of revenue recognition, billings and cash collections results in contract assets and contract liabilities. Contract assets relate to the conditional right to consideration for any completed performance under a contract when costs are incurred in excess of billings under the percentage-of-completion methodology. Contract liabilities relate to payments received in advance of performance under a contract or when the Company has a right to consideration that is conditioned upon transfer of a good or service to the customer. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract.
Stock Based Compensation The Company accounts for stock-based compensation plans in accordance with ASC 718, Compensation - Stock Compensation, which requires a fair-value based method for measuring the value of stock-based compensation. Fair value is measured at the date of grant and is generally not adjusted for subsequent changes. The Company's stock-based compensation plans include programs for stock appreciation rights, restricted stock and performance share units.
Commitments and Contingencies
The Company is involved in various litigation, claims and administrative proceedings, including those related to environmental (including asbestos) and legal matters. In accordance with ASC 450, Contingencies, the Company records accruals for loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These accruals are generally based upon a range of possible outcomes. If no amount within the range is a better estimate than any other, the Company accrues the minimum amount. In addition, these estimates are reviewed periodically and adjusted to reflect additional information when it becomes available. The Company is unable to predict the final outcome of the following matters based on the information currently available, except as otherwise noted. However, the Company does not believe that the resolution of any of these matters will have a material adverse effect upon its results of operations or financial condition.

Environmental Matters
The Company’s operations are subject to environmental regulation by various authorities. The Company has accrued for the costs of environmental remediation activities, including but not limited to, investigatory, remediation, operating and maintenance costs and performance guarantees. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to individual sites, including the technology required to remediate, current laws and regulations and prior remediation experience.
For sites with multiple responsible parties, the Company considers its likely proportionate share of the anticipated remediation costs and the ability of other parties to fulfill their obligations in establishing a provision for these costs. Accrued environmental liabilities are not reduced by potential insurance reimbursements and are undiscounted.
Asbestos Matters

The Company has been named as a defendant in lawsuits alleging personal injury as a result of exposure to asbestos allegedly integrated into certain Carrier products or business premises. While the Company has never manufactured asbestos and no longer incorporates it into any currently-manufactured products, certain products that the Company no longer manufactures contained components incorporating asbestos. A substantial majority of these asbestos-related claims have been dismissed without payment or have been covered in full or in part by insurance or other forms of indemnity. Additional cases were litigated and settled without any insurance reimbursement. The amounts involved in asbestos-related claims were not material individually or in the aggregate in any period.
The amounts recorded for asbestos-related liabilities are based on currently available information and assumptions that the Company believes are reasonable and are made with input from outside actuarial experts. These amounts are undiscounted and exclude the Company's legal fees to defend the asbestos claims, which are expensed as incurred. In addition, the Company has recorded insurance recovery receivables for probable asbestos-related recoveries.
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Range of Useful Lives
The range of useful lives approximate the following (in years):

Customer relationships
1 to 30
Patents and trademarks
5 to 40
Technology and other
1 to 50
Identifiable intangible assets consisted of the following:

20252024
(In millions)Gross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet Amount
Customer relationships$6,143 $(1,573)$4,570 $5,607 $(939)$4,668 
Patents and trademarks945 (191)754 885 (147)738 
Technology and other1,692 (690)1,002 1,530 (504)1,026 
Total intangible assets$8,780 $(2,454)$6,326 $8,022 $(1,590)$6,432 
v3.25.4
INVENTORIES, NET (Tables)
 12 Months Ended
Dec. 31, 2025
Inventory Disclosure [Abstract]  
Schedule of Inventories, Net nventories, net consisted of the following:
(In millions)20252024
Raw materials$666 $625 
Work-in-process245 213 
Finished goods1,572 1,461 
Inventories, net$2,483 $2,299 
v3.25.4
FIXED ASSETS, NET (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Fixed Assets
Fixed assets, net consisted of the following:

(In millions)Estimated Useful Lives (Years)20252024
Land$165 $169 
Buildings and improvements
20 to 40
1,535 1,325 
Machinery, tools and equipment
3 to 25
3,344 2,947 
Rental assets
3 to 12
351 355 
Other, including assets under construction613 715 
Fixed assets, gross6,008 5,511 
Accumulated depreciation(2,843)(2,512)
Fixed assets, net$3,165 $2,999 
v3.25.4
GOODWILL AND INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The changes in the carrying value of goodwill were as follows:

(In millions)Climate Solutions AmericasClimate Solutions EuropeClimate Solutions Asia Pacific, Middle East & AfricaClimate Solutions TransportationTotal
Balance at December 31, 2023$4,543 $703 $1,237 $1,037 $7,520 
Goodwill resulting from business combinations (1)
526 6,861 235 33 7,655 
Foreign currency translation(10)(529)(92)57 (574)
Balance at December 31, 2024$5,059 $7,035 $1,380 $1,127 $14,601 
Goodwill resulting from business combinations (1)
12 3 6 44 65 
Reclassified to held for sale (2)
— (175)— — (175)
Foreign currency translation4 945 24 37 1,010 
Balance as of December 31, 2025$5,075 $7,808 $1,410 $1,208 $15,501 
(1) See Note 19 - Acquisitions for additional information.
(2) See Note 20 - Divestitures for additional information.
Schedule of Finite Intangible Assets
The range of useful lives approximate the following (in years):

Customer relationships
1 to 30
Patents and trademarks
5 to 40
Technology and other
1 to 50
Identifiable intangible assets consisted of the following:

20252024
(In millions)Gross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet Amount
Customer relationships$6,143 $(1,573)$4,570 $5,607 $(939)$4,668 
Patents and trademarks945 (191)754 885 (147)738 
Technology and other1,692 (690)1,002 1,530 (504)1,026 
Total intangible assets$8,780 $(2,454)$6,326 $8,022 $(1,590)$6,432 
Schedule of Indefinite Intangible Assets
Identifiable intangible assets consisted of the following:

20252024
(In millions)Gross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet Amount
Customer relationships$6,143 $(1,573)$4,570 $5,607 $(939)$4,668 
Patents and trademarks945 (191)754 885 (147)738 
Technology and other1,692 (690)1,002 1,530 (504)1,026 
Total intangible assets$8,780 $(2,454)$6,326 $8,022 $(1,590)$6,432 
Schedule of Future Amortization of Intangible Assets
The estimated future amortization of intangible assets is as follows:

(In millions)20262027202820292030Thereafter
Future amortization$868 $818 $742 $655 $599 $2,644 
v3.25.4
BORROWINGS AND LINES OF CREDIT (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Short-Term Borrowings and Current Portion of Long-Term Debt
Short-term borrowings and current portion of long-term debt consisted of the following:

(In millions)20252024
Commercial paper$325 $— 
Short-term borrowings35 84 
Current portion of long-term debt108 1,252 
Short-term borrowings and current portion of long-term debt$468 $1,336 
Schedule of Long-Term Debt
Long-term debt consisted of the following:

(In millions)20252024
2.242% Notes due 2025 (1)
$— $1,200 
2.493% Notes due 2027
900 900 
4.125% Notes due 2028
883 783 
2.722% Notes due 2030
2,000 2,000 
2.700% Notes due 2031
750 750 
4.500% Notes due 2032
1,001 887 
5.900% Notes due 2034
875 875 
3.625% Notes due 2037
883 783 
3.377% Notes due 2040
1,500 1,500 
3.577% Notes due 2050
1,400 1,400 
6.200% Notes due 2054
650 650 
Total long-term notes10,842 11,728 
Japanese Term Loan Facility345 342 
Other debt (including project financing obligations and finance leases)364 296 
Discounts and debt issuance costs(78)(88)
Total long-term debt11,473 12,278 
Less: current portion of long-term debt108 1,252 
Long-term debt, net of current portion$11,365 $11,026 
(1) 2.242% Notes due February 15, 2025; repaid during February 2025.
Schedule of Maturities of Long-Term Debt
Scheduled maturities of long-term debt, excluding amortization of discount, are as follows:

(In millions)
2026$108 
2027$1,309 
2028$903 
2029$43 
2030$2,019 
Thereafter$7,169 
v3.25.4
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurements, Recurring and Nonrecurring
The following tables provide the valuation hierarchy classification of assets and liabilities that are recorded at fair value and measured on a recurring basis in the accompanying Consolidated Balance Sheet:

(In millions)TotalLevel 1Level 2Level 3
December 31, 2025
Fair value measurement:
Derivative assets (1)
$129 $— $129 $— 
Derivative liabilities (2)
$(166)$— $(166)$— 
December 31, 2024
Fair value measurement:
Derivative assets (1)
$82 $— $82 $— 
Derivative liabilities (2)
$(41)$— $(41)$— 
(1) Included in Other assets, current and Other assets on the accompanying Consolidated Balance Sheet.
(2) Included in Accrued liabilities and Other long-term liabilities on the accompanying Consolidated Balance Sheet.

The following table provides the carrying values and fair values of the Company's long-term notes that are not recorded at fair value in the accompanying Consolidated Balance Sheet:

20252024
(In millions)Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Total long-term notes (1)
$10,842 $10,167 $11,728 $10,798 
(1) Excludes debt discount and issuance costs.
v3.25.4
LEASES (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Operating Lease Right-of-use Assets and Liabilities
Operating lease right-of-use assets and liabilities are reflected on the Consolidated Balance Sheet as follows:

(In millions)20252024
Operating lease right-of-use assets$546 $554 
Accrued liabilities$(142)$(135)
Operating lease liabilities(418)(432)
Total operating lease liabilities$(560)$(567)
Weighted-Average Remaining Lease Term (in years)6.46.8
Weighted-Average Discount Rate4.6 %4.5 %
Schedule of Supplemental Cash Flow and Lease Expense Information
Supplemental cash flow and lease expense information related to operating leases were as follows:

(In millions)202520242023
Operating cash flows for measurement of operating lease liabilities$179 $173 $135 
Operating lease ROU assets obtained in exchange for operating lease obligations$100 $112 $50 
Operating lease expense$184 $175 $127 
Schedule of Lease Maturities
Undiscounted maturities of operating lease liabilities as of December 31, 2025, are as follows:

(In millions)
2026$163 
2027124 
202895 
202970 
203050 
Thereafter147 
Total undiscounted lease payments649 
Less: imputed interest(89)
Total discounted lease payments$560 
v3.25.4
EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of Company's Pension Plans
The following table details information regarding the Company's pension plans:

(In millions)20252024
Change in Benefit Obligation
Benefit obligation at beginning of year$657 $575 
Service cost13 14 
Interest cost28 26 
Actuarial (gain) loss(14)(9)
Benefits paid(19)(24)
Curtailment, settlements and special termination benefits(39)(13)
Other, including expenses paid37 (25)
Acquisitions (2)
— 113 
Benefit obligation at end of year$663 $657 
Change in Plan Assets
Fair value at beginning of year$507 $468 
Actual return on plan assets38 1 
Company contributions36 34 
Benefits paid(19)(24)
Settlements(46)(13)
Other, including expenses paid24 (15)
Acquisitions (2)
— 56 
Fair value of assets end of year$540 $507 
Funded status of plans$(123)$(150)
Amounts included in the balance sheet:
Other non-current assets$56 $43 
Accrued compensation and benefits(14)(13)
Post-employment and other benefit liabilities(165)(180)
Net amount recognized$(123)$(150)
(1) See Note 20 - Divestitures for additional information.
(2) See Note 19 - Acquisitions for additional information.
Schedule of Amounts Recognized in Accumulated Other Comprehensive (Income) Loss
The pretax amounts recognized in Accumulated other comprehensive (income) loss are:

(In millions)Prior Service Cost (Benefit)Net Actuarial (Gain) LossTotal
As of December 31, 2024$4 $130 $134 
Current year changes recorded in AOCI— (12)(12)
Amortization reclassified to earnings(1)(2)(3)
Settlement/curtailment reclassified to earnings(2)(10)(12)
Currency translation and other— 8 8 
As of December 31, 2025$1 $114 $115 
Schedule of Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets
Information for pension plans with accumulated benefit obligations in excess of plan assets:

(In millions)20252024
Projected benefit obligation$255 $481 
Accumulated benefit obligation$232 $456 
Fair value of plan assets$76 $288 
Schedule of Pension Plan with Projected Benefit Obligation in Excess of Plan Assets
Information for pension plans with projected benefit obligations in excess of plan assets:

(In millions)20252024
Projected benefit obligation$255 $481 
Accumulated benefit obligation$232 $456 
Fair value of plan assets$76 $288 
Schedule of Pension Benefit Payments
Pension benefit payments, including amounts to be paid from corporate assets, and reflecting expected future service, as appropriate, are expected to be paid as follows:

(In millions)
2026$39 
2027$48 
2028$45 
2029$47 
2030$48 
2031 through 2035$251 
Schedule of Net Periodic Pension Expense (Benefit) for the Defined Benefit Pension Plans
The components of net periodic pension expense (benefit) for the defined benefit pension plans are as follows:

(In millions)2025
2024
2023
Service cost$13 $14 $15 
Interest cost28 26 31 
Expected return on plan assets(33)(36)(32)
Amortization of prior service cost1 1 3 
Recognized actuarial net loss2 1 (2)
Net settlement, curtailment and special termination benefit loss12 4 1 
Net periodic pension expense (benefit)$23 $10 $16 
Schedule of Major Assumptions Used in Determining the Benefit Obligation and Net Cost for Pension Plans
Major assumptions used in determining the benefit obligation and net cost for pension plans are presented in the following table as weighted-averages:

Benefit ObligationNet Costs
20252024202520242023
Discount rate
Projected benefit obligation4.5%4.3 %4.3%4.3 %4.2 %
Interest cost (1)
—%— %4.1%4.2 %4.1 %
Service cost (1)
—%— %3.8%4.5 %4.5 %
Salary scale2.4%2.6 %2.6%2.2 %2.4 %
Expected return on plan assets—%— %5.2%6.3 %5.7 %
(1) The 2025 and 2024 discount rates used to measure the service cost and interest cost apply to the significant plans of the Company. The projected benefit obligation discount rate is used for the service cost and interest cost measurements for non-significant plans.
Schedule of Fair Values of Pension Plan Assets by Asset Category
The fair values of pension plan assets by asset category are as follows:

(In millions)Quoted Prices in Active Markets for Identical AssetsSignificant Observable InputsSignificant Unobservable InputsNot Subject
to Leveling		Total
Asset Category(Level 1)(Level 2)(Level 3)
Public Equities:
Global Equities$— $25 $— $— $25 
Global Equity Funds at net asset value (1) (2)
— — — 120 120 
Fixed Income Securities:
Governments— 56 — 27 83 
Corporate Bonds— 92 — — 92 
Fixed Income Securities (2)
— — — 146 146 
Real Estate (3)
— 1 — — 1 
Other (4) (5)
— 15 — 7 22 
Cash & Cash Equivalents (2)(6)
— 40 — 9 49 
Subtotal$— $229 $— $309 $538 
Other assets and liabilities (7)
2 
Total as of December 31, 2025
$540 
(In millions)Quoted Prices in Active Markets for Identical AssetsSignificant Observable InputsSignificant Unobservable InputsNot Subject
to Leveling		Total
Asset Category(Level 1)(Level 2)(Level 3)
Public Equities:
Global Equities$— $23 $— $— $23 
Global Equity Funds at net asset value (1) (2)
— — — 125 125 
Fixed Income Securities:
Governments— 23 — 25 48 
Corporate Bonds— 93 — — 93 
Fixed Income Securities (2)
— — — 156 156 
Real Estate (3)
— 1 — — 1 
Other (4)(5)
— 15 — 8 23 
Cash & Cash Equivalents (2)(6)
— 28 — 9 37 
Subtotal$— $183 $— $323 $506 
Other assets and liabilities (7)
1 
Total as of December 31, 2024
$507 
(1) Represents commingled funds that invest primarily in common stocks.
(2) In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets.
(3) Represents investments in real estate, including commingled funds and directly held properties.
(4) Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities.
(5) Includes fixed income repurchase agreements entered into for purposes of pension asset and liability matching.
(6) Represents short-term commercial paper, bonds and other cash or cash-like instruments.
(7) Represents trust receivables and payables that are not leveled.
v3.25.4
PRODUCT WARRANTIES (Tables)
 12 Months Ended
Dec. 31, 2025
Guarantees [Abstract]  
Schedule of Product Warranty Liability
The changes in the carrying value of warranty related provisions are as follows:

(In millions)20252024
Balance as of January 1,$786 $568 
Warranties, performance guarantees issued and changes in estimated liability364 327 
Settlements made(282)(346)
Other32 5 
Acquisitions (1)
— 232 
Reclassified to held for sale (2)
(7)— 
Balance as of December 31,$893 $786 
(1) See Note 19 - Acquisitions for additional information.
(2) See Note 20 - Divestitures for additional information.
v3.25.4
EQUITY (Tables)
 12 Months Ended
Dec. 31, 2025
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Income (Loss)
A summary of changes in the components of Accumulated other comprehensive income (loss) is as follows:

(In millions)Foreign Currency TranslationDefined Benefit Pension and Post-retirement PlansUnrealized Hedging Gains (Losses)Accumulated Other Comprehensive Income (Loss)
Balance as of January 1, 2023$(1,604)$(84)$— $(1,688)
Other comprehensive income (loss) before reclassifications, net160 (17)58 201 
Amounts reclassified, pre-tax— 1 — 1 
Balance as of December 31, 2023$(1,444)$(100)$58 $(1,486)
Other comprehensive income (loss) before reclassifications, net(1,173)(15)— (1,188)
Amounts reclassified, pre-tax— 2 (6)(4)
Tax benefit reclassified— (1)2 1 
Divestitures, net564 7 — 571 
Balance as of December 31, 2024$(2,053)$(107)$54 $(2,106)
Other comprehensive income (loss) before reclassifications, net1,828 12 — 1,840 
Amounts reclassified, pre-tax— 3 (6)(3)
Tax benefit reclassified— (1)1 — 
Balance as of December 31, 2025$(225)$(93)$49 $(269)
v3.25.4
REVENUE RECOGNITION (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Sales Disaggregated by Product and Service
External segment sales disaggregated by product and service are as follows:

(In millions)202520242023
Sales Type
Product$9,327 $9,428 $8,538 
Service1,143 1,099 1,077 
Climate Solutions Americas sales10,470 10,527 9,615 
Product4,572 4,652 1,722 
Service472 332 215 
Climate Solutions Europe sales5,044 4,984 1,937 
Product2,606 2,849 3,053 
Service733 651 528 
Climate Solutions Asia Pacific, Middle East & Africa sales3,339 3,500 3,581 
Product2,668 3,061 3,352 
Service226 414 466 
Climate Solutions Transportation sales2,894 3,475 3,818 
Net sales$21,747 $22,486 $18,951 
Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. With the exception of the U.S. as presented in the following table, there were no individually significant countries with sales exceeding 10% of total sales for the years ended December 31, 2025, 2024 and 2023.

External SalesLong-Lived Assets
(In millions)20252024202320252024
United States Operations$11,136 $11,294 $10,457 $789 $807 
International Operations
Europe6,092 6,687 3,910 1,404 1,253 
Asia Pacific3,841 3,817 3,949 482 486 
Other678 688 635 490 453 
Consolidated$21,747 $22,486 $18,951 $3,165 $2,999 
Schedule of Contract Assets and Liabilities
Total contract assets and liabilities consisted of the following:

(In millions)20252024
Contract assets, current (included within Other current assets)
$499 $366 
Contract assets, non-current (included within Other assets)
83 65 
Total contract assets582 431 
Contract liabilities, current (included within Accrued liabilities)
(691)(553)
Contract liabilities, non-current (included within Other long-term liabilities)
(203)(164)
Total contract liabilities (894)(717)
Net contract assets (liabilities)$(312)$(286)
v3.25.4
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Fair Value Information for Stock Options and Stock Appreciation Rights
The following table summarizes fair value information for stock options and stock appreciation rights:

2025 (1)
2024 (1)
2023 (1)
Stock options and stock appreciation rights weighted-average fair value per award$17.79 $14.84 $11.64 
Assumptions:
Volatility
31.2% to 33.4%
30.6% to 31.7%
30.9%
Expected term (in years)
5.6
5.6 to 7.8
5.8
Expected dividend yield
1.3%
1.8%
1.8%
Range of risk-free rates
3.7% to 4.3%
4.0% to 4.3%
3.6%
(1) Carrier has limited historical trading data and used peer group data to estimate expected volatility for the 2025, 2024 and 2023 awards.
Schedule of Share-based Payment Arrangement, Activity
Changes in stock options and stock appreciation rights outstanding were as follows:

Shares Subject to Option
(in thousands)		Weighted-Average Exercise PriceAggregate Intrinsic Value
(in millions)		Weighted- Average Remaining Life
(in years)
As of December 31, 202230,778 $24.53 
Granted 3,494 $46.13 
Exercised(8,432)$20.48 
Cancelled(769)$42.94 
As of December 31, 202325,071 $28.34 
Granted4,187 $56.46 
Exercised(8,041)$23.21 
Cancelled(430)$50.77 
As of December 31, 202420,787 $35.52 
Granted2,072 $64.99 
Exercised(2,785)$26.20 
Cancelled(724)$54.40 
Outstanding as of December 31, 202519,350 $39.31 $299 5.4
Exercisable as of December 31, 202511,909 $28.99 $285 3.7
Changes in restricted stock units were as follows:
RSUs
(in thousands)
Weighted-Average Grant Date Fair Value
Outstanding and unvested as of December 31, 20222,067 $29.87 
Granted 577 $45.71 
Vested(1,140)$26.09 
Cancelled(161)$35.09 
Outstanding and unvested as of December 31, 20231,343 $39.22 
Granted264 $59.88 
Vested(448)$38.17 
Cancelled(68)$49.14 
Outstanding and unvested as of December 31, 20241,091 $43.94 
Granted330 $63.70 
Vested(348)$44.83 
Cancelled(92)$42.88 
Outstanding and unvested as of December 31, 2025981 $50.41 
Changes in PSUs were as follows:

PSUs
(in thousands)
Weighted-Average Grant Date Fair Value
Outstanding and unvested as of December 31, 2022
1,930 $35.86 
Granted902 $47.93 
Vested(607)$18.23 
Forfeited(183)$46.52 
Outstanding and unvested as of December 31, 2023
2,042 $45.47 
Granted1,741 $50.75 
Vested(1,339)$41.49 
Forfeited(121)$52.56 
Outstanding and unvested as of December 31, 2024
2,323 $51.35 
Granted836 $57.22 
Vested(845)$46.57 
Forfeited(194)$55.70 
Outstanding and unvested as of December 31, 2025
2,120 $55.17 
Schedule of Stock-Based Compensation Cost by Award Type
Stock-based compensation cost by award type is as follows:

(In millions)202520242023
Equity compensation costs - equity settled$74 $98 $81 
Equity compensation costs - cash settled (1)
(2)2 3 
Total stock-based compensation cost$72 $100 $84 
Amounts recorded in continuing operations$72 $87 $74 
Amounts recorded in discontinued operations— 13 10 
Total stock-based compensation cost$72 $100 $84 
Income tax benefit$8 $13 $11 
(1) The cash settled awards are classified as liability awards and are measured at fair value at each balance sheet date.
v3.25.4
RESTRUCTURING COSTS (Tables)
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Schedule of Net Pre-Tax Restructuring Costs
The Company recorded net pre-tax restructuring costs for new and ongoing restructuring actions as follows:

(In millions)202520242023
Climate Solutions Americas$23 $9 $11 
Climate Solutions Europe92 70 10 
Climate Solutions Asia Pacific, Middle East & Africa26 10 23 
Climate Solutions Transportation8 8 21 
Total Segment149 97 65 
Corporate and other29 11 10 
Total restructuring costs (1)
$178 $108 $75 
Cost of sales$42 $42 $13 
Selling, general and administrative136 66 62 
Total restructuring costs (1)
$178 $108 $75 
(1) Restructuring costs include period-related charges.
Schedule of Reserves and Charges Related to the Restructuring Reserve
The following table summarizes changes in the restructuring reserve, included in Accrued liabilities on the accompanying Consolidated Balance Sheet:

(In millions)20252024
Balance as of January 1,$69 $41 
Net pre-tax restructuring costs145 98 
Acquisitions (1)
— 8 
Utilization, foreign exchange and other(110)(78)
Reclassified to held for sale (2)
(2)— 
Balance as of December 31,$102 $69 
(1) See Note 19 - Acquisitions for additional information.
(2) See Note 20 - Divestitures for additional information.
v3.25.4
OTHER INCOME (EXPENSE), NET (Tables)
 12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
Schedule of Other Income (Expense), Net
Other income (expense), net consisted of the following:

(In millions)202520242023
Viessmann-related hedges$— $(86)$(96)
CCR gain7 318 — 
CST gain on sale of equity method investment6 — — 
TMA-related gain— 46 — 
TCC acquisition-related adjustment— — (8)
Other23 39 (9)
Other income (expense), net$36 $317 $(113)
v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income from Operations Before Income Taxes
The sources of Income from operations before income taxes are as follows:

(In millions)202520242023
United States$1,536 $1,948 $1,398 
Foreign262 326 601 
Total$1,798 $2,274 $1,999 
Schedule of Income Tax Expense (Benefit)
The income tax expense (benefit) consisted of the following components:

(In millions)202520242023
Current:
United States:
Federal $218 $920 $361 
State86 120 110 
Foreign337 374 293 
641 1,414 764 
Future:
United States:
Federal(28)(90)(135)
State(10)(13)(28)
Foreign(363)(249)(80)
(401)(352)(243)
Income tax expense$240 $1,062 $521 
Schedule of Effective Income Tax Rate
Upon adoption of ASU 2023-09, the reconciliation of taxes at the statutory U.S. federal income tax rate to the Company's effective income tax rate is as follows:
(In millions)
2025
Statutory U.S. federal income tax rate$377 21.0 %
State income tax, net of federal income tax effect60 3.4 
Foreign tax effects:
Canada
Statutory tax rate difference(3)(0.2)
Local tax, net of national income tax effect9 0.5 
All Other3 0.2 
China
Statutory tax rate difference4 0.2 
Changes in valuation allowance19 1.1 
All Other6 0.3 
France
Statutory tax rate difference9 0.5 
Changes in valuation allowance(1)(0.1)
Germany
Statutory tax rate difference58 3.2 
Local tax, net of national income tax effect(78)(4.3)
Enactment of new tax laws(130)(7.2)
All Other(9)(0.5)
Ireland
Statutory tax rate difference(13)(0.7)
All Other7 0.4 
Mexico
Statutory tax rate difference10 0.5 
All Other12 0.7 
Other foreign jurisdictions(1)(0.1)
Effect of cross-border tax laws:
U.S. tax on outside basis(64)(3.6)
Net CFC tested income14 0.8 
U.S. tax on deemed dividends(6)(0.4)
Foreign tax credits(21)(1.2)
Tax credits:
R&D tax credits(13)(0.7)
Other tax credits(17)(0.9)
Changes in valuation allowances65 3.6 
Nontaxable or nondeductible items:
Equity income from joint ventures(21)(1.2)
Stock options(11)(0.6)
Other12 0.7 
Changes in unrecognized tax benefits4 0.2 
All Other
Re-organization tax benefit(43)(2.4)
Other2 0.2 
Effective income tax rate$240 13.4 %
The most significant jurisdictions that comprise the U.S. state income tax, net of federal income tax benefit are Florida, California, New Jersey, Illinois, Georgia, Pennsylvania, New York, and Texas.

The differences between the effective income tax rate and the statutory U.S. federal income tax rate, prior to adoption of ASU 2023-09, are as follows:

20242023
Statutory U.S. federal income tax rate21.0 %21.0 %
State income tax2.4 2.4 
Taxes on international activities(0.2)4.9 
CCR divestiture impact(2.0)— 
VCS reorganization impact28.6 — 
Other(3.1)(2.2)
Effective income tax rate46.7 %26.1 %
Schedule of Future Income Tax Benefits and Obligations
The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and obligations as of December 31, 2025 and 2024, are as follows:

(In millions)20252024
Future income tax benefits:
Insurance and employee benefits$114 $142 
Other assets basis differences519 576 
Other liabilities basis differences773 674 
Tax loss carryforwards256 178 
Tax credit carryforwards1,411 1,404 
Valuation allowances(1,539)(1,442)
Future income tax benefits$1,534 $1,532 
Future income tax obligations:
Goodwill and intangible assets$(1,663)$(1,769)
Other asset basis differences(374)(381)
Future income tax obligations$(2,037)$(2,150)
Schedule of Changes to Valuation Allowance
Changes to valuation allowances consisted of the following:

(In millions)
Balance as of January 1, 2023$83 
Additions charged to income tax expense27 
Reduction credited to income tax expense(22)
Other adjustments1,303 
Reclassified to held for sale(19)
Balance at December 31, 2023$1,372 
Additions charged to income tax expense46 
Reduction credited to income tax expense(41)
Other adjustments 65 
Balance at December 31, 2024$1,442 
Additions charged to income tax expense 110 
Reduction credited to income tax expense(4)
Other adjustments(9)
Balance as of December 31, 2025$1,539 
Schedule of Tax Credit and Loss Carryforwards
As of December 31, 2025, tax credit carryforwards and tax loss carryforwards were as follows:

(In millions)Tax Loss CarryforwardsTax Credit Carryforwards
Expiration period:
2026-2030$1,179 $18 
2031-203510 1,391 
2036-2045222 — 
Indefinite410 2 
Total$1,821 $1,411 
Schedule of Unrecognized Tax Benefits and Related Interest Expense A reconciliation of the beginning and ending amounts of unrecognized tax benefits and related interest expense is as follows:
(In millions)202520242023
Balance at beginning of period$365 $382 $291 
Additions for tax positions related to the current year10 34 37 
Additions for tax positions of prior years (1)
12 30 81 
Reductions for tax positions of prior years(3)(7)— 
Settlements(29)(68)(27)
Reclassified to other accounts (2)
(33)(6)— 
Balance at end of period$322 $365 $382 
Gross interest expense related to unrecognized tax benefits$18 $19 $18 
Total accrued interest balance at end of period$71 $57 $64 
(1) Includes $73 million during the year ended December 31, 2023, related to acquisitions.
(2) Includes $33 million during the year ended December 31, 2025, related to held for sale.
v3.25.4
EARNINGS PER SHARE (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table summarizes the weighted-average number of shares of common stock outstanding for basic and diluted earnings per share calculations:

(In millions, except per share amounts)202520242023
Net earnings (loss) attributable to common shareowners$1,484 $5,604 $1,349 
Basic weighted-average number of shares outstanding852.4 898.2 837.3 
Stock awards and equity units (share equivalent)10.0 13.5 15.7 
Diluted weighted-average number of shares outstanding862.4 911.7 853.0 
Antidilutive shares excluded from computation of diluted earnings per share1.9 0.1 2.0 
v3.25.4
ACQUISITIONS (Tables)
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Purchase Price
The components of the purchase price are as follows:

(In millions)January 2, 2024
Cash$11,156 
Common shares (58,608,959 shares at $51.20 per share)
3,001 
Total consideration$14,157 
Schedule of Preliminary Allocation of the Purchase Price
The preliminary allocation of the purchase price is as follows:

(In millions)Preliminary January 2, 2024Measurement Period AdjustmentsAs Adjusted January 2, 2024
Cash and cash equivalents$394 $(1)$393 
Accounts receivable408 5 413 
Inventories948 (28)920 
Other current assets17 — 17 
Fixed assets913 6 919 
Intangible assets6,640 5 6,645 
Other assets284 15 299 
Accounts payable(288)(2)(290)
Other liabilities, current(626)(37)(663)
Future income tax obligations(1,825)15 (1,810)
Other liabilities(284)(17)(301)
Total identifiable net assets6,581 (39)6,542 
Goodwill7,576 31 7,607 
Total consideration$14,157 $(8)$14,149 
Schedule of Intangible Assets Based on Estimate of Fair Value
The Company recorded intangible assets based on its estimate of fair value which consisted of the following:

(In millions)Estimated Useful Life (in years)Intangible Assets Acquired
Customer relationships17$4,787 
Technology
10 - 20
1,051 
Trademark40679 
Backlog1123 
Other505 
Total intangible assets acquired$6,645 
v3.25.4
DIVESTITURES (Tables)
 12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations, Net of Tax
The following table summarizes assets and liabilities classified as held for sale:
December 31, 2025
(In millions)Riello
Cash and cash equivalents$25 
Accounts receivable, net103 
Inventories, net98 
Other current assets2 
Fixed assets, net77 
Intangible assets, net18 
Goodwill175 
Operating lease right-of-use assets7 
Other assets87 
Total assets held for sale$592 
Accounts payable$91 
Accrued liabilities45 
Contract liabilities3 
Future pension and post-retirement obligations7 
Future income tax obligations9 
Operating lease liabilities4 
Other long-term liabilities11 
Total liabilities held for sale$170 
The components of Discontinued operations, net of tax are as follows:

(In millions)202520242023
Net sales$— $2,323 $3,147 
Costs of sales— (1,390)(1,926)
Research and development— (86)(124)
Selling, general and administrative(6)(564)(690)
Other income (expense), net(3)(584)26 
Gain (loss) on divestitures and deconsolidation(22)5,176 (297)
Interest (expense) income, net— (41)(51)
Earnings before income taxes(31)4,834 85 
Income tax (expense) benefit55 1,391 (128)
Tax on divestitures and deconsolidation5 (1,729)5 
Discontinued operations, net of tax$29 $4,496 $(38)
v3.25.4
SEGMENT FINANCIAL DATA (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
A summary of results by reportable segment are as follows:

For the Year Ended December 31, 2025
(In millions)CSACSECSAMECSTSegment Total
Net sales$10,470 $5,044 $3,339 $2,894 $21,747 
Cost of goods sold(7,073)(3,494)(2,499)(2,112)(15,178)
Research and development(347)(75)(61)(66)(549)
Selling, general and administrative(1,036)(1,039)(476)(287)(2,838)
Equity method investment net earnings126 (3)100 6 229 
Other income (expense), net10 11 45 17 83 
Segment operating profit$2,150 $444 $448 $452 $3,494 

For the Year Ended December 31, 2024
(In millions)CSACSECSAMECSTSegment Total
Net sales$10,527 $4,984 $3,500 $3,475 $22,486 
Cost of goods sold(6,997)(3,368)(2,579)(2,540)(15,484)
Research and development(390)(81)(69)(80)(620)
Selling, general and administrative(962)(1,062)(520)(369)(2,913)
Equity method investment net earnings135 (1)92 6 232 
Other income (expense), net10 (3)42 (7)42 
Segment operating profit$2,323 $469 $466 $485 $3,743 

For the Year Ended December 31, 2023
(In millions)CSACSECSAMECSTSegment Total
Net sales$9,615 $1,937 $3,581 $3,818 $18,951 
Cost of goods sold(6,629)(1,410)(2,697)(2,854)(13,590)
Research and development(294)(28)(52)(74)(448)
Selling, general and administrative(974)(327)(573)(431)(2,305)
Equity method investment net earnings145 — 61 6 212 
Other income (expense), net(32)5 41 29 43 
Segment operating profit$1,831 $177 $361 $494 $2,863 
(In millions)202520242023
Reconciliation to Earnings before income taxes
Segment operating profit$3,494 $3,743 $2,863 
Corporate and other(202)(201)(214)
Restructuring costs(178)(108)(75)
Amortization of acquired intangibles(856)(689)(143)
Acquisition step-up amortization— (282)(41)
Acquisition/divestiture-related costs(55)(95)(123)
Viessmann-related hedges— (86)(96)
CCR gain7 318 — 
VCS pre-acquisition product replacement cost(38)— — 
Gain on liability adjustment— 46 — 
Bridge loan financing costs— — (3)
TCC Acquisition-related adjustment— — (8)
Non-service pension (expense) benefit(10)(1)(1)
Interest (expense) income, net(364)(371)(160)
Earnings before income taxes$1,798 $2,274 $1,999 
Segment AssetsCapital ExpendituresDepreciation & Amortization
(In millions)20252024202520242023202520242023
CSA$1,472 $1,405 $151 $198 $179 $133 $134 $120 
CSE1,660 1,590 135 197 63 878 813 56 
CSAME988 952 39 48 74 198 213 241 
CST915 818 25 32 30 26 35 34 
Total Segment5,035 4,765 350 475 346 1,235 1,195 451 
Corporate and other87 185 42 44 93 39 37 40 
Consolidated$5,122 $4,950 $392 $519 $439 $1,274 $1,232 $491 
Cash and cash equivalents1,555 3,969 
Other assets, current1,264 972 
Assets held for sale592 — 
Total current assets $8,533 $9,891 
Schedule of Geographic External Sales
External segment sales disaggregated by product and service are as follows:

(In millions)202520242023
Sales Type
Product$9,327 $9,428 $8,538 
Service1,143 1,099 1,077 
Climate Solutions Americas sales10,470 10,527 9,615 
Product4,572 4,652 1,722 
Service472 332 215 
Climate Solutions Europe sales5,044 4,984 1,937 
Product2,606 2,849 3,053 
Service733 651 528 
Climate Solutions Asia Pacific, Middle East & Africa sales3,339 3,500 3,581 
Product2,668 3,061 3,352 
Service226 414 466 
Climate Solutions Transportation sales2,894 3,475 3,818 
Net sales$21,747 $22,486 $18,951 
Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. With the exception of the U.S. as presented in the following table, there were no individually significant countries with sales exceeding 10% of total sales for the years ended December 31, 2025, 2024 and 2023.

External SalesLong-Lived Assets
(In millions)20252024202320252024
United States Operations$11,136 $11,294 $10,457 $789 $807 
International Operations
Europe6,092 6,687 3,910 1,404 1,253 
Asia Pacific3,841 3,817 3,949 482 486 
Other678 688 635 490 453 
Consolidated$21,747 $22,486 $18,951 $3,165 $2,999 
v3.25.4
RELATED PARTIES (Tables)
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Schedule of Equity Method Investments
Amounts attributable to equity method investees are as follows:

(In millions)202520242023
Sales to equity method investees included in Product sales
$2,874 $2,956 $2,920 
Purchases from equity method investees included in Cost of products sold
$227 $237 $214 

The Company had receivables from and payables to equity method investees as follows:

(In millions)20252024
Receivables from equity method investees included in Accounts receivable, net
$220 $363 
Payables to equity method investees included in Accounts payable
$40 $32 
Summarized unaudited financial information for equity method investments is as follows:

(In millions)20252024
Current assets$11,835 $12,823 
Non-current assets2,418 2,396 
Total assets14,253 15,219 
Current liabilities(9,675)(11,053)
Non-current liabilities(236)(210)
Total liabilities(9,911)(11,263)
Total net equity of investees$4,342 $3,956 

(In millions)202520242023
Net sales$18,154 $17,567 $16,180 
Gross profit$3,168 $3,063 $2,862 
Income from continuing operations$676 $700 $655 
Net earnings (loss)$676 $700 $655 
v3.25.4
COMMITMENTS AND CONTINGENT LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Outstanding Liability for Environmental Obligations
As of December 31, 2025 and 2024, the outstanding liability for environmental obligations are as follows:

(In millions)20252024
Environmental reserves included in Accrued liabilities
$18 $25 
Environmental reserves included in Other long-term liabilities
182 185
Total environmental reserves$200 $210 
Schedule of Asbestos Liabilities and Related Recoveries
The Company's asbestos liabilities and related insurance recoveries are as follows:
(In millions)20252024
Asbestos liabilities included in Accrued liabilities
$17 $17 
Asbestos liabilities included in Other long-term liabilities
201 208 
Total asbestos liabilities$218 $225 
Asbestos-related recoveries included in Accounts receivable, net
$6 $7 
Asbestos-related recoveries included in Other assets
86 88 
Total asbestos-related recoveries$92 $95 
Schedule of Self-Insurance Liabilities
The Company's self-insurance liabilities were as follows:

(In millions)20252024
Self-insurance liabilities included in Accrued liabilities
$159 $173 
Self-insurance liabilities included in Other long-term liabilities
42 43
Total self-insurance liabilities$201 $216 
v3.25.4
SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2025
Supplemental Cash Flow Elements [Abstract]  
Schedule of Cash Flow, Supplemental Disclosures
Supplemental cash flow information was as follows:

(In millions)202520242023
Interest paid, net of amounts capitalized$422 $610 $320 
Income taxes paid, net of refunds (1)
$729 $2,126 $942 
Non-cash financing activity:
Common stock dividends payable$201 $199 $161 
(1) Following the adoption of ASU 2023-09, for the year ended December 31, 2025, income taxes paid amounted to $284 million for Federal, $118 million for State, $69 million for China, $56 million for France, $53 million for Mexico, and $198 million to other jurisdictions. In addition, refunds received amounted to $49 million for Germany.
v3.25.4
DESCRIPTION OF THE BUSINESS (Details)
 12 Months Ended
Dec. 31, 2025
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of reportable segments 4
v3.25.4
BASIS OF PRESENTATION (Details)
$ in Millions
 12 Months Ended
Apr. 03, 2020
shares
Dec. 31, 2025
segment
Dec. 16, 2025
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Number of new operating segments   3  
Number of operating segments   4  
Number of reportable segments   4  
Shares issued per common share (in shares) | shares 1    
Disposal Group, Held-for-sale, Not Discontinued Operations | Riello      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Enterprise value | $     $ 430
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Restricted cash, current $ 2 $ 3  
Allowance for expected credit losses 81 97  
Research and development expense $ 625 $ 686 $ 493
v3.25.4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Range of Useful Lives (Details)
Dec. 31, 2025
Minimum | Customer relationships  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life (in years) 1 year
Minimum | Patents and trademarks  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life (in years) 5 years
Minimum | Technology and other  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life (in years) 1 year
Maximum | Customer relationships  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life (in years) 30 years
Maximum | Patents and trademarks  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life (in years) 40 years
Maximum | Technology and other  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life (in years) 50 years
v3.25.4
INVENTORIES, NET - Schedule of Inventories, Net (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Raw materials $ 666 $ 625
Work-in-process 245 213
Finished goods 1,572 1,461
Inventories, net $ 2,483 $ 2,299
v3.25.4
INVENTORIES, NET - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Inventory valuation reserves $ 337 $ 215
Amount higher than the net book value of the inventories $ 289 $ 238
Percentage of LIFO inventory 36.00% 39.00%
v3.25.4
FIXED ASSETS, NET (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Fixed assets, gross $ 6,008 $ 5,511  
Accumulated depreciation (2,843) (2,512)  
Fixed assets, net 3,165 2,999  
Depreciation 383 385 $ 270
Land      
Property, Plant and Equipment [Line Items]      
Fixed assets, gross 165 169  
Buildings and improvements      
Property, Plant and Equipment [Line Items]      
Fixed assets, gross 1,535 1,325  
Machinery, tools and equipment      
Property, Plant and Equipment [Line Items]      
Fixed assets, gross 3,344 2,947  
Rental assets      
Property, Plant and Equipment [Line Items]      
Fixed assets, gross 351 355  
Other, including assets under construction      
Property, Plant and Equipment [Line Items]      
Fixed assets, gross $ 613 $ 715  
Minimum | Buildings and improvements      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives (Years) 20 years    
Minimum | Machinery, tools and equipment      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives (Years) 3 years    
Minimum | Rental assets      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives (Years) 3 years    
Maximum | Buildings and improvements      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives (Years) 40 years    
Maximum | Machinery, tools and equipment      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives (Years) 25 years    
Maximum | Rental assets      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives (Years) 12 years    
v3.25.4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Goodwill [Roll Forward]    
Goodwill - Beginning Balance $ 14,601 $ 7,520
Goodwill resulting from business combinations 65 7,655
Reclassified to held for sale (175)  
Foreign currency translation 1,010 (574)
Goodwill - Ending Balance 15,501 14,601
CSA | Operating Segments    
Goodwill [Roll Forward]    
Goodwill - Beginning Balance 5,059 4,543
Goodwill resulting from business combinations 12 526
Reclassified to held for sale 0  
Foreign currency translation 4 (10)
Goodwill - Ending Balance 5,075 5,059
CSE | Operating Segments    
Goodwill [Roll Forward]    
Goodwill - Beginning Balance 7,035 703
Goodwill resulting from business combinations 3 6,861
Reclassified to held for sale (175)  
Foreign currency translation 945 (529)
Goodwill - Ending Balance 7,808 7,035
CSAME | Operating Segments    
Goodwill [Roll Forward]    
Goodwill - Beginning Balance 1,380 1,237
Goodwill resulting from business combinations 6 235
Reclassified to held for sale 0  
Foreign currency translation 24 (92)
Goodwill - Ending Balance 1,410 1,380
CST | Operating Segments    
Goodwill [Roll Forward]    
Goodwill - Beginning Balance 1,127 1,037
Goodwill resulting from business combinations 44 33
Reclassified to held for sale 0  
Foreign currency translation 37 57
Goodwill - Ending Balance $ 1,208 $ 1,127
v3.25.4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Indefinite Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Gross Amount $ 8,780 $ 8,022
Accumulated Amortization (2,454) (1,590)
Net Amount 6,326 6,432
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount 6,143 5,607
Accumulated Amortization (1,573) (939)
Net Amount 4,570 4,668
Patents and trademarks    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount 945 885
Accumulated Amortization (191) (147)
Net Amount 754 738
Technology and other    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount 1,692 1,530
Accumulated Amortization (690) (504)
Net Amount $ 1,002 $ 1,026
v3.25.4
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Line Items]      
Amortization of intangible assets $ 884 $ 843 $ 221
Percentage of fair value in excess of carrying value 14.00%    
Climate Solutions Europe Segment      
Goodwill [Line Items]      
Percentage of fair value in excess of carrying value 10.00%    
v3.25.4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Future Amortization of Intangible Assets (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2026 $ 868
2027 818
2028 742
2029 655
2030 599
Thereafter $ 2,644
v3.25.4
BORROWINGS AND LINES OF CREDIT - Schedule of Short-Term Borrowings and Current Portion of Long-Term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Debt Disclosure [Abstract]    
Commercial paper $ 325 $ 0
Short-term borrowings 35 84
Current portion of long-term debt 108 1,252
Short-term borrowings and current portion of long-term debt $ 468 $ 1,336
v3.25.4
BORROWINGS AND LINES OF CREDIT - Narrative (Details) - USD ($)
 1 Months Ended 12 Months Ended
Dec. 20, 2024
Jul. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]          
Weighted average interest rate     3.70%    
Issuance of long-term debt     $ 48,000,000 $ 3,412,000,000 $ 5,609,000,000
Repayment of long-term debt     1,212,000,000 5,345,000,000 111,000,000
Interest expense, debt     $ 458,000,000 580,000,000 $ 306,000,000
Weighted Average          
Debt Instrument [Line Items]          
Average maturity of long-term debt     10 years    
Other Debt | Project Financing Arrangements          
Debt Instrument [Line Items]          
Issuance of long-term debt     $ 34,000,000 53,000,000  
Repayment of long-term debt     0 $ 14,000,000  
Unsecured Debt          
Debt Instrument [Line Items]          
Tender offer, maximum repurchase amount   $ 800,000,000      
Tender offer, repurchase amount accepted   1,100,000,000      
Gain (loss) on extinguishment of debt, before write off of debt issuance cost   97,000,000      
Interest expense, debt, financing fees expensed   11,000,000      
Unsecured Debt | 5.900% Notes due 2034          
Debt Instrument [Line Items]          
Tender offer, repurchase amount accepted   125,000,000      
Unsecured Debt | 6.200% Notes due 2054          
Debt Instrument [Line Items]          
Tender offer, repurchase amount accepted   350,000,000      
Unsecured Debt | 3.577% Notes due 2050          
Debt Instrument [Line Items]          
Tender offer, repurchase amount accepted   $ 600,000,000      
Commercial Paper | Euro-Denominated Facility | Line of Credit          
Debt Instrument [Line Items]          
Maximum borrowing capacity     500,000,000    
Commercial Paper | Line of Credit          
Debt Instrument [Line Items]          
Maximum borrowing capacity     2,000,000,000    
Short-term debt     $ 325,000,000    
Weighted average interest rate     3.98%    
Revolving Credit Facility          
Debt Instrument [Line Items]          
Basis spread on variable rate 0.10%        
Revolving Credit Facility | Line of Credit          
Debt Instrument [Line Items]          
Revolving credit facility, maximum borrowing capacity $ 2,500,000,000        
Debt issuance costs, gross $ 11,000,000        
Long-term debt     $ 0    
v3.25.4
BORROWINGS AND LINES OF CREDIT - Schedule of Long-Term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Discounts and debt issuance costs $ (78) $ (88)
Total long-term debt 11,473 12,278
Less: current portion of long-term debt 108 1,252
Long-term debt, net of current portion 11,365 11,026
Unsecured Debt    
Debt Instrument [Line Items]    
Long-term debt, gross 10,842 11,728
Unsecured Debt | Japanese Term Loan Facility    
Debt Instrument [Line Items]    
Long-term debt, gross 345 342
Other Debt    
Debt Instrument [Line Items]    
Long-term debt, gross $ 364 296
2.242% Notes due 2025 | Unsecured Debt    
Debt Instrument [Line Items]    
Interest rate 2.242%  
Long-term debt, gross $ 0 1,200
2.493% Notes due 2027 | Unsecured Debt    
Debt Instrument [Line Items]    
Interest rate 2.493%  
Long-term debt, gross $ 900 900
4.125% Notes due 2028 | Unsecured Debt    
Debt Instrument [Line Items]    
Interest rate 4.125%  
Long-term debt, gross $ 883 783
2.722% Notes due 2030 | Unsecured Debt    
Debt Instrument [Line Items]    
Interest rate 2.722%  
Long-term debt, gross $ 2,000 2,000
2.700% Notes due 2031 | Unsecured Debt    
Debt Instrument [Line Items]    
Interest rate 2.70%  
Long-term debt, gross $ 750 750
4.500% Notes due 2032 | Unsecured Debt    
Debt Instrument [Line Items]    
Interest rate 4.50%  
Long-term debt, gross $ 1,001 887
5.900% Notes due 2034 | Unsecured Debt    
Debt Instrument [Line Items]    
Interest rate 5.90%  
Long-term debt, gross $ 875 875
3.625% Notes due 2037 | Unsecured Debt    
Debt Instrument [Line Items]    
Interest rate 3.625%  
Long-term debt, gross $ 883 783
3.377% Notes due 2040 | Unsecured Debt    
Debt Instrument [Line Items]    
Interest rate 3.377%  
Long-term debt, gross $ 1,500 1,500
3.577% Notes due 2050 | Unsecured Debt    
Debt Instrument [Line Items]    
Interest rate 3.577%  
Long-term debt, gross $ 1,400 1,400
6.200% Notes due 2054 | Unsecured Debt    
Debt Instrument [Line Items]    
Interest rate 6.20%  
Long-term debt, gross $ 650 $ 650
v3.25.4
BORROWINGS AND LINES OF CREDIT - Schedule of Maturities of Long-Term Debt (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Debt Disclosure [Abstract]  
2026 $ 108
2027 1,309
2028 903
2029 43
2030 2,019
Thereafter $ 7,169
v3.25.4
FAIR VALUE MEASUREMENTS - Narrative (Details)
$ in Millions, € in Billions
 1 Months Ended 12 Months Ended
Jan. 02, 2024
USD ($)
Nov. 30, 2023
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jan. 02, 2024
EUR (€)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Loss on derivative instruments, pretax     $ 0 $ 86 $ 96  
Currency Swap            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Notional amount     3,100      
VCS Business | Interest Rate Swap            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Notional amount         1,500  
Gain on mark-to-market valuation   $ 58        
Interest rate cash flow hedge, net gain to be reclassified during next 12 months     4      
VCS Business | Foreign Exchange Forward            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Notional amount | €           € 7
Loss on derivative instruments, pretax $ 86   $ 0 $ 86 $ 96  
v3.25.4
FAIR VALUE MEASUREMENTS - Schedule of Fair Value and Carrying Amounts Measured on a Recurring Basis (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets $ 129 $ 82
Derivative liabilities $ (166) $ (41)
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other assets, current, Other assets Other assets, current, Other assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued liabilities, Other long-term liabilities Accrued liabilities, Other long-term liabilities
Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets $ 0 $ 0
Derivative liabilities 0 0
Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 129 82
Derivative liabilities (166) (41)
Level 3    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Derivative assets 0 0
Derivative liabilities $ 0 $ 0
v3.25.4
FAIR VALUES MEASUREMENTS - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Details) - Unsecured Debt - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Carrying Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Carrying Value $ 10,842 $ 11,728
Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value $ 10,167 $ 10,798
v3.25.4
LEASES - Schedule of Operating Lease Right-of-use Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Operating lease right-of-use assets $ 546 $ 554
Accrued liabilities (142) (135)
Operating lease liabilities (418) (432)
Total operating lease liabilities $ (560) $ (567)
Weighted-Average Remaining Lease Term (in years) 6 years 4 months 24 days 6 years 9 months 18 days
Weighted-Average Discount Rate 4.60% 4.50%
Operating lease, liability, current, statement of financial position, extensible enumeration Accrued liabilities Accrued liabilities
v3.25.4
LEASES - Schedule of Supplemental Cash Flow and Lease Expense Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating cash flows for measurement of operating lease liabilities $ 179 $ 173 $ 135
Operating lease ROU assets obtained in exchange for operating lease obligations 100 112 50
Operating lease expense $ 184 $ 175 $ 127
v3.25.4
LEASES - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
2026 $ 163  
2027 124  
2028 95  
2029 70  
2030 50  
Thereafter 147  
Total undiscounted lease payments 649  
Less: imputed interest (89)  
Total discounted lease payments $ 560 $ 567
v3.25.4
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]      
Percentage of projected benefit obligation compromised of domestic plan benefits 37.00%    
Percentage of projected benefit obligation compromised of foreign plan benefits 63.00%    
Defined benefit plan, accumulated benefit obligation $ 639 $ 631  
Company contributions 36 34 $ 33
Defined benefit plan, expected future employer contributions, next fiscal year 5    
Defined contribution plan, cost 118 138 $ 125
Other Funds      
Defined Benefit Plan Disclosure [Line Items]      
Multiemployer plan, employer contribution, cost $ 15 $ 15  
Defined Benefit Plan, Growth Seeking Assets      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plant assets, investment within plan asset category, percentage 20.00%    
Defined Benefit Plan, Income Generating And Hedging Assets      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plant assets, investment within plan asset category, percentage 80.00%    
v3.25.4
EMPLOYEE BENEFIT PLANS - Schedule of Company's Pension Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Change in Benefit Obligation      
Benefit obligation at beginning of year $ 657 $ 575  
Service cost 13 14 $ 15
Interest cost 28 26 31
Actuarial (gain) loss (14) (9)  
Benefits paid (19) (24)  
Curtailment, settlements and special termination benefits (39) (13)  
Other, including expenses paid 37 (25)  
Acquisitions 0 113  
Benefit obligation at end of year 663 657 575
Change in Plan Assets      
Fair value at beginning of year 507 468  
Actual return on plan assets 38 1  
Company contributions 36 34 33
Benefits paid (19) (24)  
Settlements (46) (13)  
Other, including expenses paid 24 (15)  
Acquisitions 0 56  
Fair value of assets end of year 540 507 468
Funded Status      
Benefit obligation 663 657 575
Fair value of plan assets 540 507 $ 468
Funded status of plans (123) (150)  
Amounts included in the balance sheet:      
Other non-current assets 56 43  
Accrued compensation and benefits (14) (13)  
Post-employment and other benefit liabilities (165) (180)  
Net amount recognized $ (123) $ (150)  
v3.25.4
EMPLOYEE BENEFIT PLANS - Schedule of Amounts Recognized in Accumulated Other Comprehensive (Income) Loss (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Total      
AOCI Attributable to Parent, before tax [Roll Forward]      
Balance as of beginning of period $ 134    
Current year changes recorded in AOCI (12)    
Amortization reclassified to earnings (3) $ (2) $ (1)
Settlement/curtailment reclassified to earnings (12)    
Currency translation and other 8    
Balance as of end of period 115 134  
Prior Service Cost (Benefit)      
AOCI Attributable to Parent, before tax [Roll Forward]      
Balance as of beginning of period 4    
Current year changes recorded in AOCI 0    
Amortization reclassified to earnings (1)    
Settlement/curtailment reclassified to earnings (2)    
Currency translation and other 0    
Balance as of end of period 1 4  
Net Actuarial (Gain) Loss      
AOCI Attributable to Parent, before tax [Roll Forward]      
Balance as of beginning of period 130    
Current year changes recorded in AOCI (12)    
Amortization reclassified to earnings (2)    
Settlement/curtailment reclassified to earnings (10)    
Currency translation and other 8    
Balance as of end of period $ 114 $ 130  
v3.25.4
EMPLOYEE BENEFIT PLANS - Schedule of Pension Plan with Accumulated Benefit Obligation in Excess and Projected of Plan Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]    
Projected benefit obligation $ 255 $ 481
Accumulated benefit obligation 232 456
Fair value of plan assets 76 288
Defined Benefit Plan, Pension Plan with Project Benefit Obligation in Excess of Plan Assets [Abstract]    
Projected benefit obligation 255 481
Accumulated benefit obligation 232 456
Fair value of plan assets $ 76 $ 288
v3.25.4
EMPLOYEE BENEFIT PLANS - Schedule of Pension Benefit Payments (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Retirement Benefits [Abstract]  
2026 $ 39
2027 48
2028 45
2029 47
2030 48
2031 through 2035 $ 251
v3.25.4
EMPLOYEE BENEFIT PLANS - Schedule of Net Periodic Pension Expense (Benefit) for the Defined Benefit Pension Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Service cost $ 13 $ 14 $ 15
Interest cost 28 26 31
Expected return on plan assets (33) (36) (32)
Amortization of prior service cost 1 1 3
Recognized actuarial net loss 2 1 (2)
Net settlement, curtailment and special termination benefit loss 12 4 1
Net periodic pension expense (benefit) $ 23 $ 10 $ 16
v3.25.4
EMPLOYEE BENEFIT PLANS - Schedule of Major Assumptions Used in Determining the Benefit Obligation and Net Cost for Pension Plans (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Benefit Obligation      
Projected benefit obligation 4.50% 4.30%  
Interest cost 0.00% 0.00%  
Service cost 0.00% 0.00%  
Salary scale 2.40% 2.60%  
Expected return on plan assets 0.00% 0.00%  
Net Costs      
Projected benefit obligation 4.30% 4.30% 4.20%
Interest cost 4.10% 4.20% 4.10%
Service cost 3.80% 4.50% 4.50%
Salary scale 2.60% 2.20% 2.40%
Expected return on plan assets 5.20% 6.30% 5.70%
v3.25.4
EMPLOYEE BENEFIT PLANS - Schedule of Fair Values of Pension Plan Assets by Asset Category (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount $ 540 $ 507 $ 468
Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 229 183  
Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Not Subject to Leveling      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 309 323  
Defined Benefit Plan Assets, Excluding Other Assets and Liabilities      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 538 506  
Global Equities      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 25 23  
Global Equities | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Global Equities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 25 23  
Global Equities | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Global Equities | Not Subject to Leveling      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Global Equity Funds at net asset value      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 120 125  
Global Equity Funds at net asset value | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Global Equity Funds at net asset value | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Global Equity Funds at net asset value | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Global Equity Funds at net asset value | Not Subject to Leveling      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 120 125  
Governments      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 83 48  
Governments | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Governments | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 56 23  
Governments | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Governments | Not Subject to Leveling      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 27 25  
Corporate Bonds      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 92 93  
Corporate Bonds | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Corporate Bonds | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 92 93  
Corporate Bonds | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Corporate Bonds | Not Subject to Leveling      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Fixed Income Securities      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 146 156  
Fixed Income Securities | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Fixed Income Securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Fixed Income Securities | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Fixed Income Securities | Not Subject to Leveling      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 146 156  
Real Estate      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 1 1  
Real Estate | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Real Estate | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 1 1  
Real Estate | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Real Estate | Not Subject to Leveling      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Other      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 22 23  
Other | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Other | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 15 15  
Other | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Other | Not Subject to Leveling      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 7 8  
Cash & Cash Equivalents      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 49 37  
Cash & Cash Equivalents | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Cash & Cash Equivalents | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 40 28  
Cash & Cash Equivalents | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 0 0  
Cash & Cash Equivalents | Not Subject to Leveling      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount 9 9  
Other assets and liabilities      
Defined Benefit Plan Disclosure [Line Items]      
Defined benefit plan, plan assets, amount $ 2 $ 1  
v3.25.4
PRODUCT WARRANTIES (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]    
Beginning balance $ 786 $ 568
Warranties, performance guarantees issued and changes in estimated liability 364 327
Settlements made (282) (346)
Other 32 5
Acquisition 0 232
Reclassified to held for sale (7) 0
Ending balance $ 893 $ 786
v3.25.4
EQUITY - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2025
Oct. 31, 2025
Dec. 31, 2024
Feb. 28, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Common stock, shares authorized (in shares)   4,000,000,000   4,000,000,000  
Common stock, par or stated value per share (in dollars per share)   $ 0.01   $ 0.01  
Common stock, shares, issued (in shares)   950,633,287   948,068,772  
Treasury shares (in shares)   114,891,176   70,093,639  
Share repurchase program, increase to authorized amount         $ 12,100
Share repurchase program, increase to authorized amount     $ 5,000    
Stock repurchase program, shares repurchased in period (in shares)   44,800,000      
Stock repurchase program, shares repurchased in period   $ 2,900      
Remaining authorized repurchase amount   $ 5,300      
Viessmann Holdco          
Accumulated Other Comprehensive Income (Loss) [Line Items]          
Share repurchase program, increase to authorized amount $ 300        
Stock repurchase program, authorized (in shares) 4,267,425        
Treasury stock price per share (in dollars per share) $ 70.30        
v3.25.4
EQUITY - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance as of beginning of period $ 14,395 $ 9,005 $ 8,076
Balance as of end of period 14,128 14,395 9,005
Accumulated Other Comprehensive Income (Loss)      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance as of beginning of period (2,106) (1,486) (1,688)
Other comprehensive income (loss) before reclassifications, net 1,840 (1,188) 201
Amounts reclassified, pre-tax (3) (4) 1
Tax benefit reclassified 0 1  
Divestitures, net   571  
Balance as of end of period (269) (2,106) (1,486)
Foreign Currency Translation      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance as of beginning of period (2,053) (1,444) (1,604)
Other comprehensive income (loss) before reclassifications, net 1,828 (1,173) 160
Amounts reclassified, pre-tax 0 0 0
Tax benefit reclassified 0 0  
Divestitures, net   564  
Balance as of end of period (225) (2,053) (1,444)
Defined Benefit Pension and Post-retirement Plans      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance as of beginning of period (107) (100) (84)
Other comprehensive income (loss) before reclassifications, net 12 (15) (17)
Amounts reclassified, pre-tax 3 2 1
Tax benefit reclassified (1) (1)  
Divestitures, net   7  
Balance as of end of period (93) (107) (100)
Unrealized Hedging Gains (Losses)      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance as of beginning of period 54 58 0
Other comprehensive income (loss) before reclassifications, net 0 0 58
Amounts reclassified, pre-tax (6) (6) 0
Tax benefit reclassified 1 2  
Divestitures, net   0  
Balance as of end of period $ 49 $ 54 $ 58
v3.25.4
REVENUE RECOGNITION - Schedule of Sales Disaggregated by Product and Service (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Total Net sales $ 21,747 $ 22,486 $ 18,951
Product      
Segment Reporting Information [Line Items]      
Total Net sales 19,173 19,990 16,665
Service      
Segment Reporting Information [Line Items]      
Total Net sales 2,574 2,496 2,286
Operating Segments      
Segment Reporting Information [Line Items]      
Total Net sales 21,747 22,486 18,951
Operating Segments | CSA      
Segment Reporting Information [Line Items]      
Total Net sales 10,470 10,527 9,615
Operating Segments | CSA | Product      
Segment Reporting Information [Line Items]      
Total Net sales 9,327 9,428 8,538
Operating Segments | CSA | Service      
Segment Reporting Information [Line Items]      
Total Net sales 1,143 1,099 1,077
Operating Segments | CSE      
Segment Reporting Information [Line Items]      
Total Net sales 5,044 4,984 1,937
Operating Segments | CSE | Product      
Segment Reporting Information [Line Items]      
Total Net sales 4,572 4,652 1,722
Operating Segments | CSE | Service      
Segment Reporting Information [Line Items]      
Total Net sales 472 332 215
Operating Segments | CSAME      
Segment Reporting Information [Line Items]      
Total Net sales 3,339 3,500 3,581
Operating Segments | CSAME | Product      
Segment Reporting Information [Line Items]      
Total Net sales 2,606 2,849 3,053
Operating Segments | CSAME | Service      
Segment Reporting Information [Line Items]      
Total Net sales 733 651 528
Operating Segments | CST      
Segment Reporting Information [Line Items]      
Total Net sales 2,894 3,475 3,818
Operating Segments | CST | Product      
Segment Reporting Information [Line Items]      
Total Net sales 2,668 3,061 3,352
Operating Segments | CST | Service      
Segment Reporting Information [Line Items]      
Total Net sales $ 226 $ 414 $ 466
v3.25.4
REVENUE RECOGNITION - Schedule of Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Contract assets, current (included within Other current assets) $ 499 $ 366
Contract assets, non-current (included within Other assets) 83 65
Total contract assets 582 431
Contract liabilities, current (included within Accrued liabilities) (691) (553)
Contract liabilities, non-current (included within Other long-term liabilities) (203) (164)
Total contract liabilities (894) (717)
Net contract assets (liabilities) $ (312) $ (286)
v3.25.4
REVENUE RECOGNITION - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Revenue from Contract with Customer [Abstract]  
Contract with customer, liability, revenue recognized $ 506
v3.25.4
REVENUE RECOGNITION - Remaining Performance Obligations (Details)
Dec. 31, 2025
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, period 12 months
v3.25.4
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized compensation costs $ 101 $ 112
Cost not yet recognized, period for recognition 2 years  
Stock Option    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting period (in years) 3 years  
Award vesting period in event of retirement (in years) 1 year  
Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting period (in years) 3 years  
Award vesting period in event of retirement (in years) 1 year  
Performance Shares    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Award vesting period (in years) 3 years  
Award vesting period in event of retirement (in years) 1 year  
Award requisite service period (in years) 3 years  
v3.25.4
STOCK-BASED COMPENSATION - Schedule of Fair Value Information for Stock Options and Stock Appreciation Rights (Details) - Stock Options and Stock Appreciation Rights - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock options and stock appreciation rights weighted-average fair value per award (in dollars per shares) $ 17.79 $ 14.84 $ 11.64
Assumptions:      
Volatility, minimum 31.20% 30.60%  
Volatility, maximum 33.40% 31.70%  
Volatility     30.90%
Expected term (in years)     5 years 9 months 18 days
Expected dividend yield 1.30% 1.80% 1.80%
Range of risk-free rate, minimum 3.70% 4.00%  
Range of risk-free rate, maximum 4.30% 4.30%  
Range of risk-free rates     3.60%
Minimum      
Assumptions:      
Expected term (in years) 5 years 7 months 6 days 5 years 7 months 6 days  
Maximum      
Assumptions:      
Expected term (in years)   7 years 9 months 18 days  
v3.25.4
STOCK-BASED COMPENSATION - Schedule of Share-based Payment Arrangement, Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Stock Options and Stock Appreciation Rights      
Shares Subject to Option (in thousands)      
Beginning balance (in shares) 20,787 25,071 30,778
Granted (in shares) 2,072 4,187 3,494
Exercised (in shares) (2,785) (8,041) (8,432)
Cancelled (in shares) (724) (430) (769)
Ending balance (in shares) 19,350 20,787 25,071
Exercisable (in shares) 11,909    
Weighted-Average Exercise Price      
Beginning balance (in dollars per share) $ 35.52 $ 28.34 $ 24.53
Granted (in dollars per share) 64.99 56.46 46.13
Exercised (in dollars per share) 26.20 23.21 20.48
Cancelled (in dollars per share) 54.40 50.77 42.94
Ending balance (in dollars per share) 39.31 $ 35.52 $ 28.34
Exercisable (in dollars per share) $ 28.99    
Aggregate Intrinsic Value (in millions)      
Outstanding $ 299    
Exercisable $ 285    
Weighted- Average Remaining Life (in years)      
Outstanding 5 years 4 months 24 days    
Exercisable 3 years 8 months 12 days    
Restricted Stock      
RSUs (in thousands)      
Beginning balance (in shares) 1,091 1,343 2,067
Granted (in shares) 330 264 577
Vested (in shares) (348) (448) (1,140)
Forfeited/Cancelled (in shares) (92) (68) (161)
Ending balance (in shares) 981 1,091 1,343
Weighted-Average Grant Date Fair Value      
Beginning balance (in dollars per share) $ 43.94 $ 39.22 $ 29.87
Granted (in dollars per share) 63.70 59.88 45.71
Vested (in dollars per share) 44.83 38.17 26.09
Forfeited/Cancelled (in dollars per share) 42.88 49.14 35.09
Ending balance (in dollars per share) $ 50.41 $ 43.94 $ 39.22
Performance Shares      
RSUs (in thousands)      
Beginning balance (in shares) 2,323 2,042 1,930
Granted (in shares) 836 1,741 902
Vested (in shares) (845) (1,339) (607)
Forfeited/Cancelled (in shares) (194) (121) (183)
Ending balance (in shares) 2,120 2,323 2,042
Weighted-Average Grant Date Fair Value      
Beginning balance (in dollars per share) $ 51.35 $ 45.47 $ 35.86
Granted (in dollars per share) 57.22 50.75 47.93
Vested (in dollars per share) 46.57 41.49 18.23
Forfeited/Cancelled (in dollars per share) 55.70 52.56 46.52
Ending balance (in dollars per share) $ 55.17 $ 51.35 $ 45.47
v3.25.4
STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation Cost by Award Type (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity compensation costs - equity settled $ 74 $ 98 $ 81
Equity compensation costs - cash settled (2) 2 3
Total stock-based compensation cost 72 100 84
Income tax benefit 8 13 11
Continuing Operations      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation cost 72 87 74
Discontinued Operations      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation cost $ 0 $ 13 $ 10
v3.25.4
RESTRUCTURING COSTS (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]      
Restructuring costs $ 178 $ 108 $ 75
Restructuring Reserve [Roll Forward]      
Beginning balance 69 41  
Net pre-tax restructuring costs 145 98  
Acquisitions 0 8  
Utilization, foreign exchange and other (110) (78)  
Reclassified to held for sale (2) 0  
Ending balance 102 69 41
Cost of sales      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs $ 42 $ 42 $ 13
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Purchases from equity method investees included in Cost of products sold Purchases from equity method investees included in Cost of products sold Purchases from equity method investees included in Cost of products sold
Selling, general and administrative      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs $ 136 $ 66 $ 62
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, General and Administrative Expense Selling, General and Administrative Expense Selling, General and Administrative Expense
Operating Segments      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs $ 149 $ 97 $ 65
Corporate and other      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 29 11 10
CSA | Operating Segments      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 23 9 11
CSE | Operating Segments      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 92 70 10
CSAME | Operating Segments      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs 26 10 23
CST | Operating Segments      
Restructuring Cost and Reserve [Line Items]      
Restructuring costs $ 8 $ 8 $ 21
v3.25.4
OTHER INCOME (EXPENSE), NET - Schedule of Other Income (Expense) (Details) - USD ($)
$ in Millions
 12 Months Ended
May 14, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Income and Expenses [Abstract]        
Viessmann-related hedges   $ 0 $ (86) $ (96)
CCR gain $ (292) 7 318 0
CST gain on sale of equity method investment   6 0 0
TMA-related gain   0 46 0
TCC acquisition-related adjustment   0 0 (8)
Other   23 39 (9)
Other income (expense), net   $ 36 $ 317 $ (113)
v3.25.4
OTHER INCOME (EXPENSE), NET - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2024
May 14, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
CCR gain   $ (292) $ 7 $ 318 $ 0
TMA-related gain     0 46 0
Loss on derivative instruments, pretax     0 86 96
TCC acquisition-related adjustment     0 0 (8)
VCS Business | Foreign Exchange Forward          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Loss on derivative instruments, pretax $ 86   $ 0 $ 86 $ 96
v3.25.4
INCOME TAXES - Schedule of Income from Operations Before Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
United States $ 1,536 $ 1,948 $ 1,398
Foreign 262 326 601
Earnings before income taxes $ 1,798 $ 2,274 $ 1,999
v3.25.4
INCOME TAXES - Schedule of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current:      
Federal $ 218 $ 920 $ 361
State 86 120 110
Foreign 337 374 293
Current income tax provision 641 1,414 764
Future:      
Federal (28) (90) (135)
State (10) (13) (28)
Foreign (363) (249) (80)
Deferred income tax provision (benefit) (401) (352) (243)
Effective income tax rate $ 240 $ 1,062 $ 521
v3.25.4
INCOME TAXES - Schedule of Effective Income Tax Rate (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
Statutory U.S. federal income tax rate $ 377    
State income tax, net of federal income tax effect 60    
U.S. tax on outside basis (64)    
Net CFC tested income 14    
U.S. tax on deemed dividends (6)    
Foreign tax credits (21) $ (44)  
R&D tax credits (13)    
Other tax credits (17)    
Equity income from joint ventures (21)    
Stock options (11)    
Other 12    
Changes in unrecognized tax benefits 4    
Re-organization tax benefit (43)    
Effective income tax rate $ 240 $ 1,062 $ 521
Percent      
Statutory U.S. federal income tax rate 21.00% 21.00% 21.00%
State income tax, net of federal income tax effect 3.40% 2.40% 2.40%
Statutory tax rate difference   (0.20%) 4.90%
All Other   (3.10%) (2.20%)
U.S. tax on outside basis (3.60%)    
Net CFC tested income 0.80%    
U.S. tax on deemed dividends (0.40%)    
Foreign tax credits (1.20%)    
R&D tax credits (0.70%)    
Other tax credits (0.90%)    
Equity income from joint ventures (1.20%)    
Stock options (0.60%)    
Other 0.70%    
Changes in unrecognized tax benefits 0.20%    
Re-organization tax benefit (2.40%)    
CCR divestiture impact   (2.00%) 0.00%
VCS reorganization impact   28.60% 0.00%
Effective income tax rate 13.40% 46.70% 26.10%
Canada      
Amount      
State income tax, net of federal income tax effect $ 9    
Statutory tax rate difference (3)    
All Other $ 3    
Percent      
State income tax, net of federal income tax effect 0.50%    
Statutory tax rate difference (0.20%)    
All Other 0.20%    
China      
Amount      
Statutory tax rate difference $ 4    
All Other 6    
Changes in valuation allowance $ 19    
Percent      
Statutory tax rate difference 0.20%    
All Other 0.30%    
Changes in valuation allowance 1.10%    
France      
Amount      
Statutory tax rate difference $ 9    
Changes in valuation allowance $ (1)    
Percent      
Statutory tax rate difference 0.50%    
Changes in valuation allowance (0.10%)    
Germany      
Amount      
State income tax, net of federal income tax effect $ (78)    
Statutory tax rate difference 58    
All Other (9)    
Enactment of new tax laws $ (130)    
Percent      
State income tax, net of federal income tax effect (4.30%)    
Statutory tax rate difference 3.20%    
All Other (0.50%)    
Enactment of new tax laws (7.20%)    
Ireland      
Amount      
Statutory tax rate difference $ (13)    
All Other $ 7    
Percent      
Statutory tax rate difference (0.70%)    
All Other 0.40%    
Mexico      
Amount      
Statutory tax rate difference $ 10    
All Other $ 12    
Percent      
Statutory tax rate difference 0.50%    
All Other 0.70%    
Other foreign jurisdictions      
Amount      
Statutory tax rate difference $ (1)    
Percent      
Statutory tax rate difference (0.10%)    
United States      
Amount      
All Other $ 2    
Changes in valuation allowance $ 65    
Percent      
All Other 0.20%    
Changes in valuation allowance 3.60%    
v3.25.4
INCOME TAXES - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jan. 02, 2024
May 14, 2023
Dec. 31, 2025
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]                
Net tax charge related to re-organizations and disentanglements           $ 650    
Investment tax credit, amount         $ 16      
Loss on derivative instruments, pretax         0 86 $ 96  
Gain from deconsolidation   $ (292)     7 318 0  
Foreign tax credits generated and utilized in the current year         21 44    
Re-organization and disentanglement net tax charge             27  
Withholding tax of repatriated foreign earnings             19  
Tax credit carryforward, amount     $ 1,411   1,411      
Unrecognized tax benefits     322   322 365 382 $ 291
Recognized tax benefit     5 $ 6        
Germany                
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]                
Changes in the effective rate and a statutory reduction, amount         64      
JAPAN                
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]                
Net tax charge related to re-organizations and disentanglements         49      
Minimum                
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]                
Decrease in unrecognized tax benefits is reasonably possible     10   10      
Maximum                
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]                
Decrease in unrecognized tax benefits is reasonably possible     95   95      
Swiss Federal Tax Administration (FTA)                
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]                
Tax credit carryforward, amount     $ 1,400   1,400      
VCS Business | Foreign Exchange Forward                
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]                
Loss on derivative instruments, pretax $ 86       $ 0 $ 86 $ 96  
v3.25.4
INCOME TAXES - Schedule of Future Income Tax Benefits and Obligations (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Future income tax benefits:    
Insurance and employee benefits $ 114 $ 142
Other assets basis differences 519 576
Other liabilities basis differences 773 674
Tax loss carryforwards 256 178
Tax credit carryforwards 1,411 1,404
Valuation allowances (1,539) (1,442)
Future income tax benefits 1,534 1,532
Future income tax obligations:    
Goodwill and intangible assets (1,663) (1,769)
Other asset basis differences (374) (381)
Future income tax obligations $ (2,037) $ (2,150)
v3.25.4
INCOME TAXES - Schedule of Changes to Valuation Allowance (Details) - SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of the year $ 1,442 $ 1,372 $ 83
Additions charged to income tax expense 110 46 27
Reduction credited to income tax expense (4) (41) (22)
Other adjustments (9) 65 1,303
Reclassified to held for sale     (19)
Balance at end of the year $ 1,539 $ 1,442 $ 1,372
v3.25.4
INCOME TAXES - Schedule of Tax Credit and Loss Carryforwards (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Tax Credit Carryforward [Line Items]  
Tax Loss Carryforwards $ 1,821
Tax Credit Carryforwards 1,411
2026-2030  
Tax Credit Carryforward [Line Items]  
Tax Loss Carryforwards 1,179
Tax Credit Carryforwards 18
2031-2035  
Tax Credit Carryforward [Line Items]  
Tax Loss Carryforwards 10
Tax Credit Carryforwards 1,391
2036-2045  
Tax Credit Carryforward [Line Items]  
Tax Loss Carryforwards 222
Tax Credit Carryforwards 0
Indefinite  
Tax Credit Carryforward [Line Items]  
Tax Loss Carryforwards 410
Tax Credit Carryforwards $ 2
v3.25.4
INCOME TAXES - Schedule of Unrecognized Tax Benefits and Related Interest Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Balance at beginning of period $ 365 $ 382 $ 291
Additions for tax positions related to the current year 10 34 37
Additions for tax positions of prior years 12 30 81
Reductions for tax positions of prior years (3) (7) 0
Settlements (29) (68) (27)
Reclassified to other accounts (33) (6) 0
Balance at end of period 322 365 382
Gross interest expense related to unrecognized tax benefits 18 19 18
Total accrued interest balance at end of period 71 $ 57 64
Amount as a result of acquisition     $ 73
Amount as a result to held for sale $ 33    
v3.25.4
EARNINGS PER SHARE (Details) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Net earnings (loss) attributable to common shareowners $ 1,484 $ 5,604 $ 1,349
Basic weighted-average number of shares outstanding (in shares) 852.4 898.2 837.3
Stock awards and equity units (share equivalent) (in shares) 10.0 13.5 15.7
Diluted weighted-average number of shares outstanding (in shares) 862.4 911.7 853.0
Antidilutive shares excluded from computation of diluted earnings per share (in shares) 1.9 0.1 2.0
v3.25.4
ACQUISITIONS - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Business Combination [Line Items]        
Payments to acquire businesses, net of cash acquired   $ 107 $ 10,890 $ 84
Goodwill   15,501 14,601 7,520
Acquisition-related costs   55 95 123
Business Combination, Series of Individually Immaterial Business Combinations        
Business Combination [Line Items]        
Payments to acquire businesses, net of cash acquired   $ 107    
VCS Business        
Business Combination [Line Items]        
Consideration transferred $ 14,157      
Aggregate cash paid $ 11,156      
Business acquisition, equity interest issued( in shares) 58,608,959      
Goodwill $ 7,576   7,607  
Acquisition-related costs     $ 40 $ 80
v3.25.4
ACQUISITIONS - Schedule of Purchase Price (Details) - VCS Business
$ / shares in Units, $ in Millions
Jan. 02, 2024
USD ($)
$ / shares
shares
Business Combination [Line Items]  
Cash $ 11,156
Common shares 3,001
Consideration transferred $ 14,157
Business acquisition, equity interest issued( in shares) | shares 58,608,959
Business acquisition (in dollars per share) | $ / shares $ 51.20
v3.25.4
ACQUISITIONS - Schedule of Preliminary Allocation of the Purchase Price (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2025
Jan. 02, 2024
Dec. 31, 2023
Business Combination [Line Items]        
Goodwill $ 14,601 $ 15,501   $ 7,520
VCS Business        
Business Combination [Line Items]        
Cash and cash equivalents 393   $ 394  
Measurement Period Adjustments, Cash and cash equivalents (1)      
Accounts receivable 413   408  
Measurement Period Adjustments, Accounts receivable 5      
Inventories 920   948  
Measurement Period Adjustments, Inventories (28)      
Other current assets 17   17  
Measurement Period Adjustments, Other current assets 0      
Fixed assets 919   913  
Measurement Period Adjustments, Fixed assets 6      
Intangible assets 6,645   6,640  
Measurement Period Adjustments, Intangible assets 5      
Other assets 299   284  
Measurement Period Adjustments, Other assets 15      
Accounts payable (290)   (288)  
Measurement Period Adjustments, Accounts payable (2)      
Other liabilities, current (663)   (626)  
Measurement Period Adjustments, Other liabilities, current (37)      
Future income tax obligations (1,810)   (1,825)  
Measurement Period Adjustments, Future income tax obligations 15      
Other liabilities (301)   (284)  
Measurement Period Adjustments, Other liabilities (17)      
Total identifiable net assets 6,542   6,581  
Measurement Period Adjustments, Total identifiable net assets (39)      
Goodwill 7,607   7,576  
Measurement Period Adjustments, Goodwill 31      
Total consideration 14,149   $ 14,157  
Measurement Period Adjustments, Total consideration $ (8)      
v3.25.4
ACQUISITIONS - Schedule of Intangible Assets Based on Estimate of Fair Value (Details) - VCS Business
$ in Millions
Jan. 02, 2024
USD ($)
Finite-Lived Intangible Assets [Line Items]  
Intangible Assets Acquired $ 6,645
Customer relationships  
Finite-Lived Intangible Assets [Line Items]  
Estimated Useful Life (in years) 17 years
Intangible Assets Acquired $ 4,787
Technology  
Finite-Lived Intangible Assets [Line Items]  
Intangible Assets Acquired $ 1,051
Technology | Minimum  
Finite-Lived Intangible Assets [Line Items]  
Estimated Useful Life (in years) 10 years
Technology | Maximum  
Finite-Lived Intangible Assets [Line Items]  
Estimated Useful Life (in years) 20 years
Trademark  
Finite-Lived Intangible Assets [Line Items]  
Estimated Useful Life (in years) 40 years
Intangible Assets Acquired $ 679
Backlog  
Finite-Lived Intangible Assets [Line Items]  
Estimated Useful Life (in years) 1 year
Intangible Assets Acquired $ 123
Other  
Finite-Lived Intangible Assets [Line Items]  
Estimated Useful Life (in years) 50 years
Intangible Assets Acquired $ 5
v3.25.4
DIVESTITURES - Narrative (Details) - USD ($)
$ in Millions
Dec. 02, 2024
Oct. 01, 2024
Jul. 01, 2024
Jun. 02, 2024
Dec. 16, 2025
Disposal Group, Held-for-sale, Not Discontinued Operations | Riello          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Enterprise value         $ 430
Discontinued Operations, Disposed of by Sale | Access Solutions          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Net proceeds from sale       $ 5,000  
Gain on sale $ 1,400 $ 318 $ 319 $ 1,800  
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration]       Discontinued operations, net of tax  
Discontinued Operations, Disposed of by Sale | Industrial Fire to Sentinel Capital Partners          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Net proceeds from sale     $ 1,400    
Discontinued Operations, Disposed of by Sale | Commercial Refrigeration Business (CCR)          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Net proceeds from sale $ 2,900 $ 679      
v3.25.4
DIVESTITURES - Schedule of Assets and Liabilities Classified as Held for Sale (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Total liabilities held for sale $ 170 $ 0
Disposal Group, Held-for-sale, Not Discontinued Operations | Riello    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Cash and cash equivalents 25  
Accounts receivable, net 103  
Inventories, net 98  
Other current assets 2  
Fixed assets, net 77  
Intangible assets, net 18  
Goodwill 175  
Operating lease right-of-use assets 7  
Other assets 87  
Disposal Group, Including Discontinued Operation, Assets, Total 592  
Accounts payable 91  
Accrued liabilities 45  
Contract liabilities 3  
Future pension and post-retirement obligations 7  
Future income tax obligations 9  
Operating lease liabilities 4  
Other long-term liabilities 11  
Total liabilities held for sale $ 170  
v3.25.4
DIVESTITURES - Schedule of Discontinued Operations, Net of Tax (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Discontinued operations, net of tax $ 29 $ 4,496 $ (38)
Discontinued Operations, Held-for-Sale | Fire & Security Businesses      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Net sales 0 2,323 3,147
Costs of sales 0 (1,390) (1,926)
Research and development 0 (86) (124)
Selling, general and administrative (6) (564) (690)
Other income (expense), net (3) (584) 26
Gain (loss) on divestitures and deconsolidation (22) 5,176 (297)
Interest (expense) income, net 0 (41) (51)
Earnings before income taxes (31) 4,834 85
Income tax (expense) benefit 55 1,391 (128)
Tax on divestitures and deconsolidation 5 (1,729) 5
Discontinued operations, net of tax $ 29 $ 4,496 $ (38)
v3.25.4
SEGMENT FINANCIAL DATA - Schedule of Net Sales and Geographic External Sales (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Segment Reporting Information [Line Items]      
Number of operating segments | segment 4    
Net sales $ 21,747 $ 22,486 $ 18,951
Research and development (625) (686) (493)
Selling, general and administrative (3,092) (3,197) (2,607)
Equity method investment net earnings 229 231 211
Other income (expense), net 36 317 (113)
Operating profit 2,172 2,646 2,160
Segment Assets 5,122 4,950  
Cash and cash equivalents 1,555 3,969 9,852
Other assets, current 1,264 972  
Assets held for sale 592 0  
Total current assets 8,533 9,891  
Capital Expenditures 392 519 439
Depreciation & Amortization 1,274 1,232 491
Fixed assets, net 3,165 2,999  
United States Operations      
Segment Reporting Information [Line Items]      
Net sales 11,136 11,294 10,457
Fixed assets, net 789 807  
Europe      
Segment Reporting Information [Line Items]      
Net sales 6,092 6,687 3,910
Fixed assets, net 1,404 1,253  
Asia Pacific      
Segment Reporting Information [Line Items]      
Net sales 3,841 3,817 3,949
Fixed assets, net 482 486  
Other      
Segment Reporting Information [Line Items]      
Net sales 678 688 635
Fixed assets, net 490 453  
Operating Segments      
Segment Reporting Information [Line Items]      
Net sales 21,747 22,486 18,951
Cost of goods sold (15,178) (15,484) (13,590)
Research and development (549) (620) (448)
Selling, general and administrative (2,838) (2,913) (2,305)
Equity method investment net earnings 229 232 212
Other income (expense), net 83 42 43
Operating profit 3,494 3,743 2,863
Segment Assets 5,035 4,765  
Capital Expenditures 350 475 346
Depreciation & Amortization 1,235 1,195 451
Operating Segments | CSA      
Segment Reporting Information [Line Items]      
Net sales 10,470 10,527 9,615
Cost of goods sold (7,073) (6,997) (6,629)
Research and development (347) (390) (294)
Selling, general and administrative (1,036) (962) (974)
Equity method investment net earnings 126 135 145
Other income (expense), net 10 10 (32)
Operating profit 2,150 2,323 1,831
Segment Assets 1,472 1,405  
Capital Expenditures 151 198 179
Depreciation & Amortization 133 134 120
Operating Segments | CSE      
Segment Reporting Information [Line Items]      
Net sales 5,044 4,984 1,937
Cost of goods sold (3,494) (3,368) (1,410)
Research and development (75) (81) (28)
Selling, general and administrative (1,039) (1,062) (327)
Equity method investment net earnings (3) (1) 0
Other income (expense), net 11 (3) 5
Operating profit 444 469 177
Segment Assets 1,660 1,590  
Capital Expenditures 135 197 63
Depreciation & Amortization 878 813 56
Operating Segments | CSAME      
Segment Reporting Information [Line Items]      
Net sales 3,339 3,500 3,581
Cost of goods sold (2,499) (2,579) (2,697)
Research and development (61) (69) (52)
Selling, general and administrative (476) (520) (573)
Equity method investment net earnings 100 92 61
Other income (expense), net 45 42 41
Operating profit 448 466 361
Segment Assets 988 952  
Capital Expenditures 39 48 74
Depreciation & Amortization 198 213 241
Operating Segments | CST      
Segment Reporting Information [Line Items]      
Net sales 2,894 3,475 3,818
Cost of goods sold (2,112) (2,540) (2,854)
Research and development (66) (80) (74)
Selling, general and administrative (287) (369) (431)
Equity method investment net earnings 6 6 6
Other income (expense), net 17 (7) 29
Operating profit 452 485 494
Segment Assets 915 818  
Capital Expenditures 25 32 30
Depreciation & Amortization 26 35 34
Corporate and other      
Segment Reporting Information [Line Items]      
Segment Assets 87 185  
Capital Expenditures 42 44 93
Depreciation & Amortization $ 39 $ 37 $ 40
v3.25.4
SEGMENT FINANCIAL DATA - Schedule of Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($)
$ in Millions
 12 Months Ended
May 14, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]        
Segment operating profit   $ 2,172 $ 2,646 $ 2,160
Corporate and other   (202) (201) (214)
Restructuring costs   (178) (108) (75)
Amortization of acquired intangibles   (856) (689) (143)
Acquisition step-up amortization   0 (282) (41)
Acquisition/divestiture-related costs   (55) (95) (123)
Viessmann-related hedges   0 (86) (96)
CCR gain $ (292) 7 318 0
VCS pre-acquisition product replacement cost   (38) 0 0
Gain on liability adjustment   0 46 0
Bridge loan financing costs   0 0 (3)
TCC acquisition-related adjustment   0 0 8
Non-service pension benefit (expense)   (10) (1) (1)
Interest (expense) income, net   (364) (371) (160)
Earnings before income taxes   1,798 2,274 1,999
Operating Segments        
Segment Reporting Information [Line Items]        
Segment operating profit   $ 3,494 $ 3,743 $ 2,863
v3.25.4
RELATED PARTIES - Narrative (Details)
Dec. 31, 2025
affiliate
Related Party Transaction [Line Items]  
Number of owned unconsolidated domestic and foreign affiliates 28
CSA  
Related Party Transaction [Line Items]  
Equity method investment, percentage of investments in segment 56.00%
CSAME  
Related Party Transaction [Line Items]  
Equity method investment, percentage of investments in segment 40.00%
v3.25.4
RELATED PARTIES - Schedule of Amounts Attributable to Equity Method Investees (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]      
Sales to equity method investees included in Product sales $ 21,747 $ 22,486 $ 18,951
Receivables from equity method investees included in Accounts receivable, net 2,639 2,651  
Payables to equity method investees included in Accounts payable 2,702 2,458  
Product      
Related Party Transaction [Line Items]      
Sales to equity method investees included in Product sales 19,173 19,990 16,665
Purchases from equity method investees included in Cost of products sold 14,232 14,580 12,002
Related Party      
Related Party Transaction [Line Items]      
Receivables from equity method investees included in Accounts receivable, net 220 363  
Payables to equity method investees included in Accounts payable 40 32  
Related Party | Product      
Related Party Transaction [Line Items]      
Sales to equity method investees included in Product sales 2,874 2,956 2,920
Purchases from equity method investees included in Cost of products sold $ 227 $ 237 $ 214
v3.25.4
RELATED PARTIES - Schedule of Balance Sheet for Equity Method Investment (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]        
Current assets $ 8,533 $ 9,891    
Total assets 37,190 37,403    
Current liabilities (7,114) (7,892)    
Total liabilities (23,062) (23,008)    
Total Equity 14,128 14,395 $ 9,005 $ 8,076
Equity Method Investment, Nonconsolidated Investee or Group of Investees        
Schedule of Equity Method Investments [Line Items]        
Current assets 11,835 12,823    
Non-current assets 2,418 2,396    
Total assets 14,253 15,219    
Current liabilities (9,675) (11,053)    
Non-current liabilities (236) (210)    
Total liabilities (9,911) (11,263)    
Total Equity $ 4,342 $ 3,956    
v3.25.4
RELATED PARTIES - Schedule of Statement of Income for Equity Method Investments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]      
Net sales $ 21,747 $ 22,486 $ 18,951
Income from continuing operations 1,587 5,708 1,440
Equity Method Investment, Nonconsolidated Investee or Group of Investees      
Schedule of Equity Method Investments [Line Items]      
Net sales 18,154 17,567 16,180
Gross profit 3,168 3,063 2,862
Income from continuing operations 676 700 655
Net earnings (loss) $ 676 $ 700 $ 655
v3.25.4
COMMITMENTS AND CONTINGENT LIABILITIES - Schedule of Outstanding Liability for Environmental Obligations (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]    
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities Accrued liabilities
Environmental Loss Contingency, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other long-term liabilities Other long-term liabilities
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] Accrued liabilities, Other long-term liabilities Accrued liabilities, Other long-term liabilities
Environmental reserves included in Accrued liabilities $ 18 $ 25
Environmental reserves included in Other long-term liabilities 182 185
Total environmental reserves $ 200 $ 210
v3.25.4
COMMITMENTS AND CONTINGENT LIABILITIES - Schedule of Asbestos Liabilities and Related Recoveries (Details) - Asbestos Matters - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Loss Contingencies [Line Items]    
Asbestos liabilities included in Accrued liabilities $ 17 $ 17
Asbestos liabilities included in Other long-term liabilities 201 208
Total asbestos liabilities 218 225
Asbestos-related recoveries included in Accounts receivable, net 6 7
Asbestos-related recoveries included in Other assets 86 88
Total asbestos-related recoveries $ 92 $ 95
v3.25.4
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details)
lawsuit in Thousands
 1 Months Ended 12 Months Ended
Dec. 31, 2025
USD ($)
lawsuit
May 14, 2023
USD ($)
Oct. 31, 2024
settlement
Dec. 31, 2025
USD ($)
lawsuit
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Other Commitments [Line Items]            
Potential contingent liabilities   $ 0        
Deconsolidation, loss amount   292,000,000   $ (7,000,000) $ (318,000,000) $ 0
Cash divested from deconsolidation   134,000,000        
Payment under tax sharing arrangement   15,000,000        
Liability amount $ 101,000,000     101,000,000    
Self-insurance expense       $ 157,000,000 135,000,000 $ 139,000,000
Aqueous Film Forming Foam            
Other Commitments [Line Items]            
Number of litigation cases (more than) | lawsuit 17     17    
Aqueous Film Forming Foam | Pending Litigation            
Other Commitments [Line Items]            
Litigation settlement, number of distinct settlement agreements | settlement     3      
Litigation settlement, number of years business owned     8 years      
Loss contingency, litigation settlement to be paid $ 615,000,000     $ 615,000,000    
Loss contingency, settlement to be paid, term 5 years          
Estimated insurance recoveries $ 2,400,000,000     $ 2,400,000,000    
Loss contingency, settlement to be paid, contribution from insurance settlement $ 125,000,000          
Liabilities subject to compromise, litigation liability   $ 50,000,000     $ 565,000,000  
Aqueous Film Forming Foam | Pending Litigation | Kidde-Fenwal, Inc.            
Other Commitments [Line Items]            
Loss contingency, settlement to be paid, percentage of proceeds from sale of sale of net assets 100.00%          
Loss contingency, settlement to be paid, estimated proceeds from sale of assets $ 115,000,000          
v3.25.4
COMMITMENTS AND CONTINGENT LIABILITIES - Schedule of Self-Insurance Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]    
Self-insurance liabilities included in Accrued liabilities $ 159 $ 173
Self-insurance liabilities included in Other long-term liabilities 42 43
Total self-insurance liabilities $ 201 $ 216
v3.25.4
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Interest paid, net of amounts capitalized $ 422 $ 610 $ 320
Income taxes paid, net of refunds 729 2,126 942
Non-cash financing activity:      
Common stock dividends payable 201 $ 199 $ 161
Federal income taxes paid 284    
State and local taxes paid 118    
China      
Non-cash financing activity:      
Foreign income taxes paid 69    
France      
Non-cash financing activity:      
Foreign income taxes paid 56    
Mexico      
Non-cash financing activity:      
Foreign income taxes paid 53    
Other foreign jurisdictions      
Non-cash financing activity:      
Foreign income taxes paid 198    
Germany      
Non-cash financing activity:      
Foreign income tax refund $ 49