CARRIER GLOBAL CORP, 10-Q filed on 4/30/2026
Quarterly Report
v3.26.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2026
Apr. 15, 2026
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2026  
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 Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   830,580,423
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0001783180  
Common Stock    
Document Information [Line Items]    
Title of each class Common Stock ($0.01 par value)  
Trading Symbol(s) CARR  
Name of each exchange on which registered NYSE  
4.125% Notes due 2028    
Document Information [Line Items]    
Title of each class 4.125% Notes due 2028  
Trading Symbol(s) CARR28  
Name of each exchange on which registered NYSE  
4.500% Notes due 2032    
Document Information [Line Items]    
Title of each class 4.500% Notes due 2032  
Trading Symbol(s) CARR32  
Name of each exchange on which registered NYSE  
3.625% Notes due 2037    
Document Information [Line Items]    
Title of each class 3.625% Notes due 2037  
Trading Symbol(s) CARR37  
Name of each exchange on which registered NYSE  
v3.26.1
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Net sales    
Total Net sales $ 5,341 $ 5,218
Costs and expenses    
Research and development (143) (153)
Selling, general and administrative (861) (729)
Total Costs and expenses (5,101) (4,655)
Equity method investment net earnings 31 44
Other income (expense), net (12) 22
Operating profit 259 629
Non-service pension benefit (expense) 1 1
Interest (expense) income, net (90) (82)
Earnings before income taxes 170 548
Income tax (expense) benefit 96 (111)
Earnings from continuing operations 266 437
Discontinued operations, net of tax (1) 0
Net earnings (loss) 265 437
Less: Non-controlling interest in subsidiaries' 27 25
Net earnings (loss) attributable to common shareowners 238 412
Amounts attributable to common shareowners:    
Continuing operations 239 412
Discontinued operations (1) 0
Net earnings (loss) attributable to common shareowners $ 238 $ 412
Basic:    
Continuing operations, Basic (in dollars per share) $ 0.29 $ 0.47
Discontinued operations, Basic (in dollars per share) 0 0
Net earnings (loss), Basic (in dollars per share) 0.29 0.47
Diluted:    
Continuing operations, Diluted (in dollars per share) 0.28 0.47
Discontinued operations, Diluted (in dollars per share) 0 0
Net earnings (loss), Diluted (in dollars per share) $ 0.28 $ 0.47
Weighted-average number of shares outstanding    
Basic (in shares) 835.0 866.9
Diluted (in shares) 842.8 878.3
Product    
Net sales    
Total Net sales $ 4,667 $ 4,652
Costs and expenses    
Cost of goods sold (3,591) (3,358)
Service    
Net sales    
Total Net sales 674 566
Costs and expenses    
Cost of goods sold $ (506) $ (415)
v3.26.1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Statement of Comprehensive Income [Abstract]    
Net earnings (loss) $ 265 $ 437
Other comprehensive income (loss), net of tax:    
Foreign currency translation adjustments arising during period (292) 634
Pension and post-retirement benefit plan adjustments 1 0
Amortization of unrealized cash flow hedging gain (loss) (1) (1)
Other comprehensive income (loss), net of tax (292) 633
Comprehensive income (loss) (27) 1,070
Less: Comprehensive income (loss) attributable to non-controlling interest 26 25
Comprehensive income (loss) attributable to common shareowners $ (53) $ 1,045
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Assets    
Cash and cash equivalents $ 1,371 $ 1,555
Accounts receivable, net 3,130 2,639
Inventories, net 2,581 2,483
Assets held for sale 621 592
Other current assets 1,315 1,264
Total current assets 9,018 8,533
Future income tax benefits 1,137 1,074
Fixed assets, net 3,122 3,165
Operating lease right-of-use assets 551 546
Intangible assets, net 5,987 6,326
Goodwill 15,313 15,501
Pension and post-retirement assets 58 56
Equity method investments 1,331 1,321
Other assets 669 668
Total Assets 37,186 37,190
Liabilities and Equity    
Accounts payable 2,979 2,702
Accrued liabilities 3,700 3,774
Liabilities held for sale 170 170
Short-term borrowings and current portion of long-term debt 1,736 468
Total current liabilities 8,585 7,114
Long-term debt 10,422 11,365
Future pension and post-retirement obligations 188 192
Future income tax obligations 1,688 1,833
Operating lease liabilities 415 418
Other long-term liabilities 2,087 2,140
Total Liabilities 23,385 23,062
Commitments and contingent liabilities (Note 18)
Equity    
Common stock 10 10
Treasury stock (7,104) (6,795)
Additional paid-in capital 8,675 8,665
Retained earnings 12,431 12,193
Accumulated other comprehensive income (loss) (560) (269)
Non-controlling interest 349 324
Total Equity 13,801 14,128
Total Liabilities and Equity $ 37,186 $ 37,190
v3.26.1
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($)
$ in Millions
Total
Accumulated Other Comprehensive Income (Loss)
Common Stock
Treasury Stock
Additional Paid-In Capital
Retained Earnings
Non-Controlling Interest
Balance as of beginning 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) 437         412 25
Other comprehensive income (loss), net of tax 633 633          
Shares issued under incentive plans, net (17)       (17)    
Stock-based compensation 23       23    
Treasury stock repurchase (1,273)     (1,273)      
Balance as of end of period at Mar. 31, 2025 14,198 (1,473) 9 (5,188) 8,616 11,895 339
Balance as of beginning of period at Dec. 31, 2025 14,128 (269) 10 (6,795) 8,665 12,193 324
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net earnings (loss) 265         238 27
Other comprehensive income (loss), net of tax (292) (291)         (1)
Shares issued under incentive plans, net (10)       (10)    
Stock-based compensation 20       20    
Dividends attributable to non-controlling interest (1)           (1)
Treasury stock repurchase (309)     (309)      
Balance as of end of period at Mar. 31, 2026 $ 13,801 $ (560) $ 10 $ (7,104) $ 8,675 $ 12,431 $ 349
v3.26.1
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Operating Activities    
Net earnings (loss) $ 265 $ 437
Discontinued operations, net of tax 1 0
Adjustments for non-cash items, net:    
Depreciation and amortization 315 303
Deferred income tax provision (179) (69)
Stock-based compensation costs 21 23
Equity method investment net earnings (31) (44)
(Gain) loss on sale of investments (3) (5)
Changes in operating assets and liabilities    
Accounts receivable, net (509) (362)
Inventories, net (138) (301)
Accounts payable and accrued liabilities 351 481
Distributions from equity method investments 12 77
Other operating activities, net (39) (52)
Net cash flows provided by (used in) continuing operating activities 66 488
Net cash flows provided by (used in) discontinued operating activities 13 (5)
Net cash flows provided by (used in) operating activities 79 483
Investing Activities    
Capital expenditures (94) (63)
Investment in businesses, net of cash acquired (23) (12)
Dispositions of businesses 8 8
Settlement of derivative contracts, net 35 36
Other investing activities, net 9 1
Net cash flows provided by (used in) continuing investing activities (65) (30)
Net cash flows provided by (used in) discontinued investing activities 0 7
Net cash flows provided by (used in) investing activities (65) (23)
Financing Activities    
Increase (decrease) in short-term borrowings, net 371 (49)
Issuance of long-term debt 22 9
Repayment of long-term debt (16) (1,205)
Repurchases of common stock (306) (1,288)
Dividends paid on common stock (201) (198)
Dividends paid to non-controlling interest (1) 0
Other financing activities, net (10) (16)
Net cash flows provided by (used in) continuing financing activities (141) (2,747)
Net cash flows provided by (used in) discontinued financing activities 0 0
Net cash flows provided by (used in) financing activities (141) (2,747)
Effect of foreign exchange rate changes on cash and cash equivalents (13) 17
Net increase (decrease) in cash and cash equivalents and restricted cash, including cash classified in current assets held for sale (140) (2,270)
Less: Change in cash balances classified as assets held for sale 43 0
Net increase (decrease) in cash and cash equivalents and restricted cash (183) (2,270)
Cash, cash equivalents and restricted cash, beginning of period 1,557 3,972
Cash, cash equivalents and restricted cash, end of period 1,374 1,702
Less: restricted cash 3 4
Cash and cash equivalents, end of period $ 1,371 $ 1,698
v3.26.1
DESCRIPTION OF THE BUSINESS
 3 Months Ended
Mar. 31, 2026
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 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.
In the opinion of management, the accompanying Unaudited Condensed Consolidated Financial Statements contain all adjustments (which include normal recurring adjustments) necessary to state fairly the financial position, results of operations and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). The accompanying Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for 2025 filed with the SEC on February 5, 2026 (the "2025 Form 10-K").
v3.26.1
BASIS OF PRESENTATION
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
BASIS OF PRESENTATION BASIS OF PRESENTATION
The Unaudited Condensed Consolidated Financial Statements include all accounts of the Company and its wholly-owned and majority-owned subsidiaries in which it has control. Inter-company accounts and transactions have been eliminated. Related party transactions between the Company and its equity method investees have not been eliminated. Non-controlling interest represents a non-controlling investor's interests in the results of subsidiaries that the Company controls and consolidates.

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 Unaudited Condensed Consolidated Balance Sheet as of March 31, 2026 and December 31, 2025, and recorded at the lower of their carrying value or fair value less estimated cost to sell. See Note 15 - Divestitures for additional information.

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 of 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 March 31, 2026, only certain portions of the Tax Matters Agreement ("TMA") remain in effect.
Recently Issued and Adopted Accounting Pronouncements

The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") is the sole source of authoritative U.S. GAAP other than 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 pending adoption were assessed and determined to be either not applicable or are not expected to have a material impact on the accompanying Unaudited Condensed Consolidated Financial Statements.

Recently Issued Accounting Pronouncements

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.
v3.26.1
INVENTORIES, NET
 3 Months Ended
Mar. 31, 2026
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 subsidiaries use the last-in, first-out inventory method ("LIFO").

Inventories, net consisted of the following:

(In millions)March 31,
2026		December 31,
2025
Raw materials$645 $666 
Work-in-process269 245 
Finished goods1,667 1,572 
Inventories, net$2,581 $2,483 

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 $345 million and $337 million as of March 31, 2026 and December 31, 2025, respectively.
v3.26.1
GOODWILL AND INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2026
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 as of December 31, 2025$5,075 $7,808 $1,410 $1,208 $15,501 
Acquisitions10 — — — 10 
Reclassified to held for sale (1)
— 4 — — 4 
Foreign currency translation(2)(191)(1)(8)(202)
Balance as of March 31, 2026$5,083 $7,621 $1,409 $1,200 $15,313 
(1) See Note 15 - Divestitures for additional information.
Identifiable intangible assets are amortized over their estimated useful lives and consisted of the following:

March 31, 2026December 31, 2025
(In millions)Gross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet Amount
Customer relationships$6,009 $(1,697)$4,312 $6,143 $(1,573)$4,570 
Patents and trademarks942 (204)738 945 (191)754 
Technology and other1,657 (720)937 1,692 (690)1,002 
Total intangible assets$8,608 $(2,621)$5,987 $8,780 $(2,454)$6,326 

Amortization of intangible assets was as follows:

Three Months Ended
 March 31,
(In millions)20262025
Amortization expense of Intangible assets$217 $208 
v3.26.1
BORROWINGS AND LINES OF CREDIT
 3 Months Ended
Mar. 31, 2026
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)March 31,
2026		December 31,
2025
Commercial paper$708 $325 
Short-term borrowings23 35 
Current portion of long-term debt1,005 108 
Short-term borrowings and current portion of long-term debt$1,736 $468 
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. At March 31, 2026, the Company had $708 million outstanding under its commercial paper facilities with a weighted average interest rate of 4.06%.

Long-term debt consisted of the following:

(In millions)March 31,
2026		December 31,
2025
2.493% Notes due 2027 (1)
900 900 
4.125% Notes due 2028
865 883 
2.722% Notes due 2030
2,000 2,000 
2.700% Notes due 2031
750 750 
4.500% Notes due 2032
980 1,001 
5.900% Notes due 2034
875 875 
3.625% Notes due 2037
865 883 
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 notes10,785 10,842 
Japanese Term Loan Facility338 345 
Other debt (including project financing obligations and finance leases)380 364 
Discounts and debt issuance costs(76)(78)
Total long-term debt11,427 11,473 
Less: current portion of long-term debt1,005 108 
Long-term debt, net of current portion$10,422 $11,365 
(1) 2.493% Notes due February 27, 2027; reclassified to Current portion of long-term debt.

Revolving Credit Facility

The Company maintains a $2.5 billion 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 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. As of March 31, 2026, 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 $14 million and $6 million of debt during the three months ended March 31, 2026 and 2025, respectively. Long-term debt repayments associated with these financing arrangements during the three months ended March 31, 2026 and 2025, were $14 million and zero, respectively.
Debt Covenants

The Revolving Credit Facility, the indenture for the long-term notes and the five-year, JPY 54 billion senior unsecured term loan facility ("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 certain liens, to make certain fundamental changes and to enter into sale and leaseback transactions. As of March 31, 2026, the Company was in compliance with the covenants under the agreements governing its outstanding indebtedness.
v3.26.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2026
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 Unaudited Condensed 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 $3.2 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 Unaudited Condensed 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 Unaudited Condensed 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 2054. The amount expected to be amortized during the next twelve months is a net gain of $4 million.
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 Unaudited Condensed Consolidated Balance Sheet:

(In millions)TotalLevel 1Level 2Level 3
March 31, 2026
Derivative assets (1)
$133 $— $133 $— 
Derivative liabilities (2)
$(153)$— $(153)$— 
December 31, 2025
Derivative assets (1)
$129 $— $129 $— 
Derivative liabilities (2)
$(166)$— $(166)$— 
(1) Included in Other current assets and Other assets on the accompanying Unaudited Condensed Consolidated Balance Sheet.
(2) Included in Accrued liabilities and Other long-term liabilities on the accompanying Unaudited Condensed 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 Unaudited Condensed Consolidated Balance Sheet:

March 31, 2026December 31, 2025
(In millions)Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Total long-term notes (1)
$10,785 $9,939 $10,842 $10,167 
(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 Unaudited Condensed Consolidated Balance Sheet, approximate fair value and are classified as Level 3 in the fair value hierarchy.
v3.26.1
EMPLOYEE BENEFIT PLANS
 3 Months Ended
Mar. 31, 2026
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.

Contributions to the plans were as follows:

Three Months Ended
 March 31,
(In millions)20262025
Defined benefit plans$5 $5 
Defined contribution plans$32 $35 
Multi-employer pension plans$4 $3 
The components of net periodic pension expense (benefit) for the defined benefit pension plans are as follows:

Three Months Ended
 March 31,
(In millions)20262025
Service cost$3 $3 
Interest cost6 7 
Expected return on plan assets(8)(8)
Recognized actuarial net (gain) loss1 — 
Net periodic pension expense (benefit)$2 $2 
v3.26.1
STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2026
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 units and performance share units.

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 Unaudited Condensed Consolidated Statement of Operations.

Stock-based compensation cost by award type was as follows:
Three Months Ended
 March 31,
(In millions)20262025
Equity compensation costs - equity settled$21 $23 
Equity compensation costs - cash settled (1)
1 (1)
Total stock-based compensation expense$22 $22 
(1) The cash settled awards are classified as liability awards and are measured at fair value at each balance sheet date.
v3.26.1
PRODUCT WARRANTIES
 3 Months Ended
Mar. 31, 2026
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 Unaudited Condensed 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:

Three Months Ended
March 31,
(In millions)20262025
Balance as of January 1,$893 $786 
Warranties, performance guarantees issued and changes in estimated liability92 89 
Settlements made(69)(69)
Other (1)
(6)8 
Balance as of March 31,$910 $814 
(1) The changes within Other include foreign currency translation activity.
v3.26.1
EQUITY
 3 Months Ended
Mar. 31, 2026
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 March 31, 2026 and December 31, 2025, 951,330,903 and 950,633,287 shares of common stock were issued, respectively, which includes 119,939,168 and 114,891,176 shares of treasury stock, respectively.

Share Repurchase Program

The Company may repurchase 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.

During the three months ended March 31, 2026, the Company repurchased 5.0 million shares of common stock for an aggregate purchase price of $306 million. As a result, the Company had approximately $5.0 billion remaining under the current authorization at March 31, 2026.

Accumulated Other Comprehensive Income (Loss)

A summary of changes in the components of Accumulated other comprehensive income (loss) for the three months ended March 31, 2026 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 December 31, 2025$(225)$(93)$49 $(269)
Other comprehensive income (loss) before reclassifications, net(291)— — (291)
Amounts reclassified, pre-tax— 1 (1)— 
Balance as of March 31, 2026$(516)$(92)$48 $(560)
A summary of changes in the components of Accumulated other comprehensive income (loss) for the three months ended March 31, 2025 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 December 31, 2024$(2,053)$(107)$54 $(2,106)
Other comprehensive income (loss) before reclassifications, net634 — — 634 
Amounts reclassified, pre-tax— — (1)(1)
Balance as of March 31, 2025$(1,419)$(107)$53 $(1,473)
v3.26.1
REVENUE RECOGNITION
 3 Months Ended
Mar. 31, 2026
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 at 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.

External segment sales disaggregated by product and service are as follows:

Three Months Ended
 March 31,
(In millions)20262025
Sales Type
Product$2,214 $2,319 
Service287 253 
Climate Solutions Americas sales2,501 2,572 
Product1,154 1,071 
Service139 98 
Climate Solutions Europe sales1,293 1,169 
Product642 660 
Service192 166 
Climate Solutions Asia Pacific, Middle East & Africa sales834 826 
Product657 602 
Service56 49 
Climate Solutions Transportation sales713 651 
Net sales$5,341 $5,218 
Contract Balances

Total contract assets and contract liabilities consisted of the following:

(In millions)March 31,
2026		December 31,
2025
Contract assets (included within Other current assets)
$527 $499 
Contract assets, non-current (included within Other assets)
79 83 
Total contract assets606 582 
Contract liabilities (included within Accrued liabilities)
(722)(691)
Contract liabilities, non-current (included within Other long-term liabilities)
(208)(203)
Total contract liabilities (930)(894)
Net contract assets (liabilities)$(324)$(312)

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 a customer. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract.
The Company recognized revenue of $250 million during the three months ended March 31, 2026, that related to contract liabilities as of January 1, 2026. The Company expects a majority of its current contract liabilities at the end of the period to be recognized as revenue in the next 12 months.
v3.26.1
RESTRUCTURING COSTS
 3 Months Ended
Mar. 31, 2026
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 actions.

The Company recorded net pre-tax restructuring costs for new and ongoing restructuring initiatives as follows:

Three Months Ended
 March 31,
(In millions)20262025
Climate Solutions Americas$3 $3 
Climate Solutions Europe86 — 
Climate Solutions Asia Pacific, Middle East & Africa3 1 
Climate Solutions Transportation2 1 
Total Segment94 5 
Corporate and other14 3 
Total restructuring costs (1)
$108 $8 
Cost of sales$44 $2 
Selling, general and administrative64 6 
Total restructuring costs (1)
$108 $8 
(1) Restructuring costs include period-related charges.
The following table summarizes changes in the restructuring reserve, included in Accrued liabilities on the accompanying Unaudited Condensed Consolidated Balance Sheet:

Three Months Ended
March 31,
(In millions)20262025
Balance as of January 1,$102 $69 
Net pre-tax restructuring costs103 4 
Utilization, foreign exchange and other(46)(17)
Balance as of March 31,$159 $56 

As of March 31, 2026, the Company had $159 million accrued for costs associated with its announced restructuring initiatives. The balance relates to cost reduction efforts, primarily severance related across each of the Company's segments. The Company expects a majority of the balance to be utilized within 12 months.
v3.26.1
INCOME TAXES
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company accounts for income tax expense in accordance with ASC 740, Income Taxes ("ASC 740"), which requires an estimate of the annual effective income tax rate for the full year to be applied to the respective interim period, taking into account year-to-date amounts, projected results for the full year, and tax items recorded discretely in the period. The effective tax rate was (56.5)% for the three months ended March 31, 2026, compared with 20.3% for the three months ended March 31, 2025. The year-over-year decrease was primarily driven by a net $99 million tax benefit from the partial release of a valuation allowance associated with our operations in a Swiss subsidiary and a favorable settlement of $18 million related to a state income tax audit, both in the current period. The three months ended March 31, 2025 included an $8 million tax benefit generated by the purchase of investment tax credits from a third-party.

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 that may be 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 whether valuation allowances against deferred tax assets are required. The Company maintains valuation allowances against certain deferred tax assets.

The Company conducts business globally and files income tax returns in U.S. federal, state and foreign jurisdictions. In certain jurisdictions, the Company's operations were included in UTC's combined tax returns for the periods through the Distribution. Carrier's tax year 2022 is under examination by the IRS with closure of the examination expected in 2027. The Australia Tax Office is auditing the Company's 2021 tax return, including the review of the disentanglement of the Chubb Australia business, with the audit expected to close in late 2026. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including Australia, Canada, China, France, Germany, Hong Kong, India, Italy, Mexico, the Netherlands, Poland, Singapore, the United Kingdom and the United States. 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 state, local and foreign income tax examinations for tax years prior to 2014.

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 $5 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 and/or the expiration of tax statutes.
On July 4, 2025, the One Big Beautiful Bill Act was enacted in the U.S., making permanent key provisions from the Tax Cuts and Jobs Act including full expensing of capital investments and U.S. incurred research and development costs, while also modifying the international tax framework and reinstating favorable treatment for certain business tax items. The legislation has staggered effective dates from 2025 through 2027. The U.S. law change did not have a material impact on the Company's Statement of Operations.
v3.26.1
EARNINGS PER SHARE
 3 Months Ended
Mar. 31, 2026
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:

Three Months Ended
March 31,
(In millions, except per share amounts)20262025
Net earnings (loss) attributable to common shareowners$238 $412 
Basic weighted-average number of shares outstanding835.0 866.9 
Stock awards and equity units (share equivalent)7.8 11.4 
Diluted weighted-average number of shares outstanding842.8 878.3 
Antidilutive shares excluded from computation of diluted earnings per share6.8 3.7 
v3.26.1
DIVESTITURES
 3 Months Ended
Mar. 31, 2026
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 Unaudited Condensed Consolidated Balance Sheet as of March 31, 2026, and 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:

March 31, 2026December 31, 2025
(In millions)Riello
Cash and cash equivalents$67 $25 
Accounts receivable, net86 103 
Inventories, net106 98 
Other current assets2 2 
Fixed assets, net78 77 
Intangible assets, net20 18 
Goodwill171 175 
Operating lease right-of-use assets7 7 
Other assets84 87 
Total assets held for sale$621 $592 
Accounts payable$100 $91 
Accrued liabilities36 45 
Contract liabilities2 3 
Future pension and post-retirement obligations7 7 
Future income tax obligations10 9 
Operating lease liabilities4 4 
Other long-term liabilities11 11 
Total liabilities held for sale$170 $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 Unaudited Condensed Consolidated Statement of Operations and Unaudited Condensed Consolidated Statement of Cash Flows. Amounts reported during 2025 and 2026 relate to retained obligations from these business divestitures.

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

Three Months Ended
 March 31,
(In millions)20262025
Net sales$— $— 
Costs of sales— — 
Research and development— — 
Selling, general and administrative(1)— 
Other income (expense), net— — 
Gain (loss) on divestitures and deconsolidation— — 
Interest (expense) income, net— — 
Earnings (loss) before income taxes(1)— 
Income tax (expense) benefit— — 
Tax on divestitures and deconsolidation— — 
Discontinued operations, net of tax
$(1)$— 
v3.26.1
SEGMENT FINANCIAL DATA
 3 Months Ended
Mar. 31, 2026
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:

Three Months Ended March 31, 2026
(In millions)CSACSECSAMECSTSegment Total
Net sales$2,501 $1,293 $834 $713 $5,341 
Cost of goods sold(1,770)(904)(640)(525)(3,839)
Research and development(77)(21)(15)(15)(128)
Selling, general and administrative(280)(280)(117)(74)(751)
Equity method investment net earnings13 (1)17 3 32 
Other income (expense), net(14)2 2 (1)(11)
Segment operating profit$373 $89 $81 $101 $644 
Three Months Ended March 31, 2025
(In millions)CSACSECSAMECSTSegment Total
Net sales$2,572 $1,169 $826 $651 $5,218 
Cost of goods sold(1,700)(788)(609)(471)(3,568)
Research and development(86)(18)(15)(16)(135)
Selling, general and administrative(250)(257)(112)(69)(688)
Equity method investment net earnings26 (2)18 2 44 
Other income (expense), net8 1 13 — 22 
Segment operating profit$570 $105 $121 $97 $893 

Three Months Ended
 March 31,
(In millions)20262025
Reconciliation to Earnings before income taxes
Segment operating profit$644 $893 
Corporate and other(50)(45)
Restructuring costs(108)(8)
Amortization of acquired intangible assets(213)(201)
Acquisition/divestiture-related costs(14)(10)
Non-service pension (expense) benefit1 1 
Interest (expense) income, net(90)(82)
Earnings before income taxes$170 $548 

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.

Geographic external sales are attributed to the geographic regions based on their location of origin. With the exception of the United States as presented in the table below, there were no individually significant countries with sales exceeding 10% of total sales during the three months ended March 31, 2026 and 2025.

Three Months Ended
 March 31,
(In millions)20262025
United States $2,657 $2,738 
International:
Europe1,549 1,401 
Asia Pacific986 941 
Other149 138 
Net sales$5,341 $5,218 
v3.26.1
RELATED PARTIES
 3 Months Ended
Mar. 31, 2026
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. Amounts attributable to equity method investees are as follows:

Three Months Ended
March 31,
(In millions)20262025
Sales to equity method investees included in Product sales
$686 $780 
Purchases from equity method investees included in Cost of products sold
$51 $47 

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

(In millions)March 31,
2026		December 31,
2025
Receivables from equity method investees included in Accounts receivable, net
$290 $220 
Payables to equity method investees included in Accounts payable
$33 $40 
v3.26.1
COMMITMENTS AND CONTINGENT LIABILITIES
 3 Months Ended
Mar. 31, 2026
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.

The outstanding liabilities for environmental obligations are as follows:

(In millions)March 31,
2026		December 31,
2025
Environmental reserves included in Accrued liabilities
$17 $18 
Environmental reserves included in Other long-term liabilities
181 182 
Total Environmental reserves$198 $200 

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)March 31,
2026		December 31,
2025
Asbestos liabilities included in Accrued liabilities
$17 $17 
Asbestos liabilities included in Other long-term liabilities
195 201 
Total Asbestos liabilities$212 $218 
Asbestos-related recoveries included in Other current assets
$6 $6 
Asbestos-related recoveries included in Other assets
85 86 
Total Asbestos-related recoveries$91 $92 

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 March 31, 2026, 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"). In 2013, KFI divested the AFFF businesses to an unrelated third party. The Company acquired KFI as part of the Separation in April 2020.

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 payments 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 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 March 31, 2026, 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.

Antitrust Litigation

Beginning in March 2026, the Company, along with several other HVAC manufacturers, has been named as a defendant in putative class-action lawsuits alleging violations of federal and state antitrust laws on behalf of direct and indirect purchasers of HVAC equipment. These lawsuits are currently pending in the United States District Court for the Eastern District of Michigan and generally allege that the Company and other industry participants have engaged in an unlawful agreement to fix or raise the prices of certain HVAC products in the United States since January 1, 2020. The lawsuits seek damages, including treble damages under federal and state antitrust statutes, as well as injunctive relief and attorneys’ fees. The Company believes the allegations in these lawsuits lack merit and that it has meritorious defenses to the alleged claims. At this time, the Company is unable to assess the probability of liability or to reasonably estimate a range of possible loss. There can be no assurance that any future exposure will not be material in any period.

Income Taxes

Under the TMA relating to the Separation, the Company is responsible to UTC for its share of the Tax Cuts and Jobs Act 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 Unaudited Condensed Consolidated Balance Sheet within Accrued liabilities as of March 31, 2026. This obligation was settled in April 2026.
Other

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 results of operations, cash flows or financial condition.
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2026
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
v3.26.1
BASIS OF PRESENTATION (Policies)
 3 Months Ended
Mar. 31, 2026
Accounting Policies [Abstract]  
Basis of Accounting The Unaudited Condensed Consolidated Financial Statements include all accounts of the Company and its wholly-owned and majority-owned subsidiaries in which it has control. Inter-company accounts and transactions have been eliminated. Related party transactions between the Company and its equity method investees have not been eliminated. Non-controlling interest represents a non-controlling investor's interests in the results of subsidiaries that the Company controls and consolidates.
Recently Issued and Adopted Accounting Pronouncements
The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") is the sole source of authoritative U.S. GAAP other than 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 pending adoption were assessed and determined to be either not applicable or are not expected to have a material impact on the accompanying Unaudited Condensed Consolidated Financial Statements.

Recently Issued Accounting Pronouncements

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.
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 Unaudited Condensed 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 $3.2 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 Unaudited Condensed Consolidated Balance Sheet.
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 Unaudited Condensed Consolidated Balance Sheet, approximate fair value and are classified as Level 3 in the fair value hierarchy.
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 units and performance share units.
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 Unaudited Condensed Consolidated Balance Sheet as Accrued liabilities or Other long-term liabilities based on their anticipated settlement date.
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 at 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.
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 a customer. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract.
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.
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.
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.
v3.26.1
INVENTORIES, NET (Tables)
 3 Months Ended
Mar. 31, 2026
Inventory Disclosure [Abstract]  
Schedule of Inventories, Net
Inventories, net consisted of the following:

(In millions)March 31,
2026		December 31,
2025
Raw materials$645 $666 
Work-in-process269 245 
Finished goods1,667 1,572 
Inventories, net$2,581 $2,483 
v3.26.1
GOODWILL AND INTANGIBLE ASSETS (Tables)
 3 Months Ended
Mar. 31, 2026
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 as of December 31, 2025$5,075 $7,808 $1,410 $1,208 $15,501 
Acquisitions10 — — — 10 
Reclassified to held for sale (1)
— 4 — — 4 
Foreign currency translation(2)(191)(1)(8)(202)
Balance as of March 31, 2026$5,083 $7,621 $1,409 $1,200 $15,313 
(1) See Note 15 - Divestitures for additional information.
Schedule of Finite-Live Intangible Assets
Identifiable intangible assets are amortized over their estimated useful lives and consisted of the following:

March 31, 2026December 31, 2025
(In millions)Gross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet Amount
Customer relationships$6,009 $(1,697)$4,312 $6,143 $(1,573)$4,570 
Patents and trademarks942 (204)738 945 (191)754 
Technology and other1,657 (720)937 1,692 (690)1,002 
Total intangible assets$8,608 $(2,621)$5,987 $8,780 $(2,454)$6,326 
Schedule of Indefinite-Lived Intangible Assets
Identifiable intangible assets are amortized over their estimated useful lives and consisted of the following:

March 31, 2026December 31, 2025
(In millions)Gross AmountAccumulated AmortizationNet AmountGross AmountAccumulated AmortizationNet Amount
Customer relationships$6,009 $(1,697)$4,312 $6,143 $(1,573)$4,570 
Patents and trademarks942 (204)738 945 (191)754 
Technology and other1,657 (720)937 1,692 (690)1,002 
Total intangible assets$8,608 $(2,621)$5,987 $8,780 $(2,454)$6,326 
Schedule of Amortization of Intangible Assets
Amortization of intangible assets was as follows:

Three Months Ended
 March 31,
(In millions)20262025
Amortization expense of Intangible assets$217 $208 
v3.26.1
BORROWINGS AND LINES OF CREDIT (Tables)
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Schedule of Short-Term Debt
Short-term borrowings and current portion of long-term debt consisted of the following:

(In millions)March 31,
2026		December 31,
2025
Commercial paper$708 $325 
Short-term borrowings23 35 
Current portion of long-term debt1,005 108 
Short-term borrowings and current portion of long-term debt$1,736 $468 
Schedule of Long-Term Debt
Long-term debt consisted of the following:

(In millions)March 31,
2026		December 31,
2025
2.493% Notes due 2027 (1)
900 900 
4.125% Notes due 2028
865 883 
2.722% Notes due 2030
2,000 2,000 
2.700% Notes due 2031
750 750 
4.500% Notes due 2032
980 1,001 
5.900% Notes due 2034
875 875 
3.625% Notes due 2037
865 883 
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 notes10,785 10,842 
Japanese Term Loan Facility338 345 
Other debt (including project financing obligations and finance leases)380 364 
Discounts and debt issuance costs(76)(78)
Total long-term debt11,427 11,473 
Less: current portion of long-term debt1,005 108 
Long-term debt, net of current portion$10,422 $11,365 
(1) 2.493% Notes due February 27, 2027; reclassified to Current portion of long-term debt.
v3.26.1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2026
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 Unaudited Condensed Consolidated Balance Sheet:

(In millions)TotalLevel 1Level 2Level 3
March 31, 2026
Derivative assets (1)
$133 $— $133 $— 
Derivative liabilities (2)
$(153)$— $(153)$— 
December 31, 2025
Derivative assets (1)
$129 $— $129 $— 
Derivative liabilities (2)
$(166)$— $(166)$— 
(1) Included in Other current assets and Other assets on the accompanying Unaudited Condensed Consolidated Balance Sheet.
(2) Included in Accrued liabilities and Other long-term liabilities on the accompanying Unaudited Condensed 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 Unaudited Condensed Consolidated Balance Sheet:

March 31, 2026December 31, 2025
(In millions)Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Total long-term notes (1)
$10,785 $9,939 $10,842 $10,167 
(1) Excludes debt discount and issuance costs.
v3.26.1
EMPLOYEE BENEFIT PLANS (Tables)
 3 Months Ended
Mar. 31, 2026
Retirement Benefits [Abstract]  
Schedule of Employer Contributions to Plans
Contributions to the plans were as follows:

Three Months Ended
 March 31,
(In millions)20262025
Defined benefit plans$5 $5 
Defined contribution plans$32 $35 
Multi-employer pension plans$4 $3 
Schedule of Components 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:

Three Months Ended
 March 31,
(In millions)20262025
Service cost$3 $3 
Interest cost6 7 
Expected return on plan assets(8)(8)
Recognized actuarial net (gain) loss1 — 
Net periodic pension expense (benefit)$2 $2 
v3.26.1
STOCK-BASED COMPENSATION (Tables)
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense
Stock-based compensation cost by award type was as follows:
Three Months Ended
 March 31,
(In millions)20262025
Equity compensation costs - equity settled$21 $23 
Equity compensation costs - cash settled (1)
1 (1)
Total stock-based compensation expense$22 $22 
(1) The cash settled awards are classified as liability awards and are measured at fair value at each balance sheet date.
v3.26.1
PRODUCT WARRANTIES (Tables)
 3 Months Ended
Mar. 31, 2026
Guarantees [Abstract]  
Schedule of Product Warranty Liability
The changes in the carrying value of warranty related provisions are as follows:

Three Months Ended
March 31,
(In millions)20262025
Balance as of January 1,$893 $786 
Warranties, performance guarantees issued and changes in estimated liability92 89 
Settlements made(69)(69)
Other (1)
(6)8 
Balance as of March 31,$910 $814 
(1) The changes within Other include foreign currency translation activity.
v3.26.1
EQUITY (Tables)
 3 Months Ended
Mar. 31, 2026
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
A summary of changes in the components of Accumulated other comprehensive income (loss) for the three months ended March 31, 2026 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 December 31, 2025$(225)$(93)$49 $(269)
Other comprehensive income (loss) before reclassifications, net(291)— — (291)
Amounts reclassified, pre-tax— 1 (1)— 
Balance as of March 31, 2026$(516)$(92)$48 $(560)
A summary of changes in the components of Accumulated other comprehensive income (loss) for the three months ended March 31, 2025 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 December 31, 2024$(2,053)$(107)$54 $(2,106)
Other comprehensive income (loss) before reclassifications, net634 — — 634 
Amounts reclassified, pre-tax— — (1)(1)
Balance as of March 31, 2025$(1,419)$(107)$53 $(1,473)
v3.26.1
REVENUE RECOGNITION (Tables)
 3 Months Ended
Mar. 31, 2026
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:

Three Months Ended
 March 31,
(In millions)20262025
Sales Type
Product$2,214 $2,319 
Service287 253 
Climate Solutions Americas sales2,501 2,572 
Product1,154 1,071 
Service139 98 
Climate Solutions Europe sales1,293 1,169 
Product642 660 
Service192 166 
Climate Solutions Asia Pacific, Middle East & Africa sales834 826 
Product657 602 
Service56 49 
Climate Solutions Transportation sales713 651 
Net sales$5,341 $5,218 
Geographic external sales are attributed to the geographic regions based on their location of origin. With the exception of the United States as presented in the table below, there were no individually significant countries with sales exceeding 10% of total sales during the three months ended March 31, 2026 and 2025.

Three Months Ended
 March 31,
(In millions)20262025
United States $2,657 $2,738 
International:
Europe1,549 1,401 
Asia Pacific986 941 
Other149 138 
Net sales$5,341 $5,218 
Schedule of Contract Assets and Liabilities
Total contract assets and contract liabilities consisted of the following:

(In millions)March 31,
2026		December 31,
2025
Contract assets (included within Other current assets)
$527 $499 
Contract assets, non-current (included within Other assets)
79 83 
Total contract assets606 582 
Contract liabilities (included within Accrued liabilities)
(722)(691)
Contract liabilities, non-current (included within Other long-term liabilities)
(208)(203)
Total contract liabilities (930)(894)
Net contract assets (liabilities)$(324)$(312)
v3.26.1
RESTRUCTURING COSTS (Tables)
 3 Months Ended
Mar. 31, 2026
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 initiatives as follows:

Three Months Ended
 March 31,
(In millions)20262025
Climate Solutions Americas$3 $3 
Climate Solutions Europe86 — 
Climate Solutions Asia Pacific, Middle East & Africa3 1 
Climate Solutions Transportation2 1 
Total Segment94 5 
Corporate and other14 3 
Total restructuring costs (1)
$108 $8 
Cost of sales$44 $2 
Selling, general and administrative64 6 
Total restructuring costs (1)
$108 $8 
(1) Restructuring costs include period-related charges.
Schedule of Reserve and Charges Relating to Restructuring Reserve
The following table summarizes changes in the restructuring reserve, included in Accrued liabilities on the accompanying Unaudited Condensed Consolidated Balance Sheet:

Three Months Ended
March 31,
(In millions)20262025
Balance as of January 1,$102 $69 
Net pre-tax restructuring costs103 4 
Utilization, foreign exchange and other(46)(17)
Balance as of March 31,$159 $56 
v3.26.1
EARNINGS PER SHARE (Tables)
 3 Months Ended
Mar. 31, 2026
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:

Three Months Ended
March 31,
(In millions, except per share amounts)20262025
Net earnings (loss) attributable to common shareowners$238 $412 
Basic weighted-average number of shares outstanding835.0 866.9 
Stock awards and equity units (share equivalent)7.8 11.4 
Diluted weighted-average number of shares outstanding842.8 878.3 
Antidilutive shares excluded from computation of diluted earnings per share6.8 3.7 
v3.26.1
DIVESTITURES (Tables)
 3 Months Ended
Mar. 31, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Disposal Groups, Including Discontinued Operations
The following table summarizes assets and liabilities classified as held for sale:

March 31, 2026December 31, 2025
(In millions)Riello
Cash and cash equivalents$67 $25 
Accounts receivable, net86 103 
Inventories, net106 98 
Other current assets2 2 
Fixed assets, net78 77 
Intangible assets, net20 18 
Goodwill171 175 
Operating lease right-of-use assets7 7 
Other assets84 87 
Total assets held for sale$621 $592 
Accounts payable$100 $91 
Accrued liabilities36 45 
Contract liabilities2 3 
Future pension and post-retirement obligations7 7 
Future income tax obligations10 9 
Operating lease liabilities4 4 
Other long-term liabilities11 11 
Total liabilities held for sale$170 $170 
The components of Discontinued operations, net of tax are as follows:

Three Months Ended
 March 31,
(In millions)20262025
Net sales$— $— 
Costs of sales— — 
Research and development— — 
Selling, general and administrative(1)— 
Other income (expense), net— — 
Gain (loss) on divestitures and deconsolidation— — 
Interest (expense) income, net— — 
Earnings (loss) before income taxes(1)— 
Income tax (expense) benefit— — 
Tax on divestitures and deconsolidation— — 
Discontinued operations, net of tax
$(1)$— 
v3.26.1
SEGMENT FINANCIAL DATA (Tables)
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Schedule of Net Sales and Operating Profit by Segment
A summary of results by reportable segment are as follows:

Three Months Ended March 31, 2026
(In millions)CSACSECSAMECSTSegment Total
Net sales$2,501 $1,293 $834 $713 $5,341 
Cost of goods sold(1,770)(904)(640)(525)(3,839)
Research and development(77)(21)(15)(15)(128)
Selling, general and administrative(280)(280)(117)(74)(751)
Equity method investment net earnings13 (1)17 3 32 
Other income (expense), net(14)2 2 (1)(11)
Segment operating profit$373 $89 $81 $101 $644 
Three Months Ended March 31, 2025
(In millions)CSACSECSAMECSTSegment Total
Net sales$2,572 $1,169 $826 $651 $5,218 
Cost of goods sold(1,700)(788)(609)(471)(3,568)
Research and development(86)(18)(15)(16)(135)
Selling, general and administrative(250)(257)(112)(69)(688)
Equity method investment net earnings26 (2)18 2 44 
Other income (expense), net8 1 13 — 22 
Segment operating profit$570 $105 $121 $97 $893 
Schedule of Reconciliation of Revenue from Segments to Consolidated
Three Months Ended
 March 31,
(In millions)20262025
Reconciliation to Earnings before income taxes
Segment operating profit$644 $893 
Corporate and other(50)(45)
Restructuring costs(108)(8)
Amortization of acquired intangible assets(213)(201)
Acquisition/divestiture-related costs(14)(10)
Non-service pension (expense) benefit1 1 
Interest (expense) income, net(90)(82)
Earnings before income taxes$170 $548 
Schedule of Sales Disaggregated by Product and Service
External segment sales disaggregated by product and service are as follows:

Three Months Ended
 March 31,
(In millions)20262025
Sales Type
Product$2,214 $2,319 
Service287 253 
Climate Solutions Americas sales2,501 2,572 
Product1,154 1,071 
Service139 98 
Climate Solutions Europe sales1,293 1,169 
Product642 660 
Service192 166 
Climate Solutions Asia Pacific, Middle East & Africa sales834 826 
Product657 602 
Service56 49 
Climate Solutions Transportation sales713 651 
Net sales$5,341 $5,218 
Geographic external sales are attributed to the geographic regions based on their location of origin. With the exception of the United States as presented in the table below, there were no individually significant countries with sales exceeding 10% of total sales during the three months ended March 31, 2026 and 2025.

Three Months Ended
 March 31,
(In millions)20262025
United States $2,657 $2,738 
International:
Europe1,549 1,401 
Asia Pacific986 941 
Other149 138 
Net sales$5,341 $5,218 
v3.26.1
RELATED PARTIES (Tables)
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
Schedule of Equity Method Investments Amounts attributable to equity method investees are as follows:
Three Months Ended
March 31,
(In millions)20262025
Sales to equity method investees included in Product sales
$686 $780 
Purchases from equity method investees included in Cost of products sold
$51 $47 

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

(In millions)March 31,
2026		December 31,
2025
Receivables from equity method investees included in Accounts receivable, net
$290 $220 
Payables to equity method investees included in Accounts payable
$33 $40 
v3.26.1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables)
 3 Months Ended
Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Outstanding Liabilities for Environmental Obligations
The outstanding liabilities for environmental obligations are as follows:

(In millions)March 31,
2026		December 31,
2025
Environmental reserves included in Accrued liabilities
$17 $18 
Environmental reserves included in Other long-term liabilities
181 182 
Total Environmental reserves$198 $200 
Schedule of Asbestos Liabilities and Related Recoveries
The Company's asbestos liabilities and related insurance recoveries are as follows:

(In millions)March 31,
2026		December 31,
2025
Asbestos liabilities included in Accrued liabilities
$17 $17 
Asbestos liabilities included in Other long-term liabilities
195 201 
Total Asbestos liabilities$212 $218 
Asbestos-related recoveries included in Other current assets
$6 $6 
Asbestos-related recoveries included in Other assets
85 86 
Total Asbestos-related recoveries$91 $92 
v3.26.1
DESCRIPTION OF THE BUSINESS (Details)
 3 Months Ended
Mar. 31, 2026
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of reportable segments 4
v3.26.1
BASIS OF PRESENTATION (Details) - USD ($)
$ in Millions
Apr. 03, 2020
Dec. 16, 2025
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Shares issued per common share (in 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
v3.26.1
INVENTORIES, NET (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Inventory Disclosure [Abstract]    
Raw materials $ 645 $ 666
Work-in-process 269 245
Finished goods 1,667 1,572
Inventories, net 2,581 2,483
Inventory valuation reserves $ 345 $ 337
v3.26.1
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2026
USD ($)
Goodwill [Roll Forward]  
Beginning balance $ 15,501
Acquisitions 10
Reclassified to held for sale 4
Foreign currency translation (202)
Ending balance 15,313
Climate Solutions Americas | Operating Segments  
Goodwill [Roll Forward]  
Beginning balance 5,075
Acquisitions 10
Reclassified to held for sale 0
Foreign currency translation (2)
Ending balance 5,083
Climate Solutions Europe | Operating Segments  
Goodwill [Roll Forward]  
Beginning balance 7,808
Acquisitions 0
Reclassified to held for sale 4
Foreign currency translation (191)
Ending balance 7,621
Climate Solutions Asia Pacific, Middle East & Africa | Operating Segments  
Goodwill [Roll Forward]  
Beginning balance 1,410
Acquisitions 0
Reclassified to held for sale 0
Foreign currency translation (1)
Ending balance 1,409
Climate Solutions Transportation | Operating Segments  
Goodwill [Roll Forward]  
Beginning balance 1,208
Acquisitions 0
Reclassified to held for sale 0
Foreign currency translation (8)
Ending balance $ 1,200
v3.26.1
GOODWILL AND INTANGIBLE ASSETS - Schedule of Finite-lived Intangible Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Finite-Lived Intangible Assets [Line Items]    
Gross Amount $ 8,608 $ 8,780
Accumulated Amortization (2,621) (2,454)
Net Amount 5,987 6,326
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount 6,009 6,143
Accumulated Amortization (1,697) (1,573)
Net Amount 4,312 4,570
Patents and trademarks    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount 942 945
Accumulated Amortization (204) (191)
Net Amount 738 754
Technology and other    
Finite-Lived Intangible Assets [Line Items]    
Gross Amount 1,657 1,692
Accumulated Amortization (720) (690)
Net Amount $ 937 $ 1,002
v3.26.1
GOODWILL AND INTANGIBLE ASSETS - Schedule of Amortization of Intangible Asses (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization expense of Intangible assets $ 217 $ 208
v3.26.1
BORROWINGS AND LINES OF CREDIT - Schedule of Short-Term Debt (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Debt Disclosure [Abstract]    
Commercial paper $ 708 $ 325
Short-term borrowings 23 35
Current portion of long-term debt 1,005 108
Short-term borrowings and current portion of long-term debt $ 1,736 $ 468
v3.26.1
BORROWINGS AND LINES OF CREDIT - Narrative (Details)
¥ in Billions
 3 Months Ended
Mar. 31, 2026
USD ($)
Mar. 31, 2025
USD ($)
Mar. 31, 2026
JPY (¥)
Debt Instrument [Line Items]      
Issuance of long-term debt $ 22,000,000 $ 9,000,000  
Repayment of long-term debt 16,000,000 1,205,000,000  
Other Debt | Project Financing Arrangements      
Debt Instrument [Line Items]      
Issuance of long-term debt 14,000,000 6,000,000  
Repayment of long-term debt 14,000,000 $ 0  
Commercial Paper | USD-Denominated Facility | Line of Credit      
Debt Instrument [Line Items]      
Maximum borrowing capacity 2,000,000,000.0    
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]      
Short-term borrowings and current portion of long-term debt $ 708,000,000    
Weighted average rate 4.06%   4.06%
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    
Long-term debt $ 0    
Japanese Term Loan Facility | Unsecured Debt      
Debt Instrument [Line Items]      
Debt instrument, term 5 years    
Aggregate principal balance | ¥     ¥ 54
v3.26.1
BORROWINGS AND LINES OF CREDIT - Schedule of Long-Term Debt (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Debt Instrument [Line Items]    
Discounts and debt issuance costs $ (76) $ (78)
Total long-term debt 11,427 11,473
Less: current portion of long-term debt 1,005 108
Long-term debt, net of current portion 10,422 11,365
Unsecured Debt    
Debt Instrument [Line Items]    
Long-term debt, gross 10,785 10,842
Unsecured Debt | Japanese Term Loan Facility    
Debt Instrument [Line Items]    
Long-term debt, gross 338 345
Other Debt    
Debt Instrument [Line Items]    
Long-term debt, gross $ 380 364
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 $ 865 883
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 $ 980 1,001
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 $ 865 883
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
v3.26.1
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended
Nov. 30, 2023
Mar. 31, 2026
Dec. 31, 2023
Cross Currency Swap      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Notional amount   $ 3,200  
VCS Business | Interest Rate Swap      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Notional amount     $ 1,500
Gain on derivative instruments, pretax $ 58    
Interest rate cash flow hedge gain (loss)   $ 4  
v3.26.1
FAIR VALUE MEASUREMENTS - Schedule of Fair Value and Carrying Amounts Measured on a Recurring Basis (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets $ 133 $ 129
Derivative liabilities $ (153) $ (166)
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other current assets, Other assets Other current assets, 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, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets $ 0 $ 0
Derivative liabilities 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets 133 129
Derivative liabilities (153) (166)
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative assets 0 0
Derivative liabilities $ 0 $ 0
v3.26.1
FAIR VALUE MEASUREMENTS - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Details) - Unsecured Debt - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Carrying Value $ 10,785 $ 10,842
Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value $ 9,939 $ 10,167
v3.26.1
EMPLOYEE BENEFIT PLANS - Schedule of Contributions to Plans (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Retirement Benefits [Abstract]    
Defined benefit plans $ 5 $ 5
Defined contribution plans 32 35
Multi-employer pension plans $ 4 $ 3
v3.26.1
EMPLOYEE BENEFIT PLANS - Schedule of Components of Net Periodic Pension Expense (Benefit) for the Defined Benefit Pension Plans (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Retirement Benefits [Abstract]    
Service cost $ 3 $ 3
Interest cost 6 7
Expected return on plan assets (8) (8)
Recognized actuarial net (gain) loss 1 0
Net periodic pension expense (benefit) $ 2 $ 2
v3.26.1
STOCK-BASED COMPENSATION (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]    
Equity compensation costs - equity settled $ 21 $ 23
Equity compensation costs - cash settled 1 (1)
Total stock-based compensation expense $ 22 $ 22
v3.26.1
PRODUCT WARRANTIES (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]    
Beginning balance $ 893 $ 786
Warranties, performance guarantees issued and changes in estimated liability 92 89
Settlements made (69) (69)
Other (6) 8
Ending balance $ 910 $ 814
v3.26.1
EQUITY - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Feb. 28, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Common stock, shares authorized (in shares) 4,000,000,000    
Common stock, par or stated value per share (in dollars per share) $ 0.01    
Treasury shares (in shares) 119,939,168 114,891,176  
Stock repurchase program, authorized amount     $ 12,100
Stock repurchase program, shares repurchased in period (in shares) 5,000,000.0    
Stock repurchase program, shares repurchased in period $ 306    
Remaining authorized repurchase amount $ 5,000    
Common Stock      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Common stock, shares, issued (in shares) 951,330,903 950,633,287  
v3.26.1
EQUITY - Schedule of Changes in AOCI (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Balance as of beginning of period $ 14,128 $ 14,395
Balance as of end of period 13,801 14,198
Accumulated Other Comprehensive Income (Loss)    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Balance as of beginning of period (269) (2,106)
Other comprehensive income (loss) before reclassifications, net (291) 634
Amounts reclassified, pre-tax 0 (1)
Balance as of end of period (560) (1,473)
Foreign Currency Translation    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Balance as of beginning of period (225) (2,053)
Other comprehensive income (loss) before reclassifications, net (291) 634
Amounts reclassified, pre-tax 0 0
Balance as of end of period (516) (1,419)
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 (93) (107)
Other comprehensive income (loss) before reclassifications, net 0 0
Amounts reclassified, pre-tax 1 0
Balance as of end of period (92) (107)
Unrealized Hedging Gains (Losses)    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Balance as of beginning of period 49 54
Other comprehensive income (loss) before reclassifications, net 0 0
Amounts reclassified, pre-tax (1) (1)
Balance as of end of period $ 48 $ 53
v3.26.1
REVENUE RECOGNITION - Schedule of Sales Disaggregated by Product and Service (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Segment Reporting Information [Line Items]    
Total Net sales $ 5,341 $ 5,218
Product    
Segment Reporting Information [Line Items]    
Total Net sales 4,667 4,652
Service    
Segment Reporting Information [Line Items]    
Total Net sales 674 566
Operating Segments    
Segment Reporting Information [Line Items]    
Total Net sales 5,341 5,218
Operating Segments | Climate Solutions Americas    
Segment Reporting Information [Line Items]    
Total Net sales 2,501 2,572
Operating Segments | Climate Solutions Americas | Product    
Segment Reporting Information [Line Items]    
Total Net sales 2,214 2,319
Operating Segments | Climate Solutions Americas | Service    
Segment Reporting Information [Line Items]    
Total Net sales 287 253
Operating Segments | Climate Solutions Europe    
Segment Reporting Information [Line Items]    
Total Net sales 1,293 1,169
Operating Segments | Climate Solutions Europe | Product    
Segment Reporting Information [Line Items]    
Total Net sales 1,154 1,071
Operating Segments | Climate Solutions Europe | Service    
Segment Reporting Information [Line Items]    
Total Net sales 139 98
Operating Segments | Climate Solutions Asia Pacific, Middle East & Africa    
Segment Reporting Information [Line Items]    
Total Net sales 834 826
Operating Segments | Climate Solutions Asia Pacific, Middle East & Africa | Product    
Segment Reporting Information [Line Items]    
Total Net sales 642 660
Operating Segments | Climate Solutions Asia Pacific, Middle East & Africa | Service    
Segment Reporting Information [Line Items]    
Total Net sales 192 166
Operating Segments | Climate Solutions Transportation    
Segment Reporting Information [Line Items]    
Total Net sales 713 651
Operating Segments | Climate Solutions Transportation | Product    
Segment Reporting Information [Line Items]    
Total Net sales 657 602
Operating Segments | Climate Solutions Transportation | Service    
Segment Reporting Information [Line Items]    
Total Net sales $ 56 $ 49
v3.26.1
REVENUE RECOGNITION - Schedule of Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]    
Contract assets (included within Other current assets) $ 527 $ 499
Contract assets, non-current (included within Other assets) 79 83
Total contract assets 606 582
Contract liabilities (included within Accrued liabilities) (722) (691)
Contract liabilities, non-current (included within Other long-term liabilities) (208) (203)
Total contract liabilities (930) (894)
Net contract assets (liabilities) $ (324) $ (312)
v3.26.1
REVENUE RECOGNITION - Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2026
USD ($)
Revenue from Contract with Customer [Abstract]  
Contract with customer, liability, revenue recognized $ 250
v3.26.1
REVENUE RECOGNITION - Remaining Performance Obligations (Details)
Mar. 31, 2026
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, period 12 months
v3.26.1
RESTRUCTURING COSTS - Schedule of Net Pre-Tax Restructuring Costs and Restructuring Reserve (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Restructuring Cost and Reserve [Line Items]    
Restructuring costs $ 108 $ 8
Restructuring Reserve [Roll Forward]    
Beginning balance 102 69
Net pre-tax restructuring costs 103 4
Utilization, foreign exchange and other (46) (17)
Ending balance 159 56
Cost of sales    
Restructuring Cost and Reserve [Line Items]    
Restructuring costs 44 2
Selling, general and administrative    
Restructuring Cost and Reserve [Line Items]    
Restructuring costs 64 6
Operating Segments    
Restructuring Cost and Reserve [Line Items]    
Restructuring costs 94 5
Operating Segments | Climate Solutions Americas    
Restructuring Cost and Reserve [Line Items]    
Restructuring costs 3 3
Operating Segments | Climate Solutions Europe    
Restructuring Cost and Reserve [Line Items]    
Restructuring costs 86 0
Operating Segments | Climate Solutions Asia Pacific, Middle East & Africa    
Restructuring Cost and Reserve [Line Items]    
Restructuring costs 3 1
Operating Segments | Climate Solutions Transportation    
Restructuring Cost and Reserve [Line Items]    
Restructuring costs 2 1
Corp & Other    
Restructuring Cost and Reserve [Line Items]    
Restructuring costs $ 14 $ 3
v3.26.1
RESTRUCTURING COSTS - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
Dec. 31, 2024
Restructuring and Related Activities [Abstract]        
Restructuring reserve $ 159 $ 102 $ 56 $ 69
v3.26.1
INCOME TAXES (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]    
Effective income tax rate reconciliation, percent (56.50%) 20.30%
Benefit from release of valuation allowance $ 99  
Favorable settlement 18  
Investment tax credit, amount   $ 8
Minimum    
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]    
Decrease in unrecognized tax benefits is reasonably possible 5  
Maximum    
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]    
Decrease in unrecognized tax benefits is reasonably possible $ 95  
v3.26.1
EARNINGS PER SHARE (Details) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Earnings Per Share [Abstract]    
Net earnings (loss) attributable to common shareowners $ 238 $ 412
Basic weighted-average number of shares outstanding (in shares) 835.0 866.9
Stock awards and equity units (share equivalent) (in shares) 7.8 11.4
Diluted weighted-average number of shares outstanding (in shares) 842.8 878.3
Antidilutive shares excluded from computation of diluted earnings per share (in shares) 6.8 3.7
v3.26.1
DIVESTITURES - Narrative (Details)
$ in Millions
Dec. 16, 2025
USD ($)
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
v3.26.1
DIVESTITURES - Schedule of Assets and Liabilities Classified as Held for Sale (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Total liabilities held for sale $ 170 $ 170
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 67 25
Accounts receivable, net 86 103
Inventories, net 106 98
Other current assets 2 2
Fixed assets, net 78 77
Intangible assets, net 20 18
Goodwill 171 175
Operating lease right-of-use assets 7 7
Other assets 84 87
Total assets held for sale 621 592
Accounts payable 100 91
Accrued liabilities 36 45
Contract liabilities 2 3
Future pension and post-retirement obligations 7 7
Future income tax obligations 10 9
Operating lease liabilities 4 4
Other long-term liabilities 11 11
Total liabilities held for sale $ 170 $ 170
v3.26.1
DIVESTITURES - Schedule of Disposal Groups, Including Discontinued Operations (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Discontinued operations, net of tax $ (1) $ 0
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 0
Costs of sales 0 0
Research and development 0 0
Selling, general and administrative (1) 0
Other income (expense), net 0 0
Gain (loss) on divestitures and deconsolidation 0 0
Interest (expense) income, net 0 0
Earnings (loss) before income taxes (1) 0
Income tax (expense) benefit 0 0
Tax on divestitures and deconsolidation 0 0
Discontinued operations, net of tax $ (1) $ 0
v3.26.1
SEGMENT FINANCIAL DATA - Schedule of Net Sales and Geographic External Sales (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2026
USD ($)
segment
Mar. 31, 2025
USD ($)
Segment Reporting Information [Line Items]    
Number of operating segments | segment 4  
Net sales $ 5,341 $ 5,218
Research and development (143) (153)
Selling, general and administrative (861) (729)
Equity method investment net earnings 31 44
Other income (expense), net (12) 22
Operating profit 259 629
United States    
Segment Reporting Information [Line Items]    
Net sales 2,657 2,738
Europe    
Segment Reporting Information [Line Items]    
Net sales 1,549 1,401
Asia Pacific    
Segment Reporting Information [Line Items]    
Net sales 986 941
Other    
Segment Reporting Information [Line Items]    
Net sales 149 138
Operating Segments    
Segment Reporting Information [Line Items]    
Net sales 5,341 5,218
Cost of goods sold (3,839) (3,568)
Research and development (128) (135)
Selling, general and administrative (751) (688)
Equity method investment net earnings 32 44
Other income (expense), net (11) 22
Operating profit 644 893
Operating Segments | Climate Solutions Americas    
Segment Reporting Information [Line Items]    
Net sales 2,501 2,572
Cost of goods sold (1,770) (1,700)
Research and development (77) (86)
Selling, general and administrative (280) (250)
Equity method investment net earnings 13 26
Other income (expense), net (14) 8
Operating profit 373 570
Operating Segments | Climate Solutions Europe    
Segment Reporting Information [Line Items]    
Net sales 1,293 1,169
Cost of goods sold (904) (788)
Research and development (21) (18)
Selling, general and administrative (280) (257)
Equity method investment net earnings (1) (2)
Other income (expense), net 2 1
Operating profit 89 105
Operating Segments | Climate Solutions Asia Pacific, Middle East & Africa    
Segment Reporting Information [Line Items]    
Net sales 834 826
Cost of goods sold (640) (609)
Research and development (15) (15)
Selling, general and administrative (117) (112)
Equity method investment net earnings 17 18
Other income (expense), net 2 13
Operating profit 81 121
Operating Segments | Climate Solutions Transportation    
Segment Reporting Information [Line Items]    
Net sales 713 651
Cost of goods sold (525) (471)
Research and development (15) (16)
Selling, general and administrative (74) (69)
Equity method investment net earnings 3 2
Other income (expense), net (1) 0
Operating profit $ 101 $ 97
v3.26.1
SEGMENT FINANCIAL DATA - Schedule of Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Segment Reporting Information [Line Items]    
Segment operating profit $ 259 $ 629
Corporate and other (50) (45)
Restructuring costs (108) (8)
Amortization of acquired intangible assets (213) (201)
Acquisition/divestiture-related costs (14) (10)
Non-service pension (expense) benefit 1 1
Interest (expense) income, net (90) (82)
Earnings before income taxes 170 548
Operating Segments    
Segment Reporting Information [Line Items]    
Segment operating profit $ 644 $ 893
v3.26.1
RELATED PARTIES (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Related Party Transaction [Line Items]      
Sales to equity method investees included in Product sales $ 5,341 $ 5,218  
Receivables from equity method investees included in Accounts receivable, net 3,130   $ 2,639
Payables to equity method investees included in Accounts payable 2,979   2,702
Product      
Related Party Transaction [Line Items]      
Sales to equity method investees included in Product sales 4,667 4,652  
Purchases from equity method investees included in Cost of products sold 3,591 3,358  
Related Party      
Related Party Transaction [Line Items]      
Receivables from equity method investees included in Accounts receivable, net 290   220
Payables to equity method investees included in Accounts payable 33   $ 40
Related Party | Product      
Related Party Transaction [Line Items]      
Sales to equity method investees included in Product sales 686 780  
Purchases from equity method investees included in Cost of products sold $ 51 $ 47  
v3.26.1
COMMITMENTS AND CONTINGENT LIABILITIES - Schedule of Outstanding Liabilities for Environmental Obligations (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]    
Environmental reserves included in Accrued liabilities $ 17 $ 18
Environmental reserves included in Other long-term liabilities 181 182
Total Environmental reserves $ 198 $ 200
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
v3.26.1
COMMITMENTS AND CONTINGENT LIABILITIES - Schedule of Asbestos Liabilities and Related Recoveries (Details) - Asbestos Matters - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Loss Contingencies [Line Items]    
Asbestos liabilities included in Accrued liabilities $ 17 $ 17
Asbestos liabilities included in Other long-term liabilities 195 201
Total Asbestos liabilities 212 218
Asbestos-related recoveries included in Other current assets 6 6
Asbestos-related recoveries included in Other assets 85 86
Total Asbestos-related recoveries $ 91 $ 92
v3.26.1
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details)
lawsuit in Thousands, $ in Millions
 1 Months Ended
Mar. 31, 2026
USD ($)
lawsuit
Oct. 31, 2024
settlement
Dec. 31, 2024
USD ($)
May 14, 2023
USD ($)
Other Commitments [Line Items]        
Tax cuts and jobs act, transition tax for accumulated foreign earnings, liability $ 101      
Aqueous Film Forming Foam        
Other Commitments [Line Items]        
Number of litigation cases (more than) | lawsuit 17      
Aqueous Film Forming Foam | Pending Litigation        
Other Commitments [Line Items]        
Litigation settlement, number of distinct settlements | settlement   3    
Litigation settlement, number of years business owned   8 years    
Loss contingency, litigation settlement to be paid $ 615      
Loss contingency, settlement to be paid, term 5 years      
Estimated insurance recoveries $ 2,400      
Loss contingency, settlement to be paid, contribution from insurance settlement $ 125      
Liabilities subject to compromise, litigation liability     $ 565 $ 50
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