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SEGMENT FINANCIAL DATA (Tables) | 6 Months Ended
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Jun. 30, 2025
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 June 30, 2025
(In millions) |  | CSA |  | CSE |  | CSAME |  | CST |  | Segment Total |  |  |  |
Net sales |  | $ | 3,252 |  |  | $ | 1,253 |  |  | $ | 882 |  |  | $ | 726 |  |  | $ | 6,113 |  |  |  |  |
Cost of goods sold |  | (2,061) |  |  | (883) |  |  | (654) |  |  | (518) |  |  | (4,116) |  |  |  |  |
Research and development |  | (89) |  |  | (19) |  |  | (16) |  |  | (17) |  |  | (141) |  |  |  |  |
Selling, general and administrative |  | (277) |  |  | (260) |  |  | (126) |  |  | (72) |  |  | (735) |  |  |  |  |
Equity method investment net earnings |  | 43 |  |  | 1 |  |  | 30 |  |  | 4 |  |  | 78 |  |  |  |  |
Other income (expense), net |  | 11 |  |  | 7 |  |  | 19 |  |  | 5 |  |  | 42 |  |  |  |  |
Segment operating profit |  | $ | 879 |  |  | $ | 99 |  |  | $ | 135 |  |  | $ | 128 |  |  | $ | 1,241 |  |  |  |  |
|  | Three Months Ended June 30, 2024
(In millions) |  | CSA |  | CSE |  | CSAME |  | CST |  | Segment Total |  |  |  |
Net sales |  | $ | 2,865 |  |  | $ | 1,194 |  |  | $ | 902 |  |  | $ | 973 |  |  | $ | 5,934 |  |  |  |  |
Cost of goods sold |  | (1,868) |  |  | (834) |  |  | (648) |  |  | (716) |  |  | (4,066) |  |  |  |  |
Research and development |  | (91) |  |  | (19) |  |  | (16) |  |  | (18) |  |  | (144) |  |  |  |  |
Selling, general and administrative |  | (237) |  |  | (248) |  |  | (131) |  |  | (104) |  |  | (720) |  |  |  |  |
Equity method investment net earnings |  | 44 |  |  | (1) |  |  | 43 |  |  | 3 |  |  | 89 |  |  |  |  |
Other income (expense), net |  | — |  |  | 1 |  |  | 7 |  |  | — |  |  | 8 |  |  |  |  |
Segment operating profit |  | $ | 713 |  |  | $ | 93 |  |  | $ | 157 |  |  | $ | 138 |  |  | $ | 1,101 |  |  |  |  |
|  | Six Months Ended June 30, 2025
(In millions) |  | CSA |  | CSE |  | CSAME |  | CST |  | Segment Total |  |  |  |
Net sales |  | $ | 5,824 |  |  | $ | 2,422 |  |  | $ | 1,708 |  |  | $ | 1,377 |  |  | $ | 11,331 |  |  |  |  |
Cost of goods sold |  | (3,761) |  |  | (1,671) |  |  | (1,263) |  |  | (990) |  |  | (7,685) |  |  |  |  |
Research and development |  | (175) |  |  | (37) |  |  | (31) |  |  | (33) |  |  | (276) |  |  |  |  |
Selling, general and administrative |  | (527) |  |  | (517) |  |  | (238) |  |  | (141) |  |  | (1,423) |  |  |  |  |
Equity method investment net earnings |  | 69 |  |  | (1) |  |  | 48 |  |  | 6 |  |  | 122 |  |  |  |  |
Other income (expense), net |  | 19 |  |  | 8 |  |  | 32 |  |  | 6 |  |  | 65 |  |  |  |  |
Segment operating profit |  | $ | 1,449 |  |  | $ | 204 |  |  | $ | 256 |  |  | $ | 225 |  |  | $ | 2,134 |  |  |  |  |
|  | Six Months Ended June 30, 2024
(In millions) |  | CSA |  | CSE |  | CSAME |  | CST |  | Segment Total |  |  |  |
Net sales |  | $ | 5,225 |  |  | $ | 2,486 |  |  | $ | 1,786 |  |  | $ | 1,857 |  |  | $ | 11,354 |  |  |  |  |
Cost of goods sold |  | (3,491) |  |  | (1,659) |  |  | (1,291) |  |  | (1,368) |  |  | (7,809) |  |  |  |  |
Research and development |  | (200) |  |  | (42) |  |  | (36) |  |  | (40) |  |  | (318) |  |  |  |  |
Selling, general and administrative |  | (467) |  |  | (523) |  |  | (258) |  |  | (200) |  |  | (1,448) |  |  |  |  |
Equity method investment net earnings |  | 66 |  |  | (2) |  |  | 50 |  |  | 6 |  |  | 120 |  |  |  |  |
Other income (expense), net |  | 5 |  |  | — |  |  | 14 |  |  | (4) |  |  | 15 |  |  |  |  |
Segment operating profit |  | $ | 1,138 |  |  | $ | 260 |  |  | $ | 265 |  |  | $ | 251 |  |  | $ | 1,914 |  |  |  |  |
Schedule of Reconciliation of Revenue from Segments to Consolidated |
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Reconciliation to Earnings before income taxes |  |  |  |  |  |  |  |
Segment operating profit |  | $ | 1,241 |  |  | $ | 1,101 |  |  | $ | 2,134 |  |  | $ | 1,914 |
Corporate and other |  | (75) |  |  | (45) |  |  | (120) |  |  | (94) |
Restructuring costs |  | (47) |  |  | (29) |  |  | (55) |  |  | (37) |
Amortization of acquired intangibles |  | (214) |  |  | (170) |  |  | (415) |  |  | (342) |
Acquisition step-up amortization |  | — |  |  | (109) |  |  | — |  |  | (220) |
Acquisition/divestiture-related costs |  | (9) |  |  | (24) |  |  | (19) |  |  | (72) |
CCR gain |  | 7 |  |  | — |  |  | 7 |  |  | — |
Viessmann-related hedges |  | — |  |  | — |  |  | — |  |  | (86) |
Gain on liability adjustment |  | — |  |  | — |  |  | — |  |  | 46 |
Non-service pension (expense) benefit |  | — |  |  | — |  |  | 1 |  |  | — |
Interest (expense) income, net |  | (91) |  |  | (157) |  |  | (173) |  |  | (298) |
Earnings before income taxes |  | $ | 812 |  |  | $ | 567 |  |  | $ | 1,360 |  |  | $ | 811 |
Schedule of Sales Disaggregated by Product and Service | External segment sales disaggregated by product and service are as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Sales Type |  |  |  |  |  |  |  |
Product |  | $ | 2,970 |  |  | $ | 2,586 |  |  | $ | 5,289 |  |  | $ | 4,690 |
Service |  | 282 |  |  | 279 |  |  | 535 |  |  | 535 |
Climate Solutions Americas sales |  | 3,252 |  |  | 2,865 |  |  | 5,824 |  |  | 5,225 |
Product |  | 1,137 |  |  | 1,127 |  |  | 2,208 |  |  | 2,365 |
Service |  | 116 |  |  | 67 |  |  | 214 |  |  | 121 |
Climate Solutions Europe sales |  | 1,253 |  |  | 1,194 |  |  | 2,422 |  |  | 2,486 |
Product |  | 697 |  |  | 747 |  |  | 1,357 |  |  | 1,475 |
Service |  | 185 |  |  | 155 |  |  | 351 |  |  | 311 |
Climate Solutions Asia Pacific, Middle East & Africa sales |  | 882 |  |  | 902 |  |  | 1,708 |  |  | 1,786 |
Product |  | 673 |  |  | 851 |  |  | 1,275 |  |  | 1,623 |
Service |  | 53 |  |  | 122 |  |  | 102 |  |  | 234 |
Climate Solutions Transportation sales |  | 726 |  |  | 973 |  |  | 1,377 |  |  | 1,857 |
Net sales |  | $ | 6,113 |  |  | $ | 5,934 |  |  | $ | 11,331 |  |  | $ | 11,354 |
Geographic external sales are attributed to the geographic regions based on their location of origin. With the exception of the U.S. presented in the table below, there were no individually significant countries with sales exceeding 10% of total sales during the three and six months ended June 30, 2025 and 2024.
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2025 |  | 2024 |  | 2025 |  | 2024
United States |  | $ | 3,429 |  |  | $ | 3,077 |  |  | $ | 6,168 |  |  | $ | 5,624 |
International: |  |  |  |  |  |  |  |
Europe |  | 1,520 |  |  | 1,678 |  |  | 2,920 |  |  | 3,429 |
Asia Pacific |  | 981 |  |  | 1,003 |  |  | 1,922 |  |  | 1,963 |
Other |  | 183 |  |  | 176 |  |  | 321 |  |  | 338 |
Net sales |  | $ | 6,113 |  |  | $ | 5,934 |  |  | $ | 11,331 |  |  | $ | 11,354 |

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