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Reportable Business Segments | 12 Months Ended
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Dec. 31, 2025
Segment Reporting, Measurement Disclosures [Abstract] |
Reportable Business Segments | 3. Reportable Business Segments: Description of Segments We operate in two reportable business segments of the HVACR industry. Our segments are organized primarily by the nature of the products and services we provide. The following table describes each segment:
Segment |  | Products or Services |  | Markets Served |  | Geographic Areas
Home Comfort Solutions |  | Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies |  | Residential Replacement; Residential New Construction |  | United States Canada
Building Climate Solutions |  | Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products, curb, curb adapters, drop box diffusers, HVAC recycling and salvage service, condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, replacement parts and supplies |  | Light Commercial; Food Preservation; Non-Food Industry |  | United States Canada
Prior to January 1, 2023, we operated in three reportable business segments. In November 2022, we announced the decision to explore strategic alternatives for our European commercial HVAC and refrigeration businesses. We continue to invest in our Heatcraft Worldwide Refrigeration business which is included in the Building Climate Solutions segment. The consolidation of our Heatcraft business within the Building Climate Solutions segment provides the opportunity to leverage synergies and create long-term growth opportunities by integrating entities with similar products, end consumers and financial performance metrics under the same management. The change in segment reporting better aligns with how the businesses are managed and evaluated given the change in portfolio. In the fourth quarter of 2023, we successfully completed the divestiture of our European operations, which until that time, were presented with the Corporate and Other segment. Segment Data We use segment profit or loss as the primary measure of profitability to evaluate operating performance and to allocate capital resources. We define segment profit or loss as a segment’s income or loss from continuing operations before income taxes included in the accompanying Consolidated Statements of Operations, excluding certain items. The reconciliation in the table below details the items excluded. Our corporate costs include those costs related to corporate functions such as legal, internal audit, treasury, human resources, tax compliance and senior executive staff. Any intercompany sales and associated profit (and any other intercompany items) are eliminated from segment results. There were no significant intercompany eliminations for the periods presented. The chief operating decision maker uses segment profit or loss from operations before interest and income taxes, excluding certain items, to allocate resources (including employees, financial, or capital resources) for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances in segment profit or loss and its individual components on a monthly basis when evaluating segment performance and making decisions about allocating resources to the segments. The Company’s chief operating decision maker is Alok Maskara, Chief Executive Officer. Key financial information for each segment is shown below (in millions):
| Home Comfort Solutions |  | Business Climate Solutions |  | Corporate and Other(1) |  | Total
For the Year Ended December 31, 2025 |  |  |  |  |  |  |
Net Sales(2) | $ | 3,343.4 |  |  | $ | 1,851.9 |  |  | $ | — |  |  | $ | 5,195.3 |
Cost of Goods Sold | 2,280.7 |  |  | 1,179.8 |  |  | — |  |  | 3,460.5 |
Selling, general and administrative | 349.6 |  |  | 240.4 |  |  | 91.4 |  |  | 681.4 |
Other (income) expense(4) | (15.4) |  |  | (2.5) |  |  | 13.6 |  |  | (4.3) |
Segment profit (loss)(5) | $ | 728.5 |  |  | $ | 434.2 |  |  | $ | (105.0) |  |  | $ | 1,057.7 |
For the Year Ended December 31, 2024 |  |  |  |  |  |  |
Net Sales(2) | $ | 3,577.1 |  |  | $ | 1,764.2 |  |  | $ | — |  |  | $ | 5,341.3 |
Cost of Goods Sold(3) | 2,425.3 |  |  | 1,137.8 |  |  | 0.7 |  |  | 3,563.8 |
Selling, general and administrative | 393.8 |  |  | 229.9 |  |  | 107.0 |  |  | 730.6 |
Other (income) expense(4) | (2.5) |  |  | (5.2) |  |  | 12.7 |  |  | 5.0 |
Segment profit (loss)(3)(5) | $ | 760.5 |  |  | $ | 401.7 |  |  | $ | (120.3) |  |  | $ | 1,041.9 |
For the Year Ended December 31, 2023 |  |  |  |  |  |  |
Net Sales(2) | $ | 3,222.9 |  |  | $ | 1,511.4 |  |  | $ | 247.6 |  |  | $ | 4,981.9 |
Cost of Goods Sold(3) | 2,275.9 |  |  | 977.9 |  |  | 178.9 |  |  | 3,432.7 |
Selling, general and administrative | 350.2 |  |  | 197.5 |  |  | 157.8 |  |  | 705.5 |
Other (income) expense(4) | (14.8) |  |  | (4.8) |  |  | 4.8 |  |  | (14.8) |
Segment profit (loss)(3)(5) | $ | 611.6 |  |  | $ | 340.8 |  |  | $ | (93.9) |  |  | $ | 858.5 |
(1) The Corporate and Other segment included our European portfolio. In the fourth quarter of 2023, we completed the divestiture of our European operations. (2) On a consolidated basis, no revenue from transactions with a single customer were 10% or greater of our consolidated net sales for any of the periods presented. (3) Amounts are adjusted to reflect the accounting method change from LIFO to FIFO. The adjustments for Home Comfort Solutions were $0.8 million and $1.4 million for the years ended December 31, 2024 and 2023, respectively. The adjustment for Business Climate Solutions was $4.8 million for the year ended December 31, 2024 and a nominal adjustment was made for the year ended December 31, 2023. (4) Other (income) expense is primarily comprised of income from equity method investments and losses and other expenses, net. (5) We define segment profit (loss) as a segment's operating income (loss) included in the accompanying Consolidated Statements of Operations, excluding: •The following items in Losses and other expenses, net: ◦Net change in unrealized losses (gains) on unsettled futures contracts, ◦Environmental liabilities and special litigation charges ◦Other items, net, and ◦Acquisition costs •Restructuring charges; •Impairment on assets held for sale; and •(Gain) loss on sale from previous dispositions. The reconciliations of segment profit to Operating income and Net income before income taxes are presented below (in millions):
| For the Years Ended December 31,
| 2025 |  | 2024 |  | 2023
Total segment profit(1)(2) | $ | 1,057.7 |  |  | $ | 1,041.9 |  |  | $ | 858.5 |
Reconciliation to Operating income: |  |  |  |  |
(Gain) loss on sale from previous dispositions | (0.9) |  |  | 1.5 |  |  | (14.1) |
Impairment of assets held for sale | — |  |  | — |  |  | 63.2 |
Items in Losses and other expenses, net that are excluded from segment profit (loss) (1) | — |  |  | — |  |  | 14.8 |
Restructuring charges | 6.8 |  |  | — |  |  | 3.1 |
Acquisition costs | 10.3 |  |  | — |  |  | — |
Operating income | 1,041.5 |  |  | 1,040.4 |  |  | 791.5 |
Reconciliation to income before income taxes: |  |  |  |  |
Pension settlements | 0.4 |  |  | 0.4 |  |  | 0.8 |
Interest expense, net | 40.9 |  |  | 38.7 |  |  | 51.7 |
Other expense, net | 3.4 |  |  | 1.9 |  |  | 0.1 |
Income before income taxes | $ | 996.8 |  |  | $ | 999.4 |  |  | $ | 738.9 |
(1) We define segment profit (loss) as a segment's operating income (loss) included in the accompanying Consolidated Statements of Operations, excluding: •The following items in Losses and other expenses, net: ◦Net change in unrealized losses (gains) on unsettled futures contracts, ◦Environmental liabilities and special litigation charges, ◦Other items, net, and ◦Acquisition costs •Restructuring charges; •Impairment on assets held for sale; and •(Gain) loss on sale of businesses. (2) The 2024 and 2023 amounts are adjusted to reflect the accounting method change from LIFO to FIFO. Total assets by segment are shown below (in millions):
| As of December 31,
| 2025 |  | 2024 As Adjusted |  | 2023 As Adjusted
Total Assets: |  |  |  |  |
Home Comfort Solutions | $ | 1,971.0 |  |  | $ | 1,721.4 |  |  | $ | 1,549.3 |
Building Climate Solutions | 1,746.4 |  |  | 1,105.5 |  |  | 1,032.1 |
Corporate and Other | 364.4 |  |  | 793.1 |  |  | 359.6 |
Total assets | $ | 4,081.8 |  |  | $ | 3,620.0 |  |  | $ | 2,941.0 |
The assets in Corporate and Other primarily consist of cash, property, plant and equipment and short-term investments and deferred tax assets as well as the assets in the European portfolio which was disposed of in the fourth quarter of 2023. Assets recorded in the operating segments represent those assets directly associated with those segments. Total capital expenditures by segment are shown below (in millions):
| For the Years Ended December 31,
| 2025 |  | 2024 |  | 2023
Capital Expenditures: |  |  |  |  |
Home Comfort Solutions | $ | 49.0 |  |  | $ | 78.1 |  |  | $ | 59.1 |
Building Climate Solutions | 37.7 |  |  | 57.8 |  |  | 119.6 |
Corporate and Other | 32.1 |  |  | 27.7 |  |  | 71.5 |
Total capital expenditures | $ | 118.8 |  |  | $ | 163.6 |  |  | $ | 250.2 |
Depreciation and amortization expenses by segment are shown below (in millions):
| For the Years Ended December 31,
| 2025 |  | 2024 |  | 2023
Depreciation and Amortization: |  |  |  |  |
Home Comfort Solutions | $ | 46.9 |  |  | $ | 39.0 |  |  | $ | 35.3 |
Building Climate Solutions | 36.0 |  |  | 25.6 |  |  | 19.4 |
Corporate and Other | 29.6 |  |  | 30.5 |  |  | 31.3 |
Total depreciation and amortization | $ | 112.5 |  |  | $ | 95.1 |  |  | $ | 86.0 |
The income from equity method investments is shown below (in millions):
| For the Years Ended December 31,
| 2025 |  | 2024 |  | 2023
Income from Equity Method Investments: |  |  |  |  |
Home Comfort Solutions | $ | 5.4 |  |  | $ | 4.4 |  |  | $ | 5.5 |
Building Climate Solutions | 0.6 |  |  | 3.5 |  |  | 3.0 |
Total income from equity method investments | $ | 6.0 |  |  | $ | 7.9 |  |  | $ | 8.5 |
Geographic Information Property, plant and equipment, net for each major geographic area in which we operate, based on the domicile of our operations, are shown below (in millions):
| As of December 31,
| 2025 |  | 2024 |  | 2023
Property, Plant and Equipment, net: |  |  |  |  |
United States | $ | 607.4 |  |  | $ | 537.3 |  |  | $ | 487.1 |
Mexico | 269.2 |  |  | 254.0 |  |  | 228.7 |
Canada | 4.2 |  |  | 2.9 |  |  | 2.2 |
Other international | 6.4 |  |  | 5.9 |  |  | 2.4 |
Total Property, plant and equipment, net | $ | 887.2 |  |  | $ | 800.1 |  |  | $ | 720.4 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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