Organic sales increased by 2%, primarily driven by the Climate Solutions Americas segment due to strong end-market demand. Higher volumes also benefited the Climate Solutions Transportation segment.

The company completed several activities designed to simplify its business portfolio, transforming it into a pure-play climate and energy solutions provider. This includes the acquisition of the VCS Business and the divestiture of the Fire & Security segment.

Climate Solutions Europe experienced a 7% organic sales decrease due to lower volumes in the residential and light commercial markets. Economic conditions, inflationary cost pressures, and regulatory uncertainty impacted end-market demand.

Operating expenses decreased by 18% to $816 million, driven by productivity initiatives associated with the portfolio transformation and synergies from the VCS Business integration. This was partially offset by higher compensation and employee-related costs.

The company reduced outstanding debt by approximately $3 billion over the course of 2024 and repaid an additional $1.2 billion during the current period. Additionally, $1.3 billion was used to repurchase shares.

The effective tax rate increased to 20.3% from 19.3% in the prior year, primarily driven by the absence of a $21 million tax benefit associated with the TMA and UTC's conclusion of certain income tax matters.

The 10-Q states that there have been no material changes in the Company's risk factors from those disclosed in 'Risk Factors' in our 2024 Form 10-K.

As of March 31, 2025, the Company, Kidde-Fenwal, Inc. (“KFI”) and others have been named as defendants in more than 10,000 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.

The company repurchased 19.0 million shares of common stock for an aggregate purchase price of $1.3 billion during the three months ended March 31, 2025. Approximately $1.9 billion remains under the current authorization.

The company paid dividends on common stock totaling $198 million during the three months ended March 31, 2025. A dividend of $0.23 per share was declared in April 2025.

The company made long-term debt repayments of $1.2 billion during the three months ended March 31, 2025. Consistent with our capital allocation strategy, we reduced our outstanding debt by approximately $3 billion over the course of 2024 and repaid an additional $1.2 billion during the current period.