The Company entered into a definitive agreement to sell its Residential and Light Commercial (R&LC) HVAC business to Bosch for approximately $8.1 billion in cash. The transaction is expected to close in the fourth quarter of fiscal 2025, subject to regulatory approvals.

The Company committed to a multi-year restructuring plan to address stranded costs and further right-size its global operations as a result of previously announced portfolio simplification actions. This is expected to result in approximately $400 million in costs and $500 million in annual savings.

Backlog in the Building Solutions segment increased by 11% year-over-year, reaching $13.2 billion. This indicates strong demand and potential for future revenue growth in this segment.

The Company has experienced, and could again experience, increased material cost inflation and component shortages, as well as disruptions and delays in its supply chain, as a result of global macroeconomic trends. They are actively monitoring and evaluating the development and potential impacts of tariffs on its supply chain and results of operations.

The company became aware of a cybersecurity incident impacting its internal information technology infrastructure and applications. The overall impact of the cybersecurity incident did not have a material impact on net income, net of insurance recoveries, or cash flows from operations in the first quarter of fiscal 2024.

In February 2025, we announced that we had reached an agreement for Joakim Weidemanis to succeed George Oliver as our next Chief Executive Officer, effective immediately following our 2025 Annual General Meeting of Shareholders.

The company acknowledges the ongoing risks related to data privacy and information security, including potential security incidents, theft, or misuse of data. The company continues to invest in protecting such data, but the risks remain significant.

The company recognizes that changes in U.S. or foreign trade policies and other factors beyond its control may adversely impact its business and operating results. This includes the potential for increased trade restrictions, tariffs, and other measures.

The company faces substantial liabilities related to Aqueous Film-Forming Foam (AFFF) litigation and environmental remediation efforts. The costs and outcomes of these matters are uncertain and could have a material adverse effect on the company's financial position.

The company is focused on innovating and adapting to emerging technologies, ideas and trends in the marketplace, including the incorporation of technologies such as artificial intelligence. The company is leveraging its install base, together with data-driven products and services, to offer outcome-based solutions to customers with a focus on generating accelerated growth in services and recurring revenue.

The Company continues to observe trends demonstrating increased interest and demand for its products and services that enable smart, safe, efficient and sustainable buildings, which are driven in part by government tax incentives, building performance standards and other regulations designed to limit emissions and combat climate change.

The company is facing increased competition from other companies in the same industry. This could lead customers to select the products and services of our competitors.

The company committed to a multi-year restructuring plan to address stranded costs and further right-size its global operations as a result of previously announced portfolio simplification actions. It is expected that one-time restructuring costs, including severance and other employee termination benefits, contract termination costs, and certain other related cash and non-cash charges, of approximately $400 million will be incurred over the course of fiscal 2025, 2026 and 2027, resulting in expected annual cost savings of approximately $500 million upon full completion of the plan.

The Company has experienced, and could again experience, increased material cost inflation and component shortages, as well as disruptions and delays in its supply chain, as a result of global macroeconomic trends, including increased global demand, the imposition of tariffs and other restrictive trade measures, geopolitical and economic tensions, including the conflict between Russia and Ukraine and Israel and Hamas, and labor shortages.

The increase in Building Solutions EMEA/LA was primarily driven by productivity improvements and positive mix from the growth in Services.

The company is focused on innovating and adapting to emerging technologies, ideas and trends in the marketplace, including the incorporation of technologies such as artificial intelligence. The company is leveraging its install base, together with data-driven products and services, to offer outcome-based solutions to customers with a focus on generating accelerated growth in services and recurring revenue.

Combined with its investment in digital and product capabilities, including its OpenBlue platform, the Company seeks to capitalize on these trends to enable delivery of sustainable, high-efficiency products and tailored services to enable customers to achieve their sustainability goals.

The company is managing the lifecycle cybersecurity risk in the development, deployment and operation of the Company's digital platforms and services.

As of December 31, 2024, approximately $1.4 billion remains available under the Company's share repurchase authorization, which does not have an expiration date and may be amended or terminated by the Board of Directors at any time without prior notice. The Company expects to repurchase outstanding shares from time to time depending on market conditions, alternate uses of capital, liquidity, and the economic environment.

The Company expects to receive net cash proceeds related to the sale of its R&LC HVAC business of approximately $5.0 billion after tax and transaction-related expenses when the transaction closes, likely in the fourth quarter of fiscal 2025. Consistent with its capital allocation policy, the Company expects to use a portion of the proceeds to pay down debt to the extent required to retain its investment grade rating, with the remaining proceeds expected to be returned to shareholders through share repurchases.

The Company declared a dividend of $0.37 per common share in the quarter ended December 31, 2024 and intends to continue paying dividends throughout fiscal 2025.

The Company continues to observe trends demonstrating increased interest and demand for its products and services that enable smart, safe, efficient and sustainable buildings, which are driven in part by government tax incentives, building performance standards and other regulations designed to limit emissions and combat climate change.

The company is adapting to global climate change, climate change regulation and successfully meet the Company's public sustainability commitments.

The company faces substantial liabilities related to Aqueous Film-Forming Foam (AFFF) litigation and environmental remediation efforts. The costs and outcomes of these matters are uncertain and could have a material adverse effect on the company's financial position.

The Company has experienced, and could again experience, increased material cost inflation and component shortages, as well as disruptions and delays in its supply chain, as a result of global macroeconomic trends, including increased global demand, the imposition of tariffs and other restrictive trade measures, geopolitical and economic tensions, including the conflict between Russia and Ukraine and Israel and Hamas, and labor shortages.

The company is facing changes to laws or policies governing foreign trade, including economic sanctions, tariffs, foreign exchange and capital controls, import/export controls or other trade restrictions.

Political uncertainty surrounding trade or other international disputes also could have a negative impact on customer confidence and willingness to spend money, which could impair our future growth.