The Company entered into a definitive agreement to sell its Residential and Light Commercial (R&LC) HVAC business to Robert Bosch GmbH for approximately $8.1 billion. The sale is expected to close in the second half of fiscal 2025, reflecting a continued focus on pure-play commercial building solutions.

The Company committed to a multi-year restructuring plan to address stranded costs and further right-size its global operations, expecting annual cost savings of approximately $500 million upon full completion. However, the specific costs to be incurred and savings to be achieved in fiscal 2025 are uncertain.

Effective April 1, 2025, the company realigned its reporting structure from four segments to three (Americas, EMEA, and APAC) to drive simplification and better reflect its organizational structure. This change is expected to improve decision-making and resource allocation.

Net sales increased due to higher organic sales, driven by strong growth in Products and Systems in the Building Solutions North America, Building Solutions Asia Pacific and Global Products segments and growth in Services in all Building Solutions segments. This demonstrates effective execution in core markets.

EBITA improvements in Building Solutions segments are attributed to higher margin backlog conversion and productivity improvements. This indicates effective operational management and cost control.

The company experienced a cybersecurity incident impacting its internal information technology infrastructure and applications. The company is completing its analysis of the impacted data and will notify impacted individuals and regulatory authorities, as determined appropriate.

Changes in U.S. or foreign trade policies and geopolitical tensions may disrupt supply chains, increase costs, and limit the Company's ability to offer products and services, potentially impacting financial results.

The Company experienced a cybersecurity incident impacting its internal information technology infrastructure and applications. The Company will, as determined appropriate, notify impacted individuals and regulatory authorities.

The Company faces significant environmental liabilities, particularly related to AFFF litigation, with ongoing remediation efforts and numerous lawsuits. The ultimate level of liability is difficult to estimate due to the complexity of determining relative liability among parties and uncertainties in environmental regulations.

The increase in net sales was driven by organic sales growth, indicating a strong competitive position in the market. This growth was partially offset by the net impact of acquisitions and divestitures and unfavorable foreign currency translation.

Margin improvements in the Building Solutions segments as a result of converting backlog with increased mix of long-term, higher margin Systems projects and optimized Services mix. This indicates a strong competitive position.

The Company continues to engage in an ongoing evaluation of its non-core product lines in connection with its objective to be a pure-play provider of comprehensive solutions for commercial buildings.

The company's restructuring plan is expected to yield $500 million in annual cost savings, demonstrating a focus on improving operational efficiency. These savings are expected upon full completion of the plan.

The increase in gross profit margin is attributed to improvements in the Building Solutions segments, indicating enhanced operational efficiency and cost management.

The increase in Global Products was primarily due to improved operational efficiencies, which more than offset the impact of divestitures. This highlights successful efforts to streamline operations and reduce costs.

The company continues to innovate and adapt 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 is maintaining and improving the capacity, reliability and security of the Company's enterprise information technology infrastructure.

The company continues to repurchase shares, with $1.1 billion remaining under the authorization. This indicates a commitment to returning capital to shareholders and confidence in the company's financial position.

The company expects to use a portion of the proceeds to pay down debt and the remaining proceeds to be returned to shareholders through share repurchases.

The Company declared a dividend of $0.37 per common share, demonstrating a commitment to providing shareholder returns.

The Company continues to observe trends demonstrating increased interest and demand for its products and services that enable smart, safe, efficient and sustainable buildings.

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

A substantial portion of the Company's environmental reserves relates to ongoing long-term remediation efforts to address contamination relating to Aqueous Film Forming Foam (AFFF).

The demand for the Company's products and solutions is heavily dependent on general economic conditions, localized demand for real estate and the availability of credit, public funding or other financing sources.

The company faces macroeconomic and geopolitical volatility, including changes to laws or policies governing foreign trade, including tariffs, economic sanctions, foreign exchange and capital controls, import/export controls or other trade restrictions as well as supply chain disruptions.

Revenue and profits were negatively impacted by movements in foreign exchange rates against the U.S. dollar during the three and six months ended March 31, 2025.