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Q3 2026 Earnings Conference Call October 29, 2026
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2 This communication contains statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "believe," "expect," "expectations," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "outlook," "confident," "scenario" and other words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, expectations relating to our sales backlog, commitments by us and our customers under long-term agreements, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier, market conditions including with respect to residential end-markets, data center and otherwise, growth prospects for 2026 and beyond, expectations concerning the mitigation and net impact of tariffs during 2026, Carrier's guidance for full-year 2026, Carrier's plans with respect to our indebtedness and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Such risks, uncertainties and other factors include, without limitation, those described below and under the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and in subsequent reports that we file with the SEC: the effect of economic conditions in the industries and markets in which Carrier and our businesses operate in the U.S. and globally and any changes therein, including financial market conditions, inflationary cost pressures, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction, the impact of weather conditions, pandemic health issues, natural disasters and the financial condition of our customers and suppliers; challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; future levels of capital spending and research and development spending; future availability of credit and factors that may affect such availability, including credit market conditions and Carrier's capital structure and credit ratings; the timing and scope of future repurchases of Carrier's common stock, including market conditions and the level of other investing activities and uses of cash; delays and disruption in the delivery of materials and services from suppliers; cost reduction efforts and restructuring costs and savings and other consequences thereof; new business and investment opportunities; the outcome of legal proceedings, investigations and other contingencies; the impact of pension plan assumptions on future cash contributions and earnings; the impact of the negotiation of collective bargaining agreements and labor disputes; the effect of changes in political conditions in the U.S. and other countries in which Carrier and our businesses operate, including the effect of ongoing uncertainty and/or changes in U.S. trade policies, on general market conditions, global trade policies, the imposition of tariffs, and currency exchange rates in the near term and beyond; the effect of changes in tax, environmental, regulatory (including among other things import/export) and other laws and regulations in the U.S. and other countries in which we and our businesses operate; the ability of Carrier to retain and hire key personnel; the scope, nature, impact or timing of acquisition and divestiture activity, such as our acquisition of the VCS business and our portfolio transformation transactions, including among other things integration of acquired businesses into existing businesses and realization of synergies and opportunities for growth and innovation and incurrence of related costs; a determination by the IRS and other tax authorities that the distribution of Carrier from RTX Corporation (f/k/a United Technologies Corporation) or certain related transactions should be treated as taxable transactions; and risks associated with current and future indebtedness, as well as our ability to reduce indebtedness and the timing thereof. The forward-looking statements speak only as of the date of this communication. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements is disclosed from time to time in our other filings with the SEC. Cautionary statement 2026 Q3 Earnings | October 29, 2026
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Q3 2026 Summary 32026 Q3 Earnings | October 29, 2026 ($ Millions, except EPS) Sales $6,263 Organic1 15% Y/Y • Continued strong orders3 up ~35% • Global CHVAC up ~60%; data centers up ~300% • Record backlog3 >$8.5B, up ~60% Y/Y • 15% organic sales growth; aftermarket up 9% • Data center sales up ~2.5x, on-track for ~$2B FY 2026 • CSA Resi up >30%, and CSE RLC up 13% • Strong margin expansion • Double-digit CSE margins • Returned ~$600M to shareowners through share repurchases and dividends Adjusted Operating Profit1,4 $1,091 33% Y/Y Adjusted Operating Margin1,4 17.4% 260 bps Y/Y Adjusted EPS1,4 $0.87 30% Y/Y Free Cash Flow1,2 $674 Highlights Strong performance with orders, sales and adj. EPS all up between 15% and 35% 1. See appendix for additional information regarding non-GAAP measures 2. Includes results of continuing operations and discontinued operations 3. Excludes NORESCO, divested on August 3 rd 4. Includes benefit of ~$130M IEEPA refund, or ~$0.10 of adjusted EPS net of ~($0.02) NCI impact
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Structurally balanced and differentiated portfolio 2026 Q3 Earnings | October 29, 2026 4 Global Commercial OE & Aftermarket Strong demand and backlog, sustained DD growth HSD–DD growth in 2H26 • Expecting continued double-digit growth in global commercial HVAC fueled by record backlog, LTAs and strong pipeline • Driving to continued double-digit aftermarket growth • Resi, Light Commercial markets in CSA and CSE recovering and growing • Truck and Trailer poised for recovery Resi, Light Commercial OE CSA & CSE CST OE Poised for recovery China RLC Transformed Commercial and recovering Resi position us for sustained strong growth
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~2x Global CHVAC sales increase since spin ~4x Global CHVAC backlog increase since spin • Differentiated products and controls • Industry-leading Building Management System (BMS) • Digital twin / Performance modeling capabilities • Enhanced agentic AI offerings through 75F • Speed to first megawatt for data centers • Lower total cost of ownership with improved operational insights • Zero water waste and >10% lower electricity consumption with new A/C and W/C chillers vs prior generations • Holistic life-cycle solutions • Intelligent, autonomous, efficient buildings • Improved growth profile • Higher proportion of longer-cycle business provides increased visibility (backlog, LTAs) • Rapidly expanding installed base with increased aftermarket opportunity • Customer intimacy and stickiness through digital offerings Winning in Commercial1 through differentiation 2026 Q3 Earnings | October 29, 2026 5 How we are winning 1. Excludes NORESCO Differentiated systems solutions Carrier outcomesCustomer outcomes
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RLC improving…Carrier positioned to capitalize ✓ Rotary & scroll compressors ✓ Variable-speed heat pumps ✓ Inverters, fan coils and hybrid solutions ✓ Cloud-enabled platforms ✓ CSE One BaseTM ✓ CSA Comfort360TM ✓ Connectable product portfolio ✓ Home energy management / electrification solutions with Systems ProfiTM ✓ Carrier Energy ✓ Domestic Hot Water 2026 Q3 Earnings | October 29, 2026 6 CSA residential market (units) Germany RLC heating market (units) 24 25 26E Med.-Term ~9M units long- term expected avg. ~7.5 – 8M 24 25 26E Med.-Term Carrier’s differentiated RLC portfolio positioned to outperform Product differentiation Digital Systems Customer outcomes: Intelligent, personalized, efficient comfort Carrier benefits: Increased value per home ~800K units long- term expected avg. ~650 – 700K
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Controlling the controllables 2026 Q3 Earnings | October 29, 2026 7 2026 Adj. EPS1 ~ $2.80 ~$2.20 – $2.25 $2.85 – $2.90 ($0.55 - $0.60) ~ $0.10 ~ $0.15 ~$0.35 ~$0.05 Original Guide Incremental Input Costs & Tariffs Incremental Price Incremental Productivity Incremental Volume / Mix Other Oct. Guide Sales $23.8 – $24 Billion Adj. operating profit ~$3.5 Billion Adj. EPS $2.85 – $2.90 Free cash flow ~$2 Billion 2026 Guidance1 1. See appendix for additional information regarding non-GAAP measures 2. Includes ~$0.10 benefit from IEEPA refunds net ~($0.02) of NCI impact Double-digit adj. EPS growth while offsetting ~$550M – $600M unexpected incremental input cost increases Up ~10% Y/YUp ~HSD Y/Y Divestitures / Investments ~($0.05) IEEPA2 ~$0.10
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Q3 2026 Results 2026 Q3 Earnings | October 29, 2026 8 ($ Millions, except EPS) Q3 2026 Q3 2025 Y/Y Sales $6,263 $5,579 12% Organic sales1 15% Acquisitions / Divestitures, net (3%) FX 0% Adjusted operating profit1 $1,091 $823 33% Adjusted operating margin1 17.4% 14.8% 260 bps Adjusted effective tax rate1 23.5% 17.2% Adjusted EPS1 $0.87 $0.67 30% Free cash flow1,2 $674 $224 1. See appendix for additional information regarding non-GAAP measures 2. Includes results of continuing operations and discontinued operations
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Q3 2026 Adjusted EPS1 bridge 92026 Q3 Earnings | October 29, 20261. See appendix for additional information regarding non-GAAP measures 2. Includes ~$0.10 benefit from IEEPA refunds net ~($0.02) of NCI impact Q3 2025 Adj. EPS Operational Tax rate / Shares Net interest / Other Q3 2026 Adj. EPS $0.23 ($0.02) ($0.01) $0.67 $0.87 Volume Productivity Price Input costs / tariffs2 Shares Tax
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Q3 2026 Climate Solutions Americas (CSA) 2026 Q3 Earnings | October 29, 2026 10 ($ Millions) Q3 2026 Q3 2025 Y/Y Sales $3,354 $2,711 24% Organic sales1 25% Acq / div, net (1%) FX 0% Segment operating profit $745 $533 40% Segment operating margin 22.2% 19.7% 250 bps Highlights • Orders2 up ~60% with Commercial up ~90% • Strong data center orders up ~400% • Residential sales up >30% • Field inventory ~flat Y/Y , as expected • Commercial2 sales up >25% • Data center sales up >2x Y/Y and Q/Q • Expect sequential growth in Q4 • Segment operating margin expanded 250 basis points from the benefit of ~$120 million of IEEPA refunds and organic growth, partially offset by increased input costs and tariffs 1. See appendix for additional information regarding non-GAAP measures 2. Excludes NORESCO
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Q3 2026 Climate Solutions Europe (CSE) 2026 Q3 Earnings | October 29, 2026 11 ($ Millions) Q3 2026 Q3 2025 Y/Y Sales $1,335 $1,290 3% Organic sales1 12% Acq / div, net (7%) FX (2%) Segment operating profit $168 $120 40% Segment operating margin 12.6% 9.3% 330 bps 1. See appendix for additional information regarding non-GAAP measures Highlights • Orders up ~30% • Commercial up ~50% • RLC up ~25% • RLC momentum continues with sales up LTs • Heat pump and A/C sales up ~35% • Commercial sales up HSD driven by data center sales up ~2x • Segment operating margin increased 330 basis points with strong organic revenue growth and a ~100 basis point net benefit from the correction of a prior period item offset by increases in inventory-related reserves
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Q3 2026 Climate Solutions Asia Pacific Middle East & Africa (CSAME) 2026 Q3 Earnings | October 29, 2026 12 ($ Millions) Q3 2026 Q3 2025 Y/Y Sales $848 $833 2% Organic sales1 3% Acq / div, net (1%) FX 0% Segment operating profit $103 $97 6% Segment operating margin 12.1% 11.6% 50 bps 1. See appendix for additional information regarding non-GAAP measures 2. China region includes Mainland China, Hong Kong, Taiwan and Macau Highlights • Orders up ~5% with Commercial up ~10% • Organic sales up 3% • Strong growth in Commercial up 10% • RLC down mid-single digits • Aftermarket up 13% • China decline of (4%); ex-China growth of 9% • China CHVAC returned to growth, up 6% • Operating margin primarily driven by organic growth and productivity
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Q3 2026 Climate Solutions Transportation (CST) 2026 Q3 Earnings | October 29, 2026 13 ($ Millions) Q3 2026 Q3 2025 Y/Y Sales $726 $745 (3%) Organic sales1 (3%) Acq / div, net 0% FX 0% Segment operating profit $117 $115 2% Segment operating margin 16.1% 15.4% 70 bps 1. See appendix for additional information regarding non-GAAP measures Highlights • Orders up ~5%; NATT up mid-teens • Container sales up MSD on +50% prior year compare • Global Truck and Trailer sales down (MSD) • Operating margin expansion driven by approximately $15M IEEPA refunds and productivity, partially offset by lower Truck & Trailer volumes
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14 Climate Solutions Americas (CSA) ~60% Climate Solutions Asia Pacific MEA (CSAME) ~5% Residential ~45% China region2 ~5% Light commercial ~15% Balance of segment ~Flat Commercial ~90% Climate Solutions Europe (CSE) ~30% Climate Solutions Transportation (CST) ~5% Residential and Light commercial ~25% Global Truck & Trailer ~5% Commercial ~50% Container ~Flat 4th consecutive quarter of DD or better growth; continued strong demand for our differentiated solutions 2026 Q3 Earnings | October 29, 20261. Excludes NORESCO 2. China region includes Mainland China, Hong Kong, Taiwan and Macau Q3 2026 Organic orders1 up ~35%
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Raising FY 2026 Organic sales1 guidance 15 Sales Current guide (Oct. 2026) Prior guide (July 2026) Climate Solutions Americas (CSA) Residential Light commercial Commercial2 ~M-HT ~10% >10% H-20s ~MT HSD HSD M-20s Climate Solutions Europe (CSE) Residential and Light commercial Commercial ~L-MSD M-HSD Flat ~LSD LSD Flat Climate Solutions Asia Pacific MEA (CSAME) China region3 Balance of segment ~LSD (LT) DD ~Flat (LT) DD Climate Solutions Transportation (CST) ~Flat ~Flat Carrier $23.8B – $24.0B Organic ~10% FX +1% Divestitures (2%)4 ~$23B Organic ~M-HSD FX +1% Divestitures (2%)4 1. See appendix for additional information regarding non-GAAP measures 2. Excludes NORESCO 3. China region includes Mainland China, Hong Kong, Taiwan and Macau 4. Riello exit July 1st; NORESCO exit August 3rd 2026 Q3 Earnings | October 29, 2026
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FY 2026 profit guidance 16 Segment Current guide Adj. Op. Margin Adj. Op. Margin Change Y/Y (Oct. 2026) Prior guide Adj. Op. Margin (July 2026) CS Americas ~19% ~(150 bps) ~20.5% CS Europe ~9% ~Flat ~9% CS Asia Pacific Middle East & Africa >11% ~(200 bps) >11% CS Transportation ~15% ~(50 bps) ~15.5% Carrier adj. operating profit1 ~$3.5B ~$3.5B Adj. EPS1 $2.85 – $2.90 ~$2.90 Free cash flow1,2 ~$2B ~$2B Share repurchases ~$1.5B ~$1.5B 1. See appendix for additional information regarding non-GAAP measures 2. Includes results of continuing operations and discontinued operations 2026 Q3 Earnings | October 29, 2026
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Key takeaways 172026 Q3 Earnings | October 29, 2026 A stronger portfolio. Multiple growth engines. Record backlog. 1 Company’s growth profile has structurally improved Commercial HVAC and aftermarket are becoming larger, structurally higher-growth engines 2 Data centers are a major growth platform Orders year to date >$3B, up ~350%; LTAs worth billions of dollars 3 Growth is broad-based Record backlog >$8.5B; non-data center commercial orders +20%; residential and light commercial markets recovering 4 Addressing increasing input cost headwinds Incremental price and productivity driven by Carrier Excellence to drive earnings growth 5 Continued strong cash flow generation Returning ~$2.3B to shareowners through dividends and share repurchases
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APPENDIX 2026 Q3 Earnings | October 29, 2026
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FY 2026 Adjusted EPS1 guidance bridge 192026 Q3 Earnings | October 29, 2026 1. See appendix for additional information regarding non-GAAP measures 2. Riello exit July 1st; NORESCO exit August 3rd 3. Includes ~$0.10 benefit from IEEPA refunds net ~($0.02) of NCI impact FY 2025 Adj. EPS Operational Tax Rate & Shares Other 2026 Adj. EPS Outlook ~$0.15 – $0.20 ~$0.15 ~($0.05) $2.59 ~$2.85 – $2.90 Volume Productivity Price Input costs / tariffs3 Investments Share repo Tax ~19% Net Interest NCI Divestitures2
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20 Additional items ($ Millions, except D&A) Current outlook (Oct. 2026) Prior outlook (Jul. 2026) Average shares outstanding (diluted) ~830 ~833 Corporate expenses / eliminations and other ~$210 ~$240 Interest expense, net ~$400 ~$400 Adjusted effective tax rate1 ~19% ~19% Non-controlling interest ~$1452 ~$120 Capital expenditures ~$650 ~$600 Depreciation and amortization ~$1.3B ~$1.3B 2026 Q3 Earnings | October 29, 20261. See appendix for additional information regarding non-GAAP measures 2. Approximately ($0.02) impact to adj. EPS due to IEEPA refunds
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21 Use and definitions of non-GAAP financial measures Carrier reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures. Organic sales, adjusted operating profit, adjusted operating margin, adjusted net income, adjusted earnings per share (“EPS”), adjusted effective tax rate and net debt are non-GAAP financial measures and are associated with Carrier's continuing operations unless specifically noted. Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and other significant items of a nonoperational nature (hereinafter referred to as “other significant items”). Adjusted operating profit represents consolidated operating profit (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of consolidated net sales (a GAAP measure). Adjusted net income represents net income attributable to common shareowners (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. The adjusted effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. Net debt represents long-term debt (a GAAP measure) less cash and cash equivalents (a GAAP measure). Free cash flow is a non-GAAP financial measure that represents net cash flows provided by continuing operating activities (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Carrier’s ability to fund its activities, including the financing of acquisitions, debt service, repurchases of Carrier's common stock and distribution of earnings to shareowners. Orders are contractual commitments with customers to provide specified goods or services for an agreed upon price and may not be subject to penalty if cancelled. Price/cost represents the combined impact of realized pricing, cost inflation and productivity actions, including manufacturing efficiencies, sourcing initiatives and certain productivity measures. When Carrier provides our expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted effective tax rate, adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results. As a result of Carrier's portfolio transformation, Carrier revised its reportable segments during the first quarter of 2025 to better reflect its business strategy, align its management reporting and increase transparency for investors. In connection with the revised structure, the Chief Operating Decision Maker changed the measure used to evaluate segment profitability from Operating profit to Segment operating profit. It represents operating profit (a GAAP measure) adjusted to exclude restructuring costs, amortization of acquired intangible assets and other significant items of a nonoperational nature. All prior period comparative information has been recast to reflect the revised segment structure. 2026 Q3 Earnings | October 29, 2026
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22 Segment summary 2026 Q3 Earnings | October 29, 2026 (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2026 2025 2026 2025 Segment net sales Climate Solutions Americas $ 3,354 $ 2,711 $ 9,227 $ 8,535 Climate Solutions Europe 1,335 1,290 3,952 3,712 Climate Solutions Asia Pacific, Middle East & Africa 848 833 2,599 2,541 Climate Solutions Transportation 726 745 2,177 2,122 Segment net sales $ 6,263 $ 5,579 $ 17,955 $ 16,910 Segment operating profit Climate Solutions Americas $ 745 $ 533 $ 1,941 $ 1,982 Climate Solutions Europe 168 120 352 324 Climate Solutions Asia Pacific, Middle East & Africa 103 97 292 353 Climate Solutions Transportation 117 115 336 340 Segment operating profit $ 1,133 $ 865 $ 2,921 $ 2,999 Segment operating margin Climate Solutions Americas 22.2 % 19.7 % 21.0 % 23.2 % Climate Solutions Europe 12.6 % 9.3 % 8.9 % 8.7 % Climate Solutions Asia Pacific, Middle East & Africa 12.1 % 11.6 % 11.2 % 13.9 % Climate Solutions Transportation 16.1 % 15.4 % 15.4 % 16.0 %
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23 Organic sales reconciliation 2026 Q3 Earnings | October 29, 2026
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24 Earnings before income taxes reconciliation 2026 Q3 Earnings | October 29, 2026 (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2026 2025 2026 2025 Reconciliation to Earnings before income taxes Segment operating profit $ 1,133 $ 865 $ 2,921 $ 2,999 Corporate and other (42) (42) (141) (162) Restructuring costs (45) (50) (161) (105) Amortization of acquired intangible assets (210) (221) (636) (636) Acquisition/divestiture-related costs (2) (10) (20) (21) Riello impairment and loss (2) — (48) — Goodwill impairment (3,100) — (3,100) — CCR gain — — — 7 Other (5) (3) (5) (11) Non-service pension (expense) benefit 3 (9) 5 (8) Interest (expense) income, net (93) (97) (288) (270) Earnings before income taxes $ (2,363) $ 433 $ (1,473) $ 1,793
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25 Adjusted operating profit reconciliation 2026 Q3 Earnings | October 29, 2026 (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2026 2025 2026 2025 Reconciliation of Segment operating profit to Adjusted operating profit Climate Solutions Americas $ 745 $ 533 $ 1,941 $ 1,982 Climate Solutions Europe 168 120 352 324 Climate Solutions Asia Pacific, Middle East & Africa 103 97 292 353 Climate Solutions Transportation 117 115 336 340 Segment operating profit $ 1,133 $ 865 $ 2,921 $ 2,999 Corporate and other (42) (42) (141) (162) Adjusted operating profit $ 1,091 $ 823 $ 2,780 $ 2,837
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26 Q3 and YTD 2026 EPS reconciliation 2026 Q3 Earnings | October 29, 2026
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27 Q3 and YTD 2025 EPS reconciliation 2026 Q3 Earnings | October 29, 2026 (Unaudited) Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 (In millions, except per share amounts) Reported Adjustments Adjusted Reported Adjustments Adjusted Net sales $ 5,579 $ — $ 5,579 $ 16,910 $ — $ 16,910 Operating profit $ 539 284 a $ 823 $ 2,071 766 a $ 2,837 Operating margin 9.7 % 14.8 % 12.2 % 16.8 % Earnings before income taxes $ 433 295 a,b $ 728 $ 1,793 777 a,b $ 2,570 Income tax (expense) benefit $ 1 (126) c $ (125) $ (272) (259) c $ (531) Effective tax rate (0.2) % 17.2 % 15.2 % 20.7 % Earnings from continuing operations attributable to common shareowners $ 407 $ 169 $ 576 $ 1,427 $ 518 $ 1,945 Summary of Adjustments: Restructuring costs $ 50 a $ 105 a Amortization of acquired intangible assets 221 a 636 a Acquisition/divestiture-related costs 10 a 21 a CCR gain — a (7) a Other 3 a 11 a Defined benefit pension settlement 11 b 11 b Total adjustments $ 295 $ 777 Tax effect on adjustments above $ (77) $ (204) Tax specific adjustments (49) (55) Total tax adjustments $ (126) c $ (259) c Diluted shares outstanding 858.6 858.6 867.7 867.7 Diluted earnings per share: Continuing operations $ 0.47 $ 0.67 $ 1.64 $ 2.24
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28 Free cash flow reconciliation 2026 Q3 Earnings | October 29, 2026 (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2026 2025 2026 2025 Net cash flows provided by operating activities $ 813 $ 341 $ 1,819 $ 1,473 Less: Capital expenditures (139) (117) (350) (261) Free cash flow $ 674 $ 224 $ 1,469 $ 1,212
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29 Net debt reconciliation 2026 Q3 Earnings | October 29, 2026 (Unaudited) (In millions) September 30, 2026 December 31, 2025 Long-term debt $ 9,992 $ 11,365 Short-term borrowings and current portion of long-term debt 1,482 468 Less: Cash and cash equivalents 1,354 1,555 Net debt $ 10,120 $ 10,278
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For the World We Share