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Second-Quarter 2025 Results July 30, 2025
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Forward-Looking Statements 2 This presentation includes “forward-looking" statements within the meaning of securities laws, which are statements that are not historical facts, including statements that relate to our future financial performance and targets, including revenue, EPS, operating income, operation margin and earnings; operating leverage; our business operations; demand for our products and services, including bookings and backlog; capital deployment, including the amount and timing of our dividends, our share repurchase program, and our capital allocation strategy, including M&A activities and investments, if any; our projected free cash flow and usage of such cash; our available liquidity; our anticipated revenue growth, including growth in organic revenue; performance of the markets in which we operate; our foreign exchange rate outlook, our credit rating; our productivity and cost savings initiatives; our sustainability initiatives and our effective tax rate. These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, global economic conditions, including recessions and economic downturns, inflation, volatility in interest rates and foreign exchange; trade protection measures such as import or export restrictions, tariffs, or quotas; changing energy prices; worldwide geopolitical conflict; financial institution disruptions; climate change and our sustainability strategies and goals; future health care emergencies on our business, our suppliers and our customers; commodity shortages; price increases; government regulation; restructuring activity and cost savings associated with such activity; secular trends toward decarbonization, energy efficiency and internal air quality, the outcome of any litigation, including the risks and uncertainties associated with the Chapter 11 proceedings for our deconsolidated subsidiaries Aldrich Pump LLC and Murray Boiler LLC; cybersecurity risks; and tax audits and tax law changes and interpretations. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2024, as well as our subsequent reports on Form 10-Q and other SEC filings. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events and how they may affect the Company. We assume no obligation to update these forward-looking statements. This presentation also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non-GAAP financial information are included as an appendix in our presentation and reconciliations can be found in our earnings releases for the relevant periods located on our website at www.tranetechnologies.com. Unless otherwise indicated, all data beyond the second quarter of 2025 are estimates.
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C L E A R P R I O R I T I E S Focused Strategy Delivers Differentiated Shareholder Returns 1 2 3 4 Maximize Value As Continue With Strong business operating system and performance culture Uplifting culture – integrity, ingenuity, community & engagementPowerful cash flow Win Through Sustainable Innovation Grow Margins and Cash Via Execution Excellence Focused Climate Co. Dynamic Capital Allocation Strong Foundation 3
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Strong Enterprise Performance in Q2: • Record enterprise bookings of $5.6B, up 5%; organic bookings* up 4% • Record organic revenue*, up 7%, adjusted operating margin* up 90 basis points, adjusted EPS* up 18% • Successfully mitigating tariff and other inflationary impacts with robust strategies, proactive measures, surgical pricing • Quarter impacted by near-term challenges in residential - Industry-wide 454B cylinder shortage ($150M revs miss vs our expectati ons) Exceptional Q2 Bookings and Backlog, Led by Commercial HVAC • Q2 Americas CHVAC: all-time high quarterly bookings. Record applied bookings, up over 60% w/ 2 -year stack applied bookings up over 120% • CHVAC book to bill > 100% in all regions, further elevating global CHVAC backlog • Q2 ending backlog of $7.1B, up 6% from year-end 2024. Backlog down ~$125M sequentially from Q1: CHVAC backlog up, Resi / TK ba cklog down Well Positioned for Continued Growth in 2025 and 2026 • Backlog is > 90% CHVAC, with majority longer cycle applied systems carrying 8 -10X services tail over equipment life • Continued high bookings levels and strong backlog provides improving visibility for 2025 and increasingly 2026 Durable Services Revenue Stream ~1/3rd of Enterprise Revenues - Up Low-teens in Q2, w/ + Low-teens CAGR since 2020 Best-in-Class Financial Position, Liquidity and Balance sheet • Strong first half capital deployment including growing dividends and incremental share repurchases above dilution • Strong Q2 cash flow; on track to deliver FY free cash flow* = / > 100% of adj. net earnings Raising FY 2025 Guidance: • Expect organic revenue of ~8% and adjusted EPS of ~$13.05. (see p.16 for more detail) 4 *IncludescertainNon-GAAP financial measures.See the company’s Q2 2025 earningsrelease foradditional details and reconciliations Q 2 2 0 2 5 U P D A T E Record Revenues and Bookings, Adj. EPS* up 18%. Exceptional Strength in Americas CHVAC Offsetting Industry-Wide R454B Cylinder Shortage in Residential
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*Organicbookings and organic revenues exclude acquisitions and currency 5 Q 2 2 0 2 5 O R G A N I C B O O K I N G S A N D R E V E N U E S Q2 Organic* Y-O-Y Change Bookings Revenue Enterprise + 4% + 7% Americas + 7% + 9% Commercial HVAC + + Residential HVAC - - Transport + - EMEA - 2% + 3% Commercial HVAC - + Transport - + Asia Pacific - 17% - 8% China - - Rest of Asia - + Americas • All-time high CHVAC bookings: up over 20%, w/ 2yr stack bookings up >40%; all-time high CHVAC revs, up mid-teens, w/ 2yr stack revs up >40%. Q2 revs up high- teens in equipment, low-teens inservices • Resi revs down MSD vs tough comps of low-teens growth in prior year. Resi impacted by near-term cylinder issues. Solid YTD revs +3% • Transport bookings up LSD. Revs down LSD, significantly outperforming end markets (ACT: truck / trailer / APU down >30% in Q2) EMEA • CHVAC bookings down LSD. Revs up LSD, impacted by timing of customer shipments Q2 into Q3 • Transport bookings down LSD. Revs up LSD, outperforming end markets (market down ~LSD) Asia Pacific • Asia on pace to meet FY 2025 revenue expectations (flattish) • Rest of Asia stronger than China • China revenues and bookings down >20% Continued Strong Demand with Record Bookings, High-Single-Digit Revenue Growth, Led by Americas CHVAC, Partially Offset by Resi Industry Challenges
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6 Q 2 2 0 2 5 E N T E R P R I S E R E S U L T S Performance Scoreboard: Strong Revenue Growth, Margin Expansion and EPS Growth Net Revenue 21.1% 21.8% Q2'24 Q2'25 $5,307 $5,746 Q2'24 Q2'25 19.4% 20.3% Q2'24 Q2'25 +7% Organic* *Includes certain Non-GAAP financial measures. See the company’s Q2 2025 earnings release for additional details and reconciliations. Adj. Continuing EPS* $3.30 $3.88 Q2'24 Q2'25 +18% Adj. EBITDA Margin* +70 bps Adj. Operating Margin* +90 bps • Strong volume growth, positive price realization and productivity more than offset inflation and continued high levels of business reinvestment • Strong enterprise organic leverage* of ~40% • Organic revenue growth up MSD in equipment with strong services growth, up low-teens • Strong execution of company’s business operating system driving operational excellence throughout P&L
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Q 2 2 0 2 5 S E G M E N T R E S U L T S High-Single-Digit Revenue Growth with Enterprise Margin Expansion Led by Americas Revenue Org.* Growth Adj. EBITDA*% vs PY Adj. OI*% vs PY Highlights $MAmericas $4,692 +9% 24.0% +120 bps 22.4% +130 bps EMEA $708 +3% 18.3% -200 bps 17.3% -150 bps • Strong margin expansion onprice and volume growth • Strong volume growth, positive price realization and productivity more than offset material and other inflation related to supply chain challenges and higher costs to serve customers including spot buys and expedited freight • Continued business reinvestment supporting sustainability strategy Asia Pacific $346 -8% 23.3% -220 bps 21.6% -250 bps * Includes certain Non-GAAP financial measures. See the company’s Q2 2025 earnings release for additional details and reconciliations. • Strong margin expansion in Americas • Strong volume growth, positive price realization and productivity more than offset inflation in Americas • EMEA margins impacted by timing of shipment volumes and significant investments for M&A and channel. Margin performance to improve in second half of 2025 • Lower volumes and inflation offset productivity in Asia • High incremental business reinvestment in each segment supporting innovation, growth initiatives and organizational capabilities 7
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M A R K E T U P D A T E 8 CommercialHVAC • Exceptional Q2 performance combined with strong and growing project pipelines. Particular strength in longer cycle capex projects which require complex,bespoke applied solutions • Broad-based strength across core verticals. Particular strength in data centers / education / healthcare and services • World-class direct salesforce leveraging unique market / customer insights and leading innovation to optimize opportunities and drive market outgrowth • Raising Americas CHVAC FY outlook from +HSD to +LDD, second consecutive year of CHVAC 3 yr stack revs up > 50% in every quarter Residential HVAC • Expect near-term challenges from industry R454B cylinder shortage and for modestly elevated channel inventory to normalize in 2H- combined impact of ~$150M to revenues in 2H • 2025 expect flattish residential revenues vs prior +MSD to +HSD expectations • Long term residential markets remain healthy and in-line w/ GDP+ framework Transport • We continue to see 28K units for N.A. trailer market in 2025 (down ~mid-twenties) and company guide incorporates this scenario • Expect to outperform transport markets which are expected to be down appx 20% in 2025 • Continued high levels of investment in innovation to drive outperformance as markets recover Americas Commercial HVAC & Transport • Asia on pace to meet FY 2025 expectations for flattish revs • Mixed performance – China continues to be challenging as we approach anniversary of tightened credit policies (Q3 2024) • Rest of Asia stronger than China in 2025 Commercial HVAC • Q2 performance largely in-line w/ expectations – modest shift in timing of customer shipments delayed from Q2 to Q3 • Expect 2H revenue growth of HSD • Continued robust demand for innovative products and services led by compelling paybacks; momentum continues for Thermal Management Systems Transport • 2025 market expected to be down ~LSD. Expect TK to outperform through innovation-led, diversified, resilient portfolio EMEA Asia Pacific Outlook Largely Unchanged with Stronger Americas Commercial HVAC Offsetting Softer Residential
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Organic Revenues** April 30th FY Guidance Current FY Guidance* +7% to +8% (~+7.5% to ~+8.5% reported,incl. M&A & FX) ~+8% (~+9% reported,incl. M&A & FX) Q3’25 expect ~+6.0% Adj. EPS** $12.70 to $12.90 (+13% to +15%) ~$13.05 (+16%) Q3’25 expect ~$3.80+ Operating Leverage** Organic 25%+ Organic 25%+ Q3’25 expect ~25%+ Free Cash Flow** ≥ Adj. Net Earnings ≥ Adj. Net Earnings 9 2 0 2 5 G U I D A N C E *See page 16 for additional details including tariff impact Expect Continued Strong Execution Through Dynamic Macro Environment. Raising Full-Year Revenue & EPS Guidance ** IncludescertainNon-GAAP financial measures.See the company’s Q2 2025 earningsrelease foradditional details and reconciliations
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* Includes certainNon-GAAP financial measures.See the company’s Q2 2025 earningsrelease for additional details and reconciliations StrongFCF DrivesContinuedBalancedCapitalDeploymentStrategy 1 Invest for Growth • Strengthen the core business and extend product & market leadership • Invest in new technology and innovation • Strategic investmentsin value- accretive M&A 2 Maintain Healthy, Efficient Balance Sheet • Expect to deliverFCF* ≥ 100% of adjustednet earnings • Strengtheningbalancesheet • Strong A3/BBB+ investment grade rating offers optionality as markets evolve 3 Return Capital to Shareholders • Expect to consistentlydeploy 100% of excess cash over time • Pay competitiveand growing dividendover time • Repurchaseshares when stock is trading below our calculated intrinsic value 10
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B A L A N C E D C A P I T A L D E P L O Y M E N T Strong, Balanced Capital Allocation; On Track to Deploy ~$2.5B to ~$3.0B in 2025 Actual YTD July 2025 Target FY 2025 Dividends ~$420M ~$0.8B M&A, investments ~$15M* ~$1.5B to ~$2.0B Share repurchases ~$900M** Debt retirement ~$150M ~$150M Total Capital Deployed ~$1.5B ~$2.5B to ~$3.0B Balanced Capital Deployment 11 • Q2 dividends of $210M (YTD $420M); increased dividend 12% in February 2025 to $3.76 per share annualized, up 77% since the launch of Trane Technologies (March 2020) • YTD July share repurchases accelerated to $900M** leveraging opportunities from share price trading below intrinsic value; $5.25B remaining under repurchase authorizations • M&A pipeline remains active; maintain disciplined approach • Shares remain attractive, trading below our calculated intrinsic value **Excludes Jan 2025 share repurchases of $100M that were included in FY 2024 total capital deployed *Excludes $260M that was included in FY 2024 total capital deployed
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Topics of Interest
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13 0 10 20 30 40 50 N.A. Trailer Build Avg 2015 - 2029 * Forecast shown in grey Source: ACT July 2025 Forecast CommentsACT North America Trailer Market Outlook T O P I C S O F I N T E R E S T ACT Projects Robust Growth in 2026 (~34K units) to 2029 (~50K units) • ACT updated 2025 trailer market forecast to ~26K, down from ~30K prior (down ~30% from down ~15% prior), with market bottoming in 1H,slight improvement in 2H • We continue to estimate trailer market forecast of ~28K units (down ~mid-twenties), or 2K units higher vs. ACT for 2025 • ACT expects ~30% growth in 2026 and 2027 with continued strong markets through 2029 • Underlying refrigerated trailer demand remains high, average ~42k units per year • Diversified Americas / EMEA Thermo King businesses poised to outperform end markets through continued innovation / execution Units in 000’s
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The markets we serve expected tocontinue to outgrow GDP,fueled by long-term sustainability megatrends Secular Tailwinds Sustainability Focused Innovation Margin Expansion Financial Strength We are positionedto outgrowthe marketand expand marginswith market-leading sustainableinnovations 14 Our best-in-class business operating system and uplifting culture enables usto maximizemarginsand cash generation Our strongbalance sheet,exceptionalcash generation and balancedcapital allocationstrategydeliver significant value to shareholders I N S U M M A R Y Positioned to Outperform Over the Long-Term
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Appendix
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*Includes certain Non-GAAP financial measures. See the company’s Q2 2025 earnings release for additional details and reconciliations. 2 0 2 5 G U I D A N C E FY’25DetailedGuidancefor ModelingPurposes 16 Metric FY Guidance Organic Revenue* ~+8% M&A ~+100 bps (Neg ~-$0.15 EPS impact) FX ~Flat Reported Revenue ~+9% Adj. EPS* ~$13.05 +16% 2025 Commentary / Tariff Impact • ~25%+ organic leverage* for FY’25 • ~+100 bps M&A, FX ~flat vs -50 bps prior • Includes ~$140M of tariff costs and related pricing • FY’25 expect ~$0.15 negative impact to adj. EPS from M&A. M&Aprimarily related to technology acquisition BrainBox AI, with accelerated intangibles amortization and year one acquisition and integration related costs. In Q1, acquired additional 50 bps M&A in 2025, driving additional ~$0.05 neg impact related to year-one acquisition and integration costs • Expect acquisitions to be EPS accretive by year 3 Other Items 3Q’25: expect ~+6% organic revenue growth, Adj. EPS ~$3.80+. Expect ~+100 bps M&A or ~$0.03 negative impact to Adj EPS. FY’25 Other Items: • ~$315M corporate costs – Continued above-average incremental high ROI investment (normal range ~40 bps year) including digital, factory automation, sales force excellence, service business excellence, product innovation • ~$235M interest expense • ~20% adj. effective tax rate • ~226M diluted shares • Expect CapEx at high-end of 1% to 2% of revenues in 2025 • FY’25 Other income / expense of ~$30M; includes 1H results and pension expense of ~$5M each remaining quarter. Other items in other inc. / exp. such as FX impacts are unknown / not forecastable 16
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TraneTechnologiesSustainabilityStrategy Global Megatrends Where We Focus Our Efforts The Gigaton Challenge Reduceone gigatonof carbon emissions(CO2e) from our customers’footprint TargetsAlign with Global Priorities Leading by Example Achieve carbonneutral operations, zero waste to landfill, and reduce embodied carbon by 40% Opportunity for All Invest in our people, culture and communities, build the workforce of the future Operations Emissions & energy reduction Renewable energy Water usage Technology & Innovation Energy efficiency & electrification Low-emission products & systems Digital solutions & services Productlife cycle & circularity Supply Chain Responsible sourcing Supplier sustainability Employees Engagement Inclusion Ethics& integrity Safety Development Communities Education Access to cooling, food & wellness Workforce development Governance Board oversight Financial performance Public policy CLIMATE CHANGE URBANIZATION RESOURCE SCARCITY DEMOGRAPHICS DIGITAL CONNECTEDNESS INDOOR AIR QUALITY (IAQ) 17 Zero Hunger2 Quality Education4 Gender Equality5 6 Clean Water & Sanitation Affordable & Clean Energy7 Decent Work & Economic Growth Industry, Innovation & Infrastructure 8 9 Sustainable Cities & Communities 11 Responsible Consumption & Production 12 Climate Action13 We believein ambitiousgoals foundedin science. TraneTechnologiesis 1st in industryto be 2050 Net-ZeroApproved by the Science-BasedTargetsInitiative(SBTi) SUSTAINABILITY COMMITMENTS Our 2030Commitments
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A LEGACY OF ACTION Delivering performance through sustainability Founded Center for Energy Efficiency & Sustainability (CEES) Launched internal Diversity & Inclusion Council Launched the first Sustainability Addendum to our Annual Report First annual submission to DJSI Formed internal and external Sustainability Advisory Councils Conducted first Futures Exercises, Climate Scenario and Materiality Assessment Announced first set of major goals: 2020 Climate Commitments First in industry to have SBTi validated and approved science-based targets for 50% reduction in refrigerant global warming potential and 35% reduction in operational emissions by 2020 First in industry to join Paradigm for Parity and CEO Action for Diversity & Inclusion Achieved 2020 Climate Commitments two years ahead of schedule Launched our first formal ESG Report Installed first on-site solar generation project Announced 2030 Sustainability Commitments Invested in first wind power agreement Received World Environment Center Gold Medal Joined RE100, EP100 and 3% Club Received inaugural Terra Carta Seal for sustainability leadership SBTi approved 2050 Net-Zero target Launched internal 25x25 initiative to accelerate reduction of Scope 1 and 2 carbon emissions by an additional 25% from 2021 by the end of 2025 First in industry to join SteelZero; low- carbon steel represented 20%+ of annual steel purchases Published 2050 Net- Zero Roadmap Joined EV100 Became a signatory of United Nations Global Compact Added 2030 Sustainability Commitment to reduce embodied carbon by 40% Met and exceeded 25x25 initiative goal Global time of service volunteer event 2018 2016 - 2017 20142012 - 201320112010 2019 2020 SBTi validated achievement of 2020 Climate Commitments and validated 2030 Sustainability Commitments, covering product-use and operational emissions 2021 2022 2023 2024 We Mean Business partner (Paris Accord) Launched EcoWise product portfolio 2015 Years in purple indicate activities since becoming Trane Technologies 18
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WidelyRecognizedfor SustainabilityLeadership and Uplifting Culture Highly Regarded Sustainability Performance People and Citizenship Fortune World’s Most Admired Companies 13 consecutive years Fortune Best Workplaces in Manufacturing & Production Ranked 5th overall in 2024, our highest ever ranking TIME World’s Best Companies 2nd consecutive year, ranking climbed 369 spots from 2023 TIME World’s Most Sustainable Companies Second consecutive year, Ranked 20th overall 14 Consecutive Years on the North America Index 4th consecutive year on the World Index 2025 JUST 100: Ranked 6th overall; Industry Leader for 3rd consecutive year Named to CDP Climate A List Third consecutive year 94th Percentile 74/100; Silver Medal 2024 All-America Executive Team Rated Top 3 in sector for Best CEO, CFO, Company Board, IR Program, IR Team and ESG From Fortune: ©2025 Fortune Media IP Limited. All rights reserved. Used under license. Fortune and Fortune Media IP Limitedare not affiliated with, and do not endorse the productsor services of Trane Technologies. 19 SUSTAINABILITY LEADER Ethisphere 2025 World’s Most Ethical Companies® Second consecutive year “World’s Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC. The Civic 50 Highlights companies that improve the quality of life in their communities Corporate Knights’ 2025 Global 100 Second consecutive year, ranked 26th overall
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Q2 YoY Organic Revenuesup 7%; Bookings up 4% 20 Organic* Bookings 2022 2023 2024 2025 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Americas +6% +10% +11% flat +7% -4% -8% +7% +13% +2% +20% +23% +8% +1% +13% +5% +7% EMEA flat -12% -10% +2% -5% +10% +14% +12% +10% +11% +7% +10% +9% +9% +9% +13% -2% Asia Pacific +14% +16% +3% -6% +7% +13% +6% +12% +2% +8% +6% flat -31% +8% -5% -13% -17% Total +6% +7% +8% flat +5% -1% -5% +8% +12% +3% +17% +19% +5% +2% +11% +4% +4% Organic* Revenue 2022 2023 2024 2025 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Americas +13% +13% +19% +14% +15% +8% +9% +11% +7% +9% +15% +16% +15% +11% +14% +13% +9% EMEA +6% +11% +18% +23% +15% +15% +8% +3% +8% +8% +4% +5% +8% +7% +6% +6% +3% Asia Pacific +14% -12% +28% +19% +12% +8% +41% -1% flat +10% +16% -3% -21% +1% -3% -3% -8% Total +12% +11% +19% +16% +15% +9% +11% +9% +6% +9% +14% +13% +11% +10% +12% +11% +7% *Non-GAAP financial measures.See the company’s Q2 2025 earnings release for additional details and reconciliations.
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Q2 Non-GAAP Measures Definitions 21 Adjusted operating income in 2025 is defined as GAAP operating income adjusted for restructuring costs, and merger and acquisition transaction costs. Adjusted operating income in 2024 is defined as GAAP operating income adjusted for restructuring costs, a non -cash adjustment for contingent consideration, merger and acquisition transaction costs, and legacy legal liability. Please refer to the reconciliation of GAAP to non -GAAP measures on tables 2, 3 and 4 of the news release. Adjusted operating margin is defined as the ratio of adjusted operating income divided by net revenues. Adjusted earnings from continuing operations attributable to Trane Technologies plc (Adjusted net earnings) in 2025 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, and merger and acquisition transaction costs. Adjusted net earnings in 2024 is defined as GAAP earnings from continuing operations attributable to Trane Technologie s plc adjusted for net of tax impacts of restructuring costs, a non-cash adjustment for contingent consideration, merger and acquisition transaction costs, an d legacy legal liability. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release. Adjusted continuing EPS in 2025 is defined as GAAP continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, and merger and acquisition transaction costs. Adjusted continuing EPS in 2024 is defined as GAAP continu ing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, a non -cash adjustment for contingent consideration, merger and acquisition transaction costs, and legacy legal liability. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release. Adjusted EBITDA in 2025 is defined as adjusted operating income adjusted to exclude depreciation and amortization expense and include other i ncome / (expense), net. Adjusted EBITDA in 2024 is defined as adjusted operating income adjusted to exclude depreciation and amortiza tion expense and include other income / (expense), net. Other income / (expense), net mainly comprises interest income, foreign currency exchange gain s and losses and certain components pension and postretirement benefit costs. Please refer to the reconciliation of GAAP to non -GAAP measures on tables 4 and 5 of the news release. Adjusted EBITDA margin is defined as the ratio of adjusted EBITDA divided by net revenues.
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Q2 Non-GAAP Measures Definitions 22 Adjusted effective tax rate for 2025 is defined as the ratio of income tax expense adjusted for the net tax effect of adjustments for restructuring costs and merger and acquisition transaction costs divided by adjusted net earnings. Adjusted effective tax rate for 2024 is defined as the ratio of income tax expense adjusted for the net tax effect of adjustments for restructuring costs, merger and acquisition transaction costs, and legacy legal liability divided by adjusted net earnings. This measure allows for a direct comparison of the effective tax rate between periods. Free cash flow in 2025 is defined as net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs, legacy legal liability, and merger and acquisition transaction costs. Free cash flow in 2024 is defined as net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs, legacy legal liabil ity, and merger and acquisition transaction costs. Please refer to the free cash flow reconciliation on table 8 of the news release. • Free cash flow conversion is defined as the ratio of free cash flow divided by adjusted net earnings Operating leverage is defined as the ratio of the change in adjusted operating income for the current period (e.g. Q2 2025) less the prior perio d (e.g. Q2 2024), divided by the change in net revenues for the current period less the prior period. Organic revenue is defined as GAAP net revenues adjusted for the impact of currency and acquisitions. Organic bookings is defined as reported orders in the current period adjusted for the impact of currency and acquisitions. Working capital measures a firm’s operating liquidity position and its overall effectiveness in managing the enterprise's current accounts. • Working capital is calculated by adding net accounts and notes receivables and inventories and subtracting total current liabilities that exc lude short- term debt, dividend payable and income tax payables. • Working capital as a percent of revenue is calculated by dividing the working capital balance (e.g. as of June 30) by the annualized revenue for the period (e.g. reported revenues for the three months ended June 30 multiplied by 4 to annualize for a full year).