Carrier Global

“In addition, our financial performance may be influenced by the production and utilization of transport equipment, including truck production cycles in North America and Europe. Significant changes in these factors have in the past and may in the future have materially adverse impacts on our results of operations or financial condition.”

Annual report 2025A · The company itself

“Climate Solutions Transportation For the year ended December 31, 2025, Net sales were $2.9 billion, a 17% decrease compared with the same period of 2024. The components of the year-over-year change were as follows: Net sales Organic / Operational 4 % Foreign currency translation 1 % Acquisitions and divestitures, net (22) % Total % change (17) % The organic increase in Net sales of 4% was primarily driven by volume growth within certain end-markets compared with the prior year.”

Annual report 2025A · The company itself

“Products and services are sold directly to transportation companies and indirectly through joint ventures, independent sales representatives, distributors, wholesalers and dealers.”

Annual report 2025A · The company itself

“The Company's portfolio includes industry-leading brands such as Carrier, Viessmann, Toshiba, Automated Logic and Carrier Transicold, among others, that offer innovative heating, cooling and cold chain solutions to enhance the lives we live and the world we share.”

Annual report 2025A · The company itself

“The Climate Solutions Transportation segment provides climate and energy solutions for customers globally. Our products, services, systems and monitoring solutions offer reliable transport and preservation of food, medicine and other perishable cargo. Products include trucks, trailers, shipping containers and intermodal applications to meet customer needs for both ground transport and ocean freight, while services include maintenance, repair, and monitoring.”

Annual report 2025A · The company itself

“•Climate Solutions Transportation includes global transport refrigeration and monitoring products, services and digital solutions for trucks, trailers, shipping containers, intermodal and rail.”

Annual report 2025A · The company itself

“We believe our business segments are well positioned to benefit from favorable secular trends, including the mega-trends of urbanization, population growth and demographic shifts, food security and safety, electrification, increasing demand for climate control and accelerated digitalization.”

Annual report 2025A · The company itself

“Our future success depends on designing, developing, producing, selling and supporting innovative products that incorporate advanced technologies. The regulations and policies applicable to our products, as well as our customers’ product and service needs, change from time to time. Moreover, regulatory and policy changes, inclusive of those aimed at addressing energy infrastructure and incentives and climate events and its impacts, may render our products and technologies non-compliant or noncompetitive and may subject us to operational, compliance, business and reputational risks.”

Annual report 2025A · The company itself

“Our business strategy is built around the following pillars to drive long-term growth and deliver shareholder value: Differentiated Products, Channels and Brands Our strategy involves driving organic growth by further enhancing our proven track record of innovation, which is focused on designing smarter, more connected and more efficient sustainable systems and solutions. Our strategy also relies on our iconic, industry-leading brands and on strengthening our long-term relationships with channel partners and customers by offering solutions that anticipate customer needs with a focus on technologies related to energy efficiency, emissions, air quality, electrification, refrigerants with lower global warming potential and noise reduction.”

Annual report 2025A · The company itself

“Table of Contents We have set sustainability goals to be achieved by 2030, which include investing over $4 billion to develop intelligent climate and energy solutions that reduce environmental impacts, avoiding more than 1 gigaton of customer greenhouse gas emissions, achieving carbon neutral operations and reducing energy intensity by 10% across our operations. Although we intend to meet these goals, we have expended and may be required to continue to expend significant resources to do so, which has increased and could continue to increase our operational costs.”

Annual report 2025A · The company itself

“In addition, to reach our goal to achieve carbon neutrality in our operations by 2030, we expect to incur capital expenditures for climate-related projects including upgrading our facilities, equipment and controls to optimize energy efficiency, transition our energy consumption from a dependency on fossil fuels to renewable energy and expanding the electrification of our fleet vehicles.”

Annual report 2025A · The company itself

“Our business and financial performance is also adversely affected by decreases in the general level of economic activity, such as decreases in business and consumer spending and construction (both residential and commercial as well as remodeling).”

Annual report 2025A · The company itself

“Results in China decreased (down 12%) as residential end-markets experienced economic challenges impacting both demand and price.”

Annual report 2025A · The company itself

“Segment Review We have four operating segments: •Climate Solutions Americas provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in North and South America while enhancing building performance, health, energy efficiency and sustainability. •Climate Solutions Europe provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in Europe while enhancing building performance, health, energy efficiency and sustainability. •Climate Solutions Asia Pacific, Middle East & Africa provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in Asia Pacific, the Middle East and Africa while enhancing building performance, health, energy efficiency and sustainability.”

Annual report 2025A · The company itself

“Our future success depends on designing, developing, producing, selling and supporting innovative products that incorporate advanced technologies. The regulations and policies applicable to our products, as well as our customers’ product and service needs, change from time to time. Moreover, regulatory and policy changes, inclusive of those aimed at addressing energy infrastructure and incentives and climate events and its impacts, may render our products and technologies non-compliant or noncompetitive and may subject us to operational, compliance, business and reputational risks.”

Annual report 2025A · The company itself

“Carrier Energy, our business offering new energy management solutions, is developing intelligent climate and energy solutions to meet future energy needs by optimizing home energy management, providing grid flexibility and unlocking energy capacity to support economic growth. This new business model is also expected to enhance the digital connection between the end-customers and Carrier, providing us with opportunities to offer services and aftermarket parts and components over the life of the product.”

Annual report 2025A · The company itself

“Beginning with product design, our product offerings are moving towards digitally-enabled solutions that connect us to our customers throughout the product’s full lifecycle and help us grow our aftermarket sales. We plan to meet our customer’s needs by offering a wider-range of aftermarket products and services including replacement components, preventative and on-demand maintenance and repair, digital monitoring and modifications/upgrades.”

Annual report 2025A · The company itself

“Table of Contents We continue to actively manage and strengthen our business portfolio to meet the current and future needs of our customers. This is accomplished through research and development activities with a focus on new product development and new technology innovation as well as sustaining activities with a focus on improving existing products and reducing production costs. We also pursue potential acquisitions to complement existing products and services to enhance our product portfolio.”

Annual report 2025A · The company itself

“Carrier Energy, our business offering new energy management solutions, is developing intelligent climate and energy solutions to meet future energy needs by optimizing home energy management, providing grid flexibility and unlocking energy capacity to support economic growth. This new business model is also expected to enhance the digital connection between the end-customers and Carrier, providing us with opportunities to offer services and aftermarket parts and components over the life of the product.”

Annual report 2025A · The company itself

“Our business strategy is built around the following pillars to drive long-term growth and deliver shareholder value: Differentiated Products, Channels and Brands Our strategy involves driving organic growth by further enhancing our proven track record of innovation, which is focused on designing smarter, more connected and more efficient sustainable systems and solutions. Our strategy also relies on our iconic, industry-leading brands and on strengthening our long-term relationships with channel partners and customers by offering solutions that anticipate customer needs with a focus on technologies related to energy efficiency, emissions, air quality, electrification, refrigerants with lower global warming potential and noise reduction.”

Annual report 2025A · The company itself

“Table of Contents We have set sustainability goals to be achieved by 2030, which include investing over $4 billion to develop intelligent climate and energy solutions that reduce environmental impacts, avoiding more than 1 gigaton of customer greenhouse gas emissions, achieving carbon neutral operations and reducing energy intensity by 10% across our operations. Although we intend to meet these goals, we have expended and may be required to continue to expend significant resources to do so, which has increased and could continue to increase our operational costs.”

Annual report 2025A · The company itself

“In addition, to reach our goal to achieve carbon neutrality in our operations by 2030, we expect to incur capital expenditures for climate-related projects including upgrading our facilities, equipment and controls to optimize energy efficiency, transition our energy consumption from a dependency on fossil fuels to renewable energy and expanding the electrification of our fleet vehicles.”

Annual report 2025A · The company itself

“These results were partially offset by growth in our commercial business (up 23%) primarily driven by ongoing customer demand and improved price.”

Annual report 2025A · The company itself

“Segment Review We have four operating segments: •Climate Solutions Americas provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in North and South America while enhancing building performance, health, energy efficiency and sustainability. •Climate Solutions Europe provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in Europe while enhancing building performance, health, energy efficiency and sustainability. •Climate Solutions Asia Pacific, Middle East & Africa provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in Asia Pacific, the Middle East and Africa while enhancing building performance, health, energy efficiency and sustainability.”

Annual report 2025A · The company itself

“The Company's portfolio includes industry-leading brands such as Carrier, Viessmann, Toshiba, Automated Logic and Carrier Transicold, among others, that offer innovative heating, cooling and cold chain solutions to enhance the lives we live and the world we share. The Company also provides a broad array of related building services, including audit, design, installation, system integration, repair, maintenance and monitoring.”

Annual report 2025A · The company itself

“Lower volume in our residential business (down 9%) was primarily due to reduced end-market demand and distributor destocking.”

Annual report 2025A · The company itself

“Products and controls, services and systems are sold directly to building contractors and owners and indirectly through joint ventures, independent sales representatives, distributors, wholesalers, dealers and retail outlets.”

Annual report 2025A · The company itself

“On October 1, 2024, we divested CCR, a global supplier of turnkey solutions for commercial refrigeration systems and services. The results of CCR are excluded from our Consolidated Financial Statements subsequent to the divestiture date.”

Annual report 2025A · The company itself

“The Company's portfolio includes industry-leading brands such as Carrier, Viessmann, Toshiba, Automated Logic and Carrier Transicold, among others, that offer innovative heating, cooling and cold chain solutions to enhance the lives we live and the world we share.”

Annual report 2025A · The company itself

“The Climate Solutions Transportation segment provides climate and energy solutions for customers globally. Our products, services, systems and monitoring solutions offer reliable transport and preservation of food, medicine and other perishable cargo. Products include trucks, trailers, shipping containers and intermodal applications to meet customer needs for both ground transport and ocean freight, while services include maintenance, repair, and monitoring.”

Annual report 2025A · The company itself

“Our portfolio includes environmentally friendly refrigerants, high temperature heat pumps for use in industrial and commercial applications, natural refrigerant heat pumps for residential buildings and a connected ecosystem for homes including solar photovoltaic, batteries and a differentiated digital platform, all supported by extensive service and aftermarket offerings. In addition, to address the cooling demands from the growth in data centers and the increasing intensity of performance requirements, we developed Carrier QuantumLeapTM, an integrated solution that combines traditional and liquid cooling with advanced building and server management systems. This approach delivers an efficient, differentiated offering to enhance data center performance for our customers.”

Annual report 2025A · The company itself

“We serve a wide range of customers, including in the residential, commercial, education, healthcare, technology, retail, hospitality, data center, and infrastructure markets, among others.”

Annual report 2025A · The company itself

“Beginning with product design, our product offerings are moving towards digitally-enabled solutions that connect us to our customers throughout the product’s full lifecycle and help us grow our aftermarket sales. We plan to meet our customer’s needs by offering a wider-range of aftermarket products and services including replacement components, preventative and on-demand maintenance and repair, digital monitoring and modifications/upgrades.”

Annual report 2025A · The company itself

“Table of Contents We continue to actively manage and strengthen our business portfolio to meet the current and future needs of our customers. This is accomplished through research and development activities with a focus on new product development and new technology innovation as well as sustaining activities with a focus on improving existing products and reducing production costs. We also pursue potential acquisitions to complement existing products and services to enhance our product portfolio.”

Annual report 2025A · The company itself

“Segment Review We have four operating segments: •Climate Solutions Americas provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in North and South America while enhancing building performance, health, energy efficiency and sustainability. •Climate Solutions Europe provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in Europe while enhancing building performance, health, energy efficiency and sustainability. •Climate Solutions Asia Pacific, Middle East & Africa provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in Asia Pacific, the Middle East and Africa while enhancing building performance, health, energy efficiency and sustainability.”

Annual report 2025A · The company itself

“The Company's portfolio includes industry-leading brands such as Carrier, Viessmann, Toshiba, Automated Logic and Carrier Transicold, among others, that offer innovative heating, cooling and cold chain solutions to enhance the lives we live and the world we share. The Company also provides a broad array of related building services, including audit, design, installation, system integration, repair, maintenance and monitoring.”

Annual report 2025A · The company itself

“Segment Review We have four operating segments: •Climate Solutions Americas provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in North and South America while enhancing building performance, health, energy efficiency and sustainability. •Climate Solutions Europe provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in Europe while enhancing building performance, health, energy efficiency and sustainability. •Climate Solutions Asia Pacific, Middle East & Africa provides products, controls, services and solutions to meet the heating, cooling and ventilation needs of residential and commercial customers in Asia Pacific, the Middle East and Africa while enhancing building performance, health, energy efficiency and sustainability.”

Annual report 2025A · The company itself

“We also pursue potential acquisitions to complement existing products and services to enhance our product portfolio.”

Annual report 2025A · The company itself

“In addition, our financial performance may be influenced by the production and utilization of transport equipment, including truck production cycles in North America and Europe.”

Annual report 2025A · The company itself

“Our business and financial performance is also adversely affected by decreases in the general level of economic activity, such as decreases in business and consumer spending and construction (both residential and commercial as well as remodeling).”

Annual report 2025A · The company itself

“In addition, lower volume in our light commercial business (down 20%) further impacted segment results.”

Annual report 2025A · The company itself

“Results in our residential and light commercial business decreased (down 5%) due to lower volumes across the region as economic conditions, inflationary cost pressures and regulatory uncertainty impacted end-market demand.”

Annual report 2025A · The company itself

“These results were partially offset by our global truck and trailer business (down 3%) as lower end-market demand in Asia and Europe more than offset modest growth in North America.”

Annual report 2025A · The company itself

“Seasonality Demand for certain of our products and services is seasonal and can be impacted by weather conditions. For instance, sales and services of our HVAC products to residential customers have historically been higher in the second and third quarters of the calendar year, which represent the peak seasons for air conditioning-related sales in North America markets.”

Annual report 2025A · The company itself

“The effects of climate events, including increased frequency and intensity of extreme weather conditions and water scarcity, create financial risks to our business. The potential impacts of climate events on our operations are highly uncertain and depend upon the unique geographic and environmental factors present; for example rising sea levels at certain of our facilities, changing storm patterns and intensities and changing temperature levels. The effects of climate events could disrupt our operations by impacting the availability and cost of materials and by increasing insurance and other operating costs.”

Annual report 2025A · The company itself

“Demand for our HVAC products and services is influenced by weather conditions and seasonality. Demand for our HVAC products and services, representing our largest segments by sales, is seasonal and affected by the weather. Cooler than normal summers depress sales of our replacement air conditioning products and services and warmer than normal winters have the same effect on our heating products.”

Annual report 2025A · The company itself

“Our supply chain could be impacted by climate events through extreme weather, resulting in delivery or production disruptions and increased material costs. In addition, other issues with suppliers (such as capacity constraints, quality issues, consolidations, closings or bankruptcies), price increases, raw material/component/finished good shortages, regulatory limitations, government actions, or the decreased availability of trucks and other delivery services could also have a material adverse effect on our ability to meet our commitments to customers or increase our operating costs. Periodic disruptions in our supply chains have resulted, and may continue to result, in sufficient inventory not being available in a timely manner or during the appropriate season as well as higher freight and other logistic costs, including increased carrier rates, which could have a material adverse effect on our business.”

Annual report 2025A · The company itself

“General Risks Natural disasters, epidemics or other unexpected events may disrupt our operations, adversely affect our results of operations, cash flows or financial condition and may not be fully covered by insurance. The occurrence of one or more natural disasters, power outages or other unexpected events, including hurricanes, fires, earthquakes, volcanic eruptions, tsunamis, floods and other forms of severe weather, health epidemics, pandemics or other contagious outbreaks, conflicts, wars or terrorist acts, in the U.S. or in other countries in which we or our suppliers or customers operate have in the past and could in the future adversely affect our operations and financial performance. Natural disasters, power outages or other unexpected events could damage or close one or more of our facilities or disrupt our operations temporarily or long-term, such as by causing business interruptions or by affecting the availability and/or cost of materials needed for manufacturing.”

Annual report 2025A · The company itself

“There is a general consensus that greenhouse gas emissions are linked to climate events, and that these emissions must be reduced dramatically to avert its worst effects. Increased public awareness and concern about climate events may continue to: (1) generate more international, regional and/or national requirements to curtail the use of high global warming potential refrigerants (e.g., the Kigali Amendment to the Montreal Protocol and the American Innovation and Manufacturing ("AIM") Act of 2020, which are essential to many of our products); (2) increase building energy and cold chain efficiency; (3) cause a shift away from the use of fossil fuels as an energy source, including natural gas prohibitions; and (4) lead to the adoption of additional rules and regulations surrounding public disclosures relating to greenhouse gas emissions, including those adopted in California and the European Union as well as in other jurisdictions, which may vary by jurisdiction.”

Annual report 2025A · The company itself

“In some instances, these requirements may render our existing technology, particularly some of our HVAC and refrigeration products, non-compliant or obsolete and we may be required to make increased capital expenditures to meet new regulations and standards, changing interpretations and stricter enforcement of current laws and regulations, or divergent requirements across jurisdictions in which we operate.”

Annual report 2025A · The company itself

“At the same time, U.S. energy and climate policy may not align with the above trends. Inconsistent international, regional and/or national requirements associated with climate regulations, including the withdrawal by the U.S. from the Paris Climate Agreement, also create economic and regulatory uncertainty. There is also regulatory and budgetary uncertainty associated with government incentives, which, if discontinued or materially reduced, could adversely impact the demand for energy-efficient buildings and homes and could increase costs of compliance.”

Annual report 2025A · The company itself

“Global chemical use restrictions related to human health and the environment as well as climate event directives may require additional investments in product designs, resulting in increased manufacturing, production and sourcing costs as well as updates to product safety assessments. These restrictions may also increase our legal obligations regarding remediation of our current and legacy operational sites.”

Annual report 2025A · The company itself

“As a result, we have set goals to invest over $4 billion by 2030 to develop intelligent climate and energy solutions that reduce environmental impacts. In addition, to reach our goal to achieve carbon neutrality in our operations by 2030, we expect to incur capital expenditures for climate-related projects including upgrading our facilities, equipment and controls to optimize energy efficiency, transition our energy consumption from a dependency on fossil fuels to renewable energy and expanding the electrification of our fleet vehicles.”

Annual report 2025A · The company itself

“Moreover, government regulations and policies regarding international trade, such as import quotas, punitive taxes or tariffs or similar trade barriers, including counter-tariffs and other retaliatory trade policies, whether imposed by individual governments or regional trade blocs, can affect demand for our products and services, impact the competitive position of our products or services or encumber our ability to manufacture or sell or procure products in certain countries. The implementation of more restrictive trade policies, including tariffs, by the U.S. or by other countries, such as China and Mexico, where we sell or produce our products and services or procure materials, or unpredictability or rapid shifts in trade policies, including as a result of trade conflict between the U.S. and other countries, have in the past negatively impacted, and could in the future negatively impact, our business, results of operations and financial condition.”

Annual report 2025A · The company itself

“For example, the availability and prices of raw materials and supplies may be impacted as a result of, among other things, the imposition of tariffs, duties and other potential changes in trade policies.”

Annual report 2025A · The company itself

“Our worldwide operations are affected by global and regional industrial, economic and political factors, trade policies and trends. They are also affected by changes in the general level of economic activity, such as changes in business and consumer spending, construction and shipping activity as well as short-term economic factors such as currency fluctuations, commodity price volatility and supply disruptions.”

Annual report 2025A · The company itself

“Based on our updated analysis, we fully mitigated the impact of tariffs during 2025 through a combination of supply-chain adjustments, productivity initiatives and approximately $200 million of incremental product pricing actions.”

Annual report 2025A · The company itself

“As of December 31, 2025, we had approximately 47,000 employees worldwide, of which 34% are located in the Americas, 36% are located in Europe and 30% are located in Asia Pacific, Middle East & Africa.”

Annual report 2025A · The company itself

“Additionally, a shortage in certain work forces, such as technicians, manufacturing workers or truck drivers, due to external forces such as geopolitical strife or pandemics, may impact our business by affecting the ability to produce, install, sell and deliver our products.”

Annual report 2025A · The company itself

“These benefits were partially offset by higher compensation and other employee-related costs.”

Annual report 2025A · The company itself

“Raw Materials and Supplies We rely on suppliers and commodity markets to secure components and raw materials such as copper, aluminum and steel.”

Annual report 2025A · The company itself

“Our reliance on suppliers and commodity markets to secure components (such as motors and valves), finished goods (including products purchased directly from suppliers for resale), and raw materials (such as copper, aluminum and steel), as well as on service providers to deliver our products, exposes us to volatility in the prices and availability of these materials, products, and services.”

Annual report 2025A · The company itself

“There is a general consensus that greenhouse gas emissions are linked to climate events, and that these emissions must be reduced dramatically to avert its worst effects. Increased public awareness and concern about climate events may continue to: (1) generate more international, regional and/or national requirements to curtail the use of high global warming potential refrigerants (e.g., the Kigali Amendment to the Montreal Protocol and the American Innovation and Manufacturing ("AIM") Act of 2020, which are essential to many of our products); (2) increase building energy and cold chain efficiency; (3) cause a shift away from the use of fossil fuels as an energy source, including natural gas prohibitions; and (4) lead to the adoption of additional rules and regulations surrounding public disclosures relating to greenhouse gas emissions, including those adopted in California and the European Union as well as in other jurisdictions, which may vary by jurisdiction.”

Annual report 2025A · The company itself

“As a result, we have set goals to invest over $4 billion by 2030 to develop intelligent climate and energy solutions that reduce environmental impacts. In addition, to reach our goal to achieve carbon neutrality in our operations by 2030, we expect to incur capital expenditures for climate-related projects including upgrading our facilities, equipment and controls to optimize energy efficiency, transition our energy consumption from a dependency on fossil fuels to renewable energy and expanding the electrification of our fleet vehicles.”

Annual report 2025A · The company itself

“Raw Materials and Supplies We rely on suppliers and commodity markets to secure components and raw materials such as copper, aluminum and steel.”

Annual report 2025A · The company itself

“Our reliance on suppliers and commodity markets to secure components (such as motors and valves), finished goods (including products purchased directly from suppliers for resale), and raw materials (such as copper, aluminum and steel), as well as on service providers to deliver our products, exposes us to volatility in the prices and availability of these materials, products, and services.”

Annual report 2025A · The company itself

“Our business has been and may again in the future be impacted by disruptions to our or third-party providers’ Technology infrastructure, which have resulted and could in the future result from (among other causes) cyber-attacks, infrastructure failures or compromises to our physical security. Cyber-based risks are evolving and include attacks: (i) on our Technology infrastructure; (ii) targeting the security, integrity and/or availability of hardware and software; (iii) exploiting weaknesses or vulnerabilities in our products, or capturing information installed, stored or transmitted in our products (including after the purchase of those products and when they are installed into, or into environments using, third-party products); and (iv) on facilities or similar infrastructure.”

Annual report 2025A · The company itself

“These risks are heightened by the increasingly connected nature of our products and services as we continue to focus on providing digitally-enabled lifecycle solutions to our customers, including due to the use of third-party products to connect these products and services to the internet, which may be subject to additional vulnerabilities beyond our control.”

Annual report 2025A · The company itself

“Our operations and those of our suppliers are subject to disruption for a variety of reasons, including epidemics, pandemics, supplier plant shutdowns or slowdowns, transportation delays, work stoppages, utility outages, labor relations, changes in laws or regulations, governmental regulatory and enforcement actions, intellectual property claims against suppliers, financial issues such as a supplier bankruptcy, Technology failures and hazards such as fire, earthquakes, flooding or other natural disasters.”

Annual report 2025A · The company itself

“General Risks Natural disasters, epidemics or other unexpected events may disrupt our operations, adversely affect our results of operations, cash flows or financial condition and may not be fully covered by insurance. The occurrence of one or more natural disasters, power outages or other unexpected events, including hurricanes, fires, earthquakes, volcanic eruptions, tsunamis, floods and other forms of severe weather, health epidemics, pandemics or other contagious outbreaks, conflicts, wars or terrorist acts, in the U.S. or in other countries in which we or our suppliers or customers operate have in the past and could in the future adversely affect our operations and financial performance. Natural disasters, power outages or other unexpected events could damage or close one or more of our facilities or disrupt our operations temporarily or long-term, such as by causing business interruptions or by affecting the availability and/or cost of materials needed for manufacturing.”

Annual report 2025A · The company itself

“Raw Materials and Supplies We rely on suppliers and commodity markets to secure components and raw materials such as copper, aluminum and steel.”

Annual report 2025A · The company itself

“Our reliance on suppliers and commodity markets to secure components (such as motors and valves), finished goods (including products purchased directly from suppliers for resale), and raw materials (such as copper, aluminum and steel), as well as on service providers to deliver our products, exposes us to volatility in the prices and availability of these materials, products, and services.”

Annual report 2025A · The company itself

“As a result, changes in local and regional economic conditions, including fluctuating exchange rates, may adversely affect demand for our products and the profits generated by our non-U.S. operations because a significant portion of our sales and expenses are denominated in currencies other than U.S. dollars.”

Annual report 2025A · The company itself

“We have operations throughout the world that manufacture and sell products in various international markets. As a result, we are exposed to exchange rate movements in relation to our reporting currency, the U.S. dollar.”

Annual report 2025A · The company itself

“We believe our business segments are well positioned to benefit from favorable secular trends, including the mega-trends of urbanization, population growth and demographic shifts, food security and safety, electrification, increasing demand for climate control and accelerated digitalization.”

Annual report 2025A · The company itself

“We believe our business segments are well positioned to benefit from favorable secular trends, including the mega-trends of urbanization, population growth and demographic shifts, food security and safety, electrification, increasing demand for climate control and accelerated digitalization.”

Annual report 2025A · The company itself

“Moreover, government regulations and policies regarding international trade, such as import quotas, punitive taxes or tariffs or similar trade barriers, including counter-tariffs and other retaliatory trade policies, whether imposed by individual governments or regional trade blocs, can affect demand for our products and services, impact the competitive position of our products or services or encumber our ability to manufacture or sell or procure products in certain countries. The implementation of more restrictive trade policies, including tariffs, by the U.S. or by other countries, such as China and Mexico, where we sell or produce our products and services or procure materials, or unpredictability or rapid shifts in trade policies, including as a result of trade conflict between the U.S. and other countries, have in the past negatively impacted, and could in the future negatively impact, our business, results of operations and financial condition.”

Annual report 2025A · The company itself

“The efficient operation of our business requires continued and substantial investments in information technology ("IT") and operational technology (“OT”, together, “Technology”) infrastructure systems. The failure to design, develop, maintain and implement Technology infrastructure systems in an effective and timely manner or to maintain these systems could divert management’s attention and resources. Our information systems may also become obsolete because of inadequate investments, requiring an unplanned transition to a new platform that could be time consuming, costly, and damaging to our competitive position and could require additional management attention.”

Annual report 2025A · The company itself

“As a result, changes in local and regional economic conditions, including fluctuating exchange rates, may adversely affect demand for our products and the profits generated by our non-U.S. operations because a significant portion of our sales and expenses are denominated in currencies other than U.S. dollars.”

Annual report 2025A · The company itself

“Our supply chain could be impacted by climate events through extreme weather, resulting in delivery or production disruptions and increased material costs. In addition, other issues with suppliers (such as capacity constraints, quality issues, consolidations, closings or bankruptcies), price increases, raw material/component/finished good shortages, regulatory limitations, government actions, or the decreased availability of trucks and other delivery services could also have a material adverse effect on our ability to meet our commitments to customers or increase our operating costs. Periodic disruptions in our supply chains have resulted, and may continue to result, in sufficient inventory not being available in a timely manner or during the appropriate season as well as higher freight and other logistic costs, including increased carrier rates, which could have a material adverse effect on our business.”

Annual report 2025A · The company itself

“Table of Contents We use a variety of raw materials, supplier-provided parts, finished goods, and third-party service providers in our business. The ability of suppliers to deliver materials, parts, components, finished goods, and manufacturing equipment to our manufacturing facilities, and our ability to manufacture and distribute without disruption, could affect our business performance. Significant shortages, supplier capacity constraints, supplier disputes, supplier quality issues, or production disruptions, price increases, duties, tariffs or other government actions could increase our operating costs, disrupt our operations and adversely impact the competitive positions of our products.”

Annual report 2025A · The company itself

“We believe our business segments are well positioned to benefit from favorable secular trends, including the mega-trends of urbanization, population growth and demographic shifts, food security and safety, electrification, increasing demand for climate control and accelerated digitalization.”

Annual report 2025A · The company itself

“The performance of the financial markets and interest rates can impact our defined benefit pension plan expenses and funding obligations. Significant decreases in the discount rate or investment losses on plan assets may increase our funding obligations and adversely impact our financial results.”

Annual report 2025A · The company itself

“The components of the year-over-year change were as follows: Net sales Organic / Operational (3) % Foreign currency translation 4 % Total % change 1 % The organic decrease in Net sales of 3% was driven by ongoing challenges in certain end-markets compared with the prior year. Results in our residential and light commercial business decreased (down 5%) due to lower volumes across the region as economic conditions, inflationary cost pressures and regulatory uncertainty impacted end-market demand.”

Annual report 2025A · The company itself

“Interest expense is affected by the amount of debt outstanding and the interest rates on that debt. For the year ended December 31, 2025, interest expense was $458 million, a 21% decrease compared with the same period of 2024.”

Annual report 2025A · The company itself

“In March 2022, we suspended business operations in Russia by ceasing to pursue new business opportunities while continuing to fulfill existing contracts for equipment, service and parts, where possible, in a manner that fully complies with applicable sanctions and trade controls. Our sales, operations and supply chain in Russia and Ukraine are not material to Carrier. However, the military conflict between the two countries, as well as other global conflicts such as the conflict in the Middle East, and attendant geopolitical environment may continue to negatively impact the global economy and major financial markets, and may result in additional increases in commodity prices and supply-chain disruptions, including shortages of materials, higher costs for fuel and freight and increased transportation delays.”

Annual report 2025A · The company itself

“These results were partially offset by our global truck and trailer business (down 3%) as lower end-market demand in Asia and Europe more than offset modest growth in North America.”

Annual report 2025A · The company itself

“Our worldwide operations are affected by global and regional industrial, economic and political factors, trade policies and trends. They are also affected by changes in the general level of economic activity, such as changes in business and consumer spending, construction and shipping activity as well as short-term economic factors such as currency fluctuations, commodity price volatility and supply disruptions.”

Annual report 2025A · The company itself

“The components of the year-over-year change were as follows: Net sales Organic / Operational (3) % Foreign currency translation 4 % Total % change 1 % The organic decrease in Net sales of 3% was driven by ongoing challenges in certain end-markets compared with the prior year. Results in our residential and light commercial business decreased (down 5%) due to lower volumes across the region as economic conditions, inflationary cost pressures and regulatory uncertainty impacted end-market demand.”

Annual report 2025A · The company itself

“Our future success depends on designing, developing, producing, selling and supporting innovative products that incorporate advanced technologies. The regulations and policies applicable to our products, as well as our customers’ product and service needs, change from time to time. Moreover, regulatory and policy changes, inclusive of those aimed at addressing energy infrastructure and incentives and climate events and its impacts, may render our products and technologies non-compliant or noncompetitive and may subject us to operational, compliance, business and reputational risks.”

Annual report 2025A · The company itself

“In addition, our financial performance may be influenced by the production and utilization of transport equipment, including truck production cycles in North America and Europe. Significant changes in these factors have in the past and may in the future have materially adverse impacts on our results of operations or financial condition.”

Annual report 2025A · The company itself

“Our worldwide operations are affected by global and regional industrial, economic and political factors, trade policies and trends. They are also affected by changes in the general level of economic activity, such as changes in business and consumer spending, construction and shipping activity as well as short-term economic factors such as currency fluctuations, commodity price volatility and supply disruptions.”

Annual report 2025A · The company itself

“Container results increased (up 31%) due to ongoing end-market demand and improved price.”

Annual report 2025A · The company itself

“In addition, we also use semi-conductors and other electronic components in the manufacture of our products.”

Annual report 2025A · The company itself

“Our international operations, including U.S. export sales, represented approximately 52% of our net sales for 2025.”

Annual report 2025A · The company itself

“Approximately 52% of our net sales for the year ended December 31, 2025, are derived from international operations, including U.S. export sales.”

Annual report 2025A · The company itself

“We expect that sales to emerging markets will continue to account for a significant portion of our sales as developing nations around the world increase their demand for our products. In addition, as part of our globalization strategy, we have invested in certain countries, including Mexico, Brazil, China, India, Saudi Arabia and other countries in the Middle East.”

Annual report 2025A · The company itself

“Climate Solutions Asia Pacific, Middle East & Africa For the year ended December 31, 2025, Net sales were $3.3 billion, a 5% decrease compared with the same period of 2024. The components of the year-over-year change were as follows: Net sales Organic / Operational (5) % Foreign currency translation — % Total % change (5) % The organic decrease in Net sales of 5% was driven by volume reductions within certain end-markets compared with the prior year.”

Annual report 2025A · The company itself

“Climate Solutions Transportation For the year ended December 31, 2025, Net sales were $2.9 billion, a 17% decrease compared with the same period of 2024. The components of the year-over-year change were as follows: Net sales Organic / Operational 4 % Foreign currency translation 1 % Acquisitions and divestitures, net (22) % Total % change (17) % The organic increase in Net sales of 4% was primarily driven by volume growth within certain end-markets compared with the prior year.”

Annual report 2025A · The company itself

“Our international operations, including U.S. export sales, represented approximately 52% of our net sales for 2025.”

Annual report 2025A · The company itself

“Approximately 52% of our net sales for the year ended December 31, 2025, are derived from international operations, including U.S. export sales.”

Annual report 2025A · The company itself

“Year Ended December 31, 2025 Compared with Year Ended December 31, 2024 Summary performance for each of our segments is as follows: Net sales Segment operating profit Segment operating profit margin (In millions) 2025 2024 2025 2024 2025 2024 Climate Solutions Americas $ 10,470 $ 10,527 $ 2,150 $ 2,323 20.5 % 22.1 % Climate Solutions Europe Climate Solutions Transportation 2,894 3,475 452 485 15.6 % 14.0 % Total segment $ 21,747 $ 22,486 $ 3,494 $ 3,743 16.1 % 16.6 % A reconciliation of Segment operating profit to Adjusted operating profit is as follows: For the Year Ended December 31, (In millions) 2025 2024 Segment operating profit $ 3,494 $ 3,743 Corporate and other (202) (201) Adjusted operating profit $ 3,292 $ 3,542 Climate Solutions Americas For the year ended December 31, 2025, Net sales were $10.5 billion, a 1% decrease compared with the same period of 2024.”

Annual report 2025A · The company itself

“Climate Solutions Transportation For the year ended December 31, 2025, Net sales were $2.9 billion, a 17% decrease compared with the same period of 2024. The components of the year-over-year change were as follows: Net sales Organic / Operational 4 % Foreign currency translation 1 % Acquisitions and divestitures, net (22) % Total % change (17) % The organic increase in Net sales of 4% was primarily driven by volume growth within certain end-markets compared with the prior year.”

Annual report 2025A · The company itself

“Our international operations, including U.S. export sales, represented approximately 52% of our net sales for 2025.”

Annual report 2025A · The company itself

“Approximately 52% of our net sales for the year ended December 31, 2025, are derived from international operations, including U.S. export sales.”

Annual report 2025A · The company itself

“Year Ended December 31, 2025 Compared with Year Ended December 31, 2024 Summary performance for each of our segments is as follows: Net sales Segment operating profit Segment operating profit margin (In millions) 2025 2024 2025 2024 2025 2024 Climate Solutions Americas $ 10,470 $ 10,527 $ 2,150 $ 2,323 20.5 % 22.1 % Climate Solutions Europe Climate Solutions Transportation 2,894 3,475 452 485 15.6 % 14.0 % Total segment $ 21,747 $ 22,486 $ 3,494 $ 3,743 16.1 % 16.6 % A reconciliation of Segment operating profit to Adjusted operating profit is as follows: For the Year Ended December 31, (In millions) 2025 2024 Segment operating profit $ 3,494 $ 3,743 Corporate and other (202) (201) Adjusted operating profit $ 3,292 $ 3,542 Climate Solutions Americas For the year ended December 31, 2025, Net sales were $10.5 billion, a 1% decrease compared with the same period of 2024.”

Annual report 2025A · The company itself

“The components of the year-over-year change were as follows: Net sales Organic / Operational (5) % Foreign currency translation — % Total % change (5) % The organic decrease in Net sales of 5% was driven by volume reductions within certain end-markets compared with the prior year. Results in China decreased (down 12%) as residential end-markets experienced economic challenges impacting both demand and price.”

Annual report 2025A · The company itself

“Year Ended December 31, 2025 Compared with Year Ended December 31, 2024 Summary performance for each of our segments is as follows: Net sales Segment operating profit Segment operating profit margin (In millions) 2025 2024 2025 2024 2025 2024 Climate Solutions Americas $ 10,470 $ 10,527 $ 2,150 $ 2,323 20.5 % 22.1 % Climate Solutions Europe Climate Solutions Transportation 2,894 3,475 452 485 15.6 % 14.0 % Total segment $ 21,747 $ 22,486 $ 3,494 $ 3,743 16.1 % 16.6 % A reconciliation of Segment operating profit to Adjusted operating profit is as follows: For the Year Ended December 31, (In millions) 2025 2024 Segment operating profit $ 3,494 $ 3,743 Corporate and other (202) (201) Adjusted operating profit $ 3,292 $ 3,542 Climate Solutions Americas For the year ended December 31, 2025, Net sales were $10.5 billion, a 1% decrease compared with the same period of 2024.”

Annual report 2025A · The company itself

“We expect that sales to emerging markets will continue to account for a significant portion of our sales as developing nations around the world increase their demand for our products. In addition, as part of our globalization strategy, we have invested in certain countries, including Mexico, Brazil, China, India, Saudi Arabia and other countries in the Middle East.”

Annual report 2025A · The company itself