On December 16, 2025, the Company entered into a stock purchase agreement to sell its Riello business to Ariston Group with expected gross proceeds of approximately $430 million. Riello, predominantly reported in the Company's Climate Solutions Europe segment, is a leading international manufacturer that designs, produces, and integrates a comprehensive portfolio of thermal solutions—including burners, boilers, heat pumps, cooling systems, and aftermarket services—for residential, commercial, and industrial applications, with a strong focus on energy efficiency, innovation, and a global distribution network. As a result, the assets and liabilities of Riello are presented as held for sale in the accompanying Unaudited Condensed Consolidated Balance Sheet as of June 30, 2026 and December 31, 2025, and recorded at the lower of their carrying value or fair value less estimated cost to sell. The Company recognized an impairment charge of $46 million recorded in Other income (expense), net on the accompanying Unaudited Condensed Consolidated Statement of Operations during the three months ended June 30, 2026. The sale of Riello was completed on July 1, 2026.

On May 18, 2026, the Company entered into an agreement to sell its Noresco business (“Noresco”) to Opterra Energy Services, LLC, a subsidiary of LS Power Development, LLC. Noresco is historically reported in the Company's Climate Solutions America segment. As a result, the assets and liabilities of Noresco are presented as held for sale in the accompanying Unaudited Condensed Consolidated Balance Sheet as of June 30, 2026. This transaction is expected to close in the third quarter of 2026.



(In millions)	June 30, 2026		December 31, 2025
Cash and cash equivalents	$	95	$	25
Accounts receivable, net	105		103
Inventories, net	114		98
Other current assets	95		2
Fixed assets, net	76		77
Intangible assets, net	22		18
Goodwill	188		175
Operating lease right-of-use assets	11		7
Other assets	155		87
Impairment on held for sale assets	(46)		—
Total assets held for sale	$	815	$	592

Accounts payable	$	148	$	91
Accrued liabilities	88		48

Short-term borrowings and current portion of long-term debt	52		—
Long-term debt	91		—
Future pension and post-retirement obligations	7		7
Future income tax obligations	11		9
Operating lease liabilities	6		4
Other long-term liabilities	11		11
Total liabilities held for sale	$	414	$	170