v3.26.1
Segment Information
 9 Months Ended
Jun. 30, 2026
Segment Reporting, Descriptive Information [Abstract]  
Segment Information SEGMENT INFORMATION
On April 1, 2025, the Company, as part of ongoing initiatives to drive simplification, accelerate growth, better reflect its organizational and operational structure and align with the manner in which the Company's chief operating decision maker assesses performance and makes decisions regarding the allocation of resources following portfolio simplification actions, realigned into three reportable segments (Americas, EMEA and APAC).

The Company conducts its business through three operating segments, all of which are reportable segments:

•Americas, which designs, manufactures, sells, installs and services HVAC, controls, building management, refrigeration, integrated electronic security systems, integrated fire detection and suppression systems, and digital (software) solutions for commercial, industrial, data center, institutional and governmental customers in the Americas (United States, Canada, and Latin America – Central and South America). Americas also provides energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, as well as data-driven "smart building" solutions, to the Americas marketplace.

•EMEA, which designs, manufactures, sells, installs and services HVAC, controls, building management, refrigeration, integrated electronic security systems, integrated fire detection and suppression systems, and digital (software) solutions for commercial, residential security (Global Subscriber business), industrial, data center, institutional, governmental, and marine customers and provides technical services, including data-driven “smart building” solutions, to markets in Europe, the Middle East and Africa.

•APAC, which designs, manufactures, sells, installs and services HVAC, controls, building management, refrigeration, integrated electronic security systems, integrated fire detection and suppression systems, and digital (software) solutions for commercial, industrial, data center, institutional, and governmental customers and provides technical services, including data-driven “smart building” solutions, to the Asian and Pacific marketplace.

The Chief Executive Officer, the Company’s chief operating decision maker ("CODM"), evaluates the performance of its segments and allocates resources based on two profitability measures, Segment EBIT and Segment EBITA (non-GAAP):

•Segment earnings before interest and taxes (“Segment EBIT”) represents segment income from continuing operations, excluding restructuring and impairment costs, AFFF related settlement costs and insurance recoveries, gains or losses on divestitures, and net mark-to-market gains and losses related to pension and postretirement plans and restricted asbestos investments. Segment EBIT is used as a tool to allow the CODM to evaluate the recurring profitability of the segments, including revenues and expenses that are within the operational control of the segments, and excluding the
impact of certain non-cash and non-recurring items. Segment EBIT also provides the CODM with visibility into the integration of key strategic initiatives, such as acquisitions and mergers.

•Segment earnings before interest, taxes and amortization ("Segment EBITA") (non-GAAP) represents Segment EBIT, excluding the impact of amortization of intangible assets. Segment EBITA provides the CODM with performance comparability across periods and more accurate benchmarking against peer companies that may not have similar historical acquisition activity, by holding constant the impact of significant acquisitions.

Both Segment EBIT and Segment EBITA are reviewed by the CODM and compared against the profit plan and forecast for the current and prior year. Segment EBITA is not defined under GAAP and may not be comparable to similarly titled measures used by other companies. Reconciliations of Segment EBIT to Segment EBITA and to consolidated income before income taxes are presented in the tables below. Measures of total assets by reportable segment are not provided to the CODM. Therefore, asset information by segment is not disclosed.

Financial information relating to the Company’s reportable segments is as follows (in millions):

 Three Months Ended June 30,
 
Americas
EMEA
APAC
202620252026202520262025
Net sales$4,504 $4,042 $1,264 $1,273 $846 $737 
Cost of sales2,790 2,513 806 826 544 467 
Selling, general and administrative expenses ("SG&A")867 875 286 291 132 132 
Equity income— — — (3)(1)(1)
Segment EBIT847 654 172 159 171 139 
Amortization of intangible assets
79 88 7 18 4 4 
Segment EBITA (non-GAAP)$926 $742 $179 $177 $175 $143 
Depreciation included in Cost of sales and SG&A$38 $35 $2 $11 $5 $5 
Capital expenditures$40 $28 $17 $26 $6 $5 
 Nine Months Ended June 30,
 
Americas
EMEA
APAC
202620252026202520262025
Net sales$12,468 $11,506 $3,807 $3,631 $2,278 $2,017 
Cost of sales7,847 7,244 2,448 2,393 1,448 1,276 
Selling, general and administrative expenses ("SG&A")2,525 2,498 857 849 406 418 
Equity income— — — (3)(3)(2)
Segment EBIT2,096 1,764 502 392 427 325 
Amortization of intangible assets
232 274 21 56 11 12 
Segment EBITA (non-GAAP)$2,328 $2,038 $523 $448 $438 $337 
Depreciation included in Cost of sales and SG&A$109 $105 $14 $31 $16 $16 
Capital expenditures$86 $109 $56 $70 $13 $6 
A reconciliation of Segment EBIT and Segment EBITA (non-GAAP) to consolidated income before income taxes is as follows (in millions):
 Three Months Ended June 30,Nine Months Ended June 30,
 2026202520262025
Segment EBITA (non-GAAP)$1,280 $1,062 $3,289 $2,823 
Amortization of intangible assets90 110 264 342 
Segment EBIT1,190 952 3,025 2,481 
Corporate expenses167 141 475 498 
Restructuring and impairment costs80 51 224 146 
Water systems AFFF insurance recoveries (1)
(17)(1)(148)(13)
Net financing charges71 77 197 243 
Gain on divestiture— — (70)— 
Net mark-to-market adjustments(28)(21)(16)(7)
Income from continuing operations before income taxes$917 $705 $2,363 $1,614 

(1) Refer to Note 18, "Commitments and Contingencies," of the notes to the consolidated financial statements for further disclosure related to the water systems AFFF settlement.