The company said it recognized a goodwill impairment charge of $3.1 billion in Q3 2026 for its Climate Solutions Europe reporting unit, whose carrying amount exceeded its estimated fair value by approximately 23%. The company cited a reduction in projected operating results, weaker market demand, a change in the pace of the transition from boilers to heat pumps and higher interest rates as factors.

1. 01

   The company said it recognized a goodwill impairment charge of $3.1 billion in Q3 2026 for its Climate Solutions Europe reporting unit, whose carrying amount exceeded its estimated fair value by approximately 23%. The company cited a reduction in projected operating results, weaker market demand, a change in the pace of the transition from boilers to heat pumps and higher interest rates as factors.

2. 02

   Net sales for Q3 2026 rose 12% year over year to $6.3 billion, and organic sales increased 15%, the company said. Gross margin increased 16% to $1.7 billion, which the company attributed to higher volumes in certain end-markets and IEEPA tariff refunds.

3. 03

   The company said it completed the sale of its Riello business in July 1, 2026 for cash proceeds of $438 million and recognized a total loss of $48 million in Other income (expense), net. It also said it recognized a benefit of $133 million related to IEEPA tariff refunds in Q3, recorded primarily as a reduction to Cost of products sold.

4. 04

   The company said that in the 9 months ended September 30, 2026, it repurchased 18.5 million shares of common stock for a total of $1.1 billion and paid $598 million in common stock dividends. As of September 30, 2026, cash and cash equivalents were $1.4 billion, and the remaining authorization under its current repurchase program was approximately $4.2 billion.

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

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AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

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