Acquisitions

12 Months Ended

Dec. 31, 2025

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

Acquisitions

17. Acquisitions:

Duro Dyne and Supco

In October 2025, we acquired 100% of the outstanding shares of common stock in Duro Dyne and Supco, a robust portfolio of HVAC parts and supplies that complement our existing residential and commercial offerings. Excluding cash received at the closing, the total cash consideration paid was $545.0 million, which was primarily funded by cash and borrowings under our financing arrangements.

The purchase price was allocated to the assets acquired and liabilities assumed based on management’s estimate of their respective fair values at the date of acquisition. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The factors contributing to the recognition of goodwill were the assembled workforce and strategic benefits that are expected to be realized from the acquisition. The purchase price allocation is preliminary and subject to revision as additional information about the fair value of assets acquired and liabilities assumed becomes available.

Under the terms of the purchase agreement, a final working capital adjustment is due in the first quarter of 2026. The preliminary allocation of the purchase price as of the acquisition date was as follows:

(Amounts in millions)	Amount
Total consideration paid	$	551.3
Cash and cash equivalents	6.3
Accounts receivable, net	22.9
Inventory, net	67.4
Other current assets	0.5
Property, plant and equipment	18.3
Right-of-use assets from operating leases	29.8
Other assets, net	1.2
Intangible assets acquired	235.0
Accounts payable	(9.7)
Accrued expenses	(9.3)
Current operating lease liabilities	(2.9)
Long-term operating lease liabilities	(26.3)
Other liabilities	(59.1)
Total net assets acquired	$	274.1
Goodwill as of acquisition date	$	277.2

The purchase price allocation includes $235 million of acquired identifiable intangible assets, all of which have finite lives. The fair value of the identifiable intangible assets has been estimated using the income approach through a discounted cash flow analysis. The determination of the useful lives is based upon various industry studies, historical acquisition experience, and economic factors.

The amounts allocated to intangible assets are as follows:

(Amounts in millions)	Gross Carrying Amount		Useful Life	Amortization Method
Customer relationships	$	180.3	19 years	Straight-line
Trade names	54.7		20 years	Straight-line
Total	$	235.0

Subsequent to the purchase of Duro Dyne and Supco, we recognized net sales of approximately $42 million and the acquired businesses contributed approximately $6.4 million and $0.4 million to the Building Climate Solutions and Home Comfort Solutions segment profit, respectively, from the date of acquisition through December 31, 2025.

AES

In October 2023, we completed the acquisition of AES, a company dedicated to service and sustainability in the light commercial market. Under the terms of the purchase agreement, a final working capital adjustment was completed in the first quarter of 2024. This working capital adjustment resulted in a $1.8 million reduction in the purchase price. Additionally, in the first and fourth quarters of 2024, we made certain purchase price adjustments. The following table details the purchase price adjustments that were made during the first and fourth quarters of 2024 (in millions):

(Amounts in millions)	December 31, 2023		Adjustment		December 31, 2024
Net tangible assets acquired	$	17.6	$	(1.7)	$	15.9
Intangible assets acquired	36.9		2.1		39.0
Goodwill	40.4		(2.1)		38.3
Total investment	$	94.9	$	(1.7)	$	93.2