Trane Technologies (TT) Company Report

2025 guidance: 6% organic revenue growth, 7% reported growth, and 15–16% EPS increase, with robust free cash flow conversion.
Commercial HVAC backlog of $7.2 billion as of Q3, up ~7% year-to-date, with over 90% in applied systems, underpinning 2026 visibility.
Service segment (≈33% of revenues) is growing low double-digits with accretive margins; investments include two technician training centers and BrainBox AI digital tools delivering 15–40% energy savings.
Residential HVAC volumes down ~20% in Q3–Q4 due to refrigerant pre-buys, canister shortages, and a shorter season; Thermo King transport in fourth year of downturn, with recovery expected in H2 2026.
Geographic mix: Americas ~75% of revenue, EMEA ~15% (high single-digit commercial HVAC growth), Asia ~7% (90% commercial HVAC with leading margins).

Nov 12, 2025, 5:25 PM

Transcript

Trane Technologies lowers 2025 profit forecast as revenue growth slows

Guidance Update

Profit Warning

Demand Weakening

Reported Q3 2025 adjusted EPS of $3.88, beating expectations, while revenue of $5.74 billion slightly missed forecasts amid weakening residential sales.
Cut full-year 2025 EPS guidance to $12.95–$13.05 and trimmed revenue growth outlook to 7%, down from about 9%.
Achieved 5.5% year-over-year revenue growth with gross margin up 60 bps to 36.9%, driven by operational efficiency and strategic acquisitions.
Generated $992.1 million in operating cash flow and $944.6 million in free cash flow in Q3, supported by a 15% rise in order bookings.

Oct 30, 2025, 4:57 PM

Morningstar

Trane Technologies reports Q3 2025 results

Earnings

Guidance Update

Share Buyback

Record Q3 bookings of $6 billion (+13% organic YoY); delivered 170 bps adjusted operating margin expansion and 15% adjusted EPS growth.
Americas commercial HVAC bookings up 30% with applied bookings >100% YoY; Q3 backlog of $7.2 billion, up ~$800 million (15%) vs end-2024.
Q3 organic revenue growth of 4%; residential revenues down ~20% YoY, resulting in a $100 million Q3 shortfall and a projected $150 million Q4 shortfall.
2025 guidance: ~6% organic revenue growth; adjusted EPS range of $12.95–$13.05; Q4 organic growth ~3% with EPS $2.75–$2.85; YTD capital deployment of $2.4 billion, including $1.25 billion in buybacks and $5 billion authorization remaining.

Oct 30, 2025, 2:00 PM

Transcript

Trane Technologies reports Q3 2025 results

Earnings

Guidance Update

Share Buyback

Q3 organic bookings rose 13% and organic revenue grew 4%; adjusted EPS was $3.88 (+15% YoY) and adjusted operating margin expanded to 20.6% (+170 bps).
Commercial HVAC remains the growth engine, with Americas CHVAC bookings up ~30% and backlog reaching $7.2 B (up >$600 M since YE 2024).
FY 2025 guidance updated: organic revenue growth of ~6% and adjusted EPS of $12.95–$13.05, with Q4 EPS expected at $2.75–$2.85.
Strong cash generation: Q3 operating cash flow was 109% of adjusted net earnings, FCF is on track to be ≥100% of adjusted net earnings, and YTD share repurchases totaled $1.25 B.

Oct 30, 2025, 2:00 PM

Presentation

Trane Technologies reports Q3 2025 results

Earnings

Guidance Update

Share Buyback

Trane delivered record bookings of $6 billion (up 13% YoY), 170 bps of adjusted operating margin expansion, 15% adjusted EPS growth, and strong free cash flow in Q3 2025.
Americas commercial HVAC bookings rose 30% YoY with applied solutions more than doubling; ending commercial HVAC backlog was $7.2 billion, up ~15% vs. year-end 2024.
Q3 segment performance: Americas organic revenue +4% (adjusted EBITDA margin +90 bps to >23%), EMEA organic revenue +3% (margin –60 bps), Asia Pacific organic revenue +9% (margin +230 bps).
2025 guidance updated to ~6% organic revenue growth, adjusted EPS of $12.95–$13.05 (Q4 EPS $2.75–$2.85), and ~3% Q4 organic growth (ex-residential ~7%).
Year-to-date through October, Trane deployed $2.4 billion in capital: $840 million dividends, $160 million M&A, $1.25 billion share repurchases, $150 million debt retirement, with $5 billion repurchase authorization remaining.

Oct 30, 2025, 2:00 PM

Transcript

Trane Technologies reports Q3 2025 results

Earnings

Guidance Update

Share Buyback

Record Q3 bookings of $6 billion, organic bookings up 13% YoY; Americas commercial HVAC bookings surged 30%, ending backlog at $7.2 billion (+15% vs. YE 2024)
Q3 organic revenue growth of 4%; Americas adjusted EBITDA margin rose to 23% (+90 bps); EMEA and Asia Pacific revenue grew 3% and 9%, respectively
2025 guidance revised to 6% organic revenue growth (–2 ppt vs. July) and adjusted EPS of $12.95–$13.05 (+15–16% YoY); Q4 organic growth expected at 3% with EPS of $2.75–$2.85
YTD through October deployed $2.4 billion in capital: $1.25 billion in share repurchases (with $5 billion remaining authorization), $840 million in dividends, $160 million in M&A, and $150 million in debt retirement

Oct 30, 2025, 2:00 PM

Transcript

Trane Technologies reports strong Q3 2025 results

Earnings

Guidance Update

Record enterprise bookings of $6.0 billion, up 15% year-over-year; organic bookings increased 13%
Net revenues of $5.743 billion, up 6% (4% organically) versus Q3 2024
GAAP continuing EPS of $3.82; adjusted continuing EPS of $3.88, a 15% increase
Americas Commercial HVAC bookings surged approximately 30%, driving segment leadership
Full-year 2025 guidance: reported revenue growth of ~7% (organic ~6%); GAAP EPS of $13.15–13.25 and adjusted EPS of $12.95–13.05

Oct 30, 2025, 10:30 AM

Press Release

Trane Technologies reports Q3 2025 results

Earnings

Guidance Update

Record enterprise bookings of $6.0 billion, up 15 percent year-over-year (13 percent organically)
Net revenues of $5.74 billion, up 6 percent (4 percent organically); GAAP operating margin of 20.3 percent (+150 bps) and adjusted operating margin of 20.6 percent (+170 bps)
GAAP continuing EPS of $3.82; adjusted continuing EPS of $3.88, up 15 percent; enterprise backlog of $7.2 billion, up 7 percent versus year-end 2024
Full-year 2025 guidance: reported revenue growth ~7 percent (organic ~6 percent); GAAP continuing EPS $13.15–13.25; adjusted EPS $12.95–13.05

Oct 30, 2025, 10:00 AM

8-K

Trane Technologies unveils thermal management system for gigawatt-scale NVIDIA AI factories

Product Launch

Trane Technologies launched the industry’s first comprehensive thermal management system reference design for gigawatt-scale NVIDIA AI factories, integrating with the NVIDIA Omniverse DSX Blueprint to deliver performance, scalability and rapid deployment in next-generation data centers.
Developed in collaboration with NVIDIA, the design enables simultaneous management of power, water and land resources to enhance performance, energy efficiency and sustainability for Blackwell and upcoming Vera Rubin infrastructure.
The reference design supports the advanced power and cooling needs of NVIDIA GB300 NVL72 systems and can flexibly scale to meet increasing rack density as per NVIDIA’s roadmap.

Oct 28, 2025, 8:15 PM

Press Release

Trane Technologies reviews 5-year growth, reports residential segment weakness

Demand Weakening

Guidance Update

Over the past five years, revenue increased from $12.5 billion to over $21 billion, market cap nearly tripled from $35 billion to over $90 billion, and the company achieved a 12% reported CAGR on sales.
The residential segment (≈15% of enterprise revenue) is now expected to decline up to 20% in Q3 and high-single digits for the full year, exerting modest EPS pressure, primarily in Q4.
The service business (~33% of revenue) has delivered low-double-digit CAGR over four years; investments include a new North Carolina training facility and the BrainBox AI acquisition, enhancing digital and remote service capabilities.
Trane emphasizes regional manufacturing (25 U.S. plants) and local supply chains, while broadening its commercial pipeline across 13 verticals and strengthening data center offerings with new cooling distribution units and system-level solutions.

Sep 11, 2025, 6:30 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Trane Technologies.

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