Trane Technologies Q1 2025 Earnings Summary

**Headline Results:**
- Bookings: $5.3 billion (up 4% YoY)
- Revenue: $4.69 billion (up 11%)
- Adjusted EPS: $2.45 (up 26%)
- GAAP EPS: $2.71 (up 41%)
- Enterprise backlog: $7.3 billion (up ~$500M from year-end 2024)
- Free cash flow: $230 million

**Segment Highlights:**
**Americas:**
- Revenue: $3.8 billion (up 14%)
- Adjusted EBITDA margin: 19.8%
- Bookings up 5% with Commercial HVAC reaching an all-time high
- Backlog increased by $400 million

**EMEA:**
- Revenue: $573.5 million (up 4%)
- Adjusted EBITDA margin declined to 16.1% from 18.0%
- Organic bookings up 13%

**Asia Pacific:**
- Revenue: $314.3 million (down 4%)
- Adjusted EBITDA margin improved to 22.5%
- Organic bookings declined 13%

**Cash & Balance Sheet:**
- Cash balance: $861 million
- Debt: $4.77 billion
- Working capital as % of revenue improved to 3.8% from 5.4%

**Full-Year 2025 Outlook:**
- Revenue growth: 7.5% to 8.5% (organic 7% to 8%)
- Adjusted EPS: $12.70 to $12.90
- GAAP EPS: $12.95 to $13.15
- Company expects to perform toward the high end of guidance

Trane Technologies Named to Financial Times Europe’s Climate Leaders List for 5th Consecutive Year

Trane Technologies plc (NYSE:TT), a global climate innovator, will host a conference call to discuss its first quarter 2025 financial results on Wednesday, April 30, 2025, at 10 a.m. ET. The company will issue its first quarter earnings release and earnings presentation in advance of the call; both will be available on the Trane Technologies website.

A real-time, listen-only webcast of the conference call will be broadcast live over the internet. Individuals wishing to listen can access the call through the company’s website at www.tranetechnologies.com under the investor relations section.

The Board of Directors of Trane Technologies plc (NYSE:TT), a global climate innovator, declared a quarterly dividend of $0.94 per ordinary share, or $3.76 per share annualized. The dividend is payable on June 30, 2025, to shareholders of record as of June 6, 2025.

Trane Technologies has paid consecutive quarterly cash dividends on its common shares since 1919 and annual dividends since 1910.

Ethisphere Recognizes Trane Technologies as One of the World’s Most Ethical Companies®

Trane Technologies has appointed Matthew Pine, President and CEO of Xylem Inc., to its Board of Directors, effective April 1, 2025. This brings the Board size to 13 members. Pine is expected to be a nominee for election at the 2025 Annual Meeting of Shareholders. He will participate in the company's non-management director compensation program. There are no related transactions or arrangements requiring additional disclosure. The appointment was announced on February 6, 2025.

Trane Technologies reported strong financial results for the fourth quarter and full-year 2024, with significant revenue growth, improved margins, and strong cash flow.

Fourth-quarter revenues reached $4.9 billion, up 10% from the previous year. GAAP operating margin increased by 110 basis points, while adjusted operating margin rose by 70 basis points. Adjusted EBITDA margin improved to 18.3%, and adjusted EPS grew by 20% to $2.61. Bookings increased by 2%, led by high single-digit growth in Americas Commercial HVAC.

For the full year, reported revenues totaled $19.8 billion, reflecting a 12% increase. GAAP operating margin improved by 120 basis points, and adjusted EBITDA margin expanded by 140 basis points. Adjusted EPS rose by 24% to $11.22. Bookings grew by 11%, and the company ended the year with a $6.75 billion backlog, positioning it well for 2025. Free cash flow conversion remained strong at 109%.

The Americas segment saw 12% revenue growth in Q4, driven by strong commercial HVAC bookings. The EMEA segment reported 5% revenue growth, with organic revenues up 7%. The Asia Pacific segment experienced 1% revenue growth, but operating margins expanded significantly.

For 2025, Trane Technologies expects revenue growth of 6.5% to 7.5%, with organic revenue growth of 7% to 8%. GAAP and adjusted EPS are projected to be between $12.70 and $12.90. The company remains focused on sustainability, innovation, and long-term shareholder value, maintaining a strategy of reinvestment and strong cash flow management.