WS Investor
29 Jan 2026, 17:10
Trane Technologies reported strong fourth-quarter and full-year 2025 results, supported by robust demand, sharply higher bookings, and a record backlog that provides solid visibility heading into 2026.
In the fourth quarter, organic bookings jumped 22%, driven by more than 35% growth in Americas Commercial HVAC. Backlog reached a record $7.8 billion, up 15% from year-end 2024, with Americas Commercial HVAC backlog rising 25%. Reported revenue increased 6% to $5.1 billion, while organic revenue grew 4%. GAAP continuing EPS was $2.74, and adjusted continuing EPS rose 10% to $2.86.
For the full year, organic bookings increased 11%, again led by Americas Commercial HVAC with 22% growth. Reported revenue rose 7% to $21.3 billion, with organic revenue up 6%. Profitability improved across the board, with GAAP operating margin expanding by 100 basis points and adjusted operating margin up 90 basis points. Adjusted EBITDA margin reached 20.1%, up 70 basis points. GAAP continuing EPS was $13.14, while adjusted continuing EPS increased 16% to $13.06. Free cash flow conversion remained strong at 98%.
Management highlighted the combination of strong order momentum, expanding margins, and a growing backlog as key factors positioning the company well for continued performance in 2026.
In the fourth quarter, organic bookings jumped 22%, driven by more than 35% growth in Americas Commercial HVAC. Backlog reached a record $7.8 billion, up 15% from year-end 2024, with Americas Commercial HVAC backlog rising 25%. Reported revenue increased 6% to $5.1 billion, while organic revenue grew 4%. GAAP continuing EPS was $2.74, and adjusted continuing EPS rose 10% to $2.86.
For the full year, organic bookings increased 11%, again led by Americas Commercial HVAC with 22% growth. Reported revenue rose 7% to $21.3 billion, with organic revenue up 6%. Profitability improved across the board, with GAAP operating margin expanding by 100 basis points and adjusted operating margin up 90 basis points. Adjusted EBITDA margin reached 20.1%, up 70 basis points. GAAP continuing EPS was $13.14, while adjusted continuing EPS increased 16% to $13.06. Free cash flow conversion remained strong at 98%.
Management highlighted the combination of strong order momentum, expanding margins, and a growing backlog as key factors positioning the company well for continued performance in 2026.
