Trane Technologies Reports Strong Q1 2025 Results

Trane Technologies plc, a global climate innovator, has released its first-quarter 2025 financial results, showcasing robust performance across various metrics. The company reported significant growth in revenues, earnings per share (EPS), and operating income, reaffirming its guidance range and projecting performance towards the high end of the spectrum.

Financial Highlights

For the first quarter of 2025, Trane Technologies reported:

• Enterprise bookings of $5.3 billion, with a book-to-bill ratio of 113%.
• Reported revenues of $4.7 billion, marking an 11% increase from the same period in 2024.
• GAAP continuing EPS of $2.71 and adjusted continuing EPS of $2.45, up 26% year-over-year.
• An enterprise backlog of $7.3 billion, up approximately $500 million from year-end 2024.

Business and Operational Highlights

The company's performance was driven by strong demand across its segments:

• Americas Segment: Bookings increased by 5% to $4.2 billion, with reported revenues up 14% to $3.8 billion. The segment saw a GAAP operating margin increase of 310 basis points to 19.4%.
• EMEA Segment: Bookings grew by 9% to $720.7 million, with reported revenues up 4% to $573.5 million. However, the segment experienced a decline in GAAP operating margin by 260 basis points to 14.5%.
• Asia Pacific Segment: Bookings decreased by 14% to $341 million, with reported revenues down 4% to $314.3 million. Despite this, the segment's GAAP operating margin improved by 90 basis points to 21.2%.

Strategic Initiatives and Corporate Developments

Trane Technologies continued to focus on strategic initiatives to enhance shareholder value:

• Deployed or committed approximately $1.1 billion of capital, including $210 million for dividends, $275 million for mergers and acquisitions, and $650 million for share repurchases.
• Maintained a strong balance sheet with a cash balance of $861 million and a debt balance of $4.8 billion as of March 31, 2025.

Management's Perspective

Dave Regnery, Chair and CEO of Trane Technologies, commented, "In the first quarter, our global team delivered outstanding performance through our purpose-driven strategy, extending our consistent track record of results. With strong execution through our proven business operating system, we continue to navigate a dynamic macro environment. Demand for our innovative solutions remains robust, with customers selecting Trane Technologies as their partner of choice."

Future Outlook

Looking ahead, Trane Technologies expects full-year 2025 reported revenue growth of approximately 7.5% to 8.5%, with organic revenue growth projected at 7% to 8%. The company anticipates GAAP continuing EPS for the full year to be in the range of $12.95 to $13.15, with adjusted continuing EPS expected to be between $12.70 and $12.90. The company remains confident in performing towards the high end of its revenue and EPS guidance.

SEC Filing: Trane Technologies plc [ TT ] - 8-K - Apr. 30, 2025