Trane Technologies Q4 Revenue $5.1B Exceeds Expectations
Reports Q4 revenue $5.1B, consensus $5.09B. "Thanks to our purpose-driven strategy, talented team and disciplined execution, 2025 was another strong year for our company," said Dave Regnery, chair and CEO. "We achieved strong revenue growth, adjusted earnings per share growth and free cash flow conversion, despite challenging markets in residential and transport refrigeration. We continue to see tremendous strength and rapidly growing pipelines in our commercial HVAC businesses, led by the Americas, where fourth quarter applied bookings were up more than 120%. We ended the year with record enterprise backlog of $7.8 billion, providing strong visibility to future market outgrowth. Since launching Trane Technologies in 2020, we've built a powerful long-term track record - including compound annual revenue growth of 11%, EBITDA margin expansion of 470 basis points, compound annual adjusted earnings per share growth of 24%, and free cash flow conversion of 106%. With significant opportunities ahead, record backlog levels and strong customer demand, we remain confident in delivering differentiated results into the future."
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Trane Technologies Q4 2025 Earnings Call Insights
- Performance Exceeds Expectations: Trane Technologies reported a 10% adjusted EPS growth in Q4 2025, despite softness in residential and transport refrigeration markets, with a 22% increase in enterprise organic bookings driving a record backlog of $7.8 billion, showcasing strong performance in the commercial HVAC sector.
- Acquisition Strategy: The company announced the acquisition of Stellar Energy, a leading provider of data center cooling solutions, expected to close in Q1 2026, with modest EPS growth anticipated in 2026 despite acquisition and integration costs, further enhancing market competitiveness.
- 2026 Outlook: Trane anticipates 6% to 7% organic revenue growth and adjusted EPS of $14.65 to $14.85 for 2026, reflecting strong commercial HVAC demand and robust backlog, although facing challenges in the residential market in Q1.
- Market Risks: Management highlighted softness in residential and transport refrigeration markets that may impact future growth, projecting Q1 2026 as a trough with a 20% revenue decline, while emphasizing the need for flexibility in response to volatility in commodity and tariff costs.
Trane Technologies' U.S.-Listed Shares Rise 5.9% Following Strong Q4 Earnings Report
- Stock Performance: Shares of Trane Technologies increased by 5.9% following the release of their Q4 results.
- Earnings Report: The company's Q4 results exceeded analysts' expectations, contributing to the rise in stock value.