stocks logo

TT Earning Date, Transcript Summary & Report

Trane Technologies PLC
$
421.870
+5.720(+1.370%)

TT Earnings Prediction

The chart below shows how TT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TT sees a -3.84% change in stock price 10 days leading up to the earnings, and a +2.98% change 10 days following the report. On the earnings day itself, the stock moves by +3.31%. This data can give you a slight idea of what to expect for the next quarter's release.

TT Key Earning Data

2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.69B
11.22%
-3.81%
Gross Margin
35.78%
3.32%
1.94%
Operating Margin
17.47%
15.31%
5.24%
Net Margin
13.18%
24.81%
4.44%
EPS
2.67
40.53%
0.38%
No Data Available

TT Earnings Analysis

Trane Technologies PLC Corporation (TT.N) Earnings Conference Call

Positive

  • Strong Q1 Financial Performance: Strong financial results with 11% organic revenue growth, 130 basis points of adjusted EBITDA margin expansion, and 26% adjusted EPS growth in Q1 2025.

  • Strong Demand Indicators: Robust bookings up 4% with a book-to-bill ratio of 113% for the enterprise, indicating strong demand and backlog growth.

  • Record HVAC Bookings Growth: Commercial HVAC bookings set a new quarterly record, with mid-teens growth in equipment and low teens in services, showcasing strong performance in the Americas segment.

  • Service Business Growth: The Service business represents one-third of enterprise revenues with a high single-digit compound annual growth rate since 2019, indicating consistent growth and stability.

  • Positive Revenue and EPS Outlook: The company is confident in its ability to deliver results towards the higher end of its full year revenue and EPS guidance ranges, reflecting strong operational execution.

  • Americas Segment Revenue Growth: The Americas segment delivered revenue growth across all businesses, with adjusted EBITDA margin expanding by 170 basis points, driven by volume growth and productivity.

  • Balanced Capital Allocation Strategy: The company maintains a balanced capital allocation strategy, deploying approximately $775 million in Q1 2025, including a 12% dividend increase and significant share repurchases.

  • Capital Allocation Flexibility: The strong free cash flow, liquidity, and balance sheet provide excellent capital allocation optionality moving forward, supporting future growth initiatives.

Negative

  • Transport Refrigeration Performance: Transport refrigeration bookings were down low single digits and revenues were up mid-single digits, significantly underperforming end markets, which were down around 25%.

  • China Market Challenges: In Asia Pacific, despite strong results in the rest of Asia, China remains a challenging market with bookings and revenues down low 30s and high 20s, respectively, against tough prior year comps of approximately plus 20% for both.

  • EMEA EBITDA Margin Decline: Adjusted EBITDA margin in EMEA declined by 190 basis points due to high business reinvestment during the shoulder season, indicating potential inefficiencies or challenges in managing costs during this period.

  • Market Decline Anticipation: For Transport, the company anticipates a significant market decline, with the trailer market expected to be down about 20% for the year, which could impact overall revenue and growth projections.

  • Tariff Cost Impact: The company expects a cost impact in 2025 to be approximately $250 million to $275 million due to tariffs, which could strain margins despite efforts to mitigate these costs through pricing actions.

Key Financial Performance iconKey Financial Performance
Operating Highlights iconOperating Highlights
Risks or Challenges iconRisks or Challenges
Strategic Initiatives & Outlook iconStrategic Initiatives & Outlook
Shareholder Return Plan iconShareholder Return Plan

TT FAQs

How does TT typically perform around its earnings report dates?

TT's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -3.84% change leading up to the report and a +2.98% change in the 10 days following the release.

Is Trane Technologies PLC (TT) Q1 2025 Earnings Call Summary positive or negative?

How can historical earnings data help predict future stock performance?

TT Earnings Deck

Trane Technologies plc (TT) Q1 2025 Earnings Call Transcript

TT Earning Call Sentiment

Trane Technologies plc (TT) Q1 2025 Earnings Call Transcript

stocks logo

TT.N

1.37%
Positive
The earnings call indicates strong financial performance with 11% organic revenue growth, 26% adjusted EPS growth, and record order rates. Positive sentiment is bolstered by a 12% dividend increase and $550 million in share repurchases. The company also provides optimistic guidance for 2025, expecting high-end revenue growth. While tariff costs are a concern, management is confident in mitigating these through pricing strategies. Despite challenges in China, strong growth in other regions and sectors like data centers supports a positive outlook. Overall, the combination of strong financial metrics and shareholder returns suggests a positive stock price movement.