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 -3.78% change in stock price 10 days leading up to the earnings, and a +2.92% change 10 days following the report. On the earnings day itself, the stock moves by +2.53%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Financial Performance: Organic revenue growth of 12% and adjusted EPS growth of 24% were achieved, reflecting strong financial performance.
Strong Free Cash Flow: Free cash flow reached $280 million, representing a 109% free cash flow conversion, allowing for strategic investments and shareholder returns.
Strong Backlog and Bookings Growth: The company reported a robust backlog of $6.75 billion entering 2025, supported by 11% organic bookings growth for the full year 2024.
EBITDA Margin Expansion: Adjusted EBITDA margin expanded by 110 basis points, driven by volume growth, productivity, and price realization across segments.
2025 Revenue and EPS Guidance: The 2025 guidance anticipates 7% to 8% organic revenue growth and adjusted EPS of $1.27 to $1.29, indicating strong confidence in future performance.
Negative
Transport Refrigeration Decline: Transport refrigeration bookings were down low teens, while end markets were down more than 20% in the quarter, indicating significant weakness in this segment.
Asia Pacific Revenue Decline: In Asia Pacific, bookings were down low single digits and revenues declined by low teens, reflecting ongoing challenges in the Chinese market.
Earnings Impact Guidance: The 2025 guidance includes about 100 basis points of negative FX and roughly 50 basis points of growth from M&A, which are expected to negatively impact earnings by about $0.2 for the year.
Residential Market Outlook: Residential markets are expected to return to a GDP plus framework in 2025, but the guidance reflects a pre-buy headwind of around $75 million to $100 million, which could dampen growth.
Transport Market Decline: The transport markets are expected to be down about 25% year over year, indicating a challenging environment before a projected recovery in the second half of 2025.
Earnings call transcript: Trane Technologies Q4 2024 beats forecasts
TT.N
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