Will TT's EPS growth momentum continue in 2025?

Trane Technologies' (TT) EPS growth momentum is likely to continue in 2025, based on several key factors:

1. Strong Financial Performance: TT reported a net income of $611.9 million and a total revenue of $4.87 billion for Q4 2024, with a diluted EPS of $2.66. The company's net income grew by 20.55% year-over-year, and its revenue grew by 10.17%.

2. Positive Outlook and Strategic Growth: TT expressed optimism about future prospects, emphasizing its diversified approach and innovative solutions. The company reported a 12% increase in organic revenue and a 24% rise in EPS for 2024, with a substantial backlog of $6.75 billion indicating strong visibility into 2025.
3. Expected Growth in 2025: TT anticipates a projected growth of 7-8% for 2025, focusing on diverse verticals and innovation. The company's earnings for 2025 and 2026 are expected to improve by 14.2% and 10.5%, respectively, year over year, and its revenues are anticipated to improve by 7.4% and 6.7%, respectively.
4. Strategic Initiatives: TT's strategic initiatives, such as the introduction of the Trane Connect platform and expansion of its thermal management systems, are likely to contribute to continued growth. The company's commitment to sustainability and innovation is also expected to position it well for future growth.
5. Executive Confidence: The sale of shares by Donald E. Simmons, Group President of Americas, does not necessarily indicate a lack of confidence in TT's future prospects. Simmons retained a significant stake in the company and had previously sold shares under a pre-arranged trading plan.

In conclusion, TT's EPS growth momentum is expected to continue in 2025 due to the company's strong financial performance, positive outlook, strategic growth initiatives, expected growth projections, and the confidence of its executives.