What is the revenue and EPS growth rate for Trane Technologies year over year?

What is Trane Technologies's gross profit margin?

What were the key takeaways from Trane Technologies’s earnings call?

What factors drove the changes in Trane Technologies's revenue and profit?

What is the market's earnings forecast for Trane Technologies next quarter?

Did Trane Technologies beat or miss consensus estimates last quarter?

What does Trane Technologies do and what are its main business segments?

What is Trane Technologies's latest dividend and current dividend yield?

- **Q3 Growth Highlights**: 13% organic revenue growth, 15% EPS growth, and $6 billion record bookings driven by Commercial HVAC strength.
- **Backlog Expansion**: $800 million Commercial HVAC backlog increase positions for 2026 growth.
- **Margins and Efficiency**: 170 bps margin expansion, 23% Americas EBITDA margin, and 100%+ free cash flow conversion.
- **2026 Outlook**: Commercial HVAC to lead growth, with Residential/Transport recovery in second half of 2026.

**【CEO Summary Section】**
- **Record Q3 Bookings**: Achieved $6 billion in bookings, up 13% year-over-year, driven by 30% growth in Americas Commercial HVAC and over 100% growth in applied solutions.
- **Commercial HVAC Strength**: Americas Commercial HVAC revenue grew low double digits, with Services business contributing low double-digit growth and a 125% 3-year revenue stack.
- **Residential Challenges**: Q3 Residential revenue down 20%, with expectations for Q4 down 20% due to channel inventory normalization.
- **Backlog Growth**: Americas and EMEA Commercial HVAC backlog increased by $800 million (15%) year-over-year, positioning for 2026 growth.

**【CFO Financial Commentary】**
- **Q3 Financials**: GAAP net income $420 million, Non-GAAP EPS $1.08 (15% YoY growth), with 170 basis points of adjusted operating margin expansion.
- **Segment Performance**: Americas EBITDA margin up 90 bps to 23%, EMEA margin down 60 bps due to M&A integration costs, Asia Pacific margin up 230 bps.
- **Guidance Update**: 2025 organic revenue growth revised to 6%, with Q4 EPS $2.75-$2.85 and full-year EPS $12.95-$13.05.
- **Free Cash Flow**: Targeting >100% free cash flow conversion, with $2.4 billion deployed in 2025 through dividends, M&A, and share buybacks.

**【Q&A Highlights】**
- **Service Margins**: Americas Service margins at 22%, with opportunities for expansion through fixed-cost investments in technology and training.
- **Data Center Momentum**: Strong pipeline in Americas and Middle East, with 4x capacity expansion since 2023 and quick-ship programs reducing lead times.
- **2026 Outlook**: Commercial HVAC expected to drive growth, with Residential and Transport facing first-half headwinds and second-half recovery.
- **M&A and Capital Allocation**: $5 billion remaining under share repurchase authorization, disciplined approach to M&A for long-term returns.

Trane Technologies plc (TT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TT

TT fundamentals

You can ask Aime