Trane Technologies Reports Strong Third Quarter Results

Highlights (third-quarter 2025 versus third-quarter 2024, unless otherwise noted):

• Record enterprise bookings of $6 billion, up 15 percent; organic bookings up 13 percent
• Bookings strength led by Americas Commercial HVAC, up approximately 30 percent, applied solutions up over 100 percent
• GAAP operating margin up 150 bps, adjusted operating margin* up 170 bps
• GAAP continuing EPS of $3.82; adjusted continuing EPS* of $3.88, up 15 percent
• Enterprise backlog of $7.2 billion, up 7 percent versus year-end 2024

SWORDS, Ireland, Oct. 31, 2025 /PRNewswire/ -- Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $3.82 for the third quarter of 2025. Adjusted continuing EPS was $3.88, up 15 percent.

Third -Quarter 2025 Results

Financial Comparisons - Third -Quarter Continuing Operations

"In the third quarter, we delivered 15% adjusted EPS growth and achieved all-time-high quarterly bookings of $6 billion, up 13% organically, despite challenging residential markets," said Dave Regnery, chair and CEO, Trane Technologies. "Our commercial HVAC business remains strong, and our project pipeline continues to expand as customers increasingly choose Trane Technologies for the most efficient and sustainable solutions.

"Our performance continues to be led by Americas commercial HVAC, with organic bookings up 30% -- driven by more than 100% growth in applied solutions -- and organic revenue up low-teens in the quarter.

"With our leading innovation, elevated backlog, and strong financial position, we are well-positioned to continue to deliver differentiated shareholder value over the long term."

Highlights from the Third Quarter of 2025 (all comparisons against third-quarter 2024 unless otherwise noted):

• Strong bookings of $6 billion, up 15 percent; organic bookings up 13 percent. Bookings strength led by Commercial HVAC, up approximately 30 percent.
• Book-to-bill was more than 100 percent in Commercial HVAC in all regions.
• Enterprise reported revenues were up 6 percent; organic revenues were up 4 percent.
• Excluding Residential, enterprise organic bookings and revenues were up 26 percent and 10 percent, respectively.
• GAAP operating margin was up 150 basis points, adjusted operating margin was up 170 basis points and adjusted EBITDA margin was up 110 basis points.
• Volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment.

Third-Quarter Business Review (all comparisons against third-quarter 2024 unless otherwise noted)

Americas Segment: innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, energy services and solutions, residential heating and cooling; and transport refrigeration systems and solutions.

• Strong bookings of $4.8 billion; reported and organic bookings both up 12 percent.
• Bookings strength led by Americas Commercial HVAC, up approximately 30 percent, more than offsetting a decline in Residential bookings.
• Reported and organic revenues were both up 4 percent.
• Excluding Residential, Americas organic bookings and revenues were up 28 percent and 11 percent respectively.
• GAAP operating margin was up 90 basis points, adjusted operating margin was up 120 basis points and adjusted EBITDA margin was up 90 basis points.
• Strong volume growth in Commercial HVAC and positive price realization and productivity across the Americas segment more than offset inflation and lower volumes in Residential. The Company also continued high levels of business reinvestment.

Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.

• Strong bookings up 24 percent; organic bookings up 14 percent.
• Reported revenues were up 12 percent including approximately 5 percentage points of positive foreign exchange impact and approximately 4 percentage points related to acquisitions. Organic revenues were up 3 percent.
• GAAP operating margin was down 100 basis points; adjusted operating margin was down 80 basis points and adjusted EBITDA margin was down 60 basis points.
• Volume growth and productivity were more than offset by acquisition-related integration costs, and continued high levels of business reinvestment and inflation.

Asia Pacific Segment: innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.

• Strong bookings up 34 percent, organic bookings up 32 percent.
• Reported revenues were up 10 percent, including approximately 1 percentage point of positive foreign exchange impact. Organic revenues were up 9 percent.
• GAAP operating margin and adjusted operating margin were up 340 basis points, and adjusted EBITDA margin was up 230 basis points.
• Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment.

Balance Sheet and Cash Flow

• Through September 30, 2025, cash flow from continuing operating activities was approximately $2.1 billion and free cash flow was approximately $1.8 billion.
• Year-to-date through October, the Company deployed or committed approximately $2.8 billion of capital including approximately $840 million for dividends, $420 million for M&A, $1.35 billion for share repurchases and $150 million for debt retirement.
• The Company expects to pay a competitive and growing dividend and to deploy 100 percent of excess cash to shareholders over time.

Full-Year 2025 Guidance

• The Company expects full-year 2025 reported revenue growth of approximately 7 percent, including 1 percentage point related to acquisitions, and organic revenue growth of approximately 6 percent versus full-year 2024.
• The Company expects GAAP continuing EPS for full-year 2025 of approximately $13.15 to $13.25, including $0.20 for non-GAAP adjustments. The Company expects adjusted continuing EPS for full-year 2025 of $12.95 to $13.05.
• Additional information regarding the Company's 2025 guidance is included in the Company's third-quarter earnings presentation found at www.tranetechnologies.com in the Investor Relations section.

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10/31/2025
(See Accompanying Tables)

• Table 1: Condensed Consolidated Income Statement
• Tables 2 - 5: Reconciliation of GAAP to Non-GAAP
• Table 6: Condensed Consolidated Balance Sheets
• Table 7: Condensed Consolidated Statement of Cash Flows
• Table 8: Balance Sheet Metrics and Free Cash Flow

SOURCE Trane Technologies