Trane Technologies plc (TT) Earnings

metirFinance

Dec 2026upcoming

Next quarter

Expected to report Jan 28, 2027 — estimated from last year’s reporting date.

Consensus is $3.55 EPS for Dec 2026 across 6 estimates, ranging $3.48 to $3.67.

TT Sep 2026

Reported Oct 29, 2026 · before the open

: 2.53%

: $4.74
: $4.86
: —
: $6.76B

Reported results

: $6.76B; from $5.74B
: 35.28%; from 36.89%
: $1.34B; from $1.17B
: 19.87%; from 20.29%
: $1.05B; from $847.60M
: $4.74; from $3.78

Highlights

Demand and backlog: Organic bookings rose 20% year over year to $7.25 billion; book-to-bill was 107%, above 100% in every segment, and backlog reached $12.5 billion, up 73%.
Revenue growth: Revenue increased 18% to $6.76 billion, including 16% organic growth; volume drove most of the organic increase, with 0.5 percentage points from pricing.
EPS: Adjusted continuing EPS was $4.86, up 25% year over year and 2.5% above the supplied $4.74 consensus. GAAP continuing EPS was $4.79; diluted net EPS was $4.74.
Margins: Operating income rose 15% to $1.34 billion, but GAAP and adjusted operating margins each fell 40 basis points to 19.9% and 20.2%, respectively; gross margin declined 160 basis points to 35.3%.
Segment divergence: Americas organic revenue grew 19% and adjusted operating margin expanded 50 basis points; EMEA and Asia Pacific adjusted operating margins contracted 250 and 390 basis points, respectively.
Cash generation: Nine-month free cash flow was $2.83 billion, up from $1.79 billion a year earlier; cash from continuing operations was $3.06 billion.
Outlook and capital: Trane raised 2026 reported revenue growth guidance to approximately 13.5% (11% organic) and reaffirmed adjusted EPS guidance of $15.20–$15.30. Through October, it had deployed or committed about $3.4 billion to dividends, M&A and repurchases.

Analysis

Trane delivered a strong third quarter, led by broad-based order growth and a sharp step-up in Americas demand. Revenue of $6.76 billion rose 18% year over year (16% organically) and was up about 6% from Q2’s $6.35 billion. Adjusted continuing EPS of $4.86 grew 25% from $3.88 and exceeded the supplied $4.74 consensus by 2.5%; GAAP continuing EPS was $4.79, while diluted net EPS was $4.74. Revenue, operating income of $1.34 billion and net income of $1.05 billion also increased from Q2’s $1.22 billion and $925.7 million, respectively.

The print’s defining feature was demand: organic bookings rose 20%, book-to-bill was 107%, and backlog grew 73% to $12.5 billion, with Americas Commercial HVAC backlog up about 80%. That momentum supported higher revenue guidance, though profitability was mixed: operating income rose 15%, but operating margin slipped 40 basis points to 19.9% amid inflation and investment, and the international segments faced greater pressure. Americas margins expanded as growth and productivity helped offset costs. Cash conversion strengthened materially, with nine-month free cash flow up about 60% to $2.83 billion. The company raised full-year revenue growth expectations while holding its adjusted EPS range unchanged.

Bookings and backlog

Broad order growth: Reported bookings increased 21% to $7.25 billion, while organic bookings rose 20%. Book-to-bill was 107% overall and exceeded 100% in all three segments.
Visibility: Backlog reached $12.5 billion, up 73% year over year. Americas Commercial HVAC backlog increased approximately 80%, a notable concentration of the company’s order momentum.

Revenue and margins

Revenue grew 17.7% to $6.76 billion; organic growth was 16.2%, comprising 15.7% volume and 0.5% pricing, with acquisitions adding 1.6 percentage points and currency subtracting 0.1 point. The sequential increase from $6.35 billion in Q2 was about 6%. Operating income rose 15.3% to $1.34 billion, slower than revenue growth, and GAAP operating margin fell 40 basis points to 19.9%. Adjusted operating margin also declined 40 basis points to 20.2%. The 160-basis-point drop in gross margin to 35.3% reflected inflation and investment, partly offset by productivity and pricing. Adjusted continuing EPS of $4.86 was up 25% year over year; GAAP continuing EPS was $4.79, and diluted net EPS was $4.74.

Segment performance

Americas: Revenue grew 21% to $5.65 billion, including 19% organic growth, led by Commercial HVAC, residential and transport refrigeration. Adjusted operating margin expanded 50 basis points to 22.3%, as productivity and pricing more than offset inflation and investment.
EMEA: Revenue was nearly flat at $756 million, with 2% organic growth partly offset by unfavorable currency. Book-to-bill was a strong 147%, but adjusted operating margin fell 250 basis points to 17.2%; the company cited inflation and lower Middle East volumes.
Asia Pacific: Revenue rose 8% to $356 million, including 7% organic growth, while book-to-bill reached 128%. Adjusted operating margin contracted 390 basis points to 18.6%, reflecting inflation and investment.

2026 guidance

The company raised its full-year 2026 reported revenue growth outlook to approximately 13.5% and organic revenue growth to approximately 11% versus 2025. It reaffirmed GAAP continuing EPS guidance of approximately $15.00–$15.10, including $0.20 of non-GAAP adjustments, and adjusted continuing EPS guidance of $15.20–$15.30. Management cited ongoing supply-chain and inflationary headwinds alongside strong demand momentum.

Cash and capital

Cash generation: Through September, continuing operating cash flow was $3.06 billion versus $2.05 billion a year earlier; free cash flow was $2.83 billion versus $1.79 billion. The company attributed the improvement to lower working capital, customer down-payment timing and higher adjusted net income. Working capital as a percentage of revenue was 0.3%, down from 3.9%.
Capital deployment: Through October, the company had deployed or committed approximately $3.4 billion: $1.4 billion in share repurchases, $1.08 billion for M&A and $930 million in dividends. At September 30, cash was $1.23 billion and debt was $4.22 billion, down $398 million year over year.

Trane Technologies plc

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