A Business at a Glance
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Trane Technologies plc
TT
$108.2B
Mkt Cap
$480.99
+0.27%
Trane Technologies plc (TT) has a current P/E ratio of 37.1, compared to its historical median P/E of 24.5. The stock is currently considered Expensive based on its historical valuation range.
Trane Technologies plc (TT) has a 5-year average return on invested capital (ROIC) of 24.0%. This indicates strong capital allocation and a potential competitive advantage.
Trane Technologies plc (TT) has a market capitalization of $107.3B. It is classified as a large-cap stock.
Yes, Trane Technologies plc (TT) pays a dividend with a trailing twelve-month yield of 0.80%. The company also returns capital through share buybacks, with a buyback yield of 1.20%.
Based on historical P/E analysis, Trane Technologies plc (TT) appears expensive. The current P/E of 37.1 is 51% above its historical median of 24.5. The estimated fair value CAGR (P/E method) is 17.9%.
Trane Technologies plc (TT) operates in the Auto Controls For Regulating Residential & Comml Environments industry, within the Technology sector.
Trane Technologies plc is a global climate innovator that designs, manufactures, sells and services heating, ventilation, air conditioning (HVAC), transport refrigeration, and custom refrigeration solutions under the Trane® and Thermo King® brands. The company operates through three geographic segments—Americas, EMEA, and Asia Pacific—serving commercial buildings, residential properties, and transportation markets across approximately 100 countries. Revenue is generated through equipment sales, installation and contracting services, rental options, and recurring service agreements, with services representing approximately one-third of enterprise revenues and carrying strong long-term revenue tails. The business model emphasizes recurring revenue expansion through services and rental offerings, supported by an extensive global installed base and direct sales force expertise across 14 verticals including data centers, higher education, government, and healthcare. Trane's competitive positioning rests on leading innovation, system expertise, operational excellence through its proprietary business operating system, and a broad portfolio of products and solutions; the company is one of the leading manufacturers globally in HVAC systems and transport temperature control products. Applied commercial HVAC solutions, which represent the majority of backlog, carry particularly strong service revenue tails generating 8–10 times the equipment sale value, positioning the company for sustained margin expansion and cash generation.
【Record backlog driving acceleration】 Management expects 2026 to deliver progressively stronger performance, with commercial HVAC—representing 70% of revenues—continuing to execute at high levels and significantly outperform end markets, supported by record backlog of $10.7 billion and robust pipelines across key verticals including data centers, higher education, government, and healthcare. Residential markets are anticipated to improve in the second half of 2026 against easier prior-year comparisons after a challenging first half, while transport refrigeration markets are expected to turn positive in late 2026 and into 2027 following a recovery that began in the first half of 2026. The company expects to mitigate tariff and inflationary pressures through its business operating system and disciplined execution, with operational leverage of 25% or higher targeted for the full year, and management remains committed to deploying 100% of excess cash through strategic M&A and share repurchases to enhance long-term shareholder returns.
| Metric | Target | Period |
|---|---|---|
| Organic revenue growth | approximately 7% | FY2026 |
| Adjusted EPS | $14.75–$14.95 | FY2026 |
Organic revenue growth (FY2026): “We're increasing our organic revenue growth guidance to approximately 7%, the high end of our prior range of approximately 6%-7%.”
Adjusted EPS (FY2026): “We're also increasing our adjusted EPS guidance range to $14.75- $14.95, or approximately 13%-15% of adjusted EPS growth, up from $14.65- $14.85 prior.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 21.6B | 21.3B | 19.8B | 17.7B | 16.0B | 14.1B |
| Net Income | 2.9B | 2.9B | 2.6B | 2.0B | 1.8B | 1.4B |
| EPS | $12.67 | $12.98 | $11.24 | $8.77 | $7.48 | $5.87 |
| Free Cash Flow | 3.1B | 2.8B | 2.8B | 2.1B | 1.2B | 1.4B |
| ROIC | 23.2% | 29.7% | 27.1% | 22.9% | 21.5% | 19.0% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.58 | 0.54 | 0.64 | 0.68 | 0.79 | 0.77 |
| Dividends/Share | $3.85 | $3.76 | $3.36 | $3.00 | $2.68 | $2.36 |
| Operating Income | 3.9B | 4.0B | 3.5B | 2.9B | 2.4B | 2.0B |
| Operating Margin | 18.2% | 18.6% | 17.6% | 16.4% | 15.1% | 14.3% |
| ROE | 33.7% | 36.4% | 35.5% | 30.9% | 28.5% | 22.5% |
| Shares Outstanding | 223M | 225M | 228M | 231M | 235M | 242M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 12.9B | 13.3B | 13.5B | 14.2B | 12.3B | 13.1B | 12.5B | 14.1B | 16.0B | 17.7B | 19.8B | 21.3B | 21.6B |
| Gross Margin | 30.3% | 30.2% | 31.1% | 30.9% | 30.5% | 30.5% | 30.5% | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | 212M | 206M | 208M | 211M | 167M | 174M | 165M | 194M | 211M | 252M | 310M | 348M | 348M |
| SG&A | 2.5B | 2.5B | 2.6B | 2.7B | 2.2B | 2.3B | 2.3B | 2.4B | 2.5B | 3.0B | 3.6B | 3.7B | 3.8B |
| EBIT | 1.4B | 1.5B | 1.6B | 1.7B | 1.5B | 1.7B | 1.5B | 2.0B | 2.4B | 2.9B | 3.5B | 4.0B | 3.9B |
| Op. Margin | 10.9% | 11.2% | 11.9% | 11.7% | 12.2% | 12.8% | 12.3% | 14.3% | 15.1% | 16.4% | 17.6% | 18.6% | 18.2% |
| Net Income | 932M | 665M | 1.5B | 1.3B | 1.3B | 1.4B | 855M | 1.4B | 1.8B | 2.0B | 2.6B | 2.9B | 2.9B |
| Net Margin | 7.2% | 5.0% | 10.9% | 9.2% | 10.8% | 10.8% | 6.9% | 10.1% | 11.0% | 11.4% | 12.9% | 13.7% | 13.4% |
| Non-Recurring | 13M | 34M | 36M | 62M | 44M | 53M | 76M | 27M | 21M | 15M | 5.0M | 31M | -30M |
| Returns on Capital | |||||||||||||
| ROIC | 12.3% | 9.9% | 14.5% | 16.7% | 12.3% | 12.4% | 11.8% | 19.0% | 21.5% | 22.9% | 27.1% | 29.7% | 23.2% |
| ROE | 14.3% | 11.3% | 23.7% | 18.9% | 18.9% | 19.7% | 12.5% | 22.5% | 28.5% | 30.9% | 35.5% | 36.4% | 33.7% |
| ROA | 5.3% | 3.9% | 8.7% | 7.3% | 7.4% | 7.3% | 4.4% | 7.9% | 9.7% | 10.8% | 13.0% | 14.0% | 12.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 973M | 888M | 1.5B | 1.5B | 1.4B | 1.9B | 1.4B | 1.6B | 1.5B | 2.4B | 3.1B | 3.2B | 3.5B |
| Free Cash Flow | 740M | 639M | 1.3B | 1.3B | 1.1B | 1.7B | 1.3B | 1.4B | 1.2B | 2.1B | 2.8B | 2.8B | 3.1B |
| Owner Earnings | 577M | 463M | 1.1B | 1.1B | 968M | 1.5B | 1.1B | 1.2B | 1.1B | 2.0B | 2.7B | 2.7B | 1.0B |
| CapEx | 234M | 250M | 183M | 221M | 285M | 205M | 146M | 223M | 292M | 301M | 371M | 383M | 344M |
| Maint. CapEx | 332M | 364M | 352M | 353M | 362M | 397M | 289M | 294M | 319M | 344M | 375M | 372M | 2.4B |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11M | 0 |
| D&A | 332M | 364M | 352M | 353M | 362M | 397M | 289M | 294M | 319M | 344M | 375M | 372M | 2.4B |
| CapEx/OCF | 24.0% | 29.3% | 12.0% | 14.5% | 26.0% | 10.7% | 10.2% | 14.0% | 19.4% | 12.6% | 11.8% | 12.0% | 9.9% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 265M | 303M | 349M | 430M | 480M | 510M | 507M | 561M | 620M | 684M | 758M | 837M | 859M |
| Dividend Yield | 2.5% | 2.8% | 3.1% | 2.9% | 3.0% | 2.5% | 2.1% | 1.4% | 1.8% | 1.6% | 1.0% | 0.9% | 0.8% |
| Share Buybacks | 1.4B | 250M | 250M | 1.0B | 900M | 750M | 250M | 1.1B | 1.2B | 669M | 1.3B | 1.5B | 1.3B |
| Buyback Yield | 9.3% | 2.0% | 1.5% | 5.0% | 4.4% | 3.2% | 0.8% | 2.4% | 3.2% | 1.2% | 1.5% | 1.7% | 1.2% |
| Stock-Based Comp | 64M | 62M | 62M | 71M | 79M | 66M | 70M | 67M | 56M | 64M | 83M | 87M | 91M |
| Debt Repayment | 508M | 24M | 0 | 7.7M | 1.1B | 7.5M | 308M | 433M | 9.6M | 755M | 507M | 159M | 159M |
| Balance Sheet | |||||||||||||
| Net Debt | 2.6B | 3.6B | 2.5B | 2.5B | 3.2B | 4.9B | 2.0B | 2.7B | 3.6B | 3.7B | 2.7B | 2.9B | 5.0B |
| Cash & Equiv. | 1.7B | 737M | 1.7B | 1.5B | 878M | 1.3B | 3.3B | 2.2B | 1.2B | 1.1B | 1.6B | 1.8B | -14M |
| Long-Term Debt | 3.7B | 3.7B | 3.7B | 3.0B | 3.7B | 4.9B | 4.5B | 4.5B | 3.8B | 4.0B | 4.3B | 3.9B | 3.9B |
| Debt/Equity | 0.72 | 0.75 | 0.63 | 0.57 | 0.58 | 0.84 | 0.82 | 0.77 | 0.79 | 0.68 | 0.64 | 0.54 | 0.58 |
| Interest Coverage | 6.2 | 6.7 | 7.2 | 7.7 | 6.8 | 6.9 | 6.2 | 8.7 | 10.8 | 12.3 | 14.7 | 17.5 | 17.5 |
| Equity | 6.0B | 5.8B | 6.6B | 7.1B | 7.0B | 7.3B | 6.4B | 6.3B | 6.1B | 7.0B | 7.5B | 8.6B | 8.6B |
| Total Assets | 17.3B | 16.7B | 17.4B | 18.2B | 17.9B | 20.5B | 18.2B | 18.1B | 18.1B | 19.4B | 20.1B | 21.4B | 22.8B |
| Total Liabilities | 11.3B | 10.8B | 10.7B | 11.0B | 10.9B | 13.2B | 11.7B | 11.8B | 12.0B | 12.4B | 12.7B | 12.8B | 14.1B |
| Intangibles | 3.8B | 3.9B | 3.8B | 3.7B | 3.6B | 3.3B | 3.3B | 3.3B | 3.3B | 3.4B | 3.3B | 3.2B | 3.6B |
| Retained Earnings | 6.5B | 6.9B | 8.0B | 8.9B | 9.4B | 9.7B | 8.5B | 8.4B | 8.3B | 9.1B | 9.8B | 10.4B | 10.5B |
| Working Capital | 2.0B | 961M | 2.0B | 1.3B | 1.4B | 4.1B | 2.6B | 1.7B | 692M | 816M | 1.3B | 1.6B | 695M |
| Current Assets | 5.7B | 4.6B | 5.6B | 6.1B | 5.7B | 9.3B | 6.9B | 6.5B | 6.4B | 6.9B | 7.3B | 7.9B | 8.0B |
| Current Liabilities | 3.7B | 3.6B | 3.6B | 4.8B | 4.3B | 5.2B | 4.3B | 4.8B | 5.7B | 6.1B | 6.1B | 6.3B | 7.3B |
| Per Share Data | |||||||||||||
| EPS | 3.40 | 2.48 | 5.65 | 5.05 | 5.35 | 5.77 | 3.52 | 5.87 | 7.48 | 8.77 | 11.24 | 12.98 | 12.67 |
| Owner EPS | 2.11 | 1.73 | 4.24 | 4.26 | 3.87 | 5.95 | 4.43 | 5.06 | 4.81 | 8.59 | 11.77 | 12.17 | 4.51 |
| Book Value | 21.85 | 21.71 | 25.43 | 27.68 | 28.09 | 29.72 | 26.38 | 25.80 | 25.93 | 30.31 | 32.64 | 38.15 | 38.51 |
| Cash Flow/Share | 3.55 | 3.32 | 5.82 | 5.91 | 5.63 | 7.85 | 5.91 | 6.55 | 6.40 | 10.35 | 13.77 | 14.21 | 23.68 |
| Dividends/Share | 1.00 | 1.16 | 1.16 | 1.70 | 1.96 | 2.12 | 2.12 | 2.36 | 2.68 | 3.00 | 3.36 | 3.76 | 3.85 |
| Shares Out. | 274.0M | 268.0M | 261.3M | 257.9M | 250.0M | 244.5M | 242.9M | 242.5M | 234.8M | 230.8M | 228.5M | 224.9M | 223.1M |
| Valuation | |||||||||||||
| P/E Ratio | 15.9 | 19.1 | 11.7 | 15.7 | 15.4 | 16.6 | 38.4 | 32.6 | 21.7 | 27.3 | 33.0 | 30.2 | 38.0 |
| P/FCF | 15.5 | 15.4 | 10.0 | 12.2 | 14.2 | 13.7 | 25.5 | 34.0 | 31.4 | 26.5 | 30.5 | 31.4 | 34.2 |
| EV/EBIT | 11.4 | 10.9 | 11.4 | 13.5 | 12.1 | 16.3 | 21.1 | 23.4 | 17.1 | 20.3 | 24.8 | 22.7 | 28.6 |
| Price/Book | 2.5 | 2.2 | 2.6 | 2.9 | 2.9 | 3.2 | 5.1 | 7.4 | 6.2 | 7.9 | 11.4 | 10.3 | 12.5 |
| Price/Sales | 1.1 | 1.1 | 1.1 | 1.4 | 1.3 | 1.6 | 2.0 | 2.9 | 2.2 | 2.5 | 3.8 | 4.2 | 5.0 |
| FCF Yield | 5.0% | 5.0% | 7.8% | 6.4% | 5.5% | 7.3% | 3.9% | 2.9% | 3.2% | 3.8% | 3.3% | 3.2% | 2.9% |
| Market Cap | 14.8B | 12.7B | 17.2B | 20.4B | 20.6B | 23.5B | 32.9B | 46.5B | 38.0B | 55.3B | 84.7B | 88.3B | 107.3B |
| Avg. Price | 38.59 | 40.89 | 42.89 | 58.35 | 64.82 | 83.04 | 101.79 | 167.97 | 148.33 | 189.33 | 329.49 | 398.55 | 480.99 |
| Year-End Price | 41.84 | 36.65 | 51.17 | 61.37 | 63.92 | 96.01 | 135.33 | 191.58 | 161.95 | 239.63 | 370.84 | 392.59 | 480.99 |
Trane Technologies plc passes 7 of 9 quality checks, indicating strong fundamentals.
Trane Technologies plc trades at 37.1x trailing earnings, compared to its 15-year median P/E of 24.5x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 38.5x vs a median of 26.0x. The company's 5-year average ROIC is 24.0%. Total shareholder yield (dividends + buybacks) is 2.0%. At current prices, the estimated annualized return to fair value is +14.9%.
Trane Technologies plc (TT) reported annual revenue of $21.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Trane Technologies plc (TT) has a net profit margin of 13.7%. This is a healthy margin.
Trane Technologies plc (TT) generated $2.8 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Trane Technologies plc (TT) has a debt-to-equity ratio of 0.54. This indicates moderate leverage.
Trane Technologies plc (TT) reported earnings per share (EPS) of $12.98 in its most recent fiscal year.
Trane Technologies plc (TT) has a return on equity (ROE) of 36.4%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 19 years of financial data for Trane Technologies plc (TT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Trane Technologies plc (TT) has a book value per share of $38.15, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects 2026 to deliver progressively stronger performance, with commercial HVAC—representing 70% of revenues—continuing to execute at high levels and significantly outperform end markets, supported by record backlog of $10.7 billion and robust pipelines across key verticals including data centers, higher education, government, and healthcare. Residential markets are anticipated to improve in the second half of 2026 against easier prior-year comparisons after a challenging first half, while transport refrigeration markets are expected to turn positive in late 2026 and into 2027 following a recovery that began in the first half of 2026. The company expects to mitigate tariff and inflationary pressures through its business operating system and disciplined execution, with operational leverage of 25% or higher targeted for the full year, and management remains committed to deploying 100% of excess cash through strategic M&A and share repurchases to enhance long-term shareholder returns.
Based on recent SEC filings and earnings calls, Trane Technologies plc (TT) has provided the following forward guidance: Organic revenue growth: approximately 7% (FY2026); Adjusted EPS: $14.75–$14.95 (FY2026).