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1. Company Snapshot

1.a. Company Description

Trane Technologies plc, together with its subsidiaries, engages in the designing, manufacturing, selling, and servicing of solutions for heating, ventilation, air conditioning, and transport refrigeration.It offers air conditioners, exchangers, and handlers; airside and terminal devices; auxiliary power units; chillers; coils and condensers; gensets; furnaces; heat pumps; home automation products; humidifiers; hybrid and non-diesel transport refrigeration, and ice energy storage solutions; indoor air quality assessments and related products; large and light commercial unitary products; motor replacements; refrigerant reclamation products; thermostats/controls; transport heater products; variable refrigerant flow products; and water source heat pumps.The company also provides building management, control, ductless, geothermal, package heating and cooling, temporary heating and cooling, and unitary systems; bus, rail, and multi-pipe heating, ventilation, and air conditioning systems; and container, cryogenic, diesel-powered, electric-powered trailer and truck, hybrid-powered trailer, industrial, rail, self-powered truck, trailer, and vehicle-powered truck refrigeration systems, as well as aftermarket and OEM parts and supplies.


In addition, it offers energy and facility management, installation and performance contracting, repair and maintenance, and rental services.It markets and sells its products under the Trane and Thermo King brands through sales offices, distributors, and dealers in the United States; and through sales and service companies with a supporting chain of distributors worldwide.The company was formerly known as Ingersoll-Rand Plc and changed its name to Trane Technologies plc in March 2020.


Trane Technologies plc was founded in 1885 and is headquartered in Swords, Ireland.

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1.b. Last Insights on TT

Trane Technologies' recent performance was driven by strong HVAC demand, AI-driven sustainability, and rising earnings. The company reported Q3 earnings of $3.88 per share, beating estimates, and revenue growth was fueled by high demand in the Americas. Its FY 2025 guidance remains steady at $13.050 EPS. Analysts have a consensus "Hold" rating, with 6 buy ratings and 9 hold ratings. The company's solid Q3 profit growth and strong bookings position it for continued growth.

1.c. Company Highlights

2. Trane Technologies' Q3 2025 Earnings: A Strong Performance Driven by Sustainable Infrastructure

Trane Technologies reported a robust Q3 2025, with record quarterly bookings of $6 billion, representing 13% organic growth year-over-year. The company's adjusted operating margin expanded by 170 basis points, and adjusted EPS grew by 15% to $3.88, beating estimates of $3.8. The strong financial performance was driven by the Commercial HVAC business, particularly in the Americas, where bookings reached an all-time high, surging 30% year-over-year.

Publication Date: Nov -01

📋 Highlights
  • Record Quarterly Bookings:: Trane Technologies achieved $6 billion in bookings, reflecting 13% organic year-over-year growth.
  • Commercial HVAC Outperformance:: Americas Commercial HVAC bookings surged 30% YoY, with applied bookings more than doubling and 3-year stack revenue growth hitting 50%.
  • Revised 2025 Guidance:: Adjusted EPS guidance raised to $12.95–$13.05 (15–16% YoY growth), with 6% organic revenue growth projected despite Residential and Transport headwinds.
  • Capital Allocation Strategy:: $2.4 billion deployed year-to-date, including $1.25 billion in share repurchases and $840 million in dividends, targeting 30%+ operating leverage in 2025.
  • Services Growth Momentum:: Services (1/3 of revenue) delivered low-teens CAGR, with $4.1 billion in backlog and expansion plans driven by connected systems like BrainBox AI’s 65k+ buildings.

Segment Performance

The Commercial HVAC business delivered outstanding performance, with the Americas region significantly outperforming end markets, achieving a 3-year stack revenue growth of approximately 50% in Q1 through Q3 of 2025. The Services business, comprising about 1/3 of enterprise revenues, is a key driver underpinning growth in 2026 and years to come, with a compound annual growth rate in the low teens. The Residential HVAC business saw a decline in revenue due to industry-wide inventory imbalances, but the company's price discipline is expected to hold up as inventory destocking plays out.

Guidance and Outlook

Trane Technologies revised its 2025 guidance, anticipating approximately 6% organic revenue growth, and expects adjusted EPS to grow by 15% to 16% year-over-year. The company guides for 30% plus operating leverage on organic revenue growth and expects continued strong growth in its Commercial HVAC businesses. Analysts estimate next year's revenue growth at 7.6%, indicating a positive outlook for the company's future performance.

Valuation

Trane Technologies' current valuation metrics indicate a premium valuation, with a P/E Ratio of 34.07 and P/B Ratio of 11.97. The company's EV/EBITDA ratio is 23.94, and its ROIC is 20.49%, indicating strong profitability. The Dividend Yield is 0.82%, and the Free Cash Flow Yield is 2.56%. These metrics suggest that the market has priced in the company's strong growth prospects, but the stock may still offer value to investors seeking exposure to the sustainable infrastructure sector.

Growth Drivers

The company's growth drivers include the increasing demand for cooling solutions in the data center business, with lead times currently 12-18 months. The acquisition of BrainBox AI is contributing to the growth of Trane's connected services business, with over 65,000 connected buildings. The Services business is expected to maintain high single-digit growth, driven by a competitive advantage and a business operating system.

3. NewsRoom

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Trane To Buy Stellar Energy Digital To Meet Rising Data Center Needs

Dec -03

Source: feeds.benzinga.com

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Trane Technologies plc $TT Shares Bought by 1832 Asset Management L.P.

Dec -03

Source: defenseworld.net

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Trane Technologies to Acquire Stellar Energy Digital Business

Dec -02

Source: businesswire.com

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Trane Technologies and AWS Collaborate to Accelerate Energy Efficiency and Building Decarbonization across Amazon Grocery Fulfillment Centers in North America

Dec -01

Source: businesswire.com

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Trane Technologies plc $TT Shares Sold by Brentview Investment Management LLC

Dec -01

Source: defenseworld.net

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BLI Banque de Luxembourg Investments Takes $3.67 Million Position in Trane Technologies plc $TT

Dec -01

Source: defenseworld.net

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Bank Julius Baer & Co. Ltd Zurich Lowers Holdings in Trane Technologies plc $TT

Nov -24

Source: defenseworld.net

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Archer Investment Corp Raises Stock Holdings in Trane Technologies plc $TT

Nov -21

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.57%)

6. Segments

Americas

Expected Growth: 5.7%

Growing demand for energy-efficient HVAC solutions and increasing adoption of transport refrigeration solutions in the US, Canada, and Latin America drive growth for Trane Technologies’ Americas segment.

Europe, Middle East & Africa

Expected Growth: 5.5%

Growing demand for energy-efficient climate control solutions, increasing adoption of digital technologies, and stringent government regulations drive growth in Trane Technologies’ EMEA region.

Asia Pacific

Expected Growth: 4.2%

Growing demand for energy-efficient HVAC systems, increasing infrastructure development, and rising adoption of IoT-based building management systems drive Trane Technologies’ Asia Pacific segment growth.

7. Detailed Products

Heating, Ventilation and Air Conditioning (HVAC) Systems

Trane Technologies provides a range of HVAC systems for residential, commercial, and industrial applications, including air conditioners, heat pumps, furnaces, and boilers.

Building Management Systems (BMS)

Trane Technologies offers BMS solutions that integrate HVAC, lighting, security, and other building systems to optimize energy efficiency and building performance.

Refrigeration Systems

Trane Technologies provides refrigeration systems for supermarkets, cold storage facilities, and industrial processes, ensuring optimal temperature control and food safety.

Transport Refrigeration Systems

Trane Technologies offers transport refrigeration systems for trucks, trailers, and containers, ensuring temperature control during transportation of perishable goods.

Air Quality and Filtration Systems

Trane Technologies provides air quality and filtration systems for residential, commercial, and industrial applications, improving indoor air quality and reducing airborne contaminants.

Energy Services and Solutions

Trane Technologies offers energy services and solutions, including energy audits, retro-commissioning, and energy management systems, to help customers reduce energy consumption and costs.

8. Trane Technologies plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Trane Technologies plc operates in the HVAC industry, where substitutes are limited. However, the increasing popularity of renewable energy sources and energy-efficient solutions could pose a moderate threat to the company's products.

Bargaining Power Of Customers

Trane Technologies plc has a diverse customer base, including commercial, industrial, and residential customers. The company's strong brand reputation and wide range of products reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Trane Technologies plc relies on a network of suppliers for components and materials. While the company has some bargaining power due to its size, suppliers of specialized components may have some negotiating power.

Threat Of New Entrants

The HVAC industry has high barriers to entry, including significant capital requirements and regulatory hurdles. New entrants would need to invest heavily in research and development, manufacturing, and marketing to compete with established players like Trane Technologies plc.

Intensity Of Rivalry

The HVAC industry is highly competitive, with several established players competing for market share. Trane Technologies plc faces intense competition from companies like Carrier Global Corporation, Johnson Controls International plc, and Lennox International Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.59%
Debt Cost 6.09%
Equity Weight 59.41%
Equity Cost 9.90%
WACC 8.35%
Leverage 68.33%

11. Quality Control: Trane Technologies plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BAE Systems

A-Score: 5.7/10

Value: 2.4

Growth: 6.9

Quality: 4.8

Yield: 4.4

Momentum: 9.5

Volatility: 6.3

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Inwido

A-Score: 5.3/10

Value: 6.2

Growth: 4.7

Quality: 5.4

Yield: 6.9

Momentum: 4.0

Volatility: 4.7

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Saint-Gobain

A-Score: 5.2/10

Value: 4.8

Growth: 5.8

Quality: 4.3

Yield: 4.4

Momentum: 6.5

Volatility: 5.7

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Johnson Controls

A-Score: 5.2/10

Value: 1.6

Growth: 4.9

Quality: 5.6

Yield: 3.8

Momentum: 8.5

Volatility: 7.0

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Trane Technologies

A-Score: 5.1/10

Value: 1.1

Growth: 7.3

Quality: 7.4

Yield: 2.5

Momentum: 5.5

Volatility: 7.0

1-Year Total Return ->

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Geberit

A-Score: 4.9/10

Value: 0.9

Growth: 3.7

Quality: 7.2

Yield: 1.9

Momentum: 6.5

Volatility: 9.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

401.43$

Current Price

401.43$

Potential

-0.00%

Expected Cash-Flows