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Trane Technologies (TT)
NYSE:TT
Earnings Data
Report Date
May 06, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
2.53Last Year’s EPS
2.45Same Quarter Last Year
Moderate Buy
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call portrayed a solid, growth-oriented outlook driven by exceptional bookings, record backlog, strong services momentum, robust free cash flow, disciplined capital allocation, and confident 2026 guidance. These positives were balanced against near-term headwinds: residential weakness and intentional production cuts (causing Q4 deleverage), China/Asia softness, margin pressure from M&A and investments, and tariff/input-cost inflation. Management presented clear actions (inventory normalization, hedging, targeted M&A like Stellar Energy) and expects the commercial backlog and applied solutions strength to drive acceleration through 2026.Company Guidance
Record Bookings and Backlog
Enterprise organic bookings increased 22% in Q4, driving a record backlog of $7.8 billion. Commercial HVAC backlog rose ~25% in The Americas and nearly 40% in EMEA versus year-end 2024.
Exceptional Commercial HVAC and Applied Solutions Momentum
America's commercial HVAC bookings were up >35% year-over-year; Applied solutions bookings rose >120% with a record book-to-bill of 200%, marking the second consecutive quarter of >100% applied bookings growth.
Top-Line and EPS Growth
Q4 organic revenue grew 4% (7% excluding residential). The company delivered 10% adjusted EPS growth in Q4 and exceeded full-year adjusted EPS guidance for 2025.
Strong Services Performance and Durable Growth Engine
Services represent about one-third of enterprise revenue and have delivered a low-teens CAGR since 2020, contributing consistent, higher-margin recurring revenue and long services tails on applied projects.
Robust Free Cash Flow and Capital Allocation
Free cash flow remained robust with historical free cash flow conversion of ~106% (since 2020). In 2025 the company deployed/committed ~$3.2 billion (≈$840M dividends, ~$720M M&A, ~$1.5B share repurchases) and expects to deploy $2.8–$3.3B in 2026 with $4.7B remaining repurchase authorization.
Long-Term Financial Track Record (Since 2020)
Since 2020: revenue CAGR of 11%, adjusted EPS CAGR of 24%, adjusted EBITDA margin expansion of ~470 basis points, and >$15 billion deployed through the company’s capital allocation strategy.
Confident 2026 Guidance
Initial 2026 guidance: 6%–7% organic revenue growth, adjusted EPS $14.65–$14.85 (≈12%–14% growth), reported revenue growth 8.5%–9.5% (including ~50 bps FX and ~200 bps M&A). Targeting organic incremental leverage ≥25% and free cash flow conversion ≥100%.
Strategic M&A to Enhance Capabilities
Announced acquisition of Stellar Energy (modular data center cooling) expected to close in Q1 2026 and deliver modest EPS accretion in 2026 after integration costs; M&A expected to contribute ~200 bps to reported growth in 2026.
Commercial Outperformance vs End Markets
Commercial HVAC and services outperformed several end markets: Americas transport refrigeration revenues and bookings declined less than broader transport market declines (>20%), and EMEA commercial HVAC delivered mid- to high-teens bookings growth.
TT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jan 29, 2026 | $394.20 | $426.07 | +8.08% |
Oct 31, 2025 | $445.33 | $447.61 | +0.51% |
Jul 30, 2025 | $468.82 | $429.46 | -8.40% |
Apr 30, 2025 | $351.05 | $380.72 | +8.45% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Trane Technologies (TT) report earnings?
Trane Technologies (TT) is schdueled to report earning on May 06, 2026, Before Open (Confirmed).
What is Trane Technologies (TT) earnings time?
Trane Technologies (TT) earnings time is at May 06, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TT EPS forecast?
TT EPS forecast for the fiscal quarter 2026 (Q1) is 2.53.