Trane Technologies Plc (TT)
NYSE:TT
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Trane Technologies
(NYSE:TT)
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Rating:74Outperform
Price Target:
$527.00
â–²(10.69% Upside)
Action:Reiterated
Date:06/10/26
The score is driven primarily by strong financial performance (high margins, solid free cash flow, and strong returns) and a favorable earnings update with raised guidance and robust backlog/bookings. These positives are tempered by a premium valuation and only mixed technical momentum despite an overall uptrend.
Positive Factors
Strong cash generation & margins
Sustained high margins and very strong free cash flow conversion provide durable capacity to fund dividends, buybacks, M&A and organic investment. This cash generation underpins capital allocation flexibility and resilience through construction cycles, supporting long-term returns.
Negative Factors
Transport market weakness
Exposure to a weak, timing‑sensitive transport refrigeration market creates ongoing revenue volatility and can depress segment margins. Large customer delivery timing amplifies quarter-to-quarter swings, limiting predictability of consolidated revenue and margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & margins
Sustained high margins and very strong free cash flow conversion provide durable capacity to fund dividends, buybacks, M&A and organic investment. This cash generation underpins capital allocation flexibility and resilience through construction cycles, supporting long-term returns.
Read all positive factors
Trane Technologies Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyTrane Technologies (TT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$101.72B
Dividend Yield0.95%
Average Volume (3M)1.38M
Price to Earnings (P/E)35.4
Beta (1Y)1.08
Revenue Growth6.36%
EPS Growth7.42%
CountryUS
Employees45,000
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)13.03
Shares Outstanding221,055,480
10 Day Avg. Volume1,499,374
30 Day Avg. Volume1,378,574
Financial Highlights & Ratios
PEG Ratio2.07
Price to Book (P/B)10.12
Price to Sales (P/S)4.08
P/FCF Ratio30.95
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue4.78
Enterprise Value/Gross Profit13.31
Enterprise Value/Ebitda24.31
Forecast
1Y Price Target
$530.64Price Target Upside11.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)14.91
Revenue Forecast (FY)$23.38B
Trane Technologies Business Overview & Revenue Model
Company Description
Trane Technologies plc operates as a global innovator in climate control, focusing on the design, production, sales, and servicing of heating, ventilation, air conditioning (HVAC), and transport refrigeration solutions. The company offers a compre...
How the Company Makes Money
Trane Technologies primarily makes money by selling equipment and providing recurring aftermarket services tied to its installed base. The core revenue streams are: (1) New equipment sales: revenue from manufacturing and selling HVAC systems and r...
Trane Technologies Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and demand picture: robust bookings (+24%), record backlog ($10.7B), commercial HVAC and applied solutions significantly outperforming, and raised FY guidance for revenue and adjusted EPS. These positives are tempered by regional headwinds (China, Middle East), tariff/inflation pressures, and a weak transport market with near‑term timing volatility. Overall, the company appears well positioned with strong cash generation, active M&A and buyback capacity, and confidence in acceleration into the second half of the year.Positive Updates
Enterprise Bookings and Backlog Surge
Enterprise organic bookings up 24% in Q1; record backlog of $10.7 billion (noted as >30% vs year-end 2025) with management also citing backlog up nearly 70% year-over-year; Q1 book-to-bill approximately 150%, providing strong revenue visibility.
Negative Updates
China and Asia Pacific Headwinds
China remains a challenging market with dynamic macro conditions; company expects Asia Pacific overall to be flattish for 2026 with the rest of Asia stronger (rest‑of‑Asia bookings up ~50%) but China weighing on regional performance.
Read all updates
Q1-2026 Updates
Positive
Negative
Enterprise Bookings and Backlog Surge
Enterprise organic bookings up 24% in Q1; record backlog of $10.7 billion (noted as >30% vs year-end 2025) with management also citing backlog up nearly 70% year-over-year; Q1 book-to-bill approximately 150%, providing strong revenue visibility.
Read all positive updates
Company Guidance
Trane raised its 2026 outlook, increasing organic revenue growth guidance to ~7% (high end of prior 6–7%), reported revenue guidance to ~9.5% (including ~2 pts M&A and ~50 bps favorable FX), and boosting adjusted EPS to $14.75–$14.95 (≈13–15% growth, up from $14.65–$14.85); Q2 guidance calls for roughly 5% organic revenue growth and adjusted EPS of $4.20–$4.25 (Dave also cited ~10% Q2 revenue growth based on backlog), with revenues expected to accelerate to low‑teens in H2 and operating leverage moving from high‑teens in Q1 into the mid‑/high‑20s for the year. Management highlighted a record backlog of $10.7B (noted as >30% vs YE‑2025 and cited elsewhere as nearly +70% YoY), Q1 enterprise organic bookings +24%, book‑to‑bill ~150%, Americas Commercial HVAC bookings ~+40% (Applied Solutions >+160%), services (≈1/3 of revenue) growing double digits, transport market expected mid‑single‑digit decline for FY2026 (Q2 down ~mid‑teens), an EMEA Q2 headwind ≈$50M revenue/≈$0.05 EPS, APAC flattish, CapEx raised to ~2–3% of revenue, and capital deployment of $2.8–$3.3B in 2026 including ~$900M dividends (12% increase to $4.20/sh), ~$340M M&A YTD and ~$300M buybacks YTD with ~$4.4B remaining authorization.Trane Technologies Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.60B | 21.32B | 19.84B | 17.68B | 15.99B | 14.14B |
| Gross Profit | 7.76B | 7.71B | 7.08B | 5.86B | 4.96B | 4.47B |
| EBITDA | 4.25B | 4.17B | 3.86B | 3.15B | 2.72B | 2.32B |
| Net Income | 2.90B | 2.92B | 2.57B | 2.02B | 1.76B | 1.42B |
Balance Sheet | ||||||
| Total Assets | 22.75B | 21.42B | 20.15B | 19.39B | 18.08B | 18.06B |
| Cash, Cash Equivalents and Short-Term Investments | 1.07B | 1.76B | 1.59B | 1.10B | 1.22B | 2.16B |
| Total Debt | 4.62B | 4.62B | 5.38B | 4.78B | 4.84B | 4.84B |
| Total Liabilities | 14.14B | 12.82B | 12.66B | 12.37B | 11.98B | 11.79B |
| Stockholders Equity | 8.61B | 8.60B | 7.46B | 7.00B | 6.11B | 6.27B |
Cash Flow | ||||||
| Free Cash Flow | 3.16B | 2.81B | 2.77B | 2.09B | 1.21B | 1.37B |
| Operating Cash Flow | 3.50B | 3.19B | 3.15B | 2.39B | 1.50B | 1.59B |
| Investing Cash Flow | -1.01B | -640.00M | -562.90M | -1.17B | -540.40M | -545.70M |
| Financing Cash Flow | -2.31B | -2.50B | -2.02B | -1.35B | -1.85B | -2.13B |
Trane Technologies Technical Analysis
Positive
476.11
Price Trends
463.69
Negative
447.52
Positive
427.40
Positive
Market Momentum
-1.26
Negative
50.11
Neutral
60.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TT, the sentiment is Positive. The current price of 476.11 is above the 20-day moving average (MA) of 457.35, above the 50-day MA of 463.69, and above the 200-day MA of 427.40, indicating a neutral trend. The MACD of -1.26 indicates Negative momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 60.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TT.
Trane Technologies Risk Analysis
Trane Technologies disclosed 28 risk factors in its most recent earnings report. Trane Technologies reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Trane Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $101.72B | 35.42 | 34.71% | 0.95% | 6.36% | 7.42% | |
71 Outperform | $87.86B | 24.75 | 25.46% | 1.27% | -0.60% | 49.11% | |
69 Neutral | $57.92B | 44.45 | 9.28% | 1.65% | -5.07% | -65.16% | |
67 Neutral | $17.99B | 22.98 | 72.05% | 0.96% | -2.03% | -1.09% | |
66 Neutral | $13.80B | 19.19 | 38.36% | 1.28% | -0.53% | -1.29% | |
65 Neutral | $10.54B | 89.04 | 13.40% | 0.53% | 28.27% | -25.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
TT
Trane Technologies
460.14
39.75
9.45%
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Trane Technologies Corporate Events
Business Operations and StrategyExecutive/Board Changes
Trane Technologies Names Donny Simmons Chief Operating Officer
Positive
Jun 10, 2026
On June 10, 2026, Trane Technologies announced that Donny (Donald E.) Simmons, a 25-year company veteran, has been appointed Executive Vice President and Chief Operating Officer, effective July 1, 2026, reporting to Chair and CEO Dave Regnery. Sim...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Trane Technologies Shareholders Approve Directors and Governance Measures
Positive
Jun 5, 2026
At its 2026 Annual General Meeting, Trane Technologies’ shareholders elected all eleven director nominees to serve until the next annual meeting and gave advisory approval to the compensation of the company’s named executive officers. ...
Business Operations and StrategyPrivate Placements and Financing
Trane Technologies Expands Revolving Credit to Boost Liquidity
Positive
Apr 24, 2026
On April 23, 2026, Trane Technologies Holdco Inc. and Trane Technologies Financing Limited entered into a new $1.5 billion senior unsecured revolving credit agreement with a syndicate of banks, backed by guarantees from several Trane Technologies ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.