Trane Technologies plc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.98%.
Did TT Beat Earnings? Q4 2025 Results
Trane Technologies closed out Q4 2025 with a clean beat on both top and bottom lines, posting adjusted EPS of $2.86 against a consensus estimate of $2.82, a 1.42% beat, while revenue of $5.14 billion edged past the $5.12 billion estimate and grew 5.5% year over year. The driving force behind the quarter was unmistakable: Americas Commercial HVAC delivered organic bookings growth exceeding 35%, with applied equipment bookings surging more than 120% and an applied book-to-bill ratio reaching 200%, helping lift the company's enterprise backlog to a record $7.80 billion, up 15% from year-end 2024. That backlog depth provides unusually strong revenue visibility heading into 2026, a meaningful comfort for investors in an environment where <a href="https://247wallst.com/investing/2025/12/09/toll-brothers-posts-sixth-straight-earnings-beat-but-stock-drops-on-tepid-growth/">earnings beats alone</a> don't always translate to sustained confidence. Management guided full-year 2026 reported revenue growth of approximately 8.5% to 9.5% and adjusted EPS of $14.65 to $14.85, signaling continued momentum even as residential HVAC and transport refrigeration markets remain under pressure.
- Americas Commercial HVAC bookings up more than 35%, with applied equipment bookings up more than 120%
- Record enterprise backlog of $7.8 billion, up 15% versus year-end 2024
- Strong volume, positive price realization and productivity more than offset inflation
- Book-to-bill of 112%, global Commercial HVAC book-to-bill of 114%
- Applied book-to-bill of 200% in Americas
“Thanks to our purpose-driven strategy, talented team and disciplined execution, 2025 was another strong year for our company. We achieved strong revenue growth, adjusted earnings per share growth and free cash flow conversion, despite challenging markets in residential and transport refrigeration.”
Trane Technologies CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, Trane Technologies expects reported revenue growth of approximately 8.5% to 9.5% and organic revenue growth of approximately 6% to 7% versus full-year 2025. The company expects GAAP and adjusted continuing EPS for full-year 2026 of $14.65 to $14.85. The company expects to continue to pay a competitive and growing dividend and to deploy 100% of excess cash to shareholders over time.
TT YoY Financials
TT Revenue by Segment
TT Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.