Trane Technologies (NYSE: TT) boosts 2026 guidance on record backlog and solid Q1
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Trane Technologies reported solid first‑quarter 2026 results and raised its full‑year outlook. Net revenues were $4.97 billion, up 6% year over year, with organic revenue up 3%. Adjusted EBITDA reached $881 million and adjusted continuing EPS was $2.63, up 7%.
Bookings were very strong at $6.7 billion, up 27%, driving a record backlog of $10.7 billion, more than 30% above year‑end 2025. Free cash flow improved sharply to $573 million, and the company deployed about $0.9 billion year‑to‑date for dividends, M&A and share repurchases.
For full‑year 2026, Trane now expects reported revenue growth of about 9.5% and organic revenue growth of about 7%, with GAAP and adjusted continuing EPS of roughly $14.75 to $14.95, reflecting confidence in demand and execution across its HVAC and climate businesses.
Positive
- Raised 2026 outlook: Company now targets about 9.5% reported revenue growth, 7% organic revenue growth and GAAP/adjusted continuing EPS of $14.75–$14.95 for full‑year 2026, indicating higher confidence in performance.
- Demand and backlog strength: Q1 2026 bookings grew 27% to $6.69 billion and backlog reached a record $10.7 billion, more than 30% above year‑end 2025, supporting future revenue.
- Improving earnings and cash flow: Adjusted continuing EPS rose 7% to $2.63 and free cash flow increased to $573 million from $230 million, enhancing financial flexibility for dividends, M&A and share repurchases.
Negative
- None.
Insights
Strong demand, record backlog and higher guidance signal healthy underlying momentum.
Trane Technologies delivered 6% revenue growth to $4.97 billion and 7% adjusted EPS growth to $2.63 in Q1 2026. Bookings rose 27% and backlog reached a record $10.7 billion, giving substantial visibility into future revenue.
Margins compressed modestly, with GAAP operating margin down 190 basis points and adjusted margin down 20 basis points, but adjusted EBITDA still increased 4% to $881 million. Cash generation was a highlight: free cash flow jumped to $573 million, supporting $0.9 billion of capital deployed or committed to dividends, M&A and buybacks year‑to‑date.
Management raised 2026 guidance to about 9.5% reported and 7% organic revenue growth, and GAAP and adjusted continuing EPS of $14.75–$14.95. That upgraded outlook, backed by strong Americas and Asia Pacific performance and a sizable backlog, makes this update meaningfully positive for the company’s medium‑term growth narrative.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 net revenues: $4,969.4 million
Q1 2026 adjusted continuing EPS: $2.63 per share
Q1 2026 bookings: $6,691 million
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8 metrics
Q1 2026 net revenues
$4,969.4 million
Up 6% year over year; organic revenue up 3%
Q1 2026 adjusted continuing EPS
$2.63 per share
Up 7% vs $2.45 in Q1 2025
Q1 2026 bookings
$6,691 million
Up 27% year over year; organic bookings up 24%
Backlog
$10.7 billion
Record level, up over 30% vs year‑end 2025
Q1 2026 adjusted EBITDA
$881.3 million
Adjusted EBITDA margin 17.7% vs 18.1% in Q1 2025
Free cash flow year‑to‑date
$573.3 million
For three months ended March 31, 2026; vs $230.2 million in 2025
2026 EPS guidance
$14.75–$14.95
Expected GAAP and adjusted continuing EPS for full‑year 2026
2026 revenue growth guidance
9.5% reported, 7% organic
Expected full‑year 2026 vs full‑year 2025
Key Terms
Adjusted EBITDA, organic bookings, free cash flow, book-to-bill, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA* | $881 | $851 | 4% | Adjusted EBITDA Margin*"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
organic bookings financial
"Organic bookings* up 24 percent, led by Americas Commercial HVAC"
Organic bookings are the value of new orders or sales a company records during a period after removing growth that comes from acquisitions, divestitures or currency swings. Investors watch organic bookings as a cleaner measure of how well a company’s underlying business and sales teams are actually winning new customers and demand — like measuring how many new seedlings grew in your garden rather than counting potted plants you bought.
free cash flow financial
"Free Cash Flow Y-T-D* | $573 | $230 | $343"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
book-to-bill financial
"Book-to-bill was 135 percent, led by global Commercial HVAC."
The book-to-bill ratio compares new orders a company has received (bookings) to the products or services it has invoiced or shipped (billings) over the same period. It matters to investors because a ratio above 1 means demand is outpacing fulfillment and the company may grow revenue or build backlog, while a ratio below 1 suggests slowing demand and possible future revenue weakness — think of it as new customer orders versus what the company actually sold.
non-GAAP financial measures regulatory
"This news release contains non-GAAP financial measures. Definitions of the non-GAAP"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
adjusted operating margin financial
"Adjusted Operating Margin* | 16.0% | 16.2% | (20) bps"
Adjusted operating margin shows how much profit a company makes from its core business activities, after removing unusual or one-time costs and income. It helps investors see the company's true profitability by providing a clearer picture, similar to removing unexpected expenses to understand the regular performance. This metric is useful for comparing companies or tracking performance over time, as it highlights consistent earning power.
Earnings Snapshot
Net revenues: $4,969.4 million · Guidance included
Q1 2026
Net revenues
$4,969.4 million
up 6% year over year
Adjusted continuing EPS
$2.63
up 7% year over year
Bookings
$6,691 million
up 27% year over year
Adjusted EBITDA
$881.3 million
up 4% year over year
Free cash flow
$573.3 million
up from $230.2 million
Guidance
For full-year 2026, the company expects reported revenue growth of about 9.5%, organic revenue growth of about 7%, and GAAP and adjusted continuing EPS of approximately $14.75 to $14.95.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________________________________
FORM 8-K
____________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) — April 30, 2026
____________________________________________
(Exact name of registrant as specified in its charter)
____________________________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices, including zip code)
+(353) (0)18707400
(Registrant’s phone number, including area code)
N/A
(Former name or former address, if changed since last report)
____________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2):
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
| Item 2.02. | Results of Operations and Financial Condition | ||||
On April 30, 2026 , Trane Technologies plc issued a press release announcing its first quarter 2026 results. The information in this Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference.
| Item 9.01. | Financial Statements and Exhibits | ||||
| (d) Exhibits. | |||||
| Exhibit No. | Description | ||||
99.1 | Press Release of Trane Technologies plc dated | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TRANE TECHNOLOGIES PLC (Registrant) | ||||||||
| Date: | /s/ Christopher J. Kuehn | |||||||
| Christopher J. Kuehn, Executive Vice President and Chief Financial Officer | ||||||||
Trane Technologies Reports Strong First Quarter Results;
Raises Full-Year Revenue and EPS Guidance
Highlights (first-quarter 2026 versus first-quarter 2025, unless otherwise noted):
| l | Organic bookings* up 24 percent, led by Americas Commercial HVAC, up approximately 40 percent | ||||
| l | Record backlog of $10.7 billion, up over 30 percent versus year-end 2025; Americas Commercial HVAC up over 40 percent | ||||
| l | Reported revenues of $5 billion, up 6 percent; organic revenues* up 3 percent | ||||
| l | GAAP continuing EPS of $2.66; adjusted continuing EPS* of $2.63, up 7 percent | ||||
*This news release contains non-GAAP financial measures. Definitions of the non-GAAP financial measures can be found in the footnotes of this news release. See attached tables for additional details and reconciliations. | |||||
SWORDS, Ireland, April 30, 2026 - Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $2.66 for the first quarter of 2026. Adjusted continuing EPS was $2.63, up 7 percent.
First-Quarter 2026 Results
Financial Comparisons - First-Quarter Continuing Operations
| $, millions except EPS | Q1 2026 | Q1 2025 | Y-O-Y Change | Organic Y-O-Y Change | ||||||||||
| Bookings | $6,691 | $5,283 | 27% | 24% | ||||||||||
| Net Revenues | $4,969 | $4,688 | 6% | 3% | ||||||||||
| GAAP Operating Income | $776 | $819 | (5)% | |||||||||||
| GAAP Operating Margin | 15.6% | 17.5% | (190) bps | |||||||||||
| Adjusted Operating Income* | $795 | $760 | 5% | |||||||||||
| Adjusted Operating Margin* | 16.0% | 16.2% | (20) bps | |||||||||||
| Adjusted EBITDA* | $881 | $851 | 4% | |||||||||||
| Adjusted EBITDA Margin* | 17.7% | 18.1% | (40) bps | |||||||||||
| GAAP Continuing EPS | $2.66 | $2.71 | (2)% | |||||||||||
| Adjusted Continuing EPS | $2.63 | $2.45 | 7% | |||||||||||
| Pre-Tax Non-GAAP Adjustments, net** | $(4.0) | $(59.2) | $55.2 | |||||||||||
**For details see table 2 and 3 of the news release.
“We are off to a strong start in 2026, with exceptional demand for our sustainable products and services,” said Dave Regnery, Chair and CEO, Trane Technologies. “Enterprise bookings grew 24 percent, led by nearly 40 percent growth in our Americas Commercial HVAC business. We closed the quarter with a record $10.7 billion backlog, up more than 30 percent from year-end, giving us strong visibility for 2026 and beyond.
With this momentum, our talented global team and consistent execution of our strategy, we’re confident in raising our full-year revenue and EPS guidance and well‑positioned to continue delivering differentiated
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results. We are energized by the opportunities ahead to advance our purpose and create value for all stakeholders.”
Highlights from the First Quarter of 2026 (all comparisons against first-quarter 2025 unless otherwise noted)
•Record bookings of $6.7 billion, up 27 percent; organic bookings up 24 percent.
•Book-to-bill was 135 percent, led by global Commercial HVAC.
•Enterprise reported revenues were up 6 percent; organic revenues were up 3 percent.
•GAAP operating margin was down 190 basis points, adjusted operating margin was down 20 basis points and adjusted EBITDA margin was down 40 basis points.
First-Quarter Business Review (all comparisons against first-quarter 2025 unless otherwise noted)
Americas Segment: innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions.
| $, millions | Q1 2026 | Q1 2025 | Y-O-Y Change | Organic Y-O-Y Change | ||||||||||
| Bookings | $5,508.1 | $4,221.6 | 30% | 29% | ||||||||||
| Net Revenues | $3,998.4 | $3,800.7 | 5% | 4% | ||||||||||
| GAAP Operating Income | $711.8 | $737.8 | (4)% | |||||||||||
| GAAP Operating Margin | 17.8% | 19.4% | (160) bps | |||||||||||
| Adjusted Operating Income | $717.0 | $676.6 | 6% | |||||||||||
| Adjusted Operating Margin | 17.9% | 17.8% | 10 bps | |||||||||||
| Adjusted EBITDA | $791.0 | $753.5 | 5% | |||||||||||
| Adjusted EBITDA Margin | 19.8% | 19.8% | 0 bps | |||||||||||
•Strong bookings of $5.5 billion, up 30 percent; organic bookings up 29 percent.
•Bookings strength led by Americas Commercial HVAC, up approximately 40 percent, with applied equipment bookings up more than 160 percent.
•Reported revenues were up 5 percent; organic revenues were up 4 percent.
•GAAP operating margin was down 160 basis points, adjusted operating margin was up 10 basis points and adjusted EBITDA margin was flat.
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Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems and services, energy services and solutions, building controls, and transport refrigeration systems.
| $, millions | Q1 2026 | Q1 2025 | Y-O-Y Change | Organic Y-O-Y Change | ||||||||||
| Bookings | $744.2 | $720.7 | 3% | (9)% | ||||||||||
| Net Revenues | $639.5 | $573.5 | 12% | (1)% | ||||||||||
| GAAP Operating Income | $76.9 | $83.4 | (8)% | |||||||||||
| GAAP Operating Margin | 12.0% | 14.5% | (250) bps | |||||||||||
| Adjusted Operating Income | $76.2 | $83.4 | (9)% | |||||||||||
| Adjusted Operating Margin | 11.9% | 14.5% | (260) bps | |||||||||||
| Adjusted EBITDA | $86.5 | $92.1 | (6)% | |||||||||||
| Adjusted EBITDA Margin | 13.5% | 16.1% | (260) bps | |||||||||||
•Bookings up 3 percent; organic bookings down 9 percent.
•Reported revenues were up 12 percent, including approximately 9 percentage points of positive foreign exchange impact and approximately 3 percentage points related to acquisitions. Organic revenues were down 1 percent.
•GAAP operating margin was down 250 basis points; adjusted operating margin was down 260 basis points and adjusted EBITDA margin was down 260 basis points.
Asia Pacific Segment: innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.
| $, millions | Q1 2026 | Q1 2025 | Y-O-Y Change | Organic Y-O-Y Change | ||||||||||
| Bookings | $439.2 | $341.0 | 29% | 26% | ||||||||||
| Net Revenues | $331.5 | $314.3 | 5% | 3% | ||||||||||
| GAAP Operating Income | $73.2 | $66.5 | 10% | |||||||||||
| GAAP Operating Margin | 22.1% | 21.2% | 90 bps | |||||||||||
| Adjusted Operating Income | $73.2 | $66.5 | 10% | |||||||||||
| Adjusted Operating Margin | 22.1% | 21.2% | 90 bps | |||||||||||
| Adjusted EBITDA | $78.5 | $70.8 | 11% | |||||||||||
| Adjusted EBITDA Margin | 23.7% | 22.5% | 120 bps | |||||||||||
•Strong bookings up 29 percent, organic bookings up 26 percent.
•Reported revenues were up 5 percent, including approximately 2 percentage points of positive foreign exchange impact. Organic revenues were up 3 percent.
•GAAP operating margin and adjusted operating margin were up 90 basis points, and adjusted EBITDA margin was up 120 basis points.
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Balance Sheet and Cash Flow
| $, millions | Q1 2026 | Q1 2025 | Y-O-Y Change | ||||||||
| Cash From Continuing Operating Activities Y-T-D | $636 | $346 | $290 | ||||||||
| Free Cash Flow Y-T-D* | $573 | $230 | $343 | ||||||||
| Working Capital/Revenue* | 2.2% | 3.8% | (160) bps | ||||||||
| Cash Balance March 31 | $1,074 | $861 | $213 | ||||||||
| Debt Balance March 31 | $4,616 | $4,771 | ($155) | ||||||||
•Through March 31, 2026, cash flow from continuing operating activities was approximately $636 million and free cash flow was approximately $573 million.
•Year-to-date through April, the Company deployed or committed approximately $0.9 billion of capital including approximately $232 million for dividends, $340 million for M&A and $300 million for share repurchases.
•The Company expects to pay a competitive and growing dividend and to deploy 100 percent of excess cash to shareholders over time.
Company Raises Full-Year 2026 Guidance
•The Company expects full-year 2026 reported revenue growth of approximately 9.5 percent and organic revenue growth of approximately 7 percent versus full-year 2025.
•The Company expects GAAP and adjusted continuing EPS for full-year 2026 of approximately $14.75 to $14.95.
•Additional information regarding the Company's 2026 guidance is included in the Company's first-quarter earnings presentation found at www.tranetechnologies.com in the Investor Relations section.
This news release includes “forward-looking" statements within the meaning of securities laws, which are statements that are not historical facts, including statements that relate to our future financial performance and targets, including revenue, EPS, and earnings; our business operations; demand for our products and services, including bookings and backlog; capital deployment, including the amount and timing of our dividends, our share repurchase program, anticipated capital commitments for M&A activity, and our capital allocation strategy; our available liquidity; our anticipated revenue growth, and the performance of the markets in which we operate.
These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, global economic conditions, including recessions and economic downturns, inflation, volatility in interest rates and foreign exchange; trade protection measures such as import or export restrictions, tariffs, or quotas; changing energy prices; worldwide geopolitical conflict; financial institution disruptions; climate change and our sustainability strategies and goals; future health care emergencies on our business, our suppliers and our customers; commodity shortages; price increases; government regulation; restructurings activity and cost savings associated with such activity; secular trends toward decarbonization, energy efficiency and internal air quality, the outcome of any litigation, including the risks and uncertainties associated with the Chapter 11 proceedings for our deconsolidated subsidiaries Aldrich Pump LLC and Murray Boiler LLC; cybersecurity risks; and tax audits and tax law changes and interpretations. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2025, as well as our subsequent reports on Form 10-Q and other SEC filings. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events and how they may affect the Company. We assume no obligation to update these forward-looking statements.
This news release also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non-GAAP financial information and reconciliation to GAAP are attached to this news release.
All amounts reported within the earnings release above related to net earnings (loss), earnings (loss) from continuing operations, earnings (loss) from discontinued operations, adjusted EBITDA and per share amounts are attributed to Trane Technologies' ordinary shareholders.
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Trane Technologies (NYSE:TT) is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more information, visit tranetechnologies.com.
# # #
4/30/2026
(See Accompanying Tables)
•Table 1: Condensed Consolidated Income Statement
•Tables 2 - 5: Reconciliation of GAAP to Non-GAAP
•Table 6: Condensed Consolidated Balance Sheets
•Table 7: Condensed Consolidated Statement of Cash Flows
•Table 8: Balance Sheet Metrics and Free Cash Flow
| Contacts: | |||||
| Media: | Investors: | ||||
| Travis Bullard | Zac Nagle | ||||
| 919-802-2593 | 704-990-3913 | ||||
| Media@tranetechnologies.com | InvestorRelations@tranetechnologies.com | ||||
*Q1 Non-GAAP measures definitions
Adjusted operating income in 2026 is defined as GAAP operating income adjusted for merger and acquisition transaction costs, amortization of acquired backlog intangible asset and restructuring costs. Adjusted operating income in 2025 is defined as GAAP operating income adjusted for merger and acquisition transaction costs and a non-cash adjustment for contingent consideration. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2, 3 and 4 of the news release.
Adjusted operating margin is defined as the ratio of adjusted operating income divided by net revenues.
Adjusted earnings from continuing operations attributable to Trane Technologies plc (Adjusted net earnings) in 2026 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of merger and acquisition transaction costs, amortization of acquired backlog intangible asset, a non-cash gain from acquisition of a previously held investment and restructuring costs. Adjusted net earnings in 2025 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of merger and acquisition transaction costs and a non-cash adjustment for contingent consideration. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release.
Adjusted continuing EPS in 2026 is defined as GAAP continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of merger and acquisition transaction costs, amortization of acquired backlog intangible asset, a non-cash gain from acquisition of a previously held investment and restructuring costs. Adjusted continuing EPS in 2025 is defined as GAAP continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of merger and acquisition transaction costs and a non-cash adjustment for contingent consideration. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release.
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Adjusted EBITDA in 2026 is defined as adjusted operating income excluding depreciation and amortization expense and including other income / (expense), net, excluding a non-cash gain from acquisition of a previously held investment. Adjusted EBITDA in 2025 is defined as adjusted operating income excluding depreciation and amortization expense and including other income / (expense), net. Other income / (expense), net mainly comprises interest income, foreign currency exchange gains and losses and certain components of pension and postretirement benefit costs. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 4 and 5 of the news release.
Adjusted EBITDA margin is defined as the ratio of adjusted EBITDA divided by net revenues.
Adjusted effective tax rate for 2026 is defined as the ratio of income tax expense adjusted for the net tax effect of adjustments for merger and acquisition transaction costs, amortization of acquired backlog intangible asset and restructuring costs divided by adjusted net earnings. Adjusted effective tax rate for 2025 is defined as the ratio of income tax expense adjusted for merger and acquisition transaction costs divided by adjusted net earnings. This measure allows for a direct comparison of the effective tax rate between periods.
Free cash flow in 2026 is defined as net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs and merger and acquisition transaction costs. Free cash flow in 2025 is defined as net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs, legacy legal liability, and merger and acquisition transaction costs. Please refer to the free cash flow reconciliation on table 8 of the news release.
Operating leverage is defined as the ratio of the change in adjusted operating income for the current period (e.g. Q1 2026) less the prior period (e.g. Q1 2025), divided by the change in net revenues for the current period less the prior period.
Organic revenue is defined as GAAP net revenues adjusted for the impact of currency and acquisitions.
Organic bookings is defined as reported orders in the current period adjusted for the impact of currency and acquisitions.
Working capital measures a firm’s operating liquidity position and its overall effectiveness in managing the enterprise's current accounts.
•Working capital is calculated by adding net accounts and notes receivables and inventories and subtracting total current liabilities that exclude short-term debt, dividend payable and income tax payables.
•Working capital as a percent of revenue is calculated by dividing the working capital balance (e.g. as of March 31) by the annualized revenue for the period (e.g. reported revenues for the three months ended March 31 multiplied by 4 to annualize for a full year).
The Company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP). The following schedules provide non-GAAP financial information and a quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP.
The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to, financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may not be comparable to non-GAAP financial measures reported by other companies.
We believe the non-GAAP financial information provides important supplemental information to both management and investors regarding financial and business trends used in assessing our financial condition and results of operations.
Non-GAAP financial measures assist investors with analyzing our business results as well as with predicting future performance. In addition, these non-GAAP financial measures are also reviewed by management in order to evaluate the financial performance of each segment. Presentation of these non-GAAP financial measures helps investors and management to assess the operating performance of the Company.
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As a result, one should not consider these measures in isolation or as a substitute for our results reported under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.
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Table 1
TRANE TECHNOLOGIES PLC
Condensed Consolidated Income Statement
(In millions, except per share amounts)
UNAUDITED
| For the quarter | |||||||||||
| ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net revenues | $ | 4,969.4 | $ | 4,688.5 | |||||||
| Cost of goods sold | (3,241.3) | (3,011.0) | |||||||||
| Selling and administrative expenses | (952.0) | (858.6) | |||||||||
| Operating income | 776.1 | 818.9 | |||||||||
| Interest expense | (55.6) | (58.1) | |||||||||
| Other income/(expense), net | 15.3 | (7.9) | |||||||||
| Earnings before income taxes | 735.8 | 752.9 | |||||||||
| Provision for income taxes | (136.3) | (134.9) | |||||||||
| Earnings from continuing operations | 599.5 | 618.0 | |||||||||
| Discontinued operations, net of tax | (10.0) | (8.9) | |||||||||
| Net earnings | 589.5 | 609.1 | |||||||||
| Less: Net earnings from continuing operations attributable to noncontrolling interests | (5.1) | (4.2) | |||||||||
| Net earnings attributable to Trane Technologies plc | $ | 584.4 | $ | 604.9 | |||||||
| Amounts attributable to Trane Technologies plc ordinary shareholders: | |||||||||||
| Continuing operations | $ | 594.4 | $ | 613.8 | |||||||
| Discontinued operations | (10.0) | (8.9) | |||||||||
| Net earnings | $ | 584.4 | $ | 604.9 | |||||||
| Diluted earnings (loss) per share attributable to Trane Technologies plc ordinary shareholders: | |||||||||||
| Continuing operations | $ | 2.66 | $ | 2.71 | |||||||
| Discontinued operations | (0.04) | (0.04) | |||||||||
| Net earnings | $ | 2.62 | $ | 2.67 | |||||||
| Weighted-average number of common shares outstanding: | |||||||||||
| Diluted | 223.1 | 226.4 | |||||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 2
TRANE TECHNOLOGIES PLC
Reconciliation of GAAP to non-GAAP
(In millions, except per share amounts)
UNAUDITED
| For the quarter ended March 31, 2026 | ||||||||||||||||||||
| As | As | |||||||||||||||||||
| Reported | Adjustments | Adjusted | ||||||||||||||||||
| Net revenues | $ | 4,969.4 | $ | — | $ | 4,969.4 | ||||||||||||||
| Operating income | 776.1 | 18.6 | (a,b,c) | 794.7 | ||||||||||||||||
| Operating margin | 15.6 | % | 16.0 | % | ||||||||||||||||
| Earnings from continuing operations before income taxes | 735.8 | (4.0) | (a,b,c,d) | 731.8 | ||||||||||||||||
| Provision for income taxes | (136.3) | (3.0) | (e) | (139.3) | ||||||||||||||||
| Effective tax rate | 18.5 | % | 19.0 | % | ||||||||||||||||
| Earnings from continuing operations attributable to Trane Technologies plc | $ | 594.4 | $ | (7.0) | (f) | $ | 587.4 | |||||||||||||
| Diluted earnings per common share | ||||||||||||||||||||
| Continuing operations | $ | 2.66 | $ | (0.03) | $ | 2.63 | ||||||||||||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||||||
| Diluted | 223.1 | — | 223.1 | |||||||||||||||||
| Detail of Adjustments: | ||||||||||||||||||||
| (a) | M&A transaction costs (SG&A) | $ | 12.5 | |||||||||||||||||
| (b) | Amortization of acquired backlog intangible asset (SG&A) | 7.2 | ||||||||||||||||||
| (c) | Restructuring costs (COGS & SG&A) | (1.1) | ||||||||||||||||||
| (d) | Non-cash gain from acquisition of a previously held investment (OIOE) | (22.6) | ||||||||||||||||||
| (e) | Tax impact of adjustments (a,b,c) | (3.0) | ||||||||||||||||||
| (f) | Impact of adjustments on earnings from continuing operations attributable to Trane Technologies plc | $ | (7.0) | |||||||||||||||||
| Pre-tax impact of adjustments on cost of goods sold | $ | (0.3) | ||||||||||||||||||
| Pre-tax impact of adjustments on selling & administrative expenses | 18.9 | |||||||||||||||||||
| Pre-tax impact of adjustments on operating income | $ | 18.6 | ||||||||||||||||||
| Pre-tax impact of adjustments on other income / (expense), net | (22.6) | |||||||||||||||||||
| Pre-tax impact of adjustments on earnings from continuing operations | $ | (4.0) | ||||||||||||||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 3
TRANE TECHNOLOGIES PLC
Reconciliation of GAAP to non-GAAP
(In millions, except per share amounts)
UNAUDITED
| For the quarter ended March 31, 2025 | ||||||||||||||||||||
| As | As | |||||||||||||||||||
| Reported | Adjustments | Adjusted | ||||||||||||||||||
| Net revenues | $ | 4,688.5 | $ | — | $ | 4,688.5 | ||||||||||||||
| Operating income | 818.9 | (59.2) | (a,b) | 759.7 | ||||||||||||||||
| Operating margin | 17.5 | % | 16.2 | % | ||||||||||||||||
| Earnings from continuing operations before income taxes | 752.9 | (59.2) | (a,b) | 693.7 | ||||||||||||||||
| Provision for income taxes | (134.9) | (0.5) | (c) | (135.4) | ||||||||||||||||
| Effective tax rate | 17.9 | % | 19.5 | % | ||||||||||||||||
| Earnings from continuing operations attributable to Trane Technologies plc | $ | 613.8 | $ | (59.7) | (d) | $ | 554.1 | |||||||||||||
| Diluted earnings per common share | ||||||||||||||||||||
| Continuing operations | $ | 2.71 | $ | (0.26) | $ | 2.45 | ||||||||||||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||||||
| Diluted | 226.4 | — | 226.4 | |||||||||||||||||
| Detail of Adjustments: | ||||||||||||||||||||
| (a) | M&A transaction costs (SG&A) | $ | 2.0 | |||||||||||||||||
| (b) | Non-cash adjustment for contingent consideration (SG&A) | (61.2) | ||||||||||||||||||
| (c) | Tax impact of adjustments (a) | (0.5) | ||||||||||||||||||
| (d) | Impact of adjustments on earnings from continuing operations attributable to Trane Technologies plc | $ | (59.7) | |||||||||||||||||
| Pre-tax impact of adjustments on cost of goods sold | $ | — | ||||||||||||||||||
| Pre-tax impact of adjustments on selling & administrative expenses | (59.2) | |||||||||||||||||||
| Pre-tax impact of adjustments on operating income | $ | (59.2) | ||||||||||||||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 4
TRANE TECHNOLOGIES PLC
Reconciliation of GAAP to non-GAAP
(In millions)
UNAUDITED
| For the quarter ended March 31, 2026 | For the quarter ended March 31, 2025 | |||||||||||||||||||||||||
| As Reported | Margin | As Reported | Margin | |||||||||||||||||||||||
| Americas | Net revenues | $ | 3,998.4 | $ | 3,800.7 | |||||||||||||||||||||
| Segment operating income | $ | 711.8 | 17.8 | % | $ | 737.8 | 19.4 | % | ||||||||||||||||||
Restructuring/Other (a) | 5.2 | 0.1 | % | (61.2) | (1.6) | % | ||||||||||||||||||||
| Adjusted operating income * | 717.0 | 17.9 | % | 676.6 | 17.8 | % | ||||||||||||||||||||
Depreciation and amortization (c) | 73.0 | 1.9 | % | 79.1 | 2.1 | % | ||||||||||||||||||||
Other income/(expense), net (d) | 1.0 | — | % | (2.2) | (0.1) | % | ||||||||||||||||||||
| Adjusted EBITDA * | $ | 791.0 | 19.8 | % | $ | 753.5 | 19.8 | % | ||||||||||||||||||
| EMEA | Net revenues | $ | 639.5 | $ | 573.5 | |||||||||||||||||||||
| Segment operating income | $ | 76.9 | 12.0 | % | $ | 83.4 | 14.5 | % | ||||||||||||||||||
Restructuring/Other (a) | (0.7) | (0.1) | % | — | — | % | ||||||||||||||||||||
| Adjusted operating income * | 76.2 | 11.9 | % | 83.4 | 14.5 | % | ||||||||||||||||||||
| Depreciation and amortization | 11.4 | 1.8 | % | 10.7 | 1.9 | % | ||||||||||||||||||||
| Other income/(expense), net | (1.1) | (0.2) | % | (2.0) | (0.3) | % | ||||||||||||||||||||
| Adjusted EBITDA * | $ | 86.5 | 13.5 | % | $ | 92.1 | 16.1 | % | ||||||||||||||||||
| Asia Pacific | Net revenues | $ | 331.5 | $ | 314.3 | |||||||||||||||||||||
| Segment operating income | $ | 73.2 | 22.1 | % | $ | 66.5 | 21.2 | % | ||||||||||||||||||
| Restructuring/Other | — | — | % | — | — | % | ||||||||||||||||||||
| Adjusted operating income * | 73.2 | 22.1 | % | 66.5 | 21.2 | % | ||||||||||||||||||||
| Depreciation and amortization | 3.7 | 1.1 | % | 4.0 | 1.2 | % | ||||||||||||||||||||
| Other income/(expense), net | 1.6 | 0.5 | % | 0.3 | 0.1 | % | ||||||||||||||||||||
| Adjusted EBITDA * | $ | 78.5 | 23.7 | % | $ | 70.8 | 22.5 | % | ||||||||||||||||||
| Corporate | Unallocated corporate expense | $ | (85.8) | $ | (68.8) | |||||||||||||||||||||
Restructuring/Other (b) | 14.1 | 2.0 | ||||||||||||||||||||||||
| Adjusted corporate expense * | (71.7) | (66.8) | ||||||||||||||||||||||||
| Depreciation and amortization | 5.8 | 5.3 | ||||||||||||||||||||||||
| Other income/(expense), net | (8.8) | (4.0) | ||||||||||||||||||||||||
| Adjusted EBITDA * | $ | (74.7) | $ | (65.5) | ||||||||||||||||||||||
| Total Company | Net revenues | $ | 4,969.4 | $ | 4,688.5 | |||||||||||||||||||||
| Operating income | $ | 776.1 | 15.6 | % | $ | 818.9 | 17.5 | % | ||||||||||||||||||
Restructuring/Other (a,b) | 18.6 | 0.4 | % | (59.2) | (1.3) | % | ||||||||||||||||||||
| Adjusted operating income * | 794.7 | 16.0 | % | 759.7 | 16.2 | % | ||||||||||||||||||||
Depreciation and amortization (c) | 93.9 | 1.9 | % | 99.1 | 2.1 | % | ||||||||||||||||||||
Other income/(expense), net (d) | (7.3) | (0.2) | % | (7.9) | (0.2) | % | ||||||||||||||||||||
| Adjusted EBITDA * | $ | 881.3 | 17.7 | % | $ | 850.9 | 18.1 | % | ||||||||||||||||||
*Represents a non-GAAP measure, refer to pages 5-6 in the Earnings Release for definitions.
(a) Restructuring/Other in 2026 and 2025 includes restructuring amounts unless specified otherwise. Restructuring/Other within Americas in 2026 includes $7.2 million in amortization of acquired backlog intangible asset. Restructuring/Other within Americas in 2025 includes $61.2 million non-cash adjustment for contingent consideration.
(b) Restructuring/Other within Corporate in 2026 includes $12.5 million of M&A transaction costs. Restructuring/Other within Corporate in 2025 includes $2.0 million of M&A transaction costs.
(c) Depreciation and amortization within Americas in 2026 excludes $7.2 million of amortization of acquired backlog intangible asset, which has been included in the Restructuring/Other line.
(d) Other income/(expense), net within Americas in 2026 includes $22.6 million non-cash gain from acquisition of a previously held investment.
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 5
TRANE TECHNOLOGIES PLC
Reconciliation of GAAP to non-GAAP
(In millions)
UNAUDITED
| For the quarter | |||||||||||
| ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Total Company | |||||||||||
| Adjusted EBITDA * | $ | 881.3 | $ | 850.9 | |||||||
| Less: items to reconcile adjusted EBITDA to net earnings attributable to Trane Technologies plc | |||||||||||
Depreciation and amortization (1) | (93.9) | (99.1) | |||||||||
| Interest expense | (55.6) | (58.1) | |||||||||
| Provision for income taxes | (136.3) | (134.9) | |||||||||
| M&A transaction costs | (12.5) | (2.0) | |||||||||
| Amortization of acquired backlog intangible asset | (7.2) | — | |||||||||
| Restructuring costs | 1.1 | — | |||||||||
| Non-cash adjustment for contingent consideration | — | 61.2 | |||||||||
Non-cash gain from acquisition of a previously held investment | 22.6 | — | |||||||||
| Discontinued operations, net of tax | (10.0) | (8.9) | |||||||||
| Net earnings from continuing operations attributable to noncontrolling interests | (5.1) | (4.2) | |||||||||
| Net earnings attributable to Trane Technologies plc | $ | 584.4 | $ | 604.9 | |||||||
*Represents a non-GAAP measure, refer to pages 5-7 in the Earnings Release for definitions.
(1) Depreciation and amortization in 2026 excludes amortization of acquired backlog intangible asset of $7.2 million, which has been included in the amortization of acquired backlog intangible asset line.
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 6
TRANE TECHNOLOGIES PLC
Condensed Consolidated Balance Sheets
(In millions)
UNAUDITED
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 1,074.2 | $ | 1,763.3 | |||||||
| Accounts and notes receivable, net | 3,770.3 | 3,235.3 | |||||||||
| Inventories | 2,398.8 | 2,103.6 | |||||||||
| Other current assets | 757.6 | 760.8 | |||||||||
| Total current assets | 8,000.9 | 7,863.0 | |||||||||
| Property, plant and equipment, net | 2,339.9 | 2,251.3 | |||||||||
| Goodwill | 6,957.4 | 6,457.0 | |||||||||
| Intangible assets, net | 3,563.2 | 3,236.7 | |||||||||
| Other noncurrent assets | 1,893.4 | 1,612.7 | |||||||||
| Total assets | $ | 22,754.8 | $ | 21,420.7 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Accounts payable | $ | 2,416.9 | $ | 2,153.9 | |||||||
| Accrued expenses and other current liabilities | 4,195.6 | 3,439.8 | |||||||||
| Short-term borrowings and current maturities of long-term debt | 693.1 | 693.0 | |||||||||
| Total current liabilities | 7,305.6 | 6,286.7 | |||||||||
| Long-term debt | 3,922.9 | 3,922.1 | |||||||||
| Other noncurrent liabilities | 2,913.8 | 2,611.0 | |||||||||
| Total equity | 8,612.5 | 8,600.9 | |||||||||
| Total liabilities and equity | $ | 22,754.8 | $ | 21,420.7 | |||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 7
TRANE TECHNOLOGIES PLC
Condensed Consolidated Statement of Cash Flows
(In millions)
UNAUDITED
| For the three months | |||||||||||
| ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating Activities | |||||||||||
| Earnings from continuing operations | $ | 599.5 | $ | 618.0 | |||||||
| Depreciation and amortization | 101.1 | 99.1 | |||||||||
| Changes in assets and liabilities and other non-cash items | (64.4) | (371.6) | |||||||||
| Net cash provided by (used in) continuing operating activities | 636.2 | 345.5 | |||||||||
| Net cash provided by (used in) discontinued operating activities | (10.0) | (6.0) | |||||||||
| Net cash provided by (used in) operating activities | 626.2 | 339.5 | |||||||||
| Investing Activities | |||||||||||
| Capital expenditures, net | (79.7) | (118.9) | |||||||||
| Acquisitions and equity method investments, net of cash acquired | (668.2) | (265.3) | |||||||||
| Other investing activities, net | (7.8) | (0.9) | |||||||||
| Net cash provided by (used in) investing activities | (755.7) | (385.1) | |||||||||
| Financing Activities | |||||||||||
| Net proceeds from (payments of) debt | (1.3) | — | |||||||||
| Dividends paid to ordinary shareholders | (231.5) | (209.9) | |||||||||
| Repurchase of ordinary shares | (287.3) | (477.5) | |||||||||
| Other financing activities, net | (25.9) | (35.7) | |||||||||
| Net cash provided by (used in) financing activities | (546.0) | (723.1) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (13.6) | 39.1 | |||||||||
| Net increase (decrease) in cash and cash equivalents | (689.1) | (729.6) | |||||||||
| Cash and cash equivalents - beginning of period | 1,763.3 | 1,590.1 | |||||||||
| Cash and cash equivalents - end of period | $ | 1,074.2 | $ | 860.5 | |||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 8
TRANE TECHNOLOGIES PLC
Balance Sheet Metrics and Free Cash Flow
($ in millions)
UNAUDITED
| March 31, | March 31, | December 31, | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| Net Receivables | $ | 3,770.3 | $ | 3,158.4 | $ | 3,235.3 | |||||||||||
| Days Sales Outstanding | 69.2 | 61.5 | 57.4 | ||||||||||||||
| Net Inventory | $ | 2,398.8 | $ | 2,220.9 | $ | 2,103.6 | |||||||||||
| Inventory Turns | 5.4 | 5.4 | 6.4 | ||||||||||||||
| Accounts Payable | $ | 2,416.9 | $ | 2,265.2 | $ | 2,153.9 | |||||||||||
| Days Payable Outstanding | 68.0 | 68.6 | 58.0 | ||||||||||||||
| ------------------------------------------------------------------------------------------------------------------------------------------------------- | |||||||||||||||||
| Three months ended | Three months ended | ||||||||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||||||||
| Net cash flow provided by continuing operating activities | $ | 636.2 | $ | 345.5 | |||||||||||||
| Capital expenditures | (79.7) | (118.9) | |||||||||||||||
| Cash payments for restructuring | 4.4 | 0.8 | |||||||||||||||
| Legacy legal liability | — | 0.4 | |||||||||||||||
| M&A transaction costs | 12.4 | 2.4 | |||||||||||||||
| Free cash flow * | $ | 573.3 | $ | 230.2 | |||||||||||||
*Represents a non-GAAP measure, refer to pages 5-7 in the Earnings Release for definitions.
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
FAQ
How did Trane Technologies (TT) perform financially in Q1 2026?
Trane Technologies delivered higher revenue and earnings in Q1 2026. Net revenues were $4.97 billion, up 6% year over year, while adjusted continuing EPS rose 7% to $2.63. Adjusted EBITDA reached $881 million, reflecting resilient profitability despite modest margin pressure.
What were Trane Technologies’ bookings and backlog in Q1 2026?
Bookings and backlog were standout strengths for Trane Technologies. Q1 2026 bookings reached $6.69 billion, up 27% year over year. The company ended the quarter with a record $10.7 billion backlog, more than 30% above year‑end 2025, supporting future revenue visibility.
How did Trane Technologies’ segments perform in Q1 2026?
Performance varied by region. Americas revenue grew 5% with adjusted operating margin of 17.9%. EMEA revenue rose 12% but margins declined, while Asia Pacific revenue increased 5% and adjusted operating margin improved to 22.1%, showing particularly strong profitability in that region.
What was Trane Technologies’ cash flow and capital deployment in early 2026?
Cash generation strengthened significantly. Through March 31, 2026, cash from continuing operating activities was about $636 million and free cash flow about $573 million. Year‑to‑date through April, the company deployed roughly $0.9 billion for dividends, M&A activity and share repurchases.
Did Trane Technologies (TT) change its full‑year 2026 guidance?
Yes. Trane Technologies raised its 2026 outlook, now expecting about 9.5% reported revenue growth and 7% organic revenue growth. It also projects GAAP and adjusted continuing EPS of approximately $14.75 to $14.95, reflecting confidence in demand and execution across its businesses.
How did Trane Technologies’ margins evolve in Q1 2026?
Margins showed slight compression. GAAP operating margin decreased from 17.5% to 15.6%, while adjusted operating margin slipped from 16.2% to 16.0%. Adjusted EBITDA margin declined from 18.1% to 17.7%, even as absolute adjusted EBITDA increased to $881 million.
What non-GAAP measures does Trane Technologies emphasize in its results?
Trane Technologies highlights adjusted operating income, adjusted EBITDA, adjusted continuing EPS, organic revenue and bookings, free cash flow, and adjusted effective tax rate. These metrics remove items like M&A transaction costs, restructuring, certain non‑cash gains and acquisition impacts to show underlying operating performance.