Core Insights - Trane Technologies plc is a leader in climate innovation, focusing on sustainable solutions for buildings, homes, and transportation, particularly in the HVAC sector [1] Financial Performance - Oppenheimer maintained an "Outperform" rating for Trane, raising the price target to $468 from $460 after the company reported earnings per share of $2.86, exceeding the consensus estimate of $2.82 [2][3][6] - Trane's quarterly revenue reached $5.14 billion, surpassing analyst predictions of $5.09 billion, indicating strong financial performance [3][6] - The company achieved a return on equity of 37.04% and a net margin of 13.93%, reflecting robust financial metrics [4][6] Market Activity - The stock price of Trane was $426.07, showing an 8.09% increase, with fluctuations between a low of $406.50 and a high of $429.13 on the trading day [4][5] - The market capitalization of Trane is approximately $94.48 billion, with a trading volume of 4.41 million shares, indicating strong investor interest [5]

Trane Technologies (NYSE:TT) Q4 2025 Earnings call January 29, 2026 10:00 AM ET Company ParticipantsAmit Mehrotra - Managing Director and Industrial Sector HeadAndy Kaplowitz - Managing DirectorChris Kuehn - VP and CFOChris Snyder - Executive DirectorDave Regnery - Chair and CEOJeff Hammond - Managing DirectorJeff Sprague - Founder and Managing PartnerJoe Ritchie - Managing DirectorNigel Coe - Managing DirectorScott Davis - Founding Partner, Chairman and CEOSteve Tusa - Managing DirectorZac Nagle - VP of In ...

Financial Data and Key Metrics Changes - The company achieved an 11% revenue compound annual growth rate since 2020 and a 24% adjusted EPS compound annual growth rate [7] - Adjusted EBITDA margins expanded by 470 basis points, and free cash flow conversion reached 106% [7] - The fourth quarter saw organic revenue growth of 4%, with adjusted EPS growth of 10% [8] Business Line Data and Key Metrics Changes - Americas Commercial HVAC bookings increased by over 35% year-over-year, with a record Q4 organic bookings [8] - Applied Solutions bookings surged more than 120%, achieving a record book-to-bill ratio of 200% [8] - The services business, accounting for about one-third of enterprise revenue, has maintained a low teens compound annual growth rate since 2020 [9] Market Data and Key Metrics Changes - In the Americas, commercial HVAC revenue grew in low double digits, while residential bookings were up mid-single digits but revenues declined mid-teens [11] - EMEA Commercial HVAC bookings were robust, up mid-teens, with revenues up mid-single digits [12] - Asia Pacific faced challenges, particularly in China, with double-digit declines in bookings and revenue [12] Company Strategy and Development Direction - The company emphasizes a purpose-driven strategy focused on energy efficiency and sustainability, positioning itself to meet growing customer demand for smarter energy solutions [4] - Continued investment in innovation, growth, and digital capabilities is expected to drive future growth, particularly in services [10] - The company plans to deploy between $2.8 billion and $3.3 billion in 2026, with a focus on strategic M&A and share repurchases [22] Management's Comments on Operating Environment and Future Outlook - Management anticipates a gradual recovery in residential markets and transport refrigeration, with expectations for improved performance in the second half of 2026 [10][17] - The company is optimistic about its backlog and pipeline, indicating strong visibility for future revenues [9][16] - Management remains confident in delivering differentiated long-term value and advancing sustainability initiatives [24] Other Important Information - The company completed or committed approximately $3.2 billion in capital allocation in 2025, including dividends, M&A, and share repurchases [21] - The acquisition of Stellar Energy is expected to enhance capabilities in modular design and meet growing demand for prefabricated cooling systems [22] Q&A Session Summary Question: Guidance on revenue for Americas Commercial HVAC - Management expects strong growth in the first quarter, around 7%-8%, increasing to low teens in the second half of the year due to strong bookings [26][27] Question: Confidence in residential inventory normalization - Management believes inventory is now at the right level and anticipates a flat to down 5% performance in residential for 2026 [30][31] Question: Margin pressure in Q4 and future expectations - Management indicated that margins were impacted by residential deleverage but expects to see improvements in 2026 with a target of 25% or higher organic incrementals [53][54] Question: Positioning in the data center market - Management confirmed strong demand in the data center vertical and emphasized ongoing innovation in thermal management systems [57][59] Question: Pricing dynamics in the residential market - Management noted that pricing has not faded, and any declines in residential revenue are primarily due to volume rather than pricing [92][103]

Financial Data and Key Metrics Changes - The company achieved a strong fourth quarter performance with organic revenue growth of 4% and adjusted EPS growth of 10% [6][11] - Free cash flow remained robust, supporting strategic M&A, dividends, and share repurchases [4][5] - The company reported a record backlog of $7.8 billion, with exceptional enterprise organic bookings up 22% [6][8] Business Line Data and Key Metrics Changes - Americas Commercial HVAC bookings increased by over 35% year-over-year, contributing significantly to the overall growth [6][10] - Applied Solutions bookings surged more than 120%, achieving a record book-to-bill ratio of 200% [6][10] - EMEA HVAC bookings grew mid-teens, while residential bookings were up mid-single digits, but revenues declined mid-teens due to inventory normalization [10][11] Market Data and Key Metrics Changes - The Americas Commercial HVAC market showed strong growth, while residential markets faced challenges with a projected decline of up to 5% [10][14] - EMEA transport markets are expected to be flat to modestly lower, while Asia Pacific faced challenges, particularly in China, with double-digit declines in bookings and revenue [10][15] Company Strategy and Development Direction - The company emphasizes a purpose-driven strategy focused on sustainability and performance, positioning itself to meet growing energy demands through innovation [3][4] - Continued investment in services and digital capabilities is expected to drive growth, particularly in the commercial HVAC sector [9][18] - The acquisition of Stellar Energy is aimed at enhancing modular design capabilities and addressing supply chain constraints [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong growth for 2026, driven by exceptional bookings and a robust backlog [10][14] - The outlook for the residential market is cautious, with expectations of a gradual recovery in the second half of 2026 [14][15] - Management highlighted the importance of disciplined execution and innovation in maintaining competitive advantage [3][21] Other Important Information - The company plans to deploy between $2.8 billion and $3.3 billion in 2026, with a focus on strategic M&A and share repurchases [18][19] - The company expects to maintain a strong balance sheet and free cash flow conversion of 100% or greater [16][17] Q&A Session Summary Question: Guidance on revenue for Americas Commercial HVAC - Management indicated strong bookings growth in the second half of 2025, expecting revenue growth of 7%-8% in Q1 2026, increasing to low teens in the second half [22][24] Question: Confidence in U.S. Residential HVAC inventory and pricing - Management confirmed that inventory levels are normalized and pricing has not faded, with expectations of flat to down 5% in 2026 driven by volume [25][26][28] Question: Broadening of orders among end markets - Management noted broad-based growth across multiple verticals, including data centers, with encouraging signs in previously weak sectors like retail and office [33][34] Question: Impact of customer lead times on orders - Management stated that there have been no significant changes in lead times, maintaining competitiveness in delivery [39][40] Question: European margins and price-cost dynamics - Management expects European margins to improve in 2026, with a target of 25% or better organic incrementals across segments [48][50] Question: Biopharma reshoring visibility - Management is optimistic about large pharma projects related to reshoring, tracking several mega projects in the pipeline [78][80] Question: Data center HVAC content and future trends - Management believes the fraction of spending on HVAC in data centers will remain stable, with innovations in thermal management systems expected [87][88]

Trane Technologies (TT) reported $5.14 billion in revenue for the quarter ended December 2025, representing a year-over-year increase of 5.6%. EPS of $2.86 for the same period compares to $2.61 a year ago.The reported revenue represents a surprise of +1.33% over the Zacks Consensus Estimate of $5.08 billion. With the consensus EPS estimate being $2.83, the EPS surprise was +1.24%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to dete ...

Fourth-Quarter and Full Year 2025 Results January 29, 2026 Forward-Looking Statements This presentation 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, operating income, operation margin and earnings; operating leverage; our business operations; demand for our products and services, including bookings and backlog; capital d ...

Trane Technologies (TT) came out with quarterly earnings of $2.86 per share, beating the Zacks Consensus Estimate of $2.83 per share. This compares to earnings of $2.61 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +1.24%. A quarter ago, it was expected that this manufacturer would post earnings of $3.8 per share when it actually produced earnings of $3.88, delivering a surprise of +2.11%.Over the last four quarters, the com ...

Core Viewpoint - Total Metals Corp. has initiated diamond drilling at its Electrolode critical minerals exploration project in Red Lake, Ontario, targeting high-potential mineral resources, including copper and gold [1][9]. Group 1: Exploration Program - The drill program will consist of a minimum of 5,500 meters aimed at confirming and expanding historic results, testing electromagnetic conductors, and assessing metal ratios for higher value copper-gold mineralization [2]. - The first phase targets the Arrow Zone and adjacent Garnet Zone, with plans to explore a 6-kilometer trend of discontinuous EM conductors [3]. - A complex fold pattern in the southwest area of the property, identified through 3D inversion modeling, suggests potential for higher copper grades and exploration opportunities [4]. Group 2: Resource and Target Assessment - The company considers historic resources as indicative of potential higher copper grades, with exploration focusing on structurally modified areas such as fold hinges [4]. - High-grade gold values have been documented in the D zone, with ongoing testing to determine the nature of these gold occurrences [4]. - The results from the current drill program will be crucial for prioritizing future exploration efforts aimed at resource expansion [4]. Group 3: Marketing and Financial Engagement - Total Metals has engaged i2i Marketing Group LLC for a one-month media services agreement, with a total consideration of US$250,000 for marketing services [5]. - The agreement can be extended on a month-to-month basis for the same amount, subject to TSX Venture Exchange approval [5]. - The company has granted 1,162,000 Restricted Stock Units (RSUs) to directors, officers, and consultants, which will vest in 12 months [8]. Group 4: Company Overview - Total Metals Corp. owns the Electrolode Project, covering over 3,300 hectares in northwestern Ontario, targeting critical minerals and gold resources near major mining operations [9]. - The project is fully permitted for exploration drilling and includes 10 historic mineralized zones with significant expansion potential [9]. - The company also owns the High Lake and West Hawk Lake Projects, covering 958 hectares along the Manitoba/Ontario border, with significant exploration potential in the Purex Zone [9].

Core Insights - Trane Technologies reported strong financial results for Q4 and full-year 2025, with significant growth in earnings per share and revenues, alongside a record backlog [1][2][3] Financial Performance - Q4 2025 GAAP continuing EPS was $2.74, with adjusted continuing EPS at $2.86, reflecting a 10% increase year-over-year [1] - Full-year 2025 GAAP continuing EPS reached $13.14, while adjusted continuing EPS was $13.06, marking a 16% increase compared to 2024 [2] - Total revenues for Q4 2025 were $5.1 billion, up 6% from Q4 2024, with organic revenues increasing by 4% [1][2] - For the full year, reported revenues were $21.3 billion, a 7% increase, with organic revenues up 6% [2][3] Bookings and Backlog - The company achieved a record backlog of $7.8 billion, up 15% from year-end 2024, with significant contributions from the Americas Commercial HVAC segment, which saw a 25% increase [1][2] - Organic bookings for Q4 2025 were up 22%, driven by a 35% increase in the Americas Commercial HVAC segment [1][2] Segment Performance - In the Americas segment, bookings increased by 27% year-over-year, with net revenues up 6% [2][3] - The EMEA segment reported a 12% increase in revenues, with bookings up 19% [2][3] - The Asia Pacific segment experienced a 5% decline in revenues, but bookings were up 2% [2][3] Cash Flow and Balance Sheet - The company reported strong free cash flow conversion of 98% for the year, with free cash flow amounting to $2.9 billion [2][3] - Cash from continuing operating activities for 2025 was $3.2 billion, an increase from $3.18 billion in 2024 [2][3] Future Outlook - For full-year 2026, Trane Technologies expects GAAP and adjusted continuing EPS to be in the range of $14.65 to $14.85, with reported revenue growth projected at approximately 8.5% to 9.5% [2][3]

Financial Performance - Fourth-quarter 2025 diluted EPS from continuing operations was $2.74, with adjusted continuing EPS at $2.86, reflecting a 10% increase year-over-year [2]. - The company reported net revenues of $5.14 billion for the fourth quarter, a 6% increase compared to the same period in 2024, with organic revenues up 4% [4]. - Full-year 2025 reported revenues were $21.32 billion, up 7%, with organic revenues increasing by 6% [19]. - For the quarter ended December 31, 2025, net revenues were $5,144.5 million, with an operating income of $819.0 million, resulting in an operating margin of 15.9% [49]. - For the year ended December 31, 2025, net revenues totaled $21,321.9 million, with an operating income of $3,967.4 million, leading to an operating margin of 18.6% [49]. - The company reported net earnings attributable to Trane Technologies plc of $591.3 million for Q4 2025, down from $604.3 million in Q4 2024 [63]. - For the full year 2025, net earnings attributable to Trane Technologies plc were $2,918.6 million, an increase from $2,567.9 million in 2024 [66]. - Adjusted EBITDA for the full year 2025 was $4,276.0 million, compared to $3,846.3 million in 2024, indicating a strong year-over-year performance [66]. Bookings and Backlog - Total bookings for the fourth quarter reached $5.76 billion, up 24% year-over-year, with organic bookings increasing by 22% [3]. - Full-year 2025 bookings totaled $22.65 billion, representing a 12% increase, with a record backlog of $7.8 billion, up 15% from year-end 2024 [19]. - The Americas Commercial HVAC segment saw bookings increase by more than 35%, contributing significantly to the overall growth in bookings [10]. Margins and Operating Income - The GAAP operating margin for the fourth quarter was 15.9%, down 70 basis points from the previous year, while the adjusted operating margin remained flat at 16.3% [3]. - The company achieved a GAAP operating margin of 18.6% for the full year, an increase of 100 basis points, and an adjusted EBITDA margin of 20.1%, up 70 basis points [19]. - Adjusted operating income for Q4 2025 was $819.0 million, compared to $807.6 million in Q4 2024, reflecting a slight increase [46]. - Total Company operating income for 2025 was $3,967.4 million, with a margin of 18.6%, compared to $3,500.1 million and 17.6% in 2024 [58]. Cash Flow and Capital Expenditures - Free cash flow for full-year 2025 was $2.89 billion, equating to 98% of adjusted net earnings [21]. - Free cash flow for 2025 was $2,887.3 million, compared to $2,789.0 million in 2024, reflecting a growth of 3.5% [74]. - Net cash provided by operating activities was $3,194.5 million in 2025, an increase from $3,145.6 million in 2024, showing a rise of 1.6% [71]. - Capital expenditures increased to $383.0 million in 2025 from $370.6 million in 2024, a rise of 3.5% [74]. Assets and Equity - Total assets increased to $21,420.7 million in 2025 from $20,146.7 million in 2024, representing a growth of 6.3% [69]. - Total equity grew to $8,600.9 million in 2025, up from $7,486.9 million in 2024, indicating an increase of 14.9% [69]. Debt and Efficiency - The company’s long-term debt decreased to $3,922.1 million in 2025 from $4,318.1 million in 2024, a reduction of 9.2% [69]. - The company’s free cash flow conversion rate was 98% in 2025, down from 109% in 2024, indicating a decrease in efficiency [74]. - Days Sales Outstanding improved slightly to 57.4 days in 2025 from 57.9 days in 2024, indicating better receivables management [74]. Future Outlook - For full-year 2026, the company expects reported revenue growth of approximately 8.5% to 9.5% and GAAP and adjusted continuing EPS of $14.65 to $14.85 [22]. - Future performance will be assessed using both GAAP and non-GAAP financial measures to provide a comprehensive view of financial health [41]. Strategic Focus - Trane Technologies aims to enhance its market position through strategic brands and environmentally responsible products [27]. - The company is focused on organic revenue growth, which excludes the impact of currency and acquisitions [38].