In its upcoming report, Trane Technologies (TT) is predicted by Wall Street analysts to post quarterly earnings of $2.19 per share, reflecting an increase of 12.9% compared to the same period last year. Revenues are forecasted to be $4.46 billion, representing a year-over-year increase of 5.8%.The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their ini ...

Trane Technologies (TT) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on April 30, 2025, might help the stock move higher if these key numbers are better tha ...

Core Viewpoint - Trane Technologies plc (TT) has shown strong stock performance, with an 11.3% increase over the past year, surpassing the industry growth of 10.8% [1] Financial Performance - The company has reported better-than-expected earnings and revenue in the last four quarters, driven by strong global demand in commercial HVAC, acquisitions, positive price realization, volume growth, and productivity [2] - In Q4 2024, TT's adjusted EPS rose by 20.3% year-over-year, while revenues increased by 10.2% year-over-year [2] Seasonal Demand Dynamics - Trane Technologies experiences seasonal fluctuations in demand, with lower sales of air conditioning systems in autumn and winter, leading to a quarter-over-quarter revenue decline of 9.4% in Q4 2023 and 4.7% in Q1 2024 [3] - Conversely, revenues increased by 25.9% and 2.5% in Q2 and Q3 2024, respectively, reflecting higher heating sales during those quarters [3] Shareholder Returns - The company has demonstrated a commitment to shareholder returns, repurchasing shares worth $1.2 billion in 2022, $669.3 million in 2023, and $1.3 billion in 2024, alongside dividend payments of $620.2 million, $683.7 million, and $757.5 million in the same years [4] Liquidity Position - As of Q4 2024, TT's current ratio was 1.21, slightly below the industry average of 1.27, but an improvement from 1.14 in the previous year, indicating better liquidity to manage short-term debts [5] Market Position - TT currently holds a Zacks Rank of 3 (Hold), with better-ranked stocks including Limbach Holdings, Inc. (LMB) and PagSeguro Digital (PAGS), both rated as Strong Buy [6]

Company Performance - Trane Technologies plc (TT) stock has appreciated 17.3% over the past year, outperforming the industry growth of 15.4% [1] - The company's earnings for 2025 and 2026 are expected to improve by 14.2% and 10.5% year over year, respectively, with revenues anticipated to grow by 7.4% and 6.7% [2] - The current ratio in the fourth quarter of 2024 was 1.21, an increase from 1.14 in the previous year, although still lower than the industry average of 1.27 [5] Market Dynamics - The strong Commercial HVAC market is a key driver for Trane Technologies, with revenues growing 10.2% in the fourth quarter of 2024, supported by increasing demand for energy-efficient products and decarbonization efforts [3] - Seasonal fluctuations affect demand, with revenues declining by 9.4% and 4.7% in the fourth quarter of 2023 and first quarter of 2024, respectively, but recovering with gains of 25.9% and 2.5% in the second and third quarters of 2024 [6] Shareholder Returns - The company has demonstrated a commitment to shareholder returns, repurchasing shares worth $1.2 billion, $669.3 million, and $1.3 billion in 2022, 2023, and 2024, respectively, while paying dividends of $620.2 million, $683.7 million, and $757.5 million in the same years [4] Competitive Landscape - Trane Technologies operates in a highly competitive HVAC market, facing pressure from major players like Honeywell, Siemens, Carrier, and Daikin, necessitating continuous innovation and cost efficiency [7]

Core Insights - Geotab Inc. collaborates with Thermo King to integrate TracKingⓇ Pro telematics data into Geotab's platform, enhancing cold chain operations for fleet managers in North America [1][2] - The integration aims to improve compliance, communication, and the integrity of temperature-sensitive goods during transit, such as food and pharmaceuticals [1][3] Company Overview - Geotab is a global leader in connected vehicle and asset solutions, serving over 55,000 customers and processing 80 billion data points daily from more than 4.7 million vehicle subscriptions [4] - Thermo King, a brand of Trane Technologies, specializes in sustainable transport temperature control solutions, providing services since 1938 for various applications including trailers and railway cars [7] Key Benefits of Collaboration - Near Real-time Monitoring: Provides up-to-the-minute insights into cargo temperature and refrigeration unit performance [6] - Temperature Alerts: Automated notifications for critical events like temperature excursions or equipment malfunctions [6] - Two-way Communication: Allows remote adjustments of setpoints and clearing of fault codes for proactive issue resolution [6] - Increased Fleet Visibility: Enhances control and decision-making through a comprehensive view of cold chain operations [6] - OEM-Sourced Data: Direct integration with Thermo King systems increases data accuracy and reliability [6]

Core Insights - Trane Technologies plc (TT) stock has appreciated 21% over the past year, outperforming the industry growth of 13% [1] Group 1: Financial Performance - Trane Technologies reported a 10.2% revenue growth in the fourth quarter of 2024, driven by a strong Commercial HVAC market [2] - The company achieved an adjusted EPS increase of 20.3% year over year in the fourth quarter of 2024, benefiting from strong demand, acquisitions, positive price realization, volume growth, and productivity [3] - Share repurchases amounted to $1.2 billion in 2022, $669.3 million in 2023, and $1.3 billion in 2024, while dividends paid were $620.2 million, $683.7 million, and $757.5 million for the same years respectively [4] Group 2: Liquidity and Ratios - The current ratio for Trane Technologies in the fourth quarter of 2024 was 1.21, slightly below the industry average of 1.27, but an increase from 1.14 in the previous year [5] Group 3: Market Position and Rankings - Trane Technologies currently holds a Zacks Rank of 3 (Hold) [6] - Maximus (MMS) has a Zacks Rank of 1 (Strong Buy) and has outperformed the Zacks Consensus estimate in three of the last four quarters with an average beat of 13.3% [6] - Booz Allen Hamilton (BAH) carries a Zacks Rank of 2 (Buy) and has also outperformed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 6.7% [7]

Market Risks and Economic Factors - The company is exposed to various market risks, including fluctuations in currency exchange rates, which may adversely affect financial results [74]. - Non-U.S. operations have functional currencies other than the U.S. dollar, impacting reported results based on currency strength [75]. - Geopolitical conflicts, such as the Russia-Ukraine war, have negatively impacted the global economy and may affect the company's operations and financial performance [79]. - The company has faced supply chain disruptions and increased costs due to geopolitical tensions and public health crises, including the COVID-19 pandemic [83]. Risk Management and Compliance - The company utilizes derivative instruments for risk management to hedge against material exposures [76]. - The company is subject to significant expenditures to comply with various laws and regulations, which could adversely affect financial condition and results of operations [100]. - The regulatory environment surrounding data privacy and protection is increasingly demanding, leading to increased costs and potential fines [96]. - The company may incur additional costs to comply with increasing cybersecurity protections mandated by customers [94]. Cybersecurity and Technology - Cybersecurity risks pose a threat to the company's information technology systems, which could impair operations and financial results [92]. - The company continues to invest in technology systems to enhance operations and mitigate risks associated with cyber attacks [93]. - The company faces risks related to cybersecurity, including potential breaches that could harm business operations and reputation [94]. Environmental and Product Development - The company is committed to reducing one gigaton (one billion metric tons) of carbon emissions (CO2e) from its customers' footprint by 2030 [102]. - The company is on track to offer a full line of next-generation products by 2030 without compromising safety or energy efficiency [102]. - The company is developing next-generation products that utilize lower global warming potential solutions in response to environmental regulations [101]. Legal and Financial Liabilities - Legal proceedings related to asbestos claims may result in material adverse effects on the company's financial condition and operations [84]. - The ongoing Chapter 11 cases for subsidiaries Aldrich and Murray present uncertainties regarding asbestos liabilities and potential financial impacts [90]. - If the Distribution is deemed taxable for Irish tax purposes, significant tax liabilities may arise for Spin-off Shareholders, potentially impacting the company's financial condition [117]. - The company may incur substantial U.S. federal income tax liabilities if the Distribution does not qualify as tax-free under the Internal Revenue Code, which could adversely affect its financial results [121]. Taxation and Shareholder Implications - The company is subject to Irish dividend withholding tax at a rate of 25% on dividends paid to shareholders, which could impact share prices [126]. - Shareholders receiving dividends subject to Irish dividend withholding tax will generally have no further liability to Irish income tax unless they have a connection to Ireland beyond their shareholding [127]. - The company emphasizes that dividends and share repurchases are subject to uncertainty and may be modified or discontinued based on various factors, including market conditions and business strategy [125]. - Changes in tax laws and regulations could materially impact the company's effective tax rate and financial condition [112]. - Changes in tax laws or interpretations could materially increase the company's tax burden and affect its financial condition [114]. - The company may face increased taxation if certain legislative proposals or regulatory changes are enacted, impacting its effective tax rate [115]. Corporate Governance and Strategic Positioning - The company continues to analyze and evaluate acquisitions and divestitures to strengthen its industry position and enhance product offerings [104]. - The company’s ability to protect its intellectual property rights may be limited, potentially impacting its competitive position [98]. - The company completed a Reverse Morris Trust transaction on February 29, 2020, distributing approximately 50.1% of Ingersoll Rand common stock to Spin-off Shareholders, resulting in a special cash payment of $1.9 billion received by the company [116]. - The company is governed by the Irish Companies Act, which may afford less protection to shareholders compared to U.S. corporate laws [123].

Fourth-Quarter and Full Year 2024 Results January 30, 2025 Forward-Looking Statements 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, operating income, operation margin and earnings; operating leverage; our business operations; demand for our products and services, including bookings and backlog; capital d ...

Core Insights - Trane Technologies plc (TT) reported better-than-expected fourth-quarter 2024 results with adjusted EPS of $2.61, surpassing the Zacks Consensus Estimate by 2.8% and increasing 20.3% year over year [2] - Revenues reached $4.9 billion, beating the consensus mark by 2.2% and rising 10.2% year over year on both reported and organic bases [2] Revenue and Bookings - The Americas segment generated revenues of $3.8 billion, exceeding the estimate of $3.7 billion, and increased 12.2% year over year on both reported and organic bases. Bookings rose 1% year over year to $3.7 billion [3] - The Europe, Middle East and Africa segment reported revenues of $690.3 million, up 5% year over year on a reported basis and 7% organically, but missed the estimate of $700.2 million. Bookings increased 8% year over year to $614.8 million [4] - Revenues from the Asia Pacific segment were $381.2 million, up 1% year over year, beating the estimate of $337 million. Bookings rose 8% year over year to $367.8 million [5] Balance Sheet and Cash Flow - Trane ended the quarter with a cash balance of $1.6 billion, up from $1.1 billion in the previous quarter. The debt balance increased to $4.3 billion from $4 billion [6] - The company generated $3.2 billion in cash from operating activities and $2.8 billion in free cash flow during the quarter [6] 2025 Guidance - For 2025, Trane expects revenue growth of 6.5-7.5% and organic revenue growth of approximately 7-8% compared to full-year 2024. Adjusted EPS is projected to be between $12.70 and $12.90, higher than the Zacks Consensus Estimate of $11.86 [7]

Group 1 - Trane Technologies reported revenue of $4.87 billion for the quarter ended December 2024, reflecting a year-over-year increase of 10.2% [1] - The company's EPS for the quarter was $2.61, up from $2.17 in the same quarter last year, exceeding the consensus estimate of $2.54 [1] - The reported revenue surpassed the Zacks Consensus Estimate of $4.77 billion, resulting in a surprise of +2.18% [1] Group 2 - Total bookings for Trane Technologies were $4.66 billion, below the average estimate of $4.96 billion from two analysts [4] - Revenue from the Americas was $3.80 billion, exceeding the five-analyst average estimate of $3.72 billion, with a year-over-year change of +12.2% [4] - Revenue from EMEA was $690.30 million, slightly above the average estimate of $685.59 million, representing a +5.5% year-over-year change [4] - Revenue from Asia Pacific was $381.20 million, surpassing the estimated $342.57 million, with a +0.5% change compared to the previous year [4] Group 3 - Over the past month, shares of Trane Technologies have returned -1.5%, while the Zacks S&P 500 composite increased by +1.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]