Trane Technologies (TT) Q1 2025 Earnings Call April 30, 2025 10:00 AM ET Company Participants Zac Nagle - Vice President of Investor Relations.Dave Regnery - Chairman & Chief Executive OfficerChris Kuehn - Executive Vice President and CFOChris Snyder - Executive DirectorAmit Mehrotra - Managing DirectorScott Davis - CEO & ChairmanJoe Ritchie - Managing DirectorAndrew Kaplowitz - Managing DirectorSteve Tusa - Managing DirectorJeffrey Sprague - Founder and Managing PartnerNigel Coe - Managing DirectorDeane Dr ...

Trane Technologies (TT) Q1 2025 Earnings Call April 30, 2025 10:00 AM ET Speaker0 Good morning. Welcome to the Trane Technologies Q1 twenty twenty five Earnings Conference Call. My name is Julianne, and I will be your operator for the call. The call will begin in a few moments with the speakers' remarks and the Q and A session. At this time, all participants are in a listen only mode. Thank you. I will now turn the call over to Zach Nagel, Vice President of Investor Relations. Speaker1 Thanks, operator. Goo ...

Trane Technologies (TT) came out with quarterly earnings of $2.45 per share, beating the Zacks Consensus Estimate of $2.20 per share. This compares to earnings of $1.94 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.36%. A quarter ago, it was expected that this manufacturer would post earnings of $2.54 per share when it actually produced earnings of $2.61, delivering a surprise of 2.76%.Over the last four quarters, the com ...

First-Quarter 2025 Results April 30, 2025 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 deployment, includ ...

Financial Performance - Diluted earnings per share (EPS) from continuing operations for Q1 2025 was $2.71, a 41% increase from $1.92 in Q1 2024[2] - Net revenues for Q1 2025 were $4.7 billion, reflecting an 11% increase compared to $4.2 billion in Q1 2024[3] - Adjusted net earnings for Q1 2025 were $613.8 million, compared to $441.7 million in Q1 2024, representing a 39% increase[44] - Total company net revenues for the quarter ended March 31, 2025, were $4,688.5 million, an increase from $4,215.5 million in the same quarter of 2024, representing a growth of 11.2%[52] - Operating income for Q1 2025 was $818.9 million, a 29.2% increase from $633.8 million in Q1 2024[44] - GAAP operating income increased by 29% to $819 million, with an operating margin of 17.5%, up 250 basis points year-over-year[3] - Adjusted EBITDA for Q1 2025 was $851 million, a 21% increase from $706 million in Q1 2024, with an adjusted EBITDA margin of 18.1%[3] - Adjusted EBITDA for the quarter was $850.9 million, up from $706.1 million year-over-year, reflecting a growth of 20.5%[56] - The Americas segment reported net revenues of $3.8 billion, a 14% increase year-over-year, with a GAAP operating margin of 19.4%[10] - The Americas segment reported net revenues of $3,800.7 million, with an adjusted operating income of $676.6 million, yielding a margin of 17.8% compared to 16.4% in the prior year[52] - The Asia Pacific segment achieved net revenues of $314.3 million, maintaining an adjusted operating income margin of 21.2%, consistent with the previous year[52] Cash Flow and Assets - Cash flow from continuing operating activities for Q1 2025 was $346 million, with free cash flow of $230 million[19] - Free cash flow for the three months ended March 31, 2025, was $230.2 million, compared to $175.0 million in the same period of 2024, indicating a 31.6% increase[65] - Total current assets decreased to $6,934.3 million from $7,337.8 million at the end of December 2024, primarily due to a reduction in cash and cash equivalents[59] - The company’s cash and cash equivalents at the end of the period were $860.5 million, down from $1,590.1 million at the beginning of the period, indicating a decrease in liquidity[62] Future Guidance - Full-year 2025 revenue growth is expected to be approximately 7.5% to 8.5%, including 100 basis points from acquisitions[24] - Full-year 2025 GAAP continuing EPS is projected to be between $12.95 and $13.15, with adjusted continuing EPS expected between $12.70 and $12.90[24] - Future guidance indicates a positive outlook for revenue and earnings growth, supported by ongoing operational improvements and market expansion efforts[40] Operational Strategies - Organic revenue growth was driven by increased demand and effective cost management strategies[35] - The company plans to continue focusing on merger and acquisition strategies to enhance growth and market presence[33] Tax and Liabilities - The adjusted effective tax rate for Q1 2025 was 17.9%, compared to 19.2% in Q1 2024[46] - The company’s total liabilities decreased slightly to $12,599.9 million from $12,591.8 million at the end of December 2024[59] Capital Expenditures - Capital expenditures for the quarter were $118.9 million, up from $83.8 million in the same period last year, reflecting increased investment in growth initiatives[62] Backlog - Total bookings reached $5.3 billion, up 4% year-over-year, with a book-to-bill ratio of 113%[7] - The enterprise backlog stood at $7.3 billion, an increase of approximately $500 million compared to year-end 2024[7]

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]