Core Insights - Trane Technologies (TT) has demonstrated strong financial performance, with a significant increase in both earnings and revenues in the third quarter of 2024, surpassing market expectations [5][6] - The company has a consistent history of returning value to shareholders through dividends and share repurchases, indicating confidence in its business model [2][7] - TT's stock has outperformed both its industry and the broader market over the past year, reflecting positive investor sentiment [10] Financial Performance - In Q3 2024, TT reported an adjusted EPS of $3.37, exceeding the Zacks Consensus Estimate by 4.3% and marking a year-over-year increase of 20.8% [5] - Revenues reached $5.4 billion, beating consensus estimates by 2.4% and showing an 11% year-over-year growth [5] - Bookings increased by 5% year-over-year, both on a reported and organic basis [5] Shareholder Returns - TT paid out dividends of $507.3 million, $561.1 million, $620 million, and $683.7 million in 2020, 2021, 2022, and 2023, respectively, showcasing a commitment to enhancing shareholder value [2] - The company repurchased shares worth $250 million, $1.1 billion, $1.2 billion, and $669.3 million in the same years, further indicating a strong focus on returning capital to shareholders [7] Market Position and Growth Prospects - TT's strong performance is supported by favorable policies and regulations in the U.S. and Europe, with expectations for net revenue growth of 11.1%, 6.1%, and 6.2% in 2024, 2025, and 2026, respectively [6] - The company is benefiting from robust demand in the commercial HVAC markets, driven by its customer-focused solutions and energy-efficient product offerings [17] - Business transformation initiatives have led to annualized savings exceeding the target of $300 million in 2023, enhancing operational efficiency [13]

Core Viewpoint - Trane Technologies is positioned to outperform the market heading into 2025, driven by strategic acquisitions, strong growth in the HVAC sector, and favorable climate trends [1][10]. Company Developments - Trane is acquiring Brainbox AI, which specializes in autonomous HVAC controls and generative AI technology, enhancing its technological leadership in the HVAC industry [2][12]. - The company has a history of growth through both organic means and acquisitions, with the recent acquisition of Brainbox AI being a continuation of this strategy [11]. Financial Performance - Year-to-date, Trane's stock has increased by 55%, and it has delivered over 10,000% returns since 1988, indicating its status as a "100-bagger" stock [4]. - In the third quarter, Trane reported an operating margin of 18.9%, showcasing its competitive advantages [7]. - The company expects organic and reported revenue growth of 11% for the year, with GAAP EPS projected at $11.10, leading to a forward P/E ratio of 34 [8]. Market Trends - The global HVAC market is projected to grow from $159 billion to $227 billion by 2028, indicating strong industry growth potential [6]. - Demand for HVAC services is increasing due to climate change, with HVAC systems contributing to approximately 15% of greenhouse gas emissions [12]. - The Americas segment is the largest and fastest-growing for Trane, with revenue from this segment rising 15% to $4.47 billion [13]. Strategic Positioning - Trane is recognized as a leader in the HVAC and refrigeration systems market, with a market capitalization approaching $100 billion [9]. - The company is committed to returning cash to shareholders, recently announcing a $5 billion share buyback program [8]. - Trane's business model focuses on integrating leading technologies to enhance its core operations and drive long-term returns [12].

Trane Technologies (TT 0.06%) is quietly having a fantastic year. Shares of the heating and cooling solutions company have gained 55% this year at recent prices, crushing the S&P 500's 23% rally. It has benefited from strong demand for its climate solutions products, especially in the commercial construction market. The company is well-positioned for another strong year in 2025. Here's a closer look at what's powering its returns and its optimistic outlook for the coming year.Heating up in 2024Trane's rise ...

Trane Technologies plc’s (TT) stock has had an impressive run over the past year. TT shares have appreciated 82%, outperforming the 73% rally of the industry and the 14.3% growth of the Zacks S&P 500 composite.What’s Driving TT Stock?TraneTechnologies focuses on improving its business operating system, innovation and investments. TT’s strengths include differentiated customer-driven solutions and energy-efficient product installation. Supportive policies and regulations, primarily in the United States and E ...

Company Overview - Trane Technologies (TT) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook for investors [3] Price Performance - Over the past week, TT shares increased by 2.45%, while the Zacks Building Products - Air Conditioner and Heating industry rose by 2.97% [6] - In the last month, TT's stock price changed by 5.23%, compared to the industry's performance of 10.74% [6] - Over the past quarter, TT shares have increased by 14.28%, and over the last year, they have gained 82.9%, significantly outperforming the S&P 500, which moved 6.59% and 32.84% respectively [7] Trading Volume - The average 20-day trading volume for TT is 1,382,010 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 7 earnings estimates for TT have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $10.87 to $11.07 [10] - For the next fiscal year, 7 estimates have also moved upwards without any downward revisions [10] Conclusion - Considering the positive price trends, strong earnings outlook, and favorable momentum score, TT is positioned as a promising investment opportunity [11]

More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...

For the quarter ended September 2024, Trane Technologies (TT) reported revenue of $5.44 billion, up 11.4% over the same period last year. EPS came in at $3.37, compared to $2.79 in the year-ago quarter. The reported revenue represents a surprise of +2.44% over the Zacks Consensus Estimate of $5.31 billion. With the consensus EPS estimate being $3.23, the EPS surprise was +4.33%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall S ...

Trane Technologies (TT) came out with quarterly earnings of $3.37 per share, beating the Zacks Consensus Estimate of $3.23 per share. This compares to earnings of $2.79 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4.33%. A quarter ago, it was expected that this manufacturer would post earnings of $3.08 per share when it actually produced earnings of $3.30, delivering a surprise of 7.14%. Over the last four quarters, the co ...

Revenue Performance - Reported revenues of $5.4 billion, up 11% year-over-year, with organic revenues also up 11%[1] - Americas segment bookings increased by 8% to $4.3 billion, with revenues up 15% to $4.5 billion[6][7] - EMEA segment bookings grew by 9% to $637 million, with revenues up 8% to $667.8 million[8][10] - Asia Pacific segment bookings declined by 30% to $279 million, with revenues down 21% to $298.5 million[12] - Net revenues for the quarter ended September 30, 2024, were $5,441.2 million, compared to $4,882.9 million for the same period in 2023[36] - Net revenues for the quarter ended September 30, 2024, were $5,441.2 million, with no adjustments, resulting in adjusted net revenues of $5,441.2 million[37] - Net revenues for the nine months ended September 30, 2024, were $14,964.2 million, with no adjustments, resulting in adjusted net revenues of $14,964.2 million[37] - Americas net revenues increased to $4,474.9 million in Q3 2024, up from $3,888.0 million in Q3 2023, representing a 15.1% growth[39] - Total company net revenues grew to $5,441.2 million in Q3 2024, compared to $4,882.9 million in Q3 2023, a 11.4% increase[39] Profitability Metrics - GAAP operating margin increased by 110 basis points to 18.8%, while adjusted operating margin rose by 90 basis points to 18.9%[1][3] - Adjusted EBITDA margin improved by 120 basis points to 20.7%[1][3] - GAAP continuing EPS of $3.43, with adjusted continuing EPS of $3.37, up 21% year-over-year[1][2] - Operating income for the quarter ended September 30, 2024, was $1,024.6 million, compared to $864.2 million for the same period in 2023[36] - Operating income for the quarter ended September 30, 2024, was $1,024.6 million, with an operating margin of 18.8%, and adjusted operating income of $1,025.8 million with a margin of 18.9%[37] - Earnings from continuing operations before income taxes for the quarter ended September 30, 2024, were $967.9 million, with adjustments of $1.2 million, resulting in adjusted earnings of $969.1 million[37] - Tax rate for the quarter ended September 30, 2024, was 18.7%, and adjusted tax rate was 20.1%[37] - Earnings from continuing operations attributable to Trane Technologies plc for the quarter ended September 30, 2024, were $780.9 million, with adjustments of $(12.3) million, resulting in adjusted earnings of $768.6 million[37] - Diluted earnings per common share from continuing operations for the quarter ended September 30, 2024, were $3.43, with adjustments of $(0.06), resulting in adjusted diluted earnings per share of $3.37[37] - Operating income for the nine months ended September 30, 2024, was $2,692.5 million, with an operating margin of 18.0%, and adjusted operating income of $2,692.4 million with a margin of 18.0%[37] - Earnings from continuing operations before income taxes for the nine months ended September 30, 2024, were $2,491.2 million, with adjustments of $(0.1) million, resulting in adjusted earnings of $2,491.1 million[37] - Tax rate for the nine months ended September 30, 2024, was 19.8%, and adjusted tax rate was 20.4%[37] - Adjusted EBITDA for the total company rose to $1,127.1 million in Q3 2024, up from $954.4 million in Q3 2023, an 18.1% increase[39] - Net earnings attributable to Trane Technologies plc increased to $772.0 million in Q3 2024, compared to $626.3 million in Q3 2023, a 23.3% growth[41] Cash Flow and Liquidity - Cash flow from continuing operating activities year-to-date was $2.3 billion, with free cash flow of $2 billion[14] - Cash and cash equivalents at the end of Q3 2024 stood at $1,470.0 million, up from $1,095.3 million at the end of 2023[43] - Net cash provided by operating activities increased to $2,245.7 million in the first nine months of 2024, compared to $1,454.8 million in the same period of 2023[44] - Capital expenditures for the first nine months of 2024 were $245.0 million, up from $217.2 million in the same period of 2023[44] - Repurchase of ordinary shares totaled $926.1 million in the first nine months of 2024, compared to $459.8 million in the same period of 2023[44] - Net cash flow provided by continuing operating activities for the nine months ended September 30, 2024, was $2,272.2 million, up from $1,482.6 million in the same period in 2023[46] - Free cash flow for the nine months ended September 30, 2024, was $2,037.5 million, compared to $1,288.4 million in the same period in 2023[46] - Capital expenditures, net for the nine months ended September 30, 2024, were $245.0 million, up from $217.2 million in the same period in 2023[46] - Cash payments for restructuring were $7.2 million in the nine months ended September 30, 2024, compared to $8.8 million in the same period in 2023[46] Balance Sheet and Financial Position - Total current assets increased to $8,099.7 million at the end of Q3 2024, up from $6,869.9 million at the end of 2023[43] - Long-term debt rose to $4,317.1 million at the end of Q3 2024, compared to $3,977.9 million at the end of 2023[42] - Net Receivables increased to $3,393.4 million as of September 30, 2024, compared to $3,142.5 million in September 2023 and $2,956.8 million in December 2023[45] - Days Sales Outstanding improved to 56.9 days in September 2024 from 58.7 days in September 2023 and 61.0 days in December 2023[45] - Net Inventory decreased to $2,033.4 million in September 2024 from $2,191.8 million in September 2023 and $2,152.1 million in December 2023[45] - Inventory Turns increased to 6.8 in September 2024 from 5.9 in September 2023 and 5.5 in December 2023[45] - Accounts Payable increased to $2,194.8 million in September 2024 from $2,093.3 million in September 2023 and $2,025.2 million in December 2023[45] - Days Payable Outstanding improved to 57.8 days in September 2024 from 59.2 days in September 2023 and 62.6 days in December 2023[45] Guidance and Definitions - The company raised full-year 2024 revenue guidance to approximately 11% growth and adjusted continuing EPS guidance to $11.10[15] - Adjusted continuing EPS for 2024 is defined as GAAP continuing EPS adjusted for restructuring costs, contingent consideration, merger and acquisition related costs, legacy legal liability, and a U.S. discrete tax benefit[24] - Adjusted EBITDA for 2024 is defined as adjusted operating income excluding depreciation and amortization expense and including other income/(expense), net[25] - Adjusted EBITDA margin is defined as the ratio of adjusted EBITDA divided by net revenues[26] - Adjusted effective tax rate for 2024 is defined as the ratio of income tax expense adjusted for a U.S. discrete tax benefit and the net tax effect of adjustments for restructuring costs, contingent consideration, merger and acquisition related costs, and legacy legal liability divided by adjusted net earnings[27] - Free cash flow for 2024 is defined as net cash provided by continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs, legacy legal liability, and merger and acquisition related costs[28] - Operating leverage is defined as the ratio of the change in adjusted operating income for the current period less the prior period, divided by the change in net revenues for the current period less the prior period[29] - Organic revenue is defined as GAAP net revenues adjusted to eliminate currency fluctuations and the impact of acquisitions[29] Bookings and Segment Performance - Strong bookings of $5.2 billion, up 5% year-over-year[1][3] - Americas segment bookings increased by 8% to $4.3 billion, with revenues up 15% to $4.5 billion[6][7] - EMEA segment bookings grew by 9% to $637 million, with revenues up 8% to $667.8 million[8][10] - Asia Pacific segment bookings declined by 30% to $279 million, with revenues down 21% to $298.5 million[12]

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