Trane Technologies(TT) - 2025 Q1 - Quarterly Results

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]