Trane Technologies(US:TT)2025-10-30 17:36Financial Performance - Net revenues for Q3 2025 reached $5,742.5 million, a 5.5% increase from $5,441.2 million in Q3 2024[10] - Operating income for the nine months ended September 30, 2025, was $3,148.4 million, up 16.9% from $2,692.5 million in the same period of 2024[10] - Net earnings attributable to Trane Technologies plc for Q3 2025 were $847.6 million, representing a 9.8% increase compared to $772.0 million in Q3 2024[10] - Earnings per share (EPS) for continuing operations in Q3 2025 was $3.85, up from $3.46 in Q3 2024, reflecting a 11.3% increase[10] - Net earnings for the nine months ended September 30, 2025, increased to $2,338.8 million, up from $1,977.6 million in 2024, representing a growth of 18.3%[21] - Net revenues for the nine months ended September 30, 2025 increased by 8.1%, or $1,213.2 million, compared to the same period in 2024[138] Assets and Liabilities - Total current assets increased to $7,859.5 million as of September 30, 2025, compared to $7,337.8 million at the end of 2024, marking a 7.1% growth[13] - Total assets rose to $21,373.8 million as of September 30, 2025, compared to $20,146.7 million at the end of 2024, indicating a 6.1% increase[13] - Total liabilities increased to $13,027.5 million as of September 30, 2025, compared to $12,659.8 million at the end of 2024, a rise of 2.9%[13] - Total equity increased to $8,346.3 million as of September 30, 2025, up from $7,486.9 million at December 31, 2024, representing a growth of 11.5%[17] - Total debt, excluding current maturities, decreased to $3,921.2 million as of September 30, 2025, down from $4,318.1 million at the end of 2024, a reduction of 9.2%[35] Cash Flow and Investments - Cash and cash equivalents decreased to $1,125.8 million as of September 30, 2025, from $1,590.1 million at the end of 2024, a decline of 29.3%[13] - Net cash provided by operating activities decreased to $2,035.6 million in 2025 from $2,245.7 million in 2024, a decline of 9.3%[21] - The Company reported a net cash used in investing activities of $554.6 million for the nine months ended September 30, 2025, compared to $886.6 million in 2024, a decrease of 37.5%[21] - The Company paid dividends of $629.1 million to ordinary shareholders in 2025, compared to $568.8 million in 2024, an increase of 10.6%[21] Segment Performance - The Americas segment reported net revenues of $4,663.3 million, a 4.2% increase, with Segment Adjusted EBITDA margin rising to 23.1%[130][131] - The EMEA segment saw net revenues rise by 12.2% to $749.6 million, with a Segment Adjusted EBITDA margin of 21.0%[130][133] - The Asia Pacific segment's net revenues increased by 10.4% to $329.6 million, with a Segment Adjusted EBITDA margin of 23.3%[130] Shareholder Returns - Cash dividends declared were $418.9 million at a rate of $0.94 per share for the quarter ended June 30, 2025[17] - The Company declared dividends of $2.82 per ordinary share for the nine months ended September 30, 2025, compared to $2.52 in 2024, representing an increase of approximately 11.9%[75] - The company repurchased ordinary shares totaling $370.4 million during the quarter ended June 30, 2025[17] - The company repurchased and canceled $1.2 billion of ordinary shares during the nine months ended September 30, 2025, exhausting the 2022 Authorization[152] Tax and Compliance - The effective income tax rate for the nine months ended September 30, 2025 was 19.9%, slightly higher than 19.8% for the same period in 2024[68] - The examination of the Company's U.S. federal income tax returns by the IRS has been concluded for tax years 2016 to 2019, with most returns prior to 2022 effectively settled[70] Acquisitions and Growth - The Company completed the acquisition of BrainBox AI Inc. on January 2, 2025, enhancing its HVAC optimization capabilities[72] - Multiple distributors were acquired in Europe in the first half of 2025, with intangible assets totaling $73.9 million primarily related to developed technology, and total goodwill recognized was $190.0 million[73] Risks and Legal Matters - The company is involved in various litigation matters, including those related to Aldrich Pump LLC and Murray, but management believes any potential liabilities will not have a material adverse effect on its financial condition[80] - The Company recorded a liability of $248.8 million related to obligations under funding agreements with Aldrich and Murray, primarily due to asbestos-related liabilities[87] Reporting and Governance - Trane Technologies PLC filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2025[101] - Certifications from the Chief Executive Officer and Chief Financial Officer were furnished as per Sarbanes-Oxley Act requirements[32] - The report is formatted in iXBRL, enhancing the accessibility of financial data[101]