Trane Technologies Q1 Earnings Beat Estimates, Rise Y/Y

Core Insights - Trane Technologies plc (TT) reported mixed first-quarter 2025 results, with adjusted EPS of $3.88 exceeding the Zacks Consensus Estimate by 3.2% and increasing 17.6% year over year, while revenues of $5.75 billion slightly missed the consensus mark by 0.3% but rose 8.3% year over year [1][7] - Bookings increased by 5% year over year on a reported basis and 4% year over year organically [1] Revenue and Bookings Analysis - The Americas segment generated revenues of $4.7 billion, which was below the estimate of $4.76 billion but represented a 9% year-over-year increase on both a reported and organic basis. Bookings rose 8% on a reported basis and 7% organically to $4.54 billion [2] - The Europe, Middle East and Africa segment reported revenues of $707.9 million, up 10% year over year on a reported basis and 3% organically, surpassing the estimate of $641.2 million. Bookings increased by 5% year over year on a reported basis but decreased 2% organically to $669.4 million [3] - Revenues from the Asia Pacific segment fell 7% year over year on a reported basis and 8% organically to $346.2 million, although it exceeded the estimate of $333.3 million. Bookings declined 16% year over year on a reported basis and 17% organically to $377.7 million [4] Financial Position - At the end of the quarter, Trane had a cash balance of $774.2 million, down from $1.6 billion at the end of December 2024. The debt balance decreased to $3.9 billion from $4.3 billion in the same period [5] - The company generated $1.04 billion in cash from operating activities and reported free cash flow of $841 million for the quarter [5] 2025 Guidance - For the full year 2025, Trane expects revenue growth of approximately 9% and organic revenue growth of approximately 8% compared to 2024. Adjusted EPS is projected to be around $13.05, which is higher than the Zacks Consensus Estimate of $12.92 [6]