Trane Technologies Reports Strong Third-Quarter Results;
Raises Full-Year Revenue Guidance, Reaffirms Full-Year EPS Guidance Highlights (third-quarter 2026 versus third-quarter 2025, unless otherwise noted):
Organic bookings* up 20 percent, l with broad-based growth across all segments Book-to-bill of 107 percent and l greater than 100 percent in all segments Backlog of $12.5 billion, up 73 l percent; Americas Commercial HVAC up approximately 80 percent Reported revenues of $6.8 billion, l up 18 percent; organic revenues* up 16 percent GAAP continuing EPS of $4.79; l adjusted continuing EPS* of $4.86, both up 25 percent l Year-to-date free cash flow* of $2.8 billion, up approximately 60 percent *This news release contains non-GAAP financial measures. Definitions of the non-GAAP financial measures can be found in the footnotes of this news release. See attached tables for additional details and reconciliations.
- Trane Tech nologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $4.79 for the third quarter of 2026. Adjusted continuing EPS was $4.86, up 25 percent.
"We delivered strong performance in the third quarter, including organic revenue growth of 16 percent, record operating income and earnings-per-share growth of 25 percent," said Dave Regnery, chair and CEO of Trane Technologies.
"Our focus on sustainability and energy efficiency continues to resonate with customers, driving bookings growth of 20 percent in the quarter and elevating our backlog to $12.5 billion. We are raising our full-year -more- -2- revenue guidance and reaffirming our earnings-per-share guidance, even as we navigate supply chain and inflationary headwinds. With our strong momentum, leading innovation and talented team, we are well positioned to continue delivering differentiated, long-term shareholder value." Third-Quarter Business Review (all comparisons against third-quarter 2025 unless otherwise noted)
Americas Segment: innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions.
• Strong bookings of $5.7 billion, up 18 percent; organic bookings up 16 percent. Book-to-bill of 101 percent. Americas segment saw strong bookings growth across Commercial HVAC, Residential and Transport.
• Reported revenues were up 21 percent, including approximately 2 percentage points related to acquisitions. Organic revenues were up 19 percent.
• GAAP operating margin was up 40 basis points, adjusted operating margin was up 50 basis points and adjusted EBITDA margin was up 40 basis points.
Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems and services, energy services and solutions, building controls, and transport refrigeration systems.
• Strong bookings up 40 percent; organic bookings were up 41 percent. Book-to- bill of 147 percent.
• Reported revenues were up approximately 1 percent, including approximately 1 percentage point of unfavorable foreign exchange impact. Organic revenues were up 2 percent. -more- -3- • GAAP operating margin was down 240 basis points; adjust ed operating margin was down 250 basis points and adjusted EBITDA margin was down 230 basis points. Asia Pacific Segment: innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings, and transport refrigeration systems and solutions.
• Strong bookings up 22 percent, organic bookings up 21 percent. Book-to-bill of 128 percent.
• Reported revenues were up 8 percent, including approximately 1 percentage point of positive foreign exchange impact. Organic revenues were up 7 percent.
• GAAP operating margin was down 390 basis points, adjusted operating margin was down 390 basis points, adjusted EBITDA margin was down 360 basis points.
• Through September 30, 2026, cash flow from continuing operating activities was approximately $3.1 billion and free cash flow was approximately $2.8 billion.
• Year-to-date through October, the Company deployed or committed approximately $3.4 billion of capital including approximately $930 million for dividends, $1,080 million for M&A, and $1.4 billion for share repurchases.
• The Company expects to pay a competitive and growing dividend and to deploy 100 percent of excess cash to shareholders over time.
• The Company expects full-year 2026 reported revenue growth of approximately 13.5 percent and organic revenue growth of approximately 11 percent versus full- year 2025.
• The Company expects GAAP continuing EPS for full-year 2026 of approximately $15.00 to $15.10, including $0.20 for non-GAAP adjustments. The Company expects adjusted continuing EPS for full- year 2026 of $15.20 to $15.30.
• Additional information regarding the Company's 2026 guidance is included in the Company's third-quarter earnings presentation found at www.tranetechnologies.com in the Investor Relations section. -more- -4- This news release 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, and earnings; our business operations; demand for our products and services, including bookings and backlog; capital deployment, including the amount and timing of our dividends, our share repurchase program, anticipated capital commitments for M&A activity, and our capital allocation strategy; our available liquidity; our anticipated revenue growth, and the performance of the markets in which we operate.
These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, global economic conditions, including recessions and economic downturns, inflation, volatility in interest rates and foreign exchange; trade protection measures such as import or export restrictions, tariffs, or quotas; changing energy prices; worldwide geopolitical conflict; financial institution disruptions; climate change and our sustainability strategies and goals; future health care emergencies on our business, our suppliers and our customers; commodity shortages; price increases; government regulation; restructurings activity and cost savings associated with such activity; secular trends toward decarbonization, energy efficiency and internal air quality, the outcome of any litigation, including the risks and uncertainties associated with the Chapter 11 proceedings for our deconsolidated subsidiaries Aldrich Pump LLC and Murray Boiler LLC; cybersecurity risks; and tax audits and tax law changes and interpretations. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2025, as well as our subsequent reports on Form 10-Q and other SEC filings. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events and how they may affect the Company. We assume no obligation to update these forward-looking statements.
This news release also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non-GAAP financial information and reconciliation to GAAP are attached to this news release.
All amounts reported within the earnings release above related to net earnings (loss), earnings (loss) from continuing operations, earnings (loss) from discontinued operations, adjusted EBITDA and per share amounts are attributed to Trane Technologies' ordinary shareholders.
Trane Technologies (NYSE:TT) is a global climate innovator. Through our strategic brands Trane ® and Thermo King ® , and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more information, visit tranetechnologies.com. # # #
Contacts: Media: Investors: Travis Bullard Pat Uotila 919-802-2593 607-342-6573 Media@tranetechnologies.com InvestorRelations@tranetechnologies.com
in 2026 is defined as GAAP operating income adjusted for merger and acquisition transaction costs, amortization of acquired backlog intangible asset and restructuring costs. Adjusted operating income in 2025 is defined as GAAP operating income adjusted for restructuring costs, merger and acquisition transaction costs and a non-cash adjustment for contingent consideration. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2, 3 and 4 of the news release.
Adjusted earnings from continuing operations attributable to Trane Technologies plc (Adjusted net earnings) in 2026 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of merger and acquisition transaction costs, amortization of acquired backlog intangible asset, a non-cash gain from acquisition of a previously held investment and restructuring costs. Adjusted net earnings in 2025 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, merger and acquisition transaction costs and a non-cash adjustment for contingent consideration. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release.
in 2026 is defined as GAAP continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of merger and acquisition transaction costs, amortization of acquired backlog intangible asset, a non-cash gain from acquisition of a previously held investment and restructuring costs. Adjusted continuing EPS in 2025 is defined as GAAP continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, merger and acquisition transaction costs and a non-cash adjustment for contingent consideration. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release.
in 2026 is defined as adjusted operating income excluding depreciation and amortization expense and including other income / (expense), net, excluding a non-cash gain from acquisition of a previously held investment. Adjusted EBITDA in 2025 is defined as adjusted operating income excluding depreciation and amortization expense and including other income / (expense), net. Other income / (expense), net mainly comprises interest income, foreign currency exchange gains and losses and certain components of pension and postretirement benefit costs. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 4 and 5 of the news release.
for 2026 is defined as the ratio of income tax expense adjusted for the net tax effect of adjustments for merger and acquisition transaction costs, amortization of acquired backlog intangible asset and restructuring costs divided by adjusted net earnings. Adjusted effective tax rate for 2025 is defined as the ratio of income tax expense adjusted for the net tax effect of adjustments for restructuring costs and merger and acquisition transaction costs divided by adjusted net earnings. This measure allows for a direct comparison of the effective tax rate between periods.
in 2026 is defined as net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs and merger and acquisition transaction costs. Free cash flow in 2025 is defined as net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs, legacy legal liability, and merger and acquisition transaction costs. Please refer to the free cash flow reconciliation on table 8 of the news release. -more- -6-
is defined as the ratio of the change in adjusted operating income for the current period (e.g. Q3 2026) less the prior period (e.g. Q3 2025), divided by the change in net revenues for the current period less the prior period.
is defined as GAAP net revenues adjusted for the impact of currency and acquisitions.
is defined as reported orders in the current period adjusted for the impact of currency and acquisitions.
measures a firm’s operating liquidity position and its overall effectiveness in managing the enterprise's current accounts.
is calculated by adding net accounts and notes receivables and inventories and subtracting total current liabilities that exclude short-term debt, dividend payable and income tax payables.
is calculated by dividing the working capital balance (e.g. as of September 30) by the annualized revenue for the period (e.g. reported revenues for the three months ended September 30 multiplied by 4 to annualize for a full year).
is the amount of bookings received from customers during a period (e.g. Q3 2026) divided by the amount of revenue recorded during that same period (e.g. Q3 2026).
The Company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP). The following schedules provide non-GAAP financial information and a quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP.
The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to, financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may not be comparable to non-GAAP financial measures reported by other companies.
We believe the non-GAAP financial information provides important supplemental information to both management and investors regarding financial and business trends used in assessing our financial condition and results of operations.
Non-GAAP financial measures assist investors with analyzing our business results as well as with predicting future performance. In addition, these non-GAAP financial measures are also reviewed by management in order to evaluate the financial performance of each segment. Presentation of these non-GAAP financial measures helps investors and management to assess the operating performance of the Company.
As a result, one should not consider these measures in isolation or as a substitute for our results reported under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results. -more-
*Represents a non-GAAP measure, refer to pages 5-7 in the Earnings Release for definitions.
(a) Restructuring/Other in 2026 and 2025 includes restructuring amounts unless specified otherwise. Restructuring/Other within Americas in 2026 includes $16.3 million in amortization of acquired backlog intangible asset.
(b) Restructuring/Other within Corporate in 2026 includes $0.8 million of M&A transaction costs. Restructuring/Other within Corporate in 2025 includes $0.4 million of M&A transaction costs.
(c) Depreciation and amortization within Americas in 2026 excludes $16.3 million of amortization of acquired backlog intangible asset, which has been included in the Restructuring/Other line. SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION Table 5
For the quarter ended September 30, Total Company 2026 2025 ────────────────────────────────────────────────────────────────────────────── Adjusted EBITDA * $ 1,447.1 $ 1,252.3 Less: items to reconcile adjusted EBITDA to net earnings attributable to Trane Technologies plc Depreciation and -88.7 -88.3 amortization(1) Interest expense -52.4 -55.6 Provision for income taxes -219.9 -231.5 M&A transaction costs -0.8 -0.4 Amortization of acquired backlog -16.3 — intangible asset Restructuring costs -3.6 -16.3 Discontinued operations, -11.4 -9.4 net of tax Net earnings from continuing operations -5.3 -3.2 attributable to noncontrolling interests Net earnings attributable to Trane $ 1,048.7 $ 847.6 Technologies plc
*Represents a non-GAAP measure, refer to pages 5-7 in the Earnings Release for definitions.
(1) Depreciation and amortization in 2026 excludes amortization of acquired backlog intangible asset of $16.3 million, which has been included in the amortization of acquired backlog intangible asset line. SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION Table 6
For the nine months ended September 30, Operating Activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Earnings from continuing $ 2,609.8 $ 2,354.2 operations Depreciation and 316.1 285.5 amortization Changes in assets and liabilities and 134.2 -585.6 other non-cash items Net cash provided by (used in) 3,060.1 2,054.1 continuing operating activities Net cash provided by (used in) -32.9 -18.5 discontinued operating activities Net cash provided by (used in) operating 3,027.2 2,035.6 activities Investing Activities Capital expenditures, net -264.2 -277.2 Acquisitions and equity method -822.9 -277.4 investments, net of cash acquired Other investing -3.2 — activities, net Net cash provided by (used in) investing -1,090.3 -554.6 activities Financing Activities Net proceeds from -402.0 -157.3 (payments of) debt Dividends paid to -693.7 -629.1 ordinary shareholders Repurchase of ordinary -1,338.5 -1,250.0 shares Other financing -21.8 -20.7 activities, net Net cash provided by (used in) financing -2,456.0 -2,057.1 activities Effect of exchange rate changes on cash -16.8 111.8 and cash equivalents Net increase (decrease) in cash and cash -535.9 -464.3 equivalents Cash and cash equivalents - beginning of 1,763.3 1,590.1 period Cash and cash equivalents - end of $ 1,227.4 $ 1,125.8 period
*Represents a non-GAAP measure, refer to pages 5-7 in the Earnings Release for definitions. SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Full text with the tables
Trane Technologies Reports Strong Third-Quarter Results;
Raises Full-Year Revenue Guidance, Reaffirms Full-Year EPS Guidance
Highlights (third-quarter 2026 versus third-quarter 2025, unless otherwise
noted):
Organic bookings* up 20 percent,
l with broad-based growth across all
segments
Book-to-bill of 107 percent and
l greater than 100 percent in all
segments
Backlog of $12.5 billion, up 73
l percent; Americas Commercial HVAC up
approximately 80 percent
Reported revenues of $6.8 billion,
l up 18 percent; organic revenues* up
16 percent
GAAP continuing EPS of $4.79;
l adjusted continuing EPS* of $4.86,
both up 25 percent
l Year-to-date free cash flow* of $2.8
billion, up approximately 60 percent
*This news release contains non-GAAP
financial measures. Definitions of
the
non-GAAP financial measures can be
found
in the footnotes of this news
release.
See attached tables for additional
details and reconciliations.
SWORDS, Ireland, October 29, 2026
- Trane Tech nologies plc (NYSE:TT), a global climate innovator, today reported
diluted earnings per share (EPS) from continuing operations of $4.79 for the
third quarter of 2026. Adjusted continuing EPS was $4.86, up 25 percent.
Third-Quarter 2026 Results
Financial Comparisons - Third-Quarter Continuing Operations
$, millions Q3 2026 Q3 2025 Y-O-Y Change Organic Y-O-Y
except EPS Change
Bookings $7,248 $5,979 21% 20%
Net Revenues $6,760 $5,743 18% 16%
GAAP Operating $1,343 $1,165 15%
Income
GAAP Operating 19.9% 20.3% (40) bps
Margin
Adjusted $1,364 $1,182 15%
Operating Income*
Adjusted 20.2% 20.6% (40) bps
Operating Margin*
Adjusted EBITDA* $1,447 $1,252 16%
Adjusted EBITDA 21.4% 21.8% (40) bps
Margin*
GAAP Continuing $4.79 $3.82 25%
EPS
Adjusted $4.86 $3.88 25%
Continuing EPS*
Pre-Tax Non-GAAP
Adjustments, $20.7 $16.7 $4.0
net**
**For details see tables 2 and 3 of the news release.
"We delivered strong performance in the third quarter, including organic revenue
growth of 16 percent, record operating income and earnings-per-share growth of
25 percent," said Dave Regnery, chair and CEO of Trane Technologies.
"Our focus on sustainability and energy efficiency continues to resonate with
customers, driving bookings growth of 20 percent in the quarter and elevating
our backlog to $12.5 billion. We are raising our full-year
-more-
-2-
revenue guidance and reaffirming our earnings-per-share guidance, even as we
navigate supply chain and inflationary headwinds. With our strong momentum,
leading innovation and talented team, we are well positioned to continue
delivering differentiated, long-term shareholder value."
Third-Quarter Business Review (all comparisons against third-quarter 2025 unless
otherwise noted)
Americas Segment: innovates for customers in the North America and Latin America
regions. The Americas segment encompasses commercial heating, cooling and
ventilation systems, building controls and solutions, and energy services and
solutions; residential heating and cooling; and transport refrigeration systems
and solutions.
$, millions Q3 2026 Q3 2025 Y-O-Y Change Organic Y-O-Y
Change
Bookings $5,681.4 $4,814.6 18% 16%
Net Revenues $5,647.9 $4,663.3 21% 19%
GAAP Operating $1,239.3 $1,002.6 24%
Income
GAAP Operating 21.9% 21.5% 40 bps
Margin
Adjusted
Operating $1,257.9 $1,018.0 24%
Income
Adjusted
Operating 22.3% 21.8% 50 bps
Margin
Adjusted EBITDA $1,325.1 $1,077.4 23%
Adjusted EBITDA 23.5% 23.1% 40 bps
Margin
• Strong bookings of $5.7 billion, up 18 percent; organic bookings up 16
percent. Book-to-bill of 101 percent. Americas segment saw strong bookings
growth across Commercial HVAC, Residential and Transport.
• Reported revenues were up 21 percent, including approximately 2 percentage
points related to acquisitions. Organic revenues were up 19 percent.
• GAAP operating margin was up 40 basis points, adjusted operating margin was up
50 basis points and adjusted EBITDA margin was up 40 basis points.
Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the
Europe, Middle East and Africa region. The EMEA segment encompasses heating,
cooling and ventilation systems and services, energy services and solutions,
building controls, and transport refrigeration systems.
$, millions Q3 2026 Q3 2025 Y-O-Y Change Organic Y-O-Y
Change
Bookings $1,109.4 $791.1 40% 41%
Net Revenues $755.8 $749.6 1% 2%
GAAP Operating $129.9 $147.0 (12)%
Income
GAAP Operating 17.2% 19.6% (240) bps
Margin
Adjusted $129.6 $147.9 (12)%
Operating Income
Adjusted 17.2% 19.7% (250) bps
Operating Margin
Adjusted EBITDA $141.4 $157.4 (10)%
Adjusted EBITDA 18.7% 21.0% (230) bps
Margin
• Strong bookings up 40 percent; organic bookings were up 41 percent. Book-to-
bill of 147 percent.
• Reported revenues were up approximately 1 percent, including approximately 1
percentage point of unfavorable foreign exchange impact. Organic revenues were
up 2 percent.
-more-
-3-
• GAAP operating margin was down 240 basis points; adjust ed operating margin
was down 250 basis points and adjusted EBITDA margin was down 230 basis points.
Asia Pacific Segment: innovates for customers throughout the Asia Pacific
region. The Asia Pacific segment encompasses heating, cooling and ventilation
systems, services and solutions for commercial buildings, and transport
refrigeration systems and solutions.
$, millions Q3 2026 Q3 2025 Y-O-Y Change Organic Y-O-Y
Change
Bookings $457.1 $373.4 22% 21%
Net Revenues $356.0 $329.6 8% 7%
GAAP Operating $66.2 $74.2 (11)%
Income
GAAP Operating 18.6% 22.5% (390) bps
Margin
Adjusted $66.2 $74.2 (11)%
Operating Income
Adjusted 18.6% 22.5% (390) bps
Operating Margin
Adjusted EBITDA $70.3 $76.8 (8)%
Adjusted EBITDA 19.7% 23.3% (360) bps
Margin
• Strong bookings up 22 percent, organic bookings up 21 percent. Book-to-bill of
128 percent.
• Reported revenues were up 8 percent, including approximately 1 percentage
point of positive foreign exchange impact. Organic revenues were up 7 percent.
• GAAP operating margin was down 390 basis points, adjusted operating margin was
down 390 basis points, adjusted EBITDA margin was down 360 basis points.
Balance Sheet and Cash Flow
$, millions Q3 2026 Q3 2025 Y-O-Y Change
Cash From Continuing Operating $3,060 $2,054 $1,006
Activities Y-T-D
Free Cash Flow Y-T-D* $2,828 $1,786 $1,042
Working Capital/Revenue* 0.3% 3.9% (360) bps
Cash Balance September 30 $1,227 $1,126 $101
Debt Balance September 30 $4,218 $4,616 -$398
• Through September 30, 2026, cash flow from continuing operating activities was
approximately $3.1 billion and free cash flow was approximately $2.8 billion.
• Year-to-date through October, the Company deployed or committed approximately
$3.4 billion of capital including approximately $930 million for dividends,
$1,080 million for M&A, and $1.4 billion for share repurchases.
• The Company expects to pay a competitive and growing dividend and to deploy
100 percent of excess cash to shareholders over time.
Company Raises Full-Year 2026 Revenue Guidance
• The Company expects full-year 2026 reported revenue growth of approximately
13.5 percent and organic revenue growth of approximately 11 percent versus full-
year 2025.
• The Company expects GAAP continuing EPS for full-year 2026 of approximately
$15.00 to $15.10, including $0.20 for non-GAAP adjustments. The Company expects
adjusted continuing EPS for full- year 2026 of $15.20 to $15.30.
• Additional information regarding the Company's 2026 guidance is included in
the Company's third-quarter earnings presentation found at
www.tranetechnologies.com in the Investor Relations section.
-more-
-4-
This news release 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, and earnings; our business operations; demand for our
products and services, including bookings and backlog; capital deployment,
including the amount and timing of our dividends, our share repurchase program,
anticipated capital commitments for M&A activity, and our capital allocation
strategy; our available liquidity; our anticipated revenue growth, and the
performance of the markets in which we operate.
These forward-looking statements are based on our current expectations and are
subject to risks and uncertainties, which may cause actual results to differ
materially from our current expectations. Such factors include, but are not
limited to, global economic conditions, including recessions and economic
downturns, inflation, volatility in interest rates and foreign exchange; trade
protection measures such as import or export restrictions, tariffs, or quotas;
changing energy prices; worldwide geopolitical conflict; financial institution
disruptions; climate change and our sustainability strategies and goals; future
health care emergencies on our business, our suppliers and our customers;
commodity shortages; price increases; government regulation; restructurings
activity and cost savings associated with such activity; secular trends toward
decarbonization, energy efficiency and internal air quality, the outcome of any
litigation, including the risks and uncertainties associated with the Chapter 11
proceedings for our deconsolidated subsidiaries Aldrich Pump LLC and Murray
Boiler LLC; cybersecurity risks; and tax audits and tax law changes and
interpretations. Additional factors that could cause such differences can be
found in our Form 10-K for the year ended December 31, 2025, as well as our
subsequent reports on Form 10-Q and other SEC filings. New risks and
uncertainties arise from time to time, and it is impossible for us to predict
these events and how they may affect the Company. We assume no obligation to
update these forward-looking statements.
This news release also includes non-GAAP financial information, which should be
considered supplemental to, not a substitute for, or superior to, the financial
measure calculated in accordance with GAAP. The definitions of our non-GAAP
financial information and reconciliation to GAAP are attached to this news
release.
All amounts reported within the earnings release above related to net earnings
(loss), earnings (loss) from continuing operations, earnings (loss) from
discontinued operations, adjusted EBITDA and per share amounts are attributed to
Trane Technologies' ordinary shareholders.
Trane Technologies (NYSE:TT) is a global climate innovator. Through our
strategic brands Trane ® and Thermo King ® , and our portfolio of
environmentally responsible products and services, we bring efficient and
sustainable climate solutions to buildings, homes and transportation. For more
information, visit tranetechnologies.com.
# # #
10/29/2026
(See Accompanying Tables)
• Table 1: Condensed Consolidated Income Statement
• Tables 2 - 5: Reconciliation of GAAP to Non-GAAP
• Table 6: Condensed Consolidated Balance Sheets
• Table 7: Condensed Consolidated Statement of Cash Flows
• Table 8: Balance Sheet Metrics and Free Cash Flow
Contacts:
Media: Investors:
Travis Bullard Pat Uotila
919-802-2593 607-342-6573
Media@tranetechnologies.com InvestorRelations@tranetechnologies.com
-more-
-5-
*
Q3 and Year-to-Date Non-GAAP measures definitions
Adjusted operating income
in 2026 is defined as GAAP operating income adjusted for merger and acquisition
transaction costs, amortization of acquired backlog intangible asset and
restructuring costs. Adjusted operating income in 2025 is defined as GAAP
operating income adjusted for restructuring costs, merger and acquisition
transaction costs and a non-cash adjustment for contingent consideration. Please
refer to the reconciliation of GAAP to non-GAAP measures on tables 2, 3 and 4 of
the news release.
Adjusted operating margin
is defined as the ratio of adjusted operating income divided by net revenues.
Adjusted earnings from continuing operations attributable to Trane Technologies
plc (Adjusted net earnings) in 2026 is defined as GAAP earnings from continuing
operations attributable to Trane Technologies plc adjusted for net of tax
impacts of merger and acquisition transaction costs, amortization of acquired
backlog intangible asset, a non-cash gain from acquisition of a previously held
investment and restructuring costs. Adjusted net earnings in 2025 is defined as
GAAP earnings from continuing operations attributable to Trane Technologies plc
adjusted for net of tax impacts of restructuring costs, merger and acquisition
transaction costs and a non-cash adjustment for contingent consideration. Please
refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of
the news release.
Adjusted continuing EPS
in 2026 is defined as GAAP continuing operations attributable to Trane
Technologies plc adjusted for net of tax impacts of merger and acquisition
transaction costs, amortization of acquired backlog intangible asset, a non-cash
gain from acquisition of a previously held investment and restructuring costs.
Adjusted continuing EPS in 2025 is defined as GAAP continuing operations
attributable to Trane Technologies plc adjusted for net of tax impacts of
restructuring costs, merger and acquisition transaction costs and a non-cash
adjustment for contingent consideration. Please refer to the reconciliation of
GAAP to non-GAAP measures on tables 2 and 3 of the news release.
Adjusted EBITDA
in 2026 is defined as adjusted operating income excluding depreciation and
amortization expense and including other income / (expense), net, excluding a
non-cash gain from acquisition of a previously held investment. Adjusted EBITDA
in 2025 is defined as adjusted operating income excluding depreciation and
amortization expense and including other income / (expense), net. Other income /
(expense), net mainly comprises interest income, foreign currency exchange gains
and losses and certain components of pension and postretirement benefit costs.
Please refer to the reconciliation of GAAP to non-GAAP measures on tables 4 and
5 of the news release.
Adjusted EBITDA margin
is defined as the ratio of adjusted EBITDA divided by net revenues.
Adjusted effective tax rate
for 2026 is defined as the ratio of income tax expense adjusted for the net tax
effect of adjustments for merger and acquisition transaction costs, amortization
of acquired backlog intangible asset and restructuring costs divided by adjusted
net earnings. Adjusted effective tax rate for 2025 is defined as the ratio of
income tax expense adjusted for the net tax effect of adjustments for
restructuring costs and merger and acquisition transaction costs divided by
adjusted net earnings. This measure allows for a direct comparison of the
effective tax rate between periods.
Free cash flow
in 2026 is defined as net cash provided by (used in) continuing operating
activities adjusted for capital expenditures, cash payments for restructuring
costs and merger and acquisition transaction costs. Free cash flow in 2025 is
defined as net cash provided by (used in) continuing operating activities
adjusted for capital expenditures, cash payments for restructuring costs, legacy
legal liability, and merger and acquisition transaction costs. Please refer to
the free cash flow reconciliation on table 8 of the news release.
-more-
-6-
Operating leverage
is defined as the ratio of the change in adjusted operating income for the
current period (e.g. Q3 2026) less the prior period (e.g. Q3 2025), divided by
the change in net revenues for the current period less the prior period.
Organic revenue
is defined as GAAP net revenues adjusted for the impact of currency and
acquisitions.
Organic bookings
is defined as reported orders in the current period adjusted for the impact of
currency and acquisitions.
Working capital
measures a firm’s operating liquidity position and its overall effectiveness in
managing the enterprise's current accounts.
•
Working capital
is calculated by adding net accounts and notes receivables and inventories and
subtracting total current liabilities that exclude short-term debt, dividend
payable and income tax payables.
•
Working capital as a percent of revenue
is calculated by dividing the working capital balance (e.g. as of September 30)
by the annualized revenue for the period (e.g. reported revenues for the three
months ended September 30 multiplied by 4 to annualize for a full year).
Book-to-bill
is the amount of bookings received from customers during a period (e.g. Q3 2026)
divided by the amount of revenue recorded during that same period (e.g. Q3
2026).
The Company reports its financial results in accordance with generally accepted
accounting principles in the United States (GAAP). The following schedules
provide non-GAAP financial information and a quantitative reconciliation of the
difference between the non-GAAP financial measures and the financial measures
calculated and reported in accordance with GAAP.
The non-GAAP financial measures should be considered supplemental to, not a
substitute for or superior to, financial measures calculated in accordance with
GAAP. They have limitations in that they do not reflect all of the costs
associated with the operations of our businesses as determined in accordance
with GAAP. In addition, these measures may not be comparable to non-GAAP
financial measures reported by other companies.
We believe the non-GAAP financial information provides important supplemental
information to both management and investors regarding financial and business
trends used in assessing our financial condition and results of operations.
Non-GAAP financial measures assist investors with analyzing our business results
as well as with predicting future performance. In addition, these non-GAAP
financial measures are also reviewed by management in order to evaluate the
financial performance of each segment. Presentation of these non-GAAP financial
measures helps investors and management to assess the operating performance of
the Company.
As a result, one should not consider these measures in isolation or as a
substitute for our results reported under GAAP. We compensate for these
limitations by analyzing results on a GAAP basis as well as a non-GAAP basis,
prominently disclosing GAAP results and providing reconciliations from GAAP
results to non-GAAP results.
-more-
Table 1
TRANE TECHNOLOGIES PLC
Condensed Consolidated Income Statement
(In millions, except per share amounts)
UNAUDITED
en… end… For
Se… For Sep… the
30, the 30, nine
20… qua… 2025 2026 mon… 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 6,7… $ 5,7… $ 18,… $ 16…
re…
Co…
of -4,… -3,… -11… -1…
go…
so…
Se…
and -1,… -95… -3,… -2…
ad…
ex…
Op… 1,3… 1,1… 3,3… 3,…
in…
In… -52… -55… -16… -1…
ex…
Ot…
in… -5.4 -18… 1.8 -4…
net
Ea…
be… 1,2… 1,0… 3,1… 2,…
in…
ta…
Pr…
for -21… -23… -57… -5…
in…
ta…
Ea…
fr… 1,0… 860… 2,6… 2,…
co…
op…
Di…
op…
net -11… -9.4 -31… -1…
of
tax
Net 1,0… 850… 2,5… 2,…
ea…
Le…
Net
ea…
fr…
co… -5.3 -3.2 -20… -1…
op…
at…
to
no…
in…
Net
ea…
at…
to $ 1,0… $ 847… $ 2,5… $ 2,…
Tr…
Te…
plc
Am…
at…
to
Tr…
Te…
plc
or…
sh…
Co… $ 1,0… $ 857… $ 2,5… $ 2,…
op…
Di… -11… -9.4 -31… -1…
op…
Net $ 1,0… $ 847… $ 2,5… $ 2,…
ea…
Di…
ea…
(l…
per
sh…
at…
to
Tr…
Te…
plc
or…
sh…
Co… $ 4.79 $ 3.82 $ 11.… $ 10…
op…
Di… -0.… -0.… -0.… -0…
op…
Net $ 4.74 $ 3.78 $ 11.… $ 10…
ea…
We…
nu…
of
co…
sh…
ou…
Di… 221… 224… 222… 22…
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 2
TRANE TECHNOLOGIES PLC
Reconciliation of GAAP to non-GAAP
(In millions, except per share amounts)
UNAUDITED
…
… …
… …
… …
… …
… …
… …
… …
──────────────────────────────────────────────────────────────────────────────
… … … …
… … … … … …
… $ … $ — $ … $ … $ — $ …
…
… … … … … … … … …
…
… … % … % … % …
…
…
…
…
… … … … … … … … …
…
…
…
…
… … … … … … … … …
…
…
…
… … % … % … % …
…
…
…
…
…
… $ … $ … … $ … $ … $ … … $ …
…
…
…
…
…
…
…
…
…
… $ … $ … $ … $ … $ … $ …
…
…
…
…
…
…
…
… … — … … — …
…
…
…
…
… $ … $ …
…
…
…
…
…
… … …
…
…
…
…
…
… … …
&
…
…
…
…
…
… — …
a
…
…
…
…
…
…
… … …
…
…
…
…
…
…
…
…
… $ … $ …
…
…
…
…
…
…
…
…
…
…
… $ … $ …
…
…
…
…
…
…
…
…
… … …
…
&
…
…
…
…
…
… $ … $ …
…
…
…
…
…
…
…
… — …
…
…
/
…
…
…
…
…
…
… $ … $ …
…
…
…
…
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 3
TRANE TECHNOLOGIES PLC
Reconciliation of GAAP to non-GAAP
(In millions, except per share amounts)
UNAUDITED
…
… …
… …
… …
… …
… …
… …
… …
──────────────────────────────────────────────────────────────────────────────
… … … …
… … … … … …
… $ … $ — $ … $ … $ — $ …
…
… … … … … … … … …
…
… … % … % … % … %
…
…
…
…
… … … … … … … … …
…
…
…
…
… … … … … … … … …
…
…
…
… … % … % … % … %
…
…
…
…
…
… $ … $ … … $ … $ … $ … … $ …
…
…
…
…
…
…
…
…
…
… $ … $ … $ … $ … $ … $ …
…
…
…
…
…
…
…
… … — … … — …
…
…
…
…
…
… $ … $ …
&
…
…
… … …
…
…
…
…
… — …
…
…
…
…
…
… … …
…
…
…
…
…
…
…
…
… $ … $ …
…
…
…
…
…
…
…
…
…
…
… $ … $ …
…
…
…
…
…
…
…
…
… … …
…
&
…
…
…
…
…
… $ … $ …
…
…
…
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 4
TRANE TECHNOLOGIES PLC
Reconciliation of GAAP to non-GAAP
(In millions)
UNAUDITED
For For
the the
quar… qua…
ended end…
Sept… Sep…
30, 30,
2026 2025
──────────────────────────────────────────────────────────────────────────────
As Mar… As Marg…
Rep… Repo…
Am… Net $ 5,64… $ 4,6…
rev…
Seg…
ope… $ 1,23… 21.9 % $ 1,0… 21.5 %
inc…
Res… 18.6 0.4 % 15.4 0.3 %
Adj…
ope… 1,25… 22.3 % 1,0… 21.8 %
inc…
*
Dep…
and 66.8 1.2 % 69.0 1.5 %
amo…
Oth…
inc… 0.4 — % -9.6 -0.2 %
net
Adj…
EBI… $ 1,32… 23.5 % $ 1,0… 23.1 %
*
EM… Net $ 755.8 $ 749…
rev…
Seg…
ope… $ 129.9 17.2 % $ 147… 19.6 %
inc…
Res… -0.3 — % 0.9 0.1 %
Adj…
ope… 129.6 17.2 % 147… 19.7 %
inc…
*
Dep…
and 12.2 1.6 % 10.5 1.4 %
amo…
Oth…
inc… -0.4 -0.1 % -1.0 -0.1 %
net
Adj…
EBI… $ 141.4 18.7 % $ 157… 21.0 %
*
As… Net $ 356.0 $ 329…
Pa… rev…
Seg…
ope… $ 66.2 18.6 % $ 74.2 22.5 %
inc…
Res… — — % — — %
Adj…
ope… 66.2 18.6 % 74.2 22.5 %
inc…
*
Dep…
and 3.7 1.0 % 3.5 1.1 %
amo…
Oth…
inc… 0.4 0.1 % -0.9 -0.3 %
net
Adj…
EBI… $ 70.3 19.7 % $ 76.8 23.3 %
*
Una…
Co… cor… $ -92.3 $ -58…
exp…
Res… 2.4 0.4
Adj…
cor… -89.9 -58…
exp…
*
Dep…
and 6.0 5.3
amo…
Oth…
inc… -5.8 -6.5
net
Adj…
EBI… $ -89.7 $ -59…
*
To… Net $ 6,75… $ 5,7…
Co… rev…
Ope… $ 1,34… 19.9 % $ 1,1… 20.3 %
inc…
Res… 20.7 0.3 % 16.7 0.3 %
Adj…
ope… 1,36… 20.2 % 1,1… 20.6 %
inc…
*
Dep…
and 88.7 1.3 % 88.3 1.5 %
amo…
Oth…
inc… -5.4 -0.1 % -18… -0.3 %
net
Adj…
EBI… $ 1,44… 21.4 % $ 1,2… 21.8 %
*
*Represents a non-GAAP measure, refer to pages 5-7 in the Earnings Release for
definitions.
(a) Restructuring/Other in 2026 and 2025 includes restructuring amounts unless
specified otherwise. Restructuring/Other within Americas in 2026 includes $16.3
million in amortization of acquired backlog intangible asset.
(b) Restructuring/Other within Corporate in 2026 includes $0.8 million of M&A
transaction costs. Restructuring/Other within Corporate in 2025 includes $0.4
million of M&A transaction costs.
(c) Depreciation and amortization within Americas in 2026 excludes $16.3 million
of amortization of acquired backlog intangible asset, which has been included in
the Restructuring/Other line.
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 5
TRANE TECHNOLOGIES PLC
Reconciliation of GAAP to non-GAAP
(In millions)
UNAUDITED
For the quarter
ended September 30,
Total Company 2026 2025
──────────────────────────────────────────────────────────────────────────────
Adjusted EBITDA * $ 1,447.1 $ 1,252.3
Less: items to reconcile
adjusted EBITDA
to net earnings
attributable to Trane
Technologies plc
Depreciation and -88.7 -88.3
amortization(1)
Interest expense -52.4 -55.6
Provision for income taxes -219.9 -231.5
M&A transaction costs -0.8 -0.4
Amortization of acquired
backlog -16.3 —
intangible asset
Restructuring costs -3.6 -16.3
Discontinued operations, -11.4 -9.4
net of tax
Net earnings from
continuing operations -5.3 -3.2
attributable to
noncontrolling interests
Net earnings attributable
to Trane $ 1,048.7 $ 847.6
Technologies plc
*Represents a non-GAAP measure, refer to pages 5-7 in the Earnings Release for
definitions.
(1) Depreciation and amortization in 2026 excludes amortization of acquired
backlog intangible asset of $16.3 million, which has been included in the
amortization of acquired backlog intangible asset line.
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 6
TRANE TECHNOLOGIES PLC
Condensed Consolidated Balance Sheets
(In millions)
UNAUDITED
September 30, December 31,
ASSETS 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 1,227.4 $ 1,763.3
equivalents
Accounts and notes 4,089.5 3,235.3
receivable, net
Inventories 2,602.5 2,103.6
Other current assets 792.0 760.8
Total current assets 8,711.4 7,863.0
Property, plant and 2,456.2 2,251.3
equipment, net
Goodwill 7,078.5 6,457.0
Intangible assets, net 3,480.5 3,236.7
Other noncurrent assets 2,163.6 1,612.7
Total assets $ 23,890.2 $ 21,420.7
LIABILITIES AND EQUITY
Accounts payable $ 3,103.3 $ 2,153.9
Accrued expenses and
other current 4,355.7 3,439.8
liabilities
Short-term borrowings
and current 293.1 693.0
maturities of long-term
debt
Total current 7,752.1 6,286.7
liabilities
Long-term debt 3,924.5 3,922.1
Other noncurrent 3,080.8 2,611.0
liabilities
Total equity 9,132.8 8,600.9
Total liabilities and $ 23,890.2 $ 21,420.7
equity
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 7
TRANE TECHNOLOGIES PLC
Condensed Consolidated Statement of Cash Flows
(In millions)
UNAUDITED
For the nine months
ended September 30,
Operating Activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Earnings from continuing $ 2,609.8 $ 2,354.2
operations
Depreciation and 316.1 285.5
amortization
Changes in assets and
liabilities and 134.2 -585.6
other non-cash items
Net cash provided by
(used in) 3,060.1 2,054.1
continuing operating
activities
Net cash provided by
(used in) -32.9 -18.5
discontinued operating
activities
Net cash provided by
(used in) operating 3,027.2 2,035.6
activities
Investing Activities
Capital expenditures, net -264.2 -277.2
Acquisitions and equity
method -822.9 -277.4
investments, net of cash
acquired
Other investing -3.2 —
activities, net
Net cash provided by
(used in) investing -1,090.3 -554.6
activities
Financing Activities
Net proceeds from -402.0 -157.3
(payments of) debt
Dividends paid to -693.7 -629.1
ordinary shareholders
Repurchase of ordinary -1,338.5 -1,250.0
shares
Other financing -21.8 -20.7
activities, net
Net cash provided by
(used in) financing -2,456.0 -2,057.1
activities
Effect of exchange rate
changes on cash -16.8 111.8
and cash equivalents
Net increase (decrease)
in cash and cash -535.9 -464.3
equivalents
Cash and cash equivalents
- beginning of 1,763.3 1,590.1
period
Cash and cash equivalents
- end of $ 1,227.4 $ 1,125.8
period
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION
Table 8
TRANE TECHNOLOGIES PLC
Balance Sheet Metrics and Free Cash Flow
($ in millions)
UNAUDITED
September September December
2026 30, 2025 30, 2025 31,
──────────────────────────────────────────────────────────────────────────────
Net $ 4,089.5 $ 3,602.9 $ 3,235.3
Receiva…
Days
Sales 55.2 57.3 57.4
Outstan…
Net $ 2,602.5 $ 2,355.3 $ 2,103.6
Invento…
Invento… 6.7 6.2 6.4
Turns
Accounts $ 3,103.3 $ 2,396.6 $ 2,153.9
Payable
Days
Payable 64.7 60.3 58.0
Outstan…
-------…
-------…
-------…
-------…
Nine Nine
months months
ended ended
September September
30, 2026 30, 2025
Net cash
flow
provided
by $ 3,060.1 $ 2,054.1
continu…
operati…
activit…
Capital -264.2 -277.2
expendi…
Cash
payments 13.9 3.2
for
restruc…
Legacy
legal — 0.6
liabili…
M&A
transac… 17.7 5.3
costs
Free
cash $ 2,827.5 $ 1,786.0
flow *
*Represents a non-GAAP measure, refer to pages 5-7 in the Earnings Release for
definitions.
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION