# Trane Technologies plc (TT) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/TT/thesis · /stocks/TT/memo

## Financial Snapshot

---
ticker: TT
step: 04
generated: 2026-05-13
source: quick-research
---

### Trane Technologies plc (TT) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | $15.99B | $17.68B | $19.84B | +12.2% |
| Gross Margin | ~32% | ~34% | ~36% | |
| Operating Margin | ~14% | ~16% | ~17.5% | |
| Net Income | ~$1.6B | ~$2.0B | ~$2.6B | +26.9% |
| EPS (adjusted) | ~$7.50 | ~$9.40 | ~$11.25 | +19.7% |

*Consistent double-digit revenue growth 2022-2024 driven by commercial HVAC pricing power, data center demand surge, and services growth. Margin expansion of ~550bp since 2020 reflects mix shift toward higher-margin applied commercial systems and growing services. FY2025: revenue ~$21.3B (+7.5%); adj. EPS $13.06 (+16.4%). EPS has nearly doubled since 2020.*

#### Cash Flow & Balance Sheet (FY2025)

| Metric | Value |
|--------|-------|
| Free Cash Flow (FY2025) | ~$2.81B |
| Operating Cash Flow | ~$3.3B |
| Capital Expenditures | ~$500M |
| Cash & Equivalents | ~$2.0B |
| Total Debt | ~$6.5B |
| FCF Conversion | ~100% of adjusted net earnings (consistently) |
| Backlog (year-end 2025) | $7.8B |

#### Key Ratios (approximate)
- P/E: ~34x (adjusted FY2026 guidance) | EV/EBITDA: ~25x | FCF Yield: ~2%
- Revenue Growth (FY2024): +12.2% | Revenue Growth (FY2025): +7.5%
- Gross Margin: ~36% | Adj. Operating Margin: ~19-20%
- Net Debt / EBITDA: ~1.5x — conservative leverage

#### Growth Profile
Trane has compounded revenue at ~12% and EPS at ~18% annually since 2020, driven by commercial HVAC pricing (8-10% annual price increases on equipment), data center demand (Americas commercial applied bookings +120%+ for two consecutive quarters in 2025), and services mix shift. The $7.8B backlog at year-end 2025 with a 2:1 book-to-bill ratio in data center-related segments provides exceptional revenue visibility into 2026-2027. FCF conversion of ~100% of adj. net earnings is a key quality metric — no earnings quality concerns.

#### Forward Estimates
- FY2026 guidance: Revenue +8.5-9.5%; adj. EPS $14.65-14.85 (+12-14% YoY)
- Consensus FY2026 adj. EPS: ~$14.82 | FY2027: ~$16.82
- FCF FY2026 consensus: ~$3.28B
- Analyst consensus: 9 Buy/Outperform, 12 Hold, 2 Sell (21 analysts); mean target ~$477
- Dividend: ~$3.60/share annually; 10%+ annual increases since 2020

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/TT/fundamental

## Navigation

- Overview: /stocks/TT
- Financials (this page): /stocks/TT/financials
- Thesis: /stocks/TT/thesis
- Investment Memo: /stocks/TT/memo
- Coverage universe: /stocks