Trane Technologies Plc · NYSE:TT
Trane Technologies — J.P. Morgan Industrials Conference 2025
33 slides from Trane Technologies's conference presentation, Mar 11, 2025
Slide 1: Investor Presentation March 2025
Investor Presentation March 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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, operating income, op
Slide 3: Focused Strategy Delivers Differentiated Shareholder Returns
CLEAR PRIORITIES Focused Strategy Delivers Differentiated Shareholder Returns 1 2 3 4 Win Grow Margins Maximize Continue Through and Cash Via Value As With Sustainable Execution Focused Dynamic Capital Innovation Excellence Climate Co. Allocation Strong Foundation Strong operating system and Uplifti
Slide 4: Pure-Play Climate Control Business with Leading Brands and Market Positions
T R A N E T E C H N O L O G I E S T O D AY Pure-Play Climate Control Business with Leading Brands and Market Positions; High Aftermarket Mix Regional Segments Franchise Brands Commercial HVAC Americas Total APAC $19.8B Sales Transport Refrigeration EMEA Revenue Streams Residential HVAC 67% 33% Equip
Slide 5: Global Megatrends Continue to Intensify – Demanding Bold Action
S U S TA I N A B I L I T Y L E A D E R Global Megatrends Continue to Intensify – Demanding Bold Action Heating and Cooling Food Loss GHG Emissions Buildings Global emissions from heating / Global emissions Combined share of cooling buildings* come from food loss / waste* global emissions 15% + 10% =
Slide 6: Uniquely Positioned with Innovative Solutions to Lead a Movement to Reduce GHG Emissions
S U S TA I N A B I L I T Y L E A D E R Uniquely Positioned with Innovative Solutions to Lead a Movement to Reduce GHG Emissions Business Key Actions We Delivery on the Bending as Usual are Taking Gigaton Challenge the Curve % Global Carbon Emissions (CO2e) % Global Carbon Emissions (CO2e) from Heati
Slide 7: Our Sustainability Purpose Yields Benefits Beyond CO2e Reduction
S U S TA I N A B I L I T Y L E A D E R Our Sustainability Purpose Yields Benefits Beyond CO2e Reduction SOCIAL BENEFITS FINANCIAL BENEFITS Defines Our Culture Focuses Business Priorities Generates uplifting culture that builds More targeted investments engagement and empowers people Drives innovativ
Slide 8: Widely Recognized for Sustainability Leadership and Uplifting Culture
SUSTAINABILITY LEADER Widely Recognized for Sustainability Leadership and Uplifting Culture Highly Regarded Sustainability Performance People and Citizenship Recognized in the 14 Consecutive Years on inaugural edition Fortune World’s Most the North America Index Ranks companies who promote Admired C
Slide 9: Streamlined, Customer-Focused Climate Innovator
Trane Technologies: Boldly Challenging What’s Possible for a Sustainable World 1 2 3 Sustainability innovation Exceptional performance Reinvesting in business fuels our growth maximizes our margins fuels consistently strong results over time Customer-focused innovation Relentlessly focused on leanin
Slide 10: Designed for Performance, Trusted Market Leader
TRANE TECHNOLOGIES Climate Innovator with Purpose Driven Strategy Designed for Trusted Performance Market Leader Purpose-driven alignment + Unmatched direct sales force Fit for purpose organizational design Deep customer relationships Strategic choice budgeting Trusted industry & technical expertise
Slide 11: Sustainability Purpose Drives Performance
TRANE TECHNOLOGIES Sustainability Purpose Drives Performance 1 World class climate innovator relentlessly reinvesting in innovation to bend the curve on climate change 2 Lean-based, customer-focused model Unwavering focus on sustainable solutions for 3 Outstanding speed and agility in the marketplac
Slide 12: Megatrends are Powerful Drivers of Growth and Accelerate Need for Innovative Solutions
I N N O VAT I O N Megatrends are Powerful Drivers of Growth and Accelerate Need for Innovative Trane Technologies’ Solutions Continuing Megatrends Accelerating Megatrends Climate Urbanization Resource Demographics Indoor Digital Change Scarcity Environmental Connectedness Quality Driving Sustainabil
Slide 13: Proven Business Operating System Delivers Results
Proven Business Operating System Delivers Results Business Operating System Results 1 2 • World class sales, service capabilities / offerings Aligns resources Empowers • Sustained market outgrowth for customer people to solve value problems • Margin expansion • Continuous improvement and sustainable
Slide 14: Relentless Investments Delivering Consistently Strong Financial Performance
C U L T U R E O†F P E R F O R M A N C E E X C E L L E N C E Relentless Investments in Innovation and Growth, People and Culture and Best-in-Class BOS Delivering Consistently Strong Financial Performance $21 20% ~12% +400 $18 CAGR 18% bps Revenue* $15 Adjusted 16% ($B) $12 EBITDA 14% Margin* $9 12% $
Slide 15: Positioned to Outperform Over the Long-Term
IN SUMMARY Positioned to Outperform Over the Long-Term Secular The markets we serve expected to continue to outgrow Tailwinds GDP, fueled by long-term sustainability megatrends Sustainability We are positioned to outgrow the market and expand Focused Innovation margins with market-leading sustainabl
Slide 16: Fourth-Quarter and Full Year 2024 Results
Fourth-Quarter and Full Year 2024 Results January 30, 2025
Slide 17: Purpose Driven Strategy Drives Strong Financial Performance in 2024
Q4 2024 U P D A T E Purpose Driven Strategy Drives Strong Financial Performance in 2024; Well-Positioned for Another Strong Year in 2025 • Strong execution across diversified, resilient portfolio. Bookings / backlog remain strong led by longer-cycle commercial HVAC applied solutions • Industry-leadi
Slide 18: Continued Strong Execution and Demand with Double-Digit Revenue Growth
Q4 2 0 2 4 O R G ANI C B OOK I NG S A N D R EV EN UES Continued Strong Execution and Demand with Double-Digit Revenue Growth and Bookings of $4.7B; Strong CHVAC Bookings up High Single-Digits Q4 Organic* Y-O-Y Change Bookings Revenue Enterprise + 2% + 10% Americas + 1% + 11% Americas • Broad-based C
Slide 19: Performance Scoreboard: Robust Revenue Growth, Margin Expansion and EPS Growth
Q 4 2 0 2 4 E N T E R P R I S E R E S U LT S Performance Scoreboard: Robust Revenue Growth, Margin Expansion and EPS Growth Net Revenue Adj. EBITDA Margin* Adj. Operating Margin* Adj. Continuing EPS* +10% +110 +70 +20% Organic* bps bps 18.3% $4,874 16.3% 17.2% $2.61 $4,424 15.6% $2.17 Q4 '23 Q4 '24
Slide 20: Q4 Segment Results: Americas, EMEA, Asia Pacific
Q 4 2 0 2 4 S E G ME N T R E S U LT S Strong Revenue Growth and Broad-Based Margin Expansion Adj. Revenue Adj. OI*% EBITDA*% Highlights $M Org.* Growth vs PY vs PY Americas $3,803 19.5% 17.6% • Strong broad-based margin expansion +11% +140 bps +100 bps • Strong volume growth, positive price realizat
Slide 21: Market Outlook: Continued Strength in Global CHVAC
M A R K E T U P D AT E Market Outlook: Continued Strength in Global CHVAC, Residential Normalizing Post- A2L Transition. Transport Mkts Bottoming, Expect Robust Growth in 2026-2027 Commercial HVAC • Continued strong execution, broad-based bookings and revenue growth across core verticals; strength i
Slide 22: Leveraging Value Creation Flywheel to Drive Strong Revenue, EPS Growth and FCF in 2025
2025 GUIDANCE Leveraging Value Creation Flywheel to Drive Strong Revenue, EPS Growth and FCF in 2025 2025 Guidance* Organic +7% to +8% (~+6.5% to ~+7.5% reported, incl. M&A & FX) Revenues** Q1’25 expect +6% to +7% organic growth $12.70 to $12.90 Adj. EPS** (+13% to +15%) Q1’25 expect $2.15 to $2.20
Slide 23: Strong FCF Drives Continued Balanced Capital Deployment Strategy
Strong FCF Drives Continued Balanced Capital Deployment Strategy 1 2 3 Maintain Healthy, Return Capital to Invest for Growth Efficient Balance Sheet Shareholders • Strengthen the core business • Expect to deliver FCF* ≥ 100% • Expect to consistently deploy and extend product & market of adjusted net
Slide 24: ~$2.5B Capital Deployed in 2024 Including Targeted M&A
BAL AN C ED CA PI TAL D EPL O YME N T ~$2.5B Capital Deployed in 2024 Including Targeted M&A Across Key Markets and Verticals. Expect to Deploy ~$2.5B to ~$3.0B in 2025 Balanced Capital Deployment • Increased dividend 12% in 2024 to $3.36 per Actual & Target FY share annualized, up 58% since the lau
Slide 25: Topics of Interest
4 Topics of Interest TECHNOLCG ES
Slide 26: ACT Projects Robust Growth in 2026 - 2029 (above 40k units)
TOPICS OF INTEREST ACT Projects Robust Growth in 2026 - 2029 (above 40k units) ACT North America Trailer Market Outlook Comments Range of 35.4K to 37K • Expect flattish growth in 2025 with market bottoming 50 in 1H, growing in 2H 40 30 • ACT expects mid-teens growth in 2026 (42k 20 units) and 2027 (
Slide 27: Appendix
Appendix
Slide 28: FY'25 Detailed Guidance for Modeling Purposes
2025 GUIDANCE FY’25 Detailed Guidance for Modeling Purposes Metric FY Guidance 2025 Commentary Organic OrganicRevenue* Revenue* +8% +7% to to +8%+9% • ~25%+ organic leverage* for FY’25 • ~+50 bps M&A offset by minus ~100 bps FX. M&A ~+50~+1% bps M&A • FY’25 expect ~$0.20 negative impact to adj. EPS
Slide 29: Core Sustainability Strategy: Challenge Possible
SUSTAINABILITY COMMITMENTS Trane Technologies Core Sustainability Strategy: Challenge Possible Global Megatrends Our 2030 Commitments The Gigaton Challenge Leading by Example Opportunity for All Reduce one gigaton of carbon Achieve carbon neutral operations, Create workforce diversity that CLIMATE C
Slide 30: Driving performance through sustainability
A LEGACY OF ACTION Driving performance through sustainability Note: Information as of January 30, 2025 --- NOT AN UPDATE OR REAFFIRMATION 20
Slide 31: Q4 YoY Organic Revenues up 10%; Bookings up 2%
Q4 YoY Organic Revenues up 10%; Bookings up 2% Organic* 2022 2023 2024 Revenue Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Americas +13% +13% +19% +14% +15% +8% +9% +11% +7% +9% +15% +16% +15% +11% +14% EMEA +6% +11% +18% +23% +15% +15% +8% +3% +8% +8% +4% +5% +8% +7% +6% Asia +14% -12% +28% +19% +
Slide 32: Q4 Non-GAAP Measures Definitions
Q4 Non-GAAP Measures Definitions Adjusted operating income in 2024 is defined as GAAP operating income adjusted for restructuring costs, a non-cash adjustment for contingent consideration, merger and acquisition transaction costs, and legacy legal liability. Adjusted operating income in 2023 is defi
Slide 33: Q4 Non-GAAP Measures Definitions
Q4 Non-GAAP Measures Definitions Adjusted effective tax rate for 2024 is defined as the ratio of income tax expense adjusted for a U.S. discrete tax benefit and the net tax effect of adjustments for restructuring costs, a non-cash adjustment for contingent consideration, merger and acquisition trans
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