Slide 1: Second-Quarter 2024 Results
Second-Quarter 2024 Results July 31, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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, 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: Q2 Extends Strong Track Record of Performance. Raising 2024 Guidance
Q2 2024 UPD AT E Q2 Extends Strong Track Record of Performance. Raising 2024 Guidance. Exceptional Bookings & Backlog Provide Increasing Visibility into 2024 & 2025 • Continued strong execution across the portfolio • Organic bookings* and organic revenues* up 19% and 13%, respectively. Adj. operatin
Slide 5: Broad-Based Strength in Bookings & Revs. Backlog of $7.5B
Q2 2 0 2 4 O R G ANI C B OOK I NG S A N D R EV EN UES Broad-Based Strength in Bookings & Revs. Backlog of $7.5B, up 8% from 2023 Year-End Q2 Organic* Y-O-Y Change Bookings Revenue Enterprise + 19% + 13% Americas + 23% + 16% Americas • CHVAC strong across the board: bookings up more than 20%. Revs +m
Slide 6: Performance Scoreboard: Robust Revenue Growth, Margin Expansion and EPS Growth
Q 2 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* +13% +140 +140 Organic* bps bps +23% $3.30 $5,307 $4,705 $2.68 21.1% 19.4% 19.7% 18.0% Q2 '23 Q2 '24
Slide 7: Strong Revenue Growth and Broad-Based Margin Expansion
Q 2 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 $4,291 22.8% 21.1% +16% +140 bps +130 bps • Strong broad-based operating margin expansion • Strong volume growth in Americas an
Slide 8: Market Outlook: Q2 Americas CHVAC and Resi Stronger
M A R K E T U P D AT E Market Outlook: Q2 Americas CHVAC and Resi Stronger. ACT Projects Lower 2024 Transport Market. Other BUs Largely Unchanged Commercial HVAC – Q2 exceptional growth; expect continued strong growth in 2H against tougher comps – 1H & 2H 2024 3yr stack revs expected to be +45-50% •
Slide 9: Raising FY'24 Revs & EPS Guide on Strong 1H Performance
2 0 2 4 G U I D A N C E U P D AT E Raising FY’24 Revs & EPS Guide on Strong 1H Performance, Positive Outlook, High Levels of Business Reinvestment Prior FY Guidance Updated FY Guidance* Organic +8% to +9% ~+10% +8% to +9% reported ~+10% reported Revenues incl. +1pt M&A & minus 1pt FX incl. ~+1pt M&A
Slide 10: 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 11: Strong, Balanced Capital Allocation; Expect to Deploy ~$2.5B in 2024
BAL AN C ED CA PI TAL D EPL O YME N T Strong, Balanced Capital Allocation; Expect to Deploy ~$2.5B in 2024 Balanced Capital Deployment Actual Target FY • Q2 dividends of $190M (YTD $379M); increased dividend 12% in February 2024 to $3.36 per share YTD July 2024 2024 annualized, up 58% since the laun
Slide 12: Topics of Interest
a 4 Topics of Interest TECHNOLCG ES
Slide 13: ACT Lowered 2024 N.A. Transport Market Outlook. EMEA Unchanged
TOPICS OF INTEREST ACT Lowered 2024 N.A. Transport Market Outlook. EMEA Market Outlook Unchanged. Continue to Expect TK to Outperform in Each Region N.A. and EMEA Market Results / Forecast Weighted Avg Mkt Forecast / TK Revenue Actual 2023 Transport 2024 Transport N.A. • Americas 2024 Transport weig
Slide 14: ACT Projects North America Refrigerated Trailer Market to Dip in 2024
TOPICS OF INTEREST ACT Projects North America Refrigerated Trailer Market to Dip in 2024 then Remain Robust 2025 through 2029 (above 40k units) ACT North America Trailer Market Outlook Comments • ACT 2024 North America Trailer forecast lowered to 50 35k units from 37k units, primarily in 2H 40 30 •
Slide 15: Positioned to Outperform Over the Long-Term
IN SUMMARY Positioned to Outperform Over the Long-Term Secular The markets we serve will continue to outgrow GDP, fueled Tailwinds by long-term sustainability megatrends Sustainability We are positioned to outgrow the market and expand Focused Innovation margins with market-leading sustainable innov
Slide 16: Appendix
Appendix
Slide 17: FY'24 Detailed Guidance for Modeling Purposes
2024 GUIDANCE FY’24 Detailed Guidance for Modeling Purposes Metric FY Guidance 2024 Commentary Organic OrganicRevenue* Revenue +8% to +9% ~+10% • 25%+ organic leverage for FY’24 • ~1pt M&A = -5 pts of leverage. Year one contribution of negative $30M OI, primarily related M&A ~+1% to technology acq,
Slide 18: Trane Technologies 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 Achieving carbon neutral Reducing one gigaton of carbon Creating workforce diversity that operations, 10%
Slide 19: Driving Performance Through Sustainability
SUSTAINABILITY LEADERSHIP Driving Performance 2010 Through Sustainability Founded Center for Energy Efficiency & Sustainability (CEES) Launched internal Diversity & Inclusion Council 2011 Launched the first Sustainability 2015 2014 2012-2013 Addendum to our Annual Report First annual submission to D
Slide 20: Widely Recognized for Sustainability, Citizenship, Diversity, Inclusion & Engagement
SUSTAINABILITY LEADER Widely Recognized for Sustainability, Citizenship, Diversity, Inclusion & Engagement Highly Regarded ESG Performance People and Citizenship Recognized in the 13 Consecutive Years on inaugural edition Fortune World’s Most the North America Index Ranks companies who promote Admir
Slide 21: Q2 YoY Organic Revenues up 13%; Bookings up 19%
Q2 YoY Organic Revenues up 13%; Bookings up 19% Organic* Revenue 2021 2022 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Americas +9% +19% +4% +14% +11% +13% +13% +19% +14% +15% +8% +9% +11% +7% +9% +15% +16% EMEA +12% +28% +8% +5% +13% +6% +11% +18% +23% +15% +15% +8% +3% +8% +8% +4%
Slide 22: Q2 Non-GAAP Measures Definitions
Q2 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 related costs, and legacy legal liability. Adjusted operating income in 2023 is defined
Slide 23: Q2 Non-GAAP Measures Definitions
Q2 Non-GAAP Measures Definitions Adjusted effective tax rate for 2024 is defined as the ratio of income tax expense adjusted for the net tax effect of adjustments for restructuring costs, a non-cash adjustment for contingent consideration, merger and acquisition related costs, and legacy legal liabi