Trane Technologies Plc · NYSE:TT
Trane Technologies — Q4 2025 Earnings Presentation
24 slides from Trane Technologies's earnings presentation, Jan 29, 2026
Slide 1: Fourth-Quarter and Full Year 2025 Results
Fourth-Quarter and Full Year 2025 Results January 29, 2026
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 business operating system Up
Slide 4: Strong Execution in 2025; Exceeded Financial Commitments on Bottom-Line and Delivered Robust Bookings
2025 YEAR IN REVIEW Strong Execution in 2025; Exceeded Financial Commitments on Bottom- Line and Delivered Robust Bookings Growth & Backlog for FY 2026 2025 Initial Guidance** 2025 Actual Results* Organic Revenue* +7% to +8% +6% Organic Operating Leverage* 25%+ 39% $12.70 to $12.90 $13.06 Adj. EPS*
Slide 5: Relentless Investments in Innovation and Growth, People and Culture and Best-in-Class BOS
† CULTURE OF PERFORMANCE EXCELLENCE Relentless Investments in Innovation and Growth, People and Culture and Best-in-Class BOS Delivering Consistently Strong Financial Performance 20% $21 ~11% +470 CAGR bps $18 18% Revenue $15 Adjusted 16% ($B) $12 EBITDA 14% Margin † $9 12% $6 10% 2020 * 2021 2022 2
Slide 6: Strong Q4 and FY 2025 Despite Residential Market Headwinds
Q4 2025 UPD AT E Strong Q4 and FY 2025 Despite Residential Market Headwinds. Continued Exceptional CHVAC Performance and Robust Services Growth. Well Positioned for 2026 Strong Enterprise Performance in Q4 • Exceptional enterprise organic bookings*, up 22%, record backlog of $7.8B • Organic revenue*
Slide 7: Q4 In-Line w/ Our Expectations. Cont'd Strong Demand for CHVAC Globally
Q4 2 0 2 5 O R G ANI C B OOK I NG S A N D R EV EN UES Q4 In-Line w/ Our Expectations. Cont’d Strong Demand for CHVAC Globally. Standout Performance in Americas CHVAC, Offsetting Residential Mkt Headwinds Q4 Organic* Y-O-Y Change Bookings Revenue Enterprise + 22% + 4% Americas + 26% + 5% Americas • E
Slide 8: Performance Scoreboard: Strong Revenue Growth and EPS Growth
Q 4 2 0 2 5 E N T E R P R I S E R E S U LT S Performance Scoreboard: Strong Revenue Growth (~+7% Ex-Resi Headwinds) and EPS Growth Net Revenue Adj. EBITDA Margin* Adj. Operating Margin* Adj. Continuing EPS* +4% -40 flat +10% Organic* bps 18.3% 17.9% $2.86 $5,145 $4,874 16.3% 16.3% $2.61 Q4'24 Q4'25
Slide 9: Lower Enterprise Margins Primarily from Resi Deleverage; Lower EMEA Margins
Q 4 2 0 2 5 S E G ME N T R E S U LT S Lower Enterprise Margins Primarily from Resi Deleverage; Lower EMEA Margins Largely Impacted by Year-One M&A Related Costs Adj. Revenue Adj. OI*% EBITDA*% Highlights $M Org.* Growth vs PY vs PY Americas $4,012.6 18.9% 17.2% • Americas margins declined on ~60% ma
Slide 10: Continued Commercial HVAC Strength in FY 2026 with Robust Bookings and Backlog
M A R K E T U P D AT E Continued Commercial HVAC Strength in FY 2026 with Robust Bookings and Backlog to Support Growth Commercial HVAC • Continued broad-based strength across core markets such as higher education, government, healthcare, and in services w/ particular strength in high growth vertica
Slide 11: Leveraging Value Creation Flywheel to Drive Strong Revenue, EPS Growth and FCF in 2026
2026 GUIDANCE Leveraging Value Creation Flywheel to Drive Strong Revenue, EPS Growth and FCF in 2026 2026 Guidance* Organic +6% to +7% (~+8.5% to ~+9.5% reported, incl. M&A & FX) Revenues** Q1’26 expect ~flattish organic growth $14.65 to $14.85 Adj. EPS** (~+12% to ~+14%) Q1’26 expect ~$2.50 Operati
Slide 12: 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 13: ~$3.2B Capital Deployed in 2025 Including Targeted M&A
BAL AN C ED CA PI TAL D EPL O YME N T ~$3.2B Capital Deployed in 2025 Including Targeted M&A Across Key Markets and Verticals. Expect to Deploy ~$2.8B to ~$3.3B in 2026 Balanced Capital Deployment Actual & Target FY • Increased dividend 12% in 2025 to $3.76 per share Committed annualized, up 77% sin
Slide 14: Topics of Interest
a 4 Topics of Interest TECHNOLCG ES
Slide 15: ACT Projects Modest Decline in 2026, with Late 2026 Market Recovery
TOPICS OF INTEREST ACT Projects Modest Decline in 2026 (to ~23.3K units), with Late 2026 Market Recovery. Growth Forecast for 2027 - 2030 (to ~54K units) ACT North America Trailer Market Outlook Comments Units in 000’s • ACT 2026 trailer market forecast to ~23.3K, or down ~7% YOY, 50 with recovery b
Slide 16: 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 17: Appendix
Appendix
Slide 18: FY'26 Detailed Guidance for Modeling Purposes
2026 GUIDANCE FY’26 Detailed Guidance for Modeling Purposes Metric FY Guidance 2026 Commentary • ~25%+ organic leverage* for FY’26 Organic Revenue* +6% - +7% • Impact of combined M&A and FX on organic vs reported leverage expected to be ~700 bps (reported leverage lower on modest M&A OI contribution
Slide 19: Trane Technologies Sustainability Strategy
SUSTAINABILITY COMMITMENTS Trane Technologies Sustainability Strategy Global Megatrends Our 2030 Commitments The Gigaton Challenge Leading by Example Opportunity for All Reduce one gigaton of carbon Achieve carbon neutral operations, zero Invest in our people, culture and CLIMATE CHANGE DEMOGRAPHICS
Slide 20: Delivering performance through sustainability
A LEGACY OF ACTION Delivering performance through sustainability 2010 2011 2012 - 2013 2014 Founded Center for Launched the first Sustainability Formed internal and external Announced first set of Energy Efficiency & Addendum to our Annual Report Sustainability Advisory Councils major goals: 2020 Cl
Slide 21: 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 14 Consecutive Years on TIME World’s Most Fortune 2026 World’s the North America Index Sustainable Companies Second consecutive year, Most Adm
Slide 22: Q4 YoY Organic Revenues up 4%; Bookings up 22%
Q4 YoY Organic Revenues up 4%; Bookings up 22% Organic* Revenue 2022 2023 2024 2025 Q1 Q2 Q3 Q4 FY 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% +13% +9% +4% +5% +7% EMEA +6% +11% +18% +23% +15% +15% +8% +3% +8% +8% +4% +
Slide 23: Q4 & YTD Non-GAAP Measures Definitions
Q4 & YTD Non-GAAP Measures Definitions 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. Adjusted operating income in 2024 is defined as GAAP operat
Slide 24: Q4 & YTD Non-GAAP Measures Definitions
Q4 & YTD Non-GAAP Measures Definitions 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, merger and acquisition transaction costs, and a non-cash settlement charge related to the transfer of a pe