Trane Technologies Plc · NYSE:TT
Trane Technologies — Morgan Stanley Laguna Conference 2025
32 slides from Trane Technologies's conference presentation, Sep 11, 2025
Slide 1: Investor Presentation September 2025
Investor Presentation September 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 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 14 Consecutive Years on Ethisphere 2025 World’s Fortune World’s Most the North America Index Most Ethical Companies® Admired Companies 4th con
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: Climate Innovator with Purpose Driven Strategy
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
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: 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 15: Second-Quarter 2025 Results
Second-Quarter 2025 Results July 30, 2025
Slide 16: Record Revenues and Bookings, Adj. EPS up 18%
Q2 2025 U P D A T E Record Revenues and Bookings, Adj. EPS* up 18%. Exceptional Strength in Americas CHVAC Offsetting Industry-Wide R454B Cylinder Shortage in Residential Strong Enterprise Performance in Q2: • Record enterprise bookings of $5.6B, up 5%; organic bookings* up 4% • Record organic reven
Slide 17: Continued Strong Demand with Record Bookings
Q2 2 0 2 5 O R G ANI C B OOK I NG S A N D R EV EN UES Continued Strong Demand with Record Bookings, High-Single-Digit Revenue Growth, Led by Americas CHVAC, Partially Offset by Resi Industry Challenges Q2 Organic* Y-O-Y Change Bookings Revenue Enterprise + 4% + 7% Americas + 7% + 9% Americas • All-t
Slide 18: Performance Scoreboard
Q 2 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, Margin Expansion and EPS Growth Net Revenue Adj. EBITDA Margin* Adj. Operating Margin* Adj. Continuing EPS* +7% +70 +90 +18% Organic* bps bps $5,746 21.8% $3.88 21.1% 19.4% 20.3% $5,307 $3.30 Q2'24 Q2'25 Q2'2
Slide 19: Q2 Segment Results: Americas, EMEA, Asia Pacific
Q 2 2 0 2 5 S E G ME N T R E S U LT S High-Single-Digit Revenue Growth with Enterprise Margin Expansion Led by Americas Adj. Revenue Adj. OI*% EBITDA*% Highlights $M Org.* Growth vs PY vs PY • Strong margin expansion in Americas Americas $4,692 24.0% 22.4% • Strong volume growth, positive price real
Slide 20: Outlook Largely Unchanged with Stronger Americas Commercial HVAC
M A R K E T U P D AT E Outlook Largely Unchanged with Stronger Americas Commercial HVAC Offsetting Softer Residential Commercial HVAC • Exceptional Q2 performance combined with strong and growing project pipelines. Particular strength in longer cycle capex projects which require complex, bespoke app
Slide 21: Raising Full-Year Revenue & EPS Guidance
2025 GUIDANCE Expect Continued Strong Execution Through Dynamic Macro Environment. Raising Full-Year Revenue & EPS Guidance April 30th FY Guidance Current FY Guidance* Organic +7% to +8% ~+8% (~+9% reported, incl. M&A & FX) Revenues** (~+7.5% to ~+8.5% reported, incl. M&A & FX) Q3’25 expect ~+6.0% $
Slide 22: 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 23: Strong, Balanced Capital Allocation
BAL AN C ED CA PI TAL D EPL O YME N T Strong, Balanced Capital Allocation; On Track to Deploy ~$2.5B to ~$3.0B in 2025 Balanced Capital Deployment Actual YTD Target FY • Q2 dividends of $210M (YTD $420M); July 2025 increased dividend 12% in February 2025 to 2025 $3.76 per share annualized, up 77% si
Slide 24: Topics of Interest
4 Topics of Interest TECHNOLCG ES
Slide 25: ACT Projects Robust Growth in 2026 to 2029
TOPICS OF INTEREST ACT Projects Robust Growth in 2026 (~34K units) to 2029 (~50K units) ACT North America Trailer Market Outlook Comments Units in 000’s • ACT updated 2025 trailer market forecast to ~26K, down from 50 ~30K prior (down ~30% from down ~15% prior), with market bottoming in 1H, slight i
Slide 26: Appendix
Appendix
Slide 27: FY'25 Detailed Guidance for Modeling Purposes
2025 GUIDANCE FY’25 Detailed Guidance for Modeling Purposes Metric FY Guidance 2025 Commentary / Tariff Impact • ~25%+ organic leverage* for FY’25 Organic Revenue* ~+8% • ~+100 bps M&A, FX ~flat vs -50 bps prior • Includes ~$140M of tariff costs and related pricing M&A ~+100 bps • FY’25 expect ~$0.1
Slide 28: 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, Invest in our people, culture and CLIMATE CHANGE DEMOGRAPHICS emis
Slide 29: 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 30: Q2 YoY Organic Revenues up 7%; Bookings up 4%
Q2 YoY Organic Revenues up 7%; Bookings up 4% Organic* Revenue 2022 2023 2024 2025 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Americas +13% +13% +19% +14% +15% +8% +9% +11% +7% +9% +15% +16% +15% +11% +14% +13% +9% EMEA +6% +11% +18% +23% +15% +15% +8% +3% +8% +8% +4% +5% +8% +7% +6% +6% +3%
Slide 31: Q2 Non-GAAP Measures Definitions
Q2 Non-GAAP Measures Definitions Adjusted operating income in 2025 is defined as GAAP operating income adjusted for restructuring costs, and merger and acquisition transaction costs. Adjusted operating income in 2024 is defined as GAAP operating income adjusted for restructuring costs, a non-cash ad
Slide 32: Q2 Non-GAAP Measures Definitions
Q2 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 and merger and acquisition transaction costs divided by adjusted net earnings. Adjusted effective tax rate for 20
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