Slide 1: First-Quarter 2025 Results
First-Quarter 2025 Results April 30, 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 business operating system Up
Slide 4: Strong, Broad-Based Execution Across the Portfolio; Exceptional Bookings
Q1 2025 U P D A T E Strong, Broad-Based Execution Across the Portfolio. Exceptional Bookings, Particularly in CHVAC. Q1 Book-to-Bill of 113%, Backlog of $7.3B, up ~$500M vs Year-End 2024 Strong Q1 Performance: • Organic revenue* up 11%, adjusted EBITDA margins* up 130 basis points, and adjusted EPS*
Slide 5: Q1 Organic Bookings and Revenues
Q1 2 0 2 5 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 $5.3B, up 4% Q1 Organic* Y-O-Y Change Bookings Revenue Enterprise + 4% + 11% Americas Americas + 5% + 13% • All-time high CHVAC bookings: up LSD vs +~30% prior
Slide 6: Performance Scoreboard: Robust Revenue Growth, Margin Expansion and EPS Growth
Q 1 2 0 2 5 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* +11% +130 +100 +26% Organic* bps bps 18.1% 16.2% $2.45 $4,688 15.2% $1.94 16.8% $4,216 Q1'24 Q1'25 Q
Slide 7: Q1 Segment Results
Q 1 2 0 2 5 S E G ME N T R E S U LT S Double-Digit Revenue Growth and Strong Margin Expansion Adj. Revenue Adj. OI*% EBITDA*% Highlights $M Org.* Growth vs PY vs PY • Strong margin expansion in Americas and Asia Americas $3,801 19.8% 17.8% • Strong volume growth, positive price realization and +13%
Slide 8: Market Outlook Largely Unchanged From Year-End
M A R K E T U P D AT E Market Outlook Largely Unchanged From Year-End. Continued Strength in Commercial HVAC Markets. Transport Market Rebound Expected in 2026. Commercial HVAC • Exceptional Q1 performance combined with robust outlook. Broad-based strength across core verticals. Particular strength
Slide 9: 2025 Guidance
2025 GUIDANCE Expect Continued Strong Execution Through Dynamic Macro Environment and Performance Towards Higher End of Guidance January 30th FY Guidance Current FY Guidance* Organic +7% to +8% +7% to +8% (~+6.5% to ~+7.5% reported, incl. M&A & FX) (~+7.5% to ~+8.5% reported, incl. M&A & FX) Revenue
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: Balanced Capital Allocation; On Track to Deploy ~$2.5B to ~$3.0B in 2025
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 • Q1 dividends of $210M; increased dividend Apr 2025 12% in February 2025 to $3.76 per share 2025 annualized, up 77% since the launc
Slide 12: Topics of Interest
4 Topics of Interest TECHNOLCG ES
Slide 13: ACT Projects Robust Growth in 2026 - 2029
TOPICS OF INTEREST ACT Projects Robust Growth in 2026 - 2029 (above 40k units) ACT North America Trailer Market Outlook Comments • ACT updated 2025 trailer mkt fcst to ~30K+, down from ~36K+ 50 prior (down ~15% from down ~1% prior), with market bottoming 40 in 1H, slight improvement in 2H 30 • We es
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: Appendix
Appendix
Slide 16: FY'25 Detailed Guidance for Modeling Purposes
2025 GUIDANCE FY’25 Detailed Guidance for Modeling Purposes Metric FY Guidance 2025 Commentary / Tariff Impact • Expect to perform toward high-end of revenue and EPS guidance Organic Revenue* +7% to +8% • ~25%+ organic leverage* for FY’25 • ~+100 bps M&A offset by minus ~50 bps FX. M&A ~+100 bps • F
Slide 17: 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, Invest in our people, culture and CLIMATE
Slide 18: Driving performance through sustainability
A LEGACY OF ACTION Driving performance through sustainability 18
Slide 19: 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 20: Q1 YoY Organic Revenues up 11%; Bookings up 4%
Q1 YoY Organic Revenues up 11%; 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 Americas +13% +13% +19% +14% +15% +8% +9% +11% +7% +9% +15% +16% +15% +11% +14% +13% EMEA +6% +11% +18% +23% +15% +15% +8% +3% +8% +8% +4% +5% +8% +7% +6% +6% Asia +14%
Slide 21: Q1 Non-GAAP Measures Definitions
Q1 Non-GAAP Measures Definitions Adjusted operating income in 2025 is defined as GAAP operating income adjusted for merger and acquisition transaction costs and a non-cash adjustment for contingent consideration. Adjusted operating income in 2024 is defined as GAAP operating income adjusted for rest
Slide 22: Q1 Non-GAAP Measures Definitions
Q1 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 merger and acquisition transaction divided by adjusted net earnings. Adjusted effective tax rate for 2024 is defined as the ratio of