Slide 1: First-Quarter 2024 Results
First-Quarter 2024 Results April 30, 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: Continued Strong Execution / Financial Performance. Raising 2024 Guidance.
Q1 2024 U P D A T E Continued Strong Execution / Financial Performance. Raising 2024 Guidance. Well Positioned for Growth in 2024 with Standout Bookings & Backlog • Continued strong execution across diversified and resilient global portfolio • Organic revenues* up 14%; adj. operating margins* up 230
Slide 5: Broad-Based Strength in Bookings & Revs with ~120% Book-to-Bill in all Regions
Q1 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 with ~120% Book-to-Bill in all Regions on 14% Rev Growth. Backlog of $7.7B Increases Visibility for 2024 & Beyond Q1 Organic* Y-O-Y Change Bookings Revenue Enterprise + 17% + 14% Americas • CHVAC strong acr
Slide 6: Performance Scoreboard: Robust Revenue Growth, Margin Expansion and EPS Growth
Q 1 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* +14% +200 +230 Organic* bps bps +38% $4,216 $1.94 16.8% 15.2% $3,666 14.8% 12.9% $1.41 Q1 '23 Q1 '24
Slide 7: Strong Revenue Growth and Broad-Based Margin Expansion
Q 1 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 • Strong broad-based operating margin expansion $3,335 18.1% 16.4% +15% +220 bps +240 bps • Strong volume growth, positive pric
Slide 8: Market Outlook Largely Unchanged w/ Q1 Americas CHVAC and Resi Stronger than Anticipated
M A R K E T U P D AT E Market Outlook Largely Unchanged w/ Q1 Americas CHVAC and Resi Stronger than Anticipated; No Change to Outlook for Other Segments / BUs Commercial HVAC – Q1 stronger as reflected in outlook • Strong, broad-based growth driving robust backlog; bookings growth in majority of ver
Slide 9: Raising FY'24 Revs & EPS Guide on Strong Q1 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 Q1 Performance, Robust CHVAC Outlook, Heavy Business Reinvestment Prior FY Guidance Updated FY Guidance* Organic +6% to +7% +8% to +9% +7% to +8% reported, incl. M&A +8% to +9% reported Revenues incl. 1pt M&A & minus 1pt FX
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 • Q1 dividends of $190M; increased dividend 12% in February 2024 to $3.36 per share annualized, YTD Apr 2024 2024 up 58% since the launch of Trane T
Slide 12: Topics of Interest
4 Topics of Interest TECHNOLCG ES
Slide 13: No Change to 2024 Weighted Avg Market Forecasts. Continue to Expect TK to Outperform
TOPICS OF INTEREST No Change to 2024 Weighted Avg Market Forecasts. 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 weighted average market N.A. Marke
Slide 14: ACT Projects North America Refrigerated Trailer Market to Dip in 2024 then Remain Robust
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 at 37k units 50 40 • Underlying refrigerated trailer demand rema
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% +8% to to +9%+9% • 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 a
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 Before 2010 2010 Through Sustainability Focus on environmental and safety compliance Center for Energy Efficiency & Sustainability (CEES) is founded and begins operating 2011 Launched the first Launched internal Diversity & Inclusion Council ‘Sustainabil
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 13 Consecutive Years on Fortune World’s Most the North America Index 71% percentile Admired Companies 3rd consecutive year on in the indus
Slide 21: Q1 Organic Revenues up 14% Y-O-Y; Bookings Up 17%
Q1 Organic Revenues up 14% Y-O-Y; Bookings Up 17% Organic* Revenue 2021 2022 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Americas +9% +19% +4% +14% +11% +13% +13% +19% +14% +15% +8% +9% +11% +7% +9% +15% EMEA +12% +28% +8% +5% +13% +6% +11% +18% +23% +15% +15% +8% +3% +8% +8% +4% Asia
Slide 22: Q1 Non-GAAP Measures Definitions
Q1 Non-GAAP Measures Definitions Adjusted operating income in 2024 is defined as GAAP operating income adjusted for restructuring costs and legacy legal liability. Adjusted operating income in 2023 is defined as GAAP operating income adjusted for restructuring costs, transformation costs, a non-cash
Slide 23: Q1 Non-GAAP Measures Definitions
Q1 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 and legacy legal liability divided by adjusted net earnings. Adjusted effective tax rate for 2023 is defined as t