Trane Technologies Reports Strong Fourth-Quarter and Full-Year 2025 Results; Robust Bookings and Backlog Provide Strong Visibility Entering 2026

Highlights (fourth-quarter 2025 versus fourth-quarter 2024, unless otherwise noted):

• Organic bookings up 22 percent, led by Americas Commercial HVAC, up more than 35 percent
• Record backlog of $7.8 billion, up 15 percent versus year-end 2024; Americas Commercial HVAC up 25 percent
• Reported revenues of $5.1 billion, up 6 percent; organic revenues* up 4 percent
• GAAP continuing EPS of $2.74; adjusted continuing EPS* of $2.86, up 10 percent

Highlights (full-year 2025 versus full-year 2024, unless otherwise noted):

• Organic bookings up 11 percent, led by Americas Commercial HVAC, up 22 percent
• Reported revenues of $21.3 billion, up 7 percent; organic revenues up 6 percent
• GAAP operating margin up 100 bps; adjusted operating margin* up 90 bps
• Adjusted EBITDA margin* of 20.1 percent, up 70 bps
• GAAP continuing EPS of $13.14; adjusted continuing EPS of $13.06, up 16 percent
• Strong free cash flow conversion* of 98 percent

*This news release contains non-GAAP financial measures. Definitions of the non-GAAP financial measures can be found in the footnotes of this news release. See attached tables for additional details and reconciliations.

SWORDS, Ireland, January 29, 2026 - Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $2.74 for the fourth quarter of 2025. Adjusted continuing EPS was $2.86, up 10 percent.

Fourth-Quarter 2025 Results

Financial Comparisons - Fourth-Quarter Continuing Operations

 **For details see tables 2 and 3 of the news release.

“Thanks to our purpose-driven strategy, talented team and disciplined execution, 2025 was another strong year for our company,” said Dave Regnery, chair and CEO. “We achieved strong revenue growth, adjusted earnings per share growth and free cash flow conversion, despite challenging markets in residential and transport refrigeration.

"We continue to see tremendous strength and rapidly growing pipelines in our commercial HVAC businesses, led by the Americas, where fourth quarter applied bookings were up more than 120%. We ended the year with record enterprise backlog of $7.8 billion, providing strong visibility to future market outgrowth.

“Since launching Trane Technologies in 2020, we’ve built a powerful long-term track record – including compound annual revenue growth of 11%, EBITDA margin expansion of 470 basis points, compound annual adjusted earnings per share growth of 24%, and free cash flow conversion of 106%. With significant opportunities ahead, record backlog levels and strong customer demand, we remain confident in delivering differentiated results into the future.”

Highlights from the Fourth Quarter of 2025 (all comparisons against fourth-quarter 2024 unless otherwise noted):

• Strong bookings of $5.8 billion, up 24 percent; organic bookings up 22 percent.
• Book-to-bill was 112 percent, global Commercial HVAC book-to-bill was 114 percent.
• Enterprise reported revenues were up 6 percent; organic revenues were up 4 percent.
• GAAP operating margin was down 70 basis points, adjusted operating margin was flat and adjusted EBITDA margin was down 40 basis points.  

Fourth-Quarter Business Review (all comparisons against fourth-quarter 2024 unless otherwise noted)

Americas Segment: innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, energy services and solutions, residential heating and cooling; and transport refrigeration systems and solutions.

• Strong bookings of $4.7 billion, up 27 percent; organic bookings up 26 percent.
• Bookings strength led by Americas Commercial HVAC, up more than 35 percent; applied equipment bookings up more than 120 percent, with applied book-to-bill of 200 percent.
• Americas Commercial HVAC backlog up 25 percent versus year-end 2024.
• •  Reported revenues were up 6 percent; organic revenues were up 5 percent. 
• GAAP operating margin was down 90 basis points, adjusted operating margin was down 40 basis points and adjusted EBITDA margin was down 60 basis points.

Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems and services, energy services and solutions, and transport refrigeration systems and solutions.

• Strong bookings up 19 percent; organic bookings up 9 percent.
• Reported revenues were up 12 percent including approximately 8 percentage points of positive foreign exchange impact and 2 percentage points related to acquisitions. Organic revenues were up 2 percent.
• EMEA Commercial HVAC backlog up approximately 40 percent versus year-end 2024.
• GAAP operating margin was down 160 basis points, adjusted operating margin was down 110 basis points and adjusted EBITDA margin was down 160 basis points.

Asia Pacific Segment: innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.

• Reported bookings up 2 percent; organic bookings up 1 percent.
• Reported revenues were down 5 percent; organic revenues were down 6 percent.
• GAAP operating margin was up 100 basis points, adjusted operating margin was up 50 basis points and adjusted EBITDA margin was down 20 basis points.

Full-Year 2025 Results (all comparisons against full-year 2024 unless otherwise noted)

Financial Comparisons - Full-year Continuing Operations

• Record bookings of $22.6 billion, up 11 percent organic. Record backlog of $7.8 billion.
• Reported revenues were up 7 percent; organic revenues were up 6 percent.
• GAAP operating margin was up 100 basis points, adjusted operating margin was up 90 basis points and adjusted EBITDA margin was up 70 basis points.
• Strong volume, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment.    

Balance Sheet and Cash Flow

• Full-year 2025 cash flow from continuing operating activities was $3.2 billion.
• Full-year 2025 free cash flow was $2.9 billion, or 98 percent of adjusted net earnings.
• For full-year 2025, the Company deployed or committed $3.2 billion including approximately $840 million for dividends, approximately $720 million for M&A, $1.5 billion for share repurchases and $150 million for debt retirement.
• The Company expects to continue to pay a competitive and growing dividend and to deploy 100 percent of excess cash to shareholders over time.

Full-Year 2026 Guidance

• The Company expects full-year 2026 reported revenue growth of approximately 8.5 percent to 9.5 percent; organic revenue growth of approximately 6 percent to 7 percent versus full-year 2025.
• The Company expects GAAP and adjusted continuing EPS for full-year 2026 of $14.65 to $14.85.
• Additional information regarding the Company's 2026 guidance is included in the Company's earnings presentation found at www.tranetechnologies.com in the Investor Relations section.

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, and earnings; our business operations; demand for our products and services, including bookings and backlog; capital deployment, including the amount and timing of our dividends, our share repurchase program, anticipated capital commitments for M&A activity, and our capital allocation strategy; our available liquidity; our anticipated revenue growth, and the performance of the markets in which we operate.

These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, global economic conditions, including recessions and economic downturns, inflation, volatility in interest rates and foreign exchange; trade protection measures such as import or export restrictions, tariffs, quotas; or modifications trade agreements; changing energy prices; worldwide geopolitical conflict; financial institution disruptions; climate change and our sustainability strategies and goals; future health care emergencies on our business, our suppliers and our customers; commodity shortages; price increases; government regulation; restructurings activity and cost savings associated with such activity; secular trends toward decarbonization, energy efficiency and internal air quality, the outcome of any litigation, including the risks and uncertainties associated with the Chapter 11 proceedings for our deconsolidated subsidiaries Aldrich Pump LLC and Murray Boiler LLC; cybersecurity risks; and tax audits and tax law changes and interpretations. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2025, as well as our subsequent reports on Form 10-Q and other SEC filings. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events and how they may affect the Company. We assume no obligation to update these forward-looking statements.

This news release also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non-GAAP financial information and reconciliation to GAAP are attached to this news release.

All amounts reported within the earnings release above related to net earnings (loss), earnings (loss) from continuing operations, earnings (loss) from discontinued operations, adjusted EBITDA and per share amounts are attributed to Trane Technologies' ordinary shareholders.

Trane Technologies (NYSE:TT) is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more information, visit tranetechnologies.com.

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1/29/26

(See Accompanying Tables)

• Table 1: Condensed Consolidated Income Statement
• Tables 2 - 7: Reconciliation of GAAP to Non-GAAP
• Table 8: Condensed Consolidated Balance Sheets
• Table 9: Condensed Consolidated Statement of Cash Flows
• Table 10: Balance Sheet Metrics and Free Cash Flow