Trane Technologies Reports Strong Second Quarter Results; Raises Full-Year Revenue and EPS Guidance

Highlights (second-quarter 2026 versus second-quarter 2025, unless otherwise noted):

• Organic bookings* up 37 percent, led by Americas Commercial HVAC, up 50 percent
• Book-to-bill of 123 percent and greater than 100 percent in all segments
• Record backlog of $12.1 billion, up 70 percent; Americas Commercial HVAC up 90 percent
• Reported revenues of $6.4 billion, up 11 percent; organic revenues* up 9 percent
• GAAP continuing EPS of $4.20; adjusted continuing EPS* of $4.31, up 11 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, Aug. 3, 2026 /PRNewswire/ — Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $4.20 for the second quarter of 2026. Adjusted continuing EPS was $4.31, up 11 percent.

Second-Quarter 2026 Results

Financial Comparisons – Second-Quarter Continuing Operations

$, millions except EPS	Q2 2026	Q2 2025	Y-O-Y Change	Organic Y-O-Y Change
Bookings	$7,818	$5,626	39 %	37 %
Net Revenues	$6,354	$5,746	11 %	9 %
GAAP Operating Income	$1,224	$1,164	5 %
GAAP Operating Margin	19.3 %	20.3 %	(100) bps
Adjusted Operating Income*	$1,253	$1,166	7 %
Adjusted Operating Margin*	19.7 %	20.3 %	(60) bps
Adjusted EBITDA*	$1,340	$1,250	7 %
Adjusted EBITDA Margin*	21.1 %	21.8 %	(70) bps
GAAP Continuing EPS	$4.20	$3.87	9 %
Adjusted Continuing EPS	$4.31	$3.88	11 %
Pre-Tax Non-GAAP Adjustments, net**	$28.4	$2.0	$26.4

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

"We delivered another outstanding quarter, driven by strong execution of our strategy and the dedication of our global team," said Dave Regnery, Chair and CEO of Trane Technologies. "We continue to see heightened demand for our sustainable, energy-efficient solutions, resulting in strong organic revenue growth, exceptional bookings strength, and a record backlog of $12.1 billion. Our Americas Commercial HVAC business delivered a standout performance, with bookings growth of 50 percent and organic revenue growth in the low teens.

With continued strength across commercial HVAC and improving residential and transport dynamics, we are carrying solid momentum into the second half of the year. Accordingly, we are raising our full-year revenue and EPS guidance and remain confident in our ability to deliver continued market outperformance and long-term shareholder value."

Highlights from the Second Quarter of 2026 (all comparisons against second-quarter 2025 unless otherwise noted)

• Record bookings of $7.8 billion, up 39 percent; organic bookings up 37 percent.
• Book-to-bill was 123 percent, led by Commercial HVAC across all regions.
• Enterprise reported revenues were up 11 percent; organic revenues were up 9 percent.
• GAAP operating margin was down 100 basis points, adjusted operating margin was down 60 basis points and adjusted EBITDA margin was down 70 basis points.

Second-Quarter Business Review (all comparisons against second-quarter 2025 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, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions.

• All-time high bookings of $6.6 billion, up 44 percent; organic bookings up 43 percent. Book-to-bill of 124 percent.
• Bookings strength led by Commercial HVAC, up 50 percent, with applied equipment bookings up 130 percent.
• Reported revenues were up 12 percent, including approximately 1 percentage point related to acquisitions. Organic revenues were up 11 percent.
• GAAP operating margin was down 60 basis points, adjusted operating margin was down 30 basis points and adjusted EBITDA margin was down 50 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, building controls, and transport refrigeration systems.

• Bookings up 7 percent; organic bookings were up 4 percent. Book-to-bill of 108 percent.
• Reported revenues were down approximately 1 percent, including approximately 2 percentage points of positive foreign exchange impact. Organic revenues were down 4 percent.
• GAAP operating margin was down 550 basis points; adjusted operating margin was down 420 basis points and adjusted EBITDA margin was down 360 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.

• Strong bookings up 33 percent, organic bookings up 31 percent. Book-to-bill of 131 percent.
• Reported revenues were up 11 percent, including approximately 1 percentage point of positive foreign exchange impact. Organic revenues were up 10 percent.
• GAAP operating margin was down 30 basis points, adjusted operating margin was down 60 basis points, adjusted EBITDA margin was down 150 basis points.

Balance Sheet and Cash Flow

• Through June 30, 2026, cash flow from continuing operating activities was approximately $1.7 billion and free cash flow was approximately $1.6 billion.
• Year-to-date through July, the Company deployed or committed approximately $1.9 billion of capital including approximately $690 million for dividends, $340 million for M&A and $840 million for share repurchases.
• The Company expects to pay a competitive and growing dividend and to deploy 100 percent of excess cash to shareholders over time.

Company Raises Full-Year 2026 Guidance

• The Company expects full-year 2026 reported revenue growth of approximately 11.5 percent and organic revenue growth of approximately 9 percent versus full-year 2025.
• The Company expects GAAP continuing EPS for full-year 2026 of approximately $15.00 to $15.10, including $0.20 for non-GAAP adjustments. The Company expects adjusted continuing EPS for full-year 2026 of $15.20 to $15.30.
• Additional information regarding the Company’s 2026 guidance is included in the Company’s second-quarter 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, or quotas; 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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(See Accompanying Tables)

• Table 1: Condensed Consolidated Income Statement
• Tables 2 – 5: Reconciliation of GAAP to Non-GAAP
• Table 6: Condensed Consolidated Balance Sheets
• Table 7: Condensed Consolidated Statement of Cash Flows
• Table 8: Balance Sheet Metrics and Free Cash Flow