Trane Technologies shares fall over 3% as revenue misses estimates

Published 30/07/2025, 11:58
 Trane Technologies shares fall over 3% as revenue misses estimates

SWORDS, Ireland - On Wednesday, Trane Technologies plc (NYSE:TT) reported second-quarter adjusted earnings that exceeded analyst expectations, though revenue fell short of estimates. The global climate innovator delivered record enterprise bookings of $5.6 billion, up 5% from the same period last year.

The company’s shares tumbled 3.41% in pre-market trading following the release.

For the second quarter of 2025, Trane Technologies reported adjusted earnings per share of $3.88, beating the analyst consensus of $3.79 by $0.09. Revenue came in at $5.75 billion, slightly below the consensus estimate of $5.77 billion, though still representing an 8% increase YoY. Organic revenue growth was 7% compared to the second quarter of 2024.

The company’s performance was led by strong demand in the Americas segment, where Commercial HVAC applied solutions orders surged over 60%. Overall, the Americas segment saw bookings increase by 8%, with revenues up 9% and adjusted operating margin expanding by 130 basis points to 22.4%.

"In the second quarter, we continued our consistent track record of leading financial results with record enterprise bookings and revenue and 18 percent earnings per share growth," said Dave Regnery, chair and CEO of Trane Technologies. "Our performance continues to be led by Americas Commercial HVAC, with strong demand for our sustainable solutions across a broad base of highly complex projects."

The company’s enterprise backlog reached $7.1 billion, up 6% versus year-end 2024, providing visibility for future revenue. However, this represented a sequential decline of approximately $125 million as growth in Commercial HVAC backlog was offset by declines in Residential and Transport segments.

Based on the strong performance, Trane Technologies raised its full-year 2025 guidance, now expecting adjusted EPS of approximately $13.05, above the analyst consensus of $12.96. The company also forecasts full-year reported revenue growth of approximately 9%, including 100 basis points related to acquisitions, and organic revenue growth of approximately 8% versus full-year 2024.

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