Trane Technologies Q4 revenue beats estimates on higher bookings in commercial HVAC

Overview

• Climate innovator's Q4 revenue rose 6%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations, rising 10%

• Adjusted EBITDA for Q4 missed analyst expectations

Outlook

• Company expects full-year 2026 revenue growth of 8.5% to 9.5%

• Trane Technologies forecasts 2026 EPS between $14.65 and $14.85

• Company cites strong backlog and customer demand for positive outlook

Result Drivers

• AMERICAS COMMERCIAL HVAC - Bookings in the Americas Commercial HVAC segment increased by over 35%, significantly contributing to overall growth

• RECORD BACKLOG - The company reported a record backlog of $7.8 bln, up 15% from the previous year, providing strong future visibility

• STRONG BOOKINGS - Overall bookings rose 24%, with organic bookings up 22%, driven by strong demand in commercial HVAC

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Trane Technologies PLC is $460.50, about 16.8% above its January 28 closing price of $394.20

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release: ID:nBw1LHvCTa

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