Trane Technologies beats Q3 estimates, raises full-year outlook

SWORDS, Ireland - Trane Technologies plc (NYSE:TT ) reported better-than-expected third-quarter results and raised its full-year guidance, sending shares up 1% in early trading.

The global climate innovator posted adjusted earnings per share (EPS) of $3.37 for the third quarter, surpassing analyst estimates of $3.24. Revenue came in at $5.4 billion, exceeding the consensus forecast of $5.31 billion and representing an 11% YoY increase on both a reported and organic basis.

Trane Technologies' strong performance was driven by robust demand for its sustainable solutions, with bookings reaching $5.2 billion, up 5% YoY. The company's backlog stood at $7.2 billion, an increase from $6.9 billion at the end of 2023.

"The third quarter continues our track record of delivering leading revenue and earnings per share growth," said Dave Regnery, chair and CEO of Trane Technologies. "Customers continue to choose our sustainable solutions. With bookings near an all-time high and a strong project pipeline, particularly in commercial HVAC, we are raising our full-year revenue and adjusted EPS guidance for 2024 and expect 2025 to be another strong year."

The company improved its profitability metrics, with GAAP operating margin up 110 basis points and adjusted EBITDA margin rising 120 basis points to 20.7%. These gains were attributed to strong volume growth, positive price realization, and productivity improvements, which more than offset inflationary pressures.

Looking ahead, Trane Technologies raised its full-year 2024 guidance, now expecting reported and organic revenue growth of approximately 11%. The company also increased its full-year EPS forecast to approximately $11.10, above the previous analyst consensus of $10.90.

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Source: Investing.com