Trane Technologies plc (TT) 10-Year Financial Performance & Capital Metrics

TT • • Industrial / General

IndustrialsConstructionHVAC & Building SystemsRefrigeration Systems

AboutTrane Technologies plc, together with its subsidiaries, engages in the designing, manufacturing, selling, and servicing of solutions for heating, ventilation, air conditioning, and transport refrigeration. It offers air conditioners, exchangers, and handlers; airside and terminal devices; auxiliary power units; chillers; coils and condensers; gensets; furnaces; heat pumps; home automation products; humidifiers; hybrid and non-diesel transport refrigeration, and ice energy storage solutions; indoor air quality assessments and related products; large and light commercial unitary products; motor replacements; refrigerant reclamation products; thermostats/controls; transport heater products; variable refrigerant flow products; and water source heat pumps. The company also provides building management, control, ductless, geothermal, package heating and cooling, temporary heating and cooling, and unitary systems; bus, rail, and multi-pipe heating, ventilation, and air conditioning systems; and container, cryogenic, diesel-powered, electric-powered trailer and truck, hybrid-powered trailer, industrial, rail, self-powered truck, trailer, and vehicle-powered truck refrigeration systems, as well as aftermarket and OEM parts and supplies. In addition, it offers energy and facility management, installation and performance contracting, repair and maintenance, and rental services. It markets and sells its products under the Trane and Thermo King brands through sales offices, distributors, and dealers in the United States; and through sales and service companies with a supporting chain of distributors worldwide. The company was formerly known as Ingersoll-Rand Plc and changed its name to Trane Technologies plc in March 2020. Trane Technologies plc was founded in 1885 and is headquartered in Swords, Ireland.Show more

Revenue $19.84B +12.2%
EBITDA $3.88B +19.8%
Net Income $2.57B +26.9%
EPS (Diluted) 11.24 +28.2%
Gross Margin 35.69% +7.7%
EBITDA Margin 19.56% +6.8%
Operating Margin 17.64% +7.8%
Net Margin 12.94% +13.1%
ROE 35.41% +14.9%
ROIC 23.88% +12.4%
Debt/Equity 0.72 +5.6%
Interest Coverage 14.68 +19.0%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 31.5%
✓Strong Piotroski F-Score: 8/9
✓High quality earnings: Operating CF exceeds net income
✓Healthy 5Y average net margin of 10.5%

✗Weaknesses

✗Expensive at 11.8x book value

Price & Volume

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Growth Metrics

Revenue CAGR

10Y4.4%

5Y8.69%

3Y11.96%

TTM8.58%

Profit (Net Income) CAGR

10Y10.67%

5Y12.72%

3Y21.74%

TTM18.79%

EPS CAGR

10Y12.7%

5Y14.27%

3Y24.18%

TTM20.96%

ROCE

10Y Avg14.99%

5Y Avg18.44%

3Y Avg22.28%

Latest25.53%

Peer Comparison

Refrigeration Systems

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
TTTrane Technologies plc	85.87B	387.27	34.45	12.22%	13.93%	35.12%	3.23%	0.72

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	13.3B	13.51B	14.2B	12.34B	13.08B	12.45B	14.14B	15.99B	17.68B	19.84B
Revenue Growth %	0.03%	0.02%	0.05%	-0.13%	0.06%	-0.05%	0.14%	0.13%	0.11%	0.12%
Cost of Goods Sold+	9.3B	9.33B	9.81B	8.58B	9.09B	8.65B	9.67B	11.03B	11.82B	12.76B
COGS % of Revenue	0.7%	0.69%	0.69%	0.7%	0.69%	0.69%	0.68%	0.69%	0.67%	0.64%
Gross Profit+	4B	4.2B	4.39B	3.76B	4.03B	3.8B	4.47B	4.96B	5.86B	7.08B
Gross Margin %	0.3%	0.31%	0.31%	0.3%	0.31%	0.31%	0.32%	0.31%	0.33%	0.36%
Gross Profit Growth %	0.02%	0.05%	0.04%	-0.14%	0.07%	-0.06%	0.18%	0.11%	0.18%	0.21%
Operating Expenses+	2.54B	2.61B	2.71B	2.25B	2.36B	2.27B	2.45B	2.55B	2.96B	3.58B
OpEx % of Revenue	0.19%	0.19%	0.19%	0.18%	0.18%	0.18%	0.17%	0.16%	0.17%	0.18%
Selling, General & Admin	2.31B	2.61B	2.5B	2.25B	2.13B	2.05B	2.45B	2.31B	2.96B	3.58B
SG&A % of Revenue	0.17%	0.19%	0.18%	0.18%	0.16%	0.16%	0.17%	0.14%	0.17%	0.18%
Research & Development	205.9M	207.9M	210.8M	166.7M	174.2M	165M	193.5M	211.2M	252.3M	0
R&D % of Revenue	0.02%	0.02%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	-
Other Operating Expenses	21.6M	-207.9M	0	-166.7M	52.6M	51.6M	-193.5M	20.7M	-252.3M	0
Operating Income+	1.46B	1.6B	1.67B	1.51B	1.67B	1.53B	2.02B	2.42B	2.89B	3.5B
Operating Margin %	0.11%	0.12%	0.12%	0.12%	0.13%	0.12%	0.14%	0.15%	0.16%	0.18%
Operating Income Growth %	0.04%	0.1%	0.04%	-0.09%	0.1%	-0.08%	0.32%	0.2%	0.2%	0.21%
EBITDA+	1.82B	1.95B	2.01B	1.87B	1.96B	1.83B	2.32B	2.74B	3.24B	3.88B
EBITDA Margin %	0.14%	0.14%	0.14%	0.15%	0.15%	0.15%	0.16%	0.17%	0.18%	0.2%
EBITDA Growth %	0.05%	0.07%	0.03%	-0.07%	0.05%	-0.07%	0.27%	0.18%	0.18%	0.2%
D&A (Non-Cash Add-back)	364.1M	348.7M	349.3M	361.5M	288.8M	294.3M	294.1M	319.2M	343.5M	379.4M
EBIT	1.47B	1.96B	1.63B	1.88B	1.64B	1.54B	2.03B	2.4B	2.8B	3.48B
Net Interest Income+	-212.4M	-213.5M	-206.4M	-218.6M	-242.2M	-244.2M	-229.7M	-214.3M	-219.1M	-202.5M
Interest Income	10.6M	8M	9.4M	2.4M	600K	4.5M	4M	9.2M	15.4M	35.9M
Interest Expense	223M	221.5M	215.8M	221M	243M	248.7M	233.7M	223.5M	234.5M	238.4M
Other Income/Expense	-210.1M	138.1M	-247.4M	-254.3M	-271.2M	-244.6M	-232.6M	-246.8M	-326.7M	-258.3M
Pretax Income+	1.25B	1.74B	1.42B	1.26B	1.4B	1.29B	1.79B	2.17B	2.57B	3.24B
Pretax Margin %	0.09%	0.13%	0.1%	0.1%	0.11%	0.1%	0.13%	0.14%	0.15%	0.16%
Income Tax+	540.8M	281.5M	80.2M	234.9M	238.6M	296.8M	333.5M	375.9M	498.4M	627.6M
Effective Tax Rate %	0.53%	0.85%	0.92%	1.06%	1.01%	0.66%	0.79%	0.81%	0.79%	0.79%
Net Income+	664.6M	1.48B	1.3B	1.34B	1.41B	854.9M	1.42B	1.76B	2.02B	2.57B
Net Margin %	0.05%	0.11%	0.09%	0.11%	0.11%	0.07%	0.1%	0.11%	0.11%	0.13%
Net Income Growth %	-0.29%	1.22%	-0.12%	0.03%	0.05%	-0.39%	0.66%	0.23%	0.15%	0.27%
Net Income (Continuing)	707.1M	1.46B	1.34B	1.02B	1.16B	991.4M	1.46B	1.8B	2.07B	2.61B
Discontinued Operations	0	32.9M	0	329.8M	265.8M	0	0	0	-27.2M	-24.7M
Minority Interest	62.5M	74.5M	66.6M	42.1M	44.8M	19.4M	17.2M	16.6M	21.8M	29.5M
EPS (Diluted)+	2.48	5.65	5.05	5.35	5.77	3.52	5.87	7.48	8.77	11.24
EPS Growth %	-0.27%	1.28%	-0.11%	0.06%	0.08%	-0.39%	0.67%	0.27%	0.17%	0.28%
EPS (Basic)	2.54	5.70	5.22	5.53	5.84	3.56	5.96	7.55	8.85	11.44
Diluted Shares Outstanding	267.8M	261.7M	258.1M	250.1M	244.4M	243.1M	242.3M	234.9M	230.7M	228.4M
Basic Shares Outstanding	261.25M	259.01M	249.48M	241.91M	241.6M	240.1M	238.7M	232.6M	227.17M	224.47M
Dividend Payout Ratio	0.46%	0.24%	0.33%	0.36%	0.36%	0.59%	0.39%	0.35%	0.34%	0.29%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	4.61B	5.58B	6.12B	5.73B	6.22B	6.91B	6.47B	6.38B	6.87B	7.34B
Cash & Short-Term Investments	736.8M	1.71B	1.55B	903.4M	1.3B	3.29B	2.16B	1.22B	1.1B	1.59B
Cash Only	736.8M	1.71B	1.55B	903.4M	1.3B	3.29B	2.16B	1.22B	1.1B	1.59B
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	2.15B	2.22B	2.48B	2.68B	2.18B	2.2B	2.43B	2.78B	3.42B	3.09B
Days Sales Outstanding	59.02	60.06	63.69	79.22	60.98	64.54	62.73	63.45	70.52	56.86
Inventory	1.41B	1.39B	1.56B	1.68B	1.71B	1.19B	1.53B	1.99B	2.15B	1.97B
Days Inventory Outstanding	55.36	54.22	57.86	71.35	68.79	50.17	57.8	66	66.45	56.41
Other Current Assets	311.3M	255.8M	536.9M	471.6M	4.55B	224.4M	351.5M	384.8M	207.3M	686M
Total Non-Current Assets+	12.13B	11.82B	12.05B	12.18B	14.28B	11.25B	11.59B	11.7B	12.52B	12.81B
Property, Plant & Equipment	1.58B	1.51B	1.55B	1.73B	1.81B	1.35B	1.4B	1.54B	2.29B	2.02B
Fixed Asset Turnover	8.44x	8.94x	9.15x	7.13x	7.24x	9.23x	10.11x	10.41x	7.74x	9.80x
Goodwill	5.73B	5.66B	5.94B	5.96B	6.78B	5.34B	5.5B	5.5B	6.1B	6.13B
Intangible Assets	3.93B	3.79B	3.74B	3.63B	4.15B	3.29B	3.31B	3.26B	3.44B	3.31B
Long-Term Investments	-896.1M	-884.9M	-757.5M	-538.4M	-682M	-578.5M	-581.5M	239.6M	0	0
Other Non-Current Assets	898M	863.6M	824.3M	857.9M	1.54B	1.27B	1.38B	478.9M	701.6M	1.35B
Total Assets+	16.74B	17.4B	18.17B	17.91B	20.49B	18.16B	18.06B	18.08B	19.39B	20.15B
Asset Turnover	0.79x	0.78x	0.78x	0.69x	0.64x	0.69x	0.78x	0.88x	0.91x	0.98x
Asset Growth %	-0.03%	0.04%	0.04%	-0.01%	0.14%	-0.11%	-0.01%	0%	0.07%	0.04%
Total Current Liabilities+	3.65B	3.59B	4.83B	4.32B	4.86B	4.34B	4.75B	5.69B	6.05B	6.07B
Accounts Payable	1.25B	1.33B	1.56B	1.71B	1.38B	1.52B	1.79B	2.09B	2.03B	2.15B
Days Payables Outstanding	49.02	52.19	57.89	72.52	55.49	64.14	67.49	69.23	62.54	61.45
Short-Term Debt	504.2M	360.8M	1.11B	350.6M	650.3M	775.6M	350.4M	1.05B	801.9M	452.2M
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	437.4M	469.8M	509.7M	531.6M	1.64B	451.1M	544.8M	541.2M	591.7M	504.9M
Current Ratio	1.26x	1.55x	1.27x	1.33x	1.28x	1.59x	1.36x	1.12x	1.13x	1.21x
Quick Ratio	0.88x	1.17x	0.95x	0.94x	0.93x	1.32x	1.04x	0.77x	0.78x	0.88x
Cash Conversion Cycle	65.35	62.09	63.66	78.05	74.27	50.57	53.04	60.22	74.43	51.81
Total Non-Current Liabilities+	7.21B	7.09B	6.14B	6.53B	7.94B	7.39B	7.03B	6.29B	6.32B	6.59B
Long-Term Debt	3.71B	3.71B	2.96B	3.74B	4.92B	4.5B	4.49B	3.79B	3.98B	4.32B
Capital Lease Obligations	0	0	0	0	0	0	0	0	0	441.2M
Deferred Tax Liabilities	896.1M	884.9M	757.5M	538.4M	572M	578.5M	581.5M	680.1M	703.7M	586.6M
Other Non-Current Liabilities	2.58B	2.49B	2.42B	2.26B	2.45B	2.32B	1.96B	1.82B	1.64B	951M
Total Liabilities	10.86B	10.68B	10.97B	10.85B	13.18B	11.73B	11.79B	11.98B	12.37B	12.66B
Total Debt+	4.24B	4.07B	4.06B	4.09B	5.57B	5.27B	4.84B	4.84B	4.78B	5.38B
Net Debt	3.5B	2.36B	2.51B	3.19B	4.27B	1.98B	2.68B	3.62B	3.68B	3.79B
Debt / Equity	0.71x	0.60x	0.56x	0.58x	0.76x	0.82x	0.77x	0.79x	0.68x	0.72x
Debt / EBITDA	2.33x	2.09x	2.02x	2.18x	2.85x	2.89x	2.09x	1.77x	1.48x	1.39x
Net Debt / EBITDA	1.92x	1.21x	1.25x	1.70x	2.18x	1.08x	1.16x	1.32x	1.14x	0.98x
Interest Coverage	6.54x	7.24x	7.72x	6.84x	6.87x	6.16x	8.66x	10.82x	12.34x	14.68x
Total Equity+	5.94B	6.79B	7.27B	7.11B	7.36B	6.45B	6.29B	6.12B	7.02B	7.49B
Equity Growth %	-0.03%	0.14%	0.07%	-0.02%	0.04%	-0.12%	-0.02%	-0.03%	0.15%	0.07%
Book Value per Share	22.19	25.96	28.18	28.42	30.10	26.52	25.96	26.06	30.42	32.78
Total Shareholders' Equity	5.88B	6.72B	7.21B	7.06B	7.31B	6.43B	6.27B	6.11B	7B	7.46B
Common Stock	269M	271.7M	274M	266.4M	262.8M	263.3M	259.7M	253.3M	251.7M	249M
Retained Earnings	6.9B	8.02B	8.9B	9.44B	9.73B	8.5B	8.35B	8.32B	9.13B	9.79B
Treasury Stock	-452.6M	-702.7M	-1.72B	-1.72B	-1.72B	-1.72B	-1.72B	-1.72B	-1.72B	-1.72B
Accumulated OCI	-1.12B	-1.29B	-778.8M	-964.1M	-1.01B	-631.5M	-637.6M	-766.2M	-670.8M	-864.1M
Minority Interest	62.5M	74.5M	66.6M	42.1M	44.8M	19.4M	17.2M	16.6M	21.8M	29.5M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	888.4M	1.52B	1.52B	1.41B	1.92B	1.44B	1.59B	1.5B	2.39B	3.15B
Operating CF Margin %	0.07%	0.11%	0.11%	0.11%	0.15%	0.12%	0.11%	0.09%	0.14%	0.16%
Operating CF Growth %	-0.09%	0.71%	0%	-0.08%	0.36%	-0.25%	0.11%	-0.05%	0.59%	0.32%
Net Income	707.1M	1.48B	1.3B	1.34B	1.39B	991.4M	1.46B	1.8B	2.07B	2.57B
Depreciation & Amortization	364.1M	352.2M	353.3M	282.3M	397.4M	294.3M	299.4M	323.6M	348.1M	379.4M
Stock-Based Compensation	0	69.6M	70.8M	52.5M	66.4M	69.5M	66.5M	56.3M	67.1M	82.9M
Deferred Taxes	0	0	0	0	-116.6M	-520.6M	-56.8M	0	0	0
Other Non-Cash Items	2.2M	24.6M	-122.7M	1.4M	13.4M	119.9M	-15.8M	-251M	-21.7M	-123.5M
Working Capital Changes	-185M	-400.7M	-80.5M	-266M	171M	480.5M	-162.2M	-421.1M	-72.8M	238.9M
Change in Receivables	-79.8M	-101.3M	-156.7M	-78.5M	-77.8M	5.9M	-265.4M	-345.4M	-110.1M	-180.6M
Change in Inventory	-6.3M	26.8M	-112.4M	-169.9M	18.4M	109M	-348.8M	-466.7M	-96.4M	162.5M
Change in Payables	-41M	103.6M	167.2M	120.7M	80.6M	75.8M	275.3M	317.9M	-125.3M	100.9M
Cash from Investing+	-1.19B	240.1M	-374.7M	-629.4M	-1.78B	-376.2M	-545.7M	-540.4M	-1.17B	-562.9M
Capital Expenditures	-249.6M	-182.7M	-221.3M	-365.6M	-254.1M	-146.2M	-223M	-291.8M	-300.7M	-370.6M
CapEx % of Revenue	0.02%	0.01%	0.02%	0.03%	0.02%	0.01%	0.02%	0.02%	0.02%	0.02%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	0	0	0	0	0	-37.7M	-53.5M	-13.9M	-8.7M	438M
Cash from Financing+	-490.3M	-705.2M	-1.43B	-1.38B	270.5M	884.3M	-2.13B	-1.85B	-1.35B	-2.02B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-303.3M	-348.6M	-430.1M	-479.5M	-510.1M	-507.3M	-561.1M	-620.2M	-683.7M	-757.5M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	56.7M	44.2M	26.2M	-16.7M	40.3M	1.95B	-33.7M	-22.2M	60M	26.7M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	601.5M	1.32B	1.3B	1.04B	1.67B	1.29B	1.37B	1.21B	2.09B	2.77B
FCF Margin %	0.05%	0.1%	0.09%	0.08%	0.13%	0.1%	0.1%	0.08%	0.12%	0.14%
FCF Growth %	-0.19%	1.19%	-0.01%	-0.2%	0.6%	-0.23%	0.06%	-0.11%	0.72%	0.33%
FCF per Share	2.25	5.03	5.05	4.17	6.81	5.30	5.63	5.16	9.05	12.15
FCF Conversion (FCF/Net Income)	1.34x	1.03x	1.17x	1.05x	1.36x	1.68x	1.12x	0.86x	1.18x	1.22x
Interest Paid	172.4M	209.3M	210M	200.6M	220.9M	243.5M	234.9M	218M	217.4M	233.3M
Taxes Paid	408.6M	334.3M	286.7M	375.4M	425.3M	151.6M	356.9M	321.3M	523.6M	710.5M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	11.04%	23.18%	18.52%	18.6%	19.51%	12.39%	22.35%	28.3%	30.81%	35.41%
Return on Invested Capital (ROIC)	12.11%	12.93%	13.19%	11.29%	11.43%	11.46%	17.44%	19.39%	21.24%	23.88%
Gross Margin	30.07%	31.1%	30.89%	30.47%	30.8%	30.54%	31.62%	31.05%	33.13%	35.69%
Net Margin	5%	10.93%	9.17%	10.84%	10.79%	6.86%	10.07%	10.98%	11.45%	12.94%
Debt / Equity	0.71x	0.60x	0.56x	0.58x	0.76x	0.82x	0.77x	0.79x	0.68x	0.72x
Interest Coverage	6.54x	7.24x	7.72x	6.84x	6.87x	6.16x	8.66x	10.82x	12.34x	14.68x
FCF Conversion	1.34x	1.03x	1.17x	1.05x	1.36x	1.68x	1.12x	0.86x	1.18x	1.22x
Revenue Growth	3.17%	1.57%	5.1%	-13.06%	5.93%	-4.75%	13.5%	13.12%	10.54%	12.22%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Product	-	-	-	-	-	-	9.5B	10.93B	11.98B	13.31B
Product Growth	-	-	-	-	-	-	-	15.08%	9.56%	11.18%
Service	-	-	-	-	-	-	4.64B	5.06B	5.7B	6.52B
Service Growth	-	-	-	-	-	-	-	9.13%	12.67%	14.41%
Climate	10.22B	10.54B	11.17B	12.34B	13.08B	-	-	-	-	-
Climate Growth	-	3.14%	5.90%	10.53%	5.93%	-	-	-	-	-
Industrial	3.08B	2.96B	3.03B	3.32B	3.52B	-	-	-	-	-
Industrial Growth	-	-3.66%	2.23%	9.71%	5.97%	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Americas	8.29B	8.72B	9.22B	-	-	9.69B	10.96B	12.64B	13.83B	15.9B
Americas Growth	-	5.18%	5.67%	-	-	-	13.12%	15.37%	9.42%	14.97%
EMEA	-	-	-	-	-	1.65B	1.94B	2.03B	2.4B	2.56B
EMEA Growth	-	-	-	-	-	-	18.01%	4.61%	18.02%	6.48%
Asia Pacific	-	-	-	-	-	1.12B	1.23B	1.32B	1.44B	1.38B
Asia Pacific Growth	-	-	-	-	-	-	10.15%	6.64%	9.72%	-4.58%
Non United States	5.01B	4.79B	4.98B	-	-	-	-	-	-	-
Non United States Growth	-	-4.42%	4.05%	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Trane Technologies plc (TT) has a price-to-earnings (P/E) ratio of 34.5x. This suggests investors expect higher future growth.

Growth & Financials

Trane Technologies plc (TT) reported $21.05B in revenue for fiscal year 2024. This represents a 42% increase from $14.78B in 2011.

Trane Technologies plc (TT) grew revenue by 12.2% over the past year. This is steady growth.

Yes, Trane Technologies plc (TT) is profitable, generating $2.93B in net income for fiscal year 2024 (12.9% net margin).

Dividend & Returns

Yes, Trane Technologies plc (TT) pays a dividend with a yield of 0.86%. This makes it attractive for income-focused investors.

Trane Technologies plc (TT) has a return on equity (ROE) of 35.4%. This is excellent, indicating efficient use of shareholder capital.

Trane Technologies plc (TT) generated $2.55B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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