Cash conversion remains sensitive to project cycles, as evidenced by a variable OCF/NI ratio that fluctuated from 0.56 in 2025Q1 to 1.97 in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 3.5B | 3.19B | 3.15B | 2.39B | 1.5B | 1.59B | 1.44B | 1.92B | 1.41B | 1.52B | 1.52B | 888.4M | 973.2M | 1.17B | 1.18B | 1.19B | 695.4M | 1.73B | 330.9M | 896.1M | 972.2M | 809.1M | 753.2M | 148.1M | 708.8M | 601.6M | 774.1M | 869.3M | 899M | 703.5M | 385.7M |
| Operating CF Margin % | - | 14.98% | 15.86% | 13.52% | 9.4% | 11.24% | 11.52% | 14.68% | 11.4% | 10.73% | 11.27% | 6.68% | 7.55% | 9.48% | 9.85% | 8.03% | 4.94% | 13.15% | 2.5% | 10.23% | 8.52% | 7.67% | 8.02% | 1.5% | 7.92% | 6.99% | 9.2% | 11.12% | 11.92% | 11.28% | 5.75% |
| Operating CF Growth % | 91.25% | 1.55% | 31.64% | 58.88% | -5.31% | 10.68% | -25.24% | 36.35% | -7.59% | 0.11% | 71.31% | -8.71% | -16.85% | -0.89% | -0.5% | 70.66% | -59.91% | 424.21% | -63.07% | -7.83% | 20.16% | 7.42% | 408.58% | -79.11% | 17.82% | -22.28% | -10.95% | -3.3% | 27.79% | 82.4% | -4.44% |
| Net Income | 2.9B | 2.96B | 2.57B | 2.07B | 1.8B | 1.46B | 991.4M | 1.39B | 1.34B | 1.3B | 1.48B | 707.1M | 897M | 640.6M | 1.05B | 426.1M | 781.8M | 487.8M | -2.55B | 733.1M | 1.03B | 1.05B | 829.8M | 593.5M | 367.4M | 246.2M | 546.2M | 591.1M | 509.1M | 380.5M | 358M |
| Depreciation & Amortization | 378.3M | 376.3M | 379.4M | 348.1M | 323.6M | 299.4M | 294.3M | 397.4M | 282.3M | 353.3M | 352.2M | 364.1M | 332.4M | 333.7M | 375.5M | 402.7M | 437.1M | 424.9M | 453.1M | 138.8M | 190.7M | 195.7M | 174.4M | 194M | 205.9M | 362.5M | 297M | 272.4M | 282.6M | 212.3M | 202.6M |
| Stock-Based Compensation | 94.1M | 0 | 82.9M | 67.1M | 56.3M | 66.5M | 69.5M | 66.4M | 52.5M | 70.8M | 69.6M | 0 | 0 | 71.8M | 49.8M | 42.6M | 73.5M | 68.3M | 42.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -56.8M | -520.6M | -116.6M | 0 | 0 | 0 | 0 | 0 | 29.4M | 73.9M | -74.6M | 81M | -32M | -334M | 146.6M | -59.3M | 64M | -59.2M | -20.8M | -600K | 23.4M | 8.5M | 41.8M | 1.6M | 8.2M | -4.5M |
| Other Non-Cash Items | 120.07M | 144.2M | -123.5M | -21.7M | -251M | -15.8M | 119.9M | 13.4M | 1.4M | -122.7M | 24.6M | 2.2M | -34.9M | 496.5M | -308.5M | 601.9M | 45.7M | 158.3M | 3.64B | 144M | -4.9M | -80.9M | -27.8M | -123.7M | 154.8M | 100.4M | 69.6M | 6.2M | 3.6M | 49.9M | -28.8M |
| Working Capital Changes | -25.36M | -281.6M | 238.9M | -72.8M | -421.1M | -162.2M | 480.5M | 171M | -266M | -80.5M | -400.7M | -185M | -221.3M | -401.6M | -59.5M | -211.9M | -723.7M | 627.3M | -923.7M | -266.4M | -186.8M | -422.8M | -164M | -494.9M | -18.7M | -130.9M | -147.2M | -42.2M | 102.1M | 52.6M | -141.6M |
| Change in Receivables | 0 | -61.2M | -180.6M | -110.1M | -345.4M | -265.4M | 5.9M | -77.8M | -78.5M | -156.7M | -101.3M | -79.8M | -119.9M | -214.3M | -34.2M | 8.1M | 0 | 0 | 245.3M | 46.2M | -204.7M | -128.5M | -70.1M | -294.4M | 26.9M | 0 | 0 | -57.7M | 0 | 0 | -1M |
| Change in Inventory | 0 | -84.8M | 162.5M | -96.4M | -466.7M | -348.8M | 109M | 18.4M | -169.9M | -112.4M | 26.8M | -6.3M | -230M | -39.4M | -25.3M | -14.3M | -219M | 430.8M | 120.7M | 75.4M | -116.1M | 600K | -174.8M | 199.2M | 3.6M | -24.1M | -175.9M | 56.7M | -76.8M | 48.7M | -5.3M |
| Change in Payables | 0 | -2.6M | 100.9M | -125.3M | 317.9M | 275.3M | 75.8M | 80.6M | 120.7M | 167.2M | 103.6M | -41M | 157.2M | 141M | -2.5M | -29M | 251.5M | 28.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.01B | -640M | -562.9M | -1.17B | -540.4M | -545.7M | -376.2M | -1.78B | -629.4M | -374.7M | 240.1M | -1.19B | -197M | -215.4M | -146.4M | 207.5M | -178.6M | -182.7M | -7.31B | 5.99B | -161.2M | -741.7M | 1.33B | 815.2M | -187.4M | -186.8M | -1.54B | -237M | -183.4M | -2.74B | -149.9M |
| Capital Expenditures | -461.94M | -383M | -370.6M | -300.7M | -291.8M | -223M | -146.2M | -254.1M | -365.6M | -221.3M | -182.7M | -249.6M | -233.5M | -242.2M | -262.6M | -242.9M | -179.5M | -204.2M | -306M | -119.7M | -212.3M | -111.8M | -108.6M | -107.9M | -122.9M | -200.6M | -186.6M | -351.7M | -276.6M | -186M | -195M |
| CapEx % of Revenue | 2.14% | 1.8% | 1.87% | 1.7% | 1.82% | 1.58% | 1.17% | 1.94% | 2.96% | 1.56% | 1.35% | 1.88% | 1.81% | 1.96% | 2.19% | 1.64% | 1.27% | 1.55% | 2.31% | 1.37% | 1.86% | 1.06% | 1.16% | 1.09% | 1.37% | 2.33% | 2.22% | 4.5% | 3.67% | 2.98% | 2.91% |
| Acquisitions | -674.85M | -276M | -180.3M | -862.8M | -234.7M | -269.2M | -192.3M | -1.53B | -263.8M | -153.4M | 300K | -943.3M | -8.2M | 4.7M | 52.7M | 354M | -14M | 0 | -7.05B | 6.13B | -121.5M | -514.7M | -33.7M | -21.3M | -112.7M | -158.3M | -2.34B | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 131.66M | 19M | 438M | -8.7M | -13.9M | -53.5M | -37.7M | 0 | 0 | 0 | 0 | 0 | 44.7M | 22.1M | 63.5M | 96.4M | 14.9M | 21.5M | -31.2M | 28.6M | 400K | 7.6M | 1.47B | -1.3M | -2.1M | 15.7M | 961.9M | 113.2M | 91.8M | -2.56B | 48.7M |
| Cash from Financing | -2.31B | -2.5B | -2.02B | -1.35B | -1.85B | -2.13B | 884.3M | 270.5M | -1.38B | -1.43B | -705.2M | -490.3M | -859.5M | 346.6M | -1.3B | -1.25B | -403.7M | -1.21B | 2.78B | -2.56B | -1.36B | -875.7M | -807.2M | -851.9M | -296M | -390M | 647M | -445.1M | -752.4M | 1.96B | -196.5M |
| Debt Issued (Net) | -166.68M | -159.1M | -9M | -57.3M | -9.6M | -432.5M | -307.5M | 1.49B | 17.6M | -11.7M | -150.7M | 6.4M | 700.2M | 291.7M | -414.8M | -52.8M | -428.8M | -1.03B | 2.96B | -549.7M | -140.5M | 62.7M | -469.4M | -939.8M | -217.9M | -214.1M | 872.5M | -267.5M | -972.9M | 2.06B | -128.9M |
| Equity Issued (Net) | -25.39M | -1.48B | -1.28B | -669.3M | -1.2B | -1.1B | -250M | -750.1M | -900.2M | -1.02B | -250.1M | -250.1M | -1.37B | -1.21B | -686.9M | -1.05B | 145.3M | 0 | -2M | -1.84B | -1B | -746.3M | -185.2M | 211.1M | 36.8M | -62.8M | -113M | -135.6M | 319.4M | 10.3M | 16.3M |
| Dividends Paid | -859.89M | -837.3M | -757.5M | -683.7M | -620.2M | -561.1M | -507.3M | -510.1M | -479.5M | -430.1M | -348.6M | -303.3M | -264.7M | -245.5M | -213.1M | -137.3M | -110.9M | -181M | -212.9M | -209.8M | -217.6M | -192.1M | -152.6M | -123.2M | -114.9M | -113.1M | -109.8M | -105.3M | -98.3M | -93.6M | -83.9M |
| Share Repurchases | -1.89M | -1.48B | -1.28B | -669.3M | -1.2B | -1.1B | -250M | -750.1M | -900.2M | -1.02B | -250.1M | -250.1M | -1.37B | -1.21B | -839.8M | -1.16B | 0 | 0 | -2M | -2B | -1.1B | -837.2M | -355.9M | 0 | 0 | -72.5M | -121.3M | -205.8M | -106.4M | -33M | 0 |
| Other Financing | -1.25B | -18.1M | 26.7M | 60M | -22.2M | -33.7M | 1.95B | 40.3M | -16.7M | 26.2M | 44.2M | 56.7M | 79.9M | 1.51B | -9.8M | -7.8M | -29.5M | -27.7M | 31.6M | 36.1M | 0 | 0 | 0 | 0 | 0 | 0 | -2.7M | 63.3M | -600K | -18.9M | 0 |
| Net Change in Cash | 206.3M | 173.2M | 494.8M | -125.2M | -938.7M | -1.13B | 2.01B | 400.2M | -646M | -165.3M | 977.9M | -968.4M | -232M | 1.23B | -278.6M | 146.4M | 137.6M | 326.5M | -4.19B | 4.38B | -518.3M | -822.5M | 1.27B | 115.5M | 228.2M | 17M | -148.5M | 179.4M | -33M | -79.2M | 46.8M |
| Free Cash Flow | 3.16B | 2.81B | 2.77B | 2.09B | 1.21B | 1.37B | 1.29B | 1.67B | 1.04B | 1.3B | 1.32B | 601.5M | 739.7M | 928.2M | 918.3M | 943.9M | 515.9M | 1.53B | 24.9M | 776.4M | 759.9M | 697.3M | 644.6M | 40.2M | 585.9M | 401M | 587.5M | 517.6M | 622.4M | 517.5M | 190.7M |
| FCF Margin % | 14.63% | 13.19% | 13.99% | 11.82% | 7.58% | 9.66% | 10.35% | 12.74% | 8.44% | 9.17% | 9.75% | 4.52% | 5.74% | 7.52% | 7.66% | 6.39% | 3.66% | 11.6% | 0.19% | 8.86% | 6.66% | 6.61% | 6.86% | 0.41% | 6.55% | 4.66% | 6.98% | 6.62% | 8.25% | 8.29% | 2.84% |
| FCF Growth % | 11.71% | 1.32% | 32.84% | 72.32% | -11.21% | 5.94% | -22.61% | 59.8% | -19.97% | -1.16% | 119.04% | -18.68% | -20.31% | 1.08% | -2.71% | 82.96% | -66.29% | 6046.18% | -96.79% | 2.17% | 8.98% | 8.18% | 1503.48% | -93.14% | 46.11% | -31.74% | 13.5% | -16.84% | 20.27% | 171.37% | -0.63% |
| FCF per Share | 14.17 | 12.57 | 12.15 | 9.05 | 5.16 | 5.63 | 5.30 | 6.81 | 4.17 | 5.05 | 5.03 | 2.25 | 2.70 | 3.11 | 2.96 | 2.78 | 1.52 | 4.65 | 0.08 | 2.63 | 2.36 | 2.04 | 1.84 | 0.12 | 1.72 | 1.21 | 1.81 | 1.21 | 1.88 | 1.57 | 0.59 |
| FCF Conversion (FCF/Net Income) | 1.09x | 1.09x | 1.22x | 1.18x | 0.86x | 1.12x | 1.68x | 1.36x | 1.05x | 1.17x | 1.03x | 1.34x | 1.04x | 1.89x | 1.17x | 2.79x | 1.08x | 3.84x | -0.13x | 0.23x | 0.94x | 0.77x | 0.91x | 0.23x | -4.09x | 2.44x | 1.16x | 1.47x | 1.77x | 1.85x | 1.08x |
| Interest Paid | 0 | 222M | 233.3M | 217.4M | 218M | 234.9M | 243.5M | 220.9M | 200.6M | 210M | 209.3M | 172.4M | 193.5M | 238.3M | 223.7M | 231.2M | 225.7M | 209.8M | 81.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 647.1M | 710.5M | 523.6M | 321.3M | 356.9M | 151.6M | 425.3M | 375.4M | 286.7M | 334.3M | 408.6M | 159.8M | 162.3M | 251.3M | 189.7M | 117.4M | 71.5M | 1.06B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical commercial construction exposure
According to recent financial filings, Trane Technologies exhibits a variable OCF/NI ratio, ranging from 0.56 in 2025Q1 to 1.97 in 2025Q4, which suggests that while earnings are generally high-quality, cash generation is heavily influenced by the timing of large-scale project milestones and seasonal working capital requirements.
The significant fluctuations in the conversion ratio indicate that net income often leads cash flow during periods of heavy project investment. Investors should monitor whether this divergence represents a structural shift in revenue recognition or merely the inherent lumpiness of long-cycle commercial HVAC installations.
As reported in quarterly statements, Trane Technologies maintained FCF margins as high as 22.3% in 2024Q3, though recent figures show a contraction to 10.9% in 2026Q1, suggesting that the company's ability to convert revenue into free cash is sensitive to seasonal demand and project-based capital intensity.
The volatility in FCF margins appears to track the company's project-heavy revenue model rather than a fundamental decline in profitability. This trend warrants further investigation into whether the recent margin compression is a temporary byproduct of increased investment in service-oriented infrastructure or a sign of cooling demand.
Based on reported figures, Trane Technologies experienced a notable working capital outflow of $331.2 million in 2025Q1, followed by a significant inflow of $307.9 million in 2025Q4, indicating that the company's cash position is highly susceptible to the timing of inventory builds and customer payment cycles.
These sharp reversals in working capital suggest that the company effectively manages its cash conversion cycle, though it remains vulnerable to supply chain disruptions. The ability to swing from large outflows to inflows suggests a disciplined approach to managing receivables and payables across its global operations.
As detailed in recent cash flow statements, Trane Technologies consistently deployed capital through dividends and buybacks, including a $907.7 million share repurchase in 2025Q3, which suggests that management prioritizes returning excess cash to shareholders even while funding significant acquisitions like the $668.2 million outlay in 2026Q1.
The company's dual focus on inorganic growth and shareholder returns appears to be supported by its robust cash generation. However, the scale of recent acquisitions warrants monitoring to ensure that these investments maintain the company's historical return on invested capital and do not overextend the balance sheet.
Quick answers to the most common questions about buying TT stock.
Trane Technologies plc (TT) generated $3.19B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Trane Technologies plc (TT) generated $2.81B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Trane Technologies plc (TT) spent $383.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Trane Technologies plc (TT) returned $837.3M to shareholders via cash dividends and spent $1.48B on share repurchases. This shows the company's commitment to returning capital to its equity investors.