Revenue growth has moderated from a 15.0% peak in 2024Q1 to 6.0% in 2026Q1, while pricing power sustained gross margins at 34.8% during the most recent quarter.
| 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 |
|---|
| Sales/Revenue | 21.6B | 21.32B | 19.84B | 17.68B | 15.99B | 14.14B | 12.45B | 13.08B | 12.34B | 14.2B | 13.51B | 13.3B | 12.89B | 12.35B | 11.99B | 14.78B | 14.08B | 13.2B | 13.23B | 8.76B | 11.41B | 10.55B | 9.39B | 9.88B | 8.95B | 8.6B | 8.41B | 7.82B | 7.54B | 6.24B | 6.7B |
| Revenue Growth % | 6.36% | 7.48% | 12.22% | 10.54% | 13.12% | 13.5% | -4.75% | 5.93% | -13.06% | 5.1% | 1.57% | 3.17% | 4.38% | 3.02% | -18.9% | 4.99% | 6.7% | -0.24% | 50.94% | -23.19% | 8.18% | 12.28% | -4.89% | 10.33% | 4.03% | 2.28% | 7.59% | 3.7% | 20.85% | -6.92% | 17% |
| Cost of Goods Sold | 13.84B | 13.61B | 12.76B | 11.82B | 11.03B | 9.67B | 8.65B | 9.09B | 8.58B | 9.81B | 9.33B | 9.3B | 8.98B | 8.68B | 8.53B | 10.49B | 10.16B | 9.65B | 9.56B | 6.27B | 8.42B | 7.74B | 6.85B | 7.47B | 6.83B | 6.74B | 6.23B | 5.67B | 5.28B | 4.42B | 4.83B |
| COGS % of Revenue | - | 63.84% | 64.31% | 66.87% | 68.95% | 68.38% | 69.46% | 69.48% | 69.53% | 69.11% | 69.06% | 69.93% | 69.68% | 70.24% | 71.18% | 70.99% | 72.15% | 73.09% | 72.27% | 71.57% | 73.84% | 73.43% | 72.96% | 75.65% | 76.26% | 78.29% | 74.05% | 72.56% | 70.02% | 70.86% | 72.02% |
| Gross Profit | 7.76B | 7.71B | 7.08B | 5.86B | 4.96B | 4.47B | 3.8B | 4.03B | 3.76B | 4.39B | 4.2B | 4B | 3.91B | 3.63B | 3.45B | 4.29B | 3.94B | 3.55B | 3.67B | 2.49B | 2.99B | 2.8B | 2.54B | 2.41B | 2.12B | 1.87B | 2.18B | 2.15B | 2.26B | 1.82B | 1.88B |
| Gross Margin % | 35.93% | 36.16% | 35.69% | 33.13% | 31.05% | 31.62% | 30.54% | 30.8% | 30.47% | 30.89% | 31.1% | 30.07% | 30.32% | 29.38% | 28.82% | 29.01% | 27.99% | 26.91% | 27.73% | 28.43% | 26.16% | 26.57% | 27.04% | 24.35% | 23.74% | 21.71% | 25.95% | 27.44% | 29.98% | 29.14% | 27.98% |
| Gross Profit Growth % | - | 8.89% | 20.89% | 17.97% | 11.08% | 17.52% | -5.57% | 7.08% | -14.24% | 4.4% | 5.05% | 2.32% | 7.73% | 5.02% | -19.44% | 8.81% | 11.01% | -3.2% | 47.23% | -16.55% | 6.5% | 10.36% | 5.59% | 13.2% | 13.77% | -14.43% | 1.71% | -5.07% | 24.32% | -3.06% | 17.36% |
| Operating Expenses | 3.84B | 3.74B | 3.58B | 2.96B | 2.55B | 2.45B | 2.27B | 2.36B | 2.25B | 2.71B | 2.61B | 2.54B | 2.5B | 2.52B | 2.38B | 2.78B | 2.67B | 2.71B | 2.44B | 1.43B | 1.54B | 1.44B | 1.42B | 1.54B | 1.48B | 1.44B | 1.26B | 1.07B | 1.29B | 1.09B | 1.19B |
| OpEx % of Revenue | - | 17.55% | 18.05% | 16.76% | 15.92% | 17.3% | 18.23% | 18.03% | 18.22% | 19.06% | 19.29% | 19.11% | 19.42% | 20.43% | 19.88% | 18.81% | 18.99% | 20.53% | 18.45% | 16.36% | 13.54% | 13.66% | 15.11% | 15.58% | 16.55% | 16.78% | 15.04% | 13.63% | 17.13% | 17.55% | 17.78% |
| Selling, General & Admin | 3.84B | 3.74B | 3.58B | 2.96B | 2.31B | 2.45B | 2.05B | 2.13B | 2.25B | 2.5B | 2.61B | 2.31B | 2.5B | 2.16B | 2.37B | 2.78B | 2.67B | 2.71B | 2.34B | 1.43B | 1.54B | 1.44B | 1.42B | 1.54B | 1.44B | 1.45B | 1.15B | 1.05B | 1.2B | 1.08B | 989.5M |
| SG&A % of Revenue | - | 17.55% | 18.05% | 16.76% | 14.47% | 17.3% | 16.49% | 16.3% | 18.22% | 17.57% | 19.29% | 17.39% | 19.42% | 17.46% | 19.77% | 18.81% | 18.99% | 20.53% | 17.71% | 16.36% | 13.54% | 13.66% | 15.11% | 15.58% | 16.08% | 16.9% | 13.63% | 13.46% | 15.92% | 17.3% | 14.76% |
| Research & Development | 0 | 347.6M | 0 | 252.3M | 211.2M | 193.5M | 165M | 174.2M | 166.7M | 210.8M | 207.9M | 205.9M | 212.3M | 218.2M | 235.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 1.63% | - | 1.43% | 1.32% | 1.37% | 1.32% | 1.33% | 1.35% | 1.48% | 1.54% | 1.55% | 1.65% | 1.77% | 1.96% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -347.6M | 0 | -252.3M | 20.7M | -193.5M | 51.6M | 52.6M | -166.7M | 0 | -207.9M | 21.6M | -212.3M | 148.3M | -222.4M | 0 | 0 | 0 | 97.4M | 0 | 0 | 0 | 0 | 0 | 41.9M | -10M | 118.2M | 13.7M | 90.9M | 15.5M | 202.6M |
| Operating Income | 3.92B | 3.97B | 3.5B | 2.89B | 2.42B | 2.02B | 1.53B | 1.67B | 1.51B | 1.67B | 1.6B | 1.46B | 1.4B | 1.1B | 1.1B | 1.52B | 1.29B | 841.6M | 1.23B | 1.06B | 1.44B | 1.36B | 1.12B | 870.1M | 643.1M | 423.5M | 917.7M | 1.08B | 969.1M | 723.5M | 683.5M |
| Operating Margin % | 18.17% | 18.61% | 17.64% | 16.37% | 15.13% | 14.31% | 12.31% | 12.77% | 12.25% | 11.73% | 11.87% | 10.96% | 10.9% | 8.95% | 9.14% | 10.28% | 9.18% | 6.38% | 9.28% | 12.07% | 12.63% | 12.91% | 11.93% | 8.81% | 7.18% | 4.92% | 10.91% | 13.81% | 12.85% | 11.6% | 10.2% |
| Operating Income Growth % | - | 13.35% | 20.94% | 19.64% | 19.55% | 32% | -8.22% | 10.45% | -9.2% | 3.87% | 9.96% | 3.79% | 27.12% | 0.89% | -27.91% | 17.51% | 53.61% | -31.42% | 16% | -26.58% | 5.8% | 21.56% | 28.76% | 35.3% | 51.85% | -53.85% | -15% | 11.41% | 33.95% | 5.85% | 37.53% |
| EBITDA | 4.3B | 4.23B | 3.88B | 3.24B | 2.74B | 2.32B | 1.83B | 1.96B | 1.87B | 2.01B | 1.95B | 1.82B | 1.74B | 1.44B | 1.43B | 1.92B | 1.73B | 1.27B | 1.68B | 1.2B | 1.63B | 1.56B | 1.29B | 1.06B | 849M | 741.7M | 1.2B | 1.35B | 1.23B | 915.7M | 886.1M |
| EBITDA Margin % | 19.92% | 19.84% | 19.56% | 18.31% | 17.12% | 16.39% | 14.67% | 14.98% | 15.18% | 14.19% | 14.45% | 13.7% | 13.47% | 11.65% | 11.92% | 13% | 12.29% | 9.6% | 12.7% | 13.66% | 14.3% | 14.77% | 13.78% | 10.77% | 9.48% | 8.62% | 14.28% | 17.29% | 16.35% | 14.68% | 13.22% |
| EBITDA Growth % | 5.66% | 9.06% | 19.83% | 18.24% | 18.15% | 26.83% | -6.73% | 4.55% | -7% | 3.21% | 7.12% | 4.89% | 20.74% | 0.68% | -25.65% | 11.1% | 36.59% | -24.62% | 40.41% | -26.66% | 4.75% | 20.3% | 21.67% | 25.34% | 14.47% | -38.25% | -11.17% | 9.69% | 34.62% | 3.34% | 31% |
| D&A (Non-Cash Add-back) | 378.3M | 263.4M | 379.4M | 343.5M | 319.2M | 294.1M | 294.3M | 288.8M | 361.5M | 349.3M | 348.7M | 364.1M | 332.4M | 333.7M | 333.8M | 402.7M | 437.1M | 424.9M | 453.1M | 138.8M | 190.7M | 195.7M | 174.4M | 194M | 205.9M | 318.2M | 283.4M | 272.4M | 263.6M | 192.2M | 202.6M |
| EBIT | 3.87B | 3.91B | 3.48B | 2.8B | 2.4B | 2.03B | 1.54B | 1.64B | 1.88B | 1.63B | 1.96B | 1.47B | 1.42B | 1.11B | 1.1B | 893.9M | 1.28B | 853.2M | -2.51B | 1.06B | 1.45B | 1.41B | 1.14B | 866.9M | 685M | 497.2M | 993.9M | 1.08B | 969.1M | 723.5M | 683.5M |
| Net Interest Income | -218.5M | -223M | -202.5M | -219.1M | -214.3M | -229.7M | -244.2M | -242.2M | -218.6M | -206.4M | -213.5M | -212.4M | -212.1M | -266M | -234.2M | -251.2M | -268M | -288.9M | -149.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 6.5M | 4.5M | 35.9M | 15.4M | 9.2M | 4M | 4.5M | 600K | 2.4M | 9.4M | 8M | 10.6M | 13.2M | 12.8M | 16.3M | 25.9M | 15.2M | 13.3M | 95.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 225M | 227.5M | 238.4M | 234.5M | 223.5M | 233.7M | 248.7M | 243M | 221M | 215.8M | 221.5M | 223M | 225.3M | 278.8M | 250.5M | 277.1M | 283.2M | 302.2M | 245.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -263.1M | -288.8M | -258.3M | -326.7M | -246.8M | -232.6M | -244.6M | -271.2M | -254.3M | -247.4M | 138.1M | -210.1M | -195.3M | -275.4M | -247.2M | -905.9M | -286.2M | -282.5M | -3.98B | -120.3M | -125.9M | -91.3M | -136.1M | -182.4M | -255.4M | -289.5M | -253.9M | -209.5M | -236.8M | -145.1M | -115.2M |
| Pretax Income | 3.66B | 3.68B | 3.24B | 2.57B | 2.17B | 1.79B | 1.29B | 1.4B | 1.26B | 1.42B | 1.74B | 1.25B | 1.21B | 829.6M | 848M | 613.3M | 1.01B | 559.1M | -2.76B | 937.5M | 1.31B | 1.27B | 984.2M | 687.7M | 387.7M | 134M | 663.8M | 870.2M | 732.3M | 578.4M | 568.3M |
| Pretax Margin % | 16.95% | 17.25% | 16.34% | 14.52% | 13.58% | 12.67% | 10.34% | 10.7% | 10.19% | 9.99% | 12.89% | 9.38% | 9.38% | 6.72% | 7.07% | 4.15% | 7.15% | 4.24% | -20.84% | 10.7% | 11.52% | 12.05% | 10.48% | 6.96% | 4.33% | 1.56% | 7.89% | 11.13% | 9.71% | 9.27% | 8.48% |
| Income Tax | 707.3M | 705.9M | 627.6M | 498.4M | 375.9M | 333.5M | 296.8M | 238.6M | 234.9M | 80.2M | 281.5M | 540.8M | 293.7M | 189M | 56M | 187.2M | 228.1M | 71.3M | -208.6M | 204.4M | 231.7M | 204.7M | 138.4M | 94.2M | 20.3M | -48.1M | 226.5M | 307.1M | 250.7M | 219.8M | 210.3M |
| Effective Tax Rate % | 19.32% | 19.19% | 19.36% | 19.41% | 17.31% | 18.62% | 23.04% | 17.06% | 18.68% | 5.66% | 16.17% | 43.34% | 24.28% | 22.78% | 6.6% | 30.52% | 22.66% | 12.75% | 7.57% | 21.8% | 17.62% | 16.11% | 14.06% | 13.7% | 5.24% | -35.9% | 34.12% | 35.29% | 34.23% | 38% | 37.01% |
| Net Income | 2.9B | 2.92B | 2.57B | 2.02B | 1.76B | 1.42B | 854.9M | 1.41B | 1.34B | 1.3B | 1.48B | 664.6M | 931.7M | 618.8M | 1.01B | 426.1M | 642.2M | 451.3M | -2.62B | 3.97B | 1.03B | 1.05B | 829.8M | 644.5M | -173.5M | 246.2M | 669.4M | 591.1M | 509.1M | 380.5M | 358M |
| Net Margin % | 13.42% | 13.69% | 12.94% | 11.45% | 10.98% | 10.07% | 6.86% | 10.79% | 10.84% | 9.17% | 10.93% | 5% | 7.23% | 5.01% | 8.39% | 2.88% | 4.56% | 3.42% | -19.84% | 45.27% | 9.05% | 10% | 8.83% | 6.53% | -1.94% | 2.86% | 7.96% | 7.56% | 6.75% | 6.1% | 5.34% |
| Net Income Growth % | 5.91% | 13.66% | 26.88% | 15.22% | 23.4% | 66.5% | -39.41% | 5.48% | 2.69% | -11.76% | 122.12% | -28.67% | 50.57% | -38.5% | 136.14% | -33.65% | 42.3% | 117.19% | -166.17% | 284.18% | -2.06% | 27.04% | 28.75% | 471.47% | -170.47% | -63.22% | 13.25% | 16.11% | 33.8% | 6.28% | 32.45% |
| Net Income (Continuing) | 2.95B | 2.97B | 2.61B | 2.07B | 1.8B | 1.46B | 991.4M | 1.16B | 1.02B | 1.34B | 1.46B | 707.1M | 915.7M | 643.2M | 792M | 426.1M | 782.6M | 487.8M | -2.55B | 733.1M | 1.08B | 1.07B | 845.8M | 593.5M | 367.4M | 182.1M | 437.3M | 563.1M | 481.6M | 358.6M | 358M |
| Discontinued Operations | -2M | -37M | -24.7M | -27.2M | 0 | 0 | 0 | 265.8M | 329.8M | 0 | 32.9M | 0 | 34.7M | 13.3M | -18.1M | 226.1M | 0 | -33.6M | 0 | 0 | -318.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 21.6M | 21.7M | 29.5M | 21.8M | 16.6M | 17.2M | 19.4M | 44.8M | 42.1M | 66.6M | 74.5M | 62.5M | 58M | 62.4M | 81.5M | 88.1M | 94.8M | 103.9M | 100.7M | 97.5M | 0 | 0 | 0 | 120.9M | 115.1M | 110.5M | 110.5M | 498.2M | 536.1M | 127.9M | 113.4M |
| EPS (Diluted) | 12.99 | 12.98 | 11.24 | 8.77 | 7.48 | 5.87 | 3.52 | 5.77 | 5.35 | 5.05 | 5.65 | 2.48 | 3.40 | 2.07 | 3.28 | 1.01 | 1.89 | 1.37 | -8.64 | 13.43 | 3.20 | 3.09 | 3.47 | 1.87 | -0.51 | 0.74 | 2.06 | 1.38 | 1.54 | 1.16 | 1.11 |
| EPS Growth % | 7.57% | 15.48% | 28.16% | 17.25% | 27.43% | 66.76% | -38.99% | 7.85% | 5.94% | -10.62% | 127.82% | -27.06% | 64.25% | -36.89% | 224.75% | -46.56% | 37.96% | 115.86% | -164.33% | 319.69% | 3.56% | -10.95% | 85.56% | 466.67% | -168.92% | -64.08% | 49.28% | -10.39% | 32.76% | 4.5% | 30.59% |
| EPS (Basic) | - | 13.09 | 11.44 | 8.85 | 7.55 | 5.96 | 3.56 | 5.84 | 5.53 | 5.22 | 5.70 | 2.54 | 3.54 | 2.19 | 3.45 | 1.16 | 1.98 | 1.41 | -8.73 | 13.64 | 3.23 | 3.12 | 3.52 | 1.88 | -0.51 | 0.75 | 2.08 | 1.81 | 1.56 | 1.17 | 1.11 |
| Diluted Shares Outstanding | 223.1M | 223.6M | 228.4M | 230.7M | 234.9M | 242.3M | 243.1M | 244.4M | 250.1M | 258.1M | 261.7M | 267.8M | 274.3M | 298.3M | 310.6M | 339.3M | 339.8M | 329.1M | 303.7M | 295.3M | 322.66M | 341.17M | 351.21M | 344.65M | 340.2M | 332.7M | 324.95M | 428.33M | 330.58M | 329.44M | 323.98M |
| Basic Shares Outstanding | 223.1M | 223.6M | 224.47M | 227.17M | 232.6M | 238.7M | 240.1M | 241.6M | 241.91M | 249.48M | 259.01M | 261.25M | 262.9M | 282.7M | 295.58M | 297.14M | 324.7M | 321.1M | 300.6M | 290.7M | 319.66M | 337.88M | 346.22M | 342.82M | 336.89M | 328.27M | 322.6M | 327.48M | 327.4M | 326.61M | 322.52M |
| Dividend Payout Ratio | - | 28.69% | 29.5% | 33.78% | 35.31% | 39.42% | 59.34% | 36.15% | 35.85% | 33.02% | 23.61% | 45.64% | 28.41% | 39.67% | 19.12% | 32.22% | 14.12% | 40.11% | - | 5.29% | 21.08% | 18.22% | 18.39% | 19.12% | - | 45.94% | 16.4% | 17.81% | 19.31% | 24.6% | 23.44% |
Cyclical commercial construction exposure
As indicated by recent financial disclosures, Trane Technologies' year-over-year revenue growth has decelerated from a peak of 15.0% in 2024Q1 to 6.0% by 2026Q1, suggesting that the post-pandemic surge in demand for climate solutions is moderating toward a more sustainable, long-term baseline trajectory.
The transition from double-digit growth to mid-single digits reflects a cooling in the broader industrial cycle and the normalization of project-based installations. Investors should monitor whether the current growth rate remains supported by the recurring service revenue base or if further deceleration is likely as large-scale commercial projects face extended lead times.
Based on reported quarterly figures, Trane Technologies has maintained a robust gross margin profile, peaking at 37.6% in 2025Q2, which underscores the company's ability to leverage its specialized commercial HVAC ecosystem to offset inflationary pressures on raw materials like copper and steel.
The company's ability to sustain gross margins above 34% across the last ten quarters suggests significant pricing power derived from its direct-to-customer service model. This structural advantage appears to insulate the firm from the commodity-driven margin volatility that typically plagues less specialized industrial manufacturers.
According to the income statement data, Trane Technologies demonstrated effective operating leverage during the 2025 fiscal year, as operating margins expanded to 20.3% in the third quarter, reflecting the successful implementation of the Trane Technologies Business System in scaling profitability faster than top-line revenue growth.
The ability to keep SG&A expenses relatively contained while revenue scaled suggests disciplined overhead management. This operational efficiency appears to be a core driver of the company's earnings quality, allowing for margin expansion even when revenue growth begins to moderate.
As reported in financial statements, Trane Technologies' net income has shown consistent strength, with net margins reaching 15.2% in 2025Q2, while stock-based compensation remains a relatively minor component of the cost structure, suggesting that reported EPS is largely reflective of core operational performance rather than accounting adjustments.
The absence of significant non-operating distortions in recent quarters points to a high quality of earnings. Investors should continue to scrutinize the impact of periodic restructuring charges, which have historically been used to streamline the portfolio, to ensure they do not mask underlying operational trends.
While Trane Technologies maintains a strong market position, the recent deceleration in revenue growth to 6.0% in 2026Q1 warrants caution, as short-term investors may focus on the potential for margin compression if the commercial construction cycle experiences a more pronounced downturn than currently anticipated.
The reliance on large-scale institutional projects creates a lag in cycle sensitivity that could lead to a sudden earnings contraction if new project starts decline. The market's current valuation premium may be vulnerable if the company fails to demonstrate that its service-based annuity can fully offset a decline in new equipment installations.
Quick answers to the most common questions about buying TT stock.
For fiscal year 2025, Trane Technologies plc (TT) reported total revenue of $21.32B. This represents a 218.1% increase compared to $6.70B in 1996.
Trane Technologies plc (TT) is profitable, generating $2.92B in net income for the fiscal year ending 2025 with a net profit margin of 13.7%.
Trane Technologies plc (TT) reported an operating income of $3.97B, resulting in an operating profit margin of 18.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Trane Technologies plc (TT) generated $7.71B in gross profit for the year, representing a gross profit margin of 36.2%. This demonstrates the company's core pricing power and production efficiency.