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Trane Technologies
S&P 500
🏹 Trader: 🎯 Near 52W High View all →
$101.1B
Market Cap
30.0
P/E
2.17
PEG
25.4%
ROCE
25.2%
ROE
0.54
D/E
18.3%
OPM
-8.0%
% from 52W High
53
α RS
🔍 TT is showing a high-conviction setup because it matches 13 of 37 tracked screener presets, it's within 8% of its 52-week high, and it's hugging the 21 EMA. Net: Broad signal stack, not a recommendation. ? Conviction 52W High Technicals
Sources
Conviction 13/37 · 8% from 52W high · hugging 21 EMA
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🌏 Global Investor Returns
Currency-adjusted total returns for TT including FX impact
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📈 Price History
Ratio Health
Excellent
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Average
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By Category
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About

Trane Technologies plc designs, manufactures, sells, and services of solutions for heating, ventilation, air conditioning, and custom and transport refrigeration.

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📈 Growth Pattern
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⭐ Superinvestors Holding TT
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 198.9K $82.9M 0.13% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$6.354B
+11% YoY (organic +9%)
Operating Income
$1.224B
+5% YoY (GAAP)
Operating Margin
19.3%
-100 bps YoY (GAAP)
Adjusted EPS
$4.31
+11% YoY
What Went Right
  • Organic bookings up 37%, with record backlog of $12.1B, up 70% year-over-year
  • Americas Commercial HVAC bookings up 50%, with applied bookings up 130%
  • Raised full-year guidance: organic revenue ~9%, adjusted EPS $15.20-$15.30
What to Watch
  • EMEA organic revenue down 4% as Middle East revenues fell ~30% due to conflict
  • Price/cost and capacity/innovation investments pressured Q2 margins; adjusted operating margin down 60 bps
  • Management flagged manageable but persistent supply chain constraints and potential customer site-delivery timing issues
Management Guidance
  • Q3 2026: organic revenue growth ~10%, adjusted EPS ~$4.70
  • FY 2026: organic revenue growth raised to ~9%; adjusted EPS raised to $15.20-$15.30
  • CapEx expected at 2%-3% of revenue; capital deployment target of $2.8B-$3.3B
Investor Lens
The thesis is stronger after this call: record backlogs, broad-based orders, and raised guidance provide high visibility into 2026 and meaningful momentum into 2027, with ~$6B of backlog already slated for 2027 and beyond. EMEA weakness and investment-driven margin pressure are absorbed in the raised guide. Key watch items remain price/cost dynamics, supply chain execution, and data center delivery timing.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 beats with record $12.1B backlog and EPS +11%
Revenue
Q2 reported revenues were $6.354B, up 11% YoY; organic revenue grew 9%. Americas led with 11% organic growth, Asia Pacific grew 10%, while EMEA declined 4% organically due to the Middle East conflict.
Profitability
Adjusted EPS was $4.31, up 11% YoY; GAAP EPS was $4.20. Adjusted operating income rose 7% to $1.253B, and GAAP operating income increased 5% to $1.224B.
Margins
GAAP operating margin was 19.3%, down 100 bps YoY; adjusted operating margin was 19.7%, down 60 bps. EMEA adjusted margin fell 420 bps, while Americas adjusted margin was down 30 bps, reflecting reinvestment and Middle East drag.
Balance Sheet
Free cash flow was not quantified on the call. CapEx is expected at 2%-3% of revenue, and year-to-date share repurchases were ~$840M with $3.8B remaining on the authorization. Full-year capital deployment target remains $2.8B-$3.3B.
Key Risks
Management highlighted the Middle East conflict as a continued EMEA drag, with revenues in the region expected down ~30% in the second half. Price/cost and scaling/capacity investments pressured margins in Q2. Analysts raised questions about data center project delays, power connection timing, and supply chain constraints, which management said are manageable.
Outlook
For Q3, management guides organic revenue growth of ~10% and adjusted EPS of ~$4.70. Full-year organic revenue growth is raised to ~9% and adjusted EPS to $15.20-$15.30, absorbing EMEA headwinds.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-30
Q2 2026 saw 9% organic revenue growth and 11% adjusted EPS increase, with record backlog and strong bookings across all regions. Full-year guidance was raised, absorbing EMEA headwinds, and robust investments in capacity and innovation support continued momentum into 2027.
Q1 2026 Q1 2026 2026-04-30
Q1 2026 delivered strong organic bookings (+24%), record backlog, and 7% adjusted EPS growth, led by Americas commercial HVAC and services. Guidance was raised for revenue and EPS, with robust pipelines in data centers and continued investment in innovation and capacity expansion.
Q4 2025 Q4 2025 2026-01-29
Strong Q4 and 2025 results were driven by record commercial HVAC bookings, robust backlog, and continued innovation. 2026 guidance calls for 6%-7% organic revenue growth and 12%-14% adjusted EPS growth, with commercial HVAC and services leading, while residential and transport markets are expected to recover in the second half.
Q3 2025 Q3 2025 2025-10-30
Record Q3 bookings and robust commercial HVAC growth offset residential and transport headwinds, driving 15% adjusted EPS growth and strong margin expansion. Elevated backlog and innovation position the company for continued outperformance in 2026, especially in data centers and services.
Q2 2025 Q2 2025 2025-07-30
Q2 saw record bookings, strong margin expansion, and 18% Adjusted EPS growth, led by Americas Commercial HVAC and robust applied solutions demand. Full-year guidance was raised for both revenue and EPS, while residential headwinds are expected to resolve by year-end.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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