Trane Technologies plc Q4 FY2023 results: revenue $4.4 billion, up 8.6% on the year

Trane Technologies plc (TT) reported revenue of $4.4 billion for Q4 FY2023, the quarter ended 31 December 2023, up 8.6% on the same quarter a year earlier. Net income was $504 million, up 14.8% on the year, and diluted earnings per share $2.17. The figures are the company's own, from the 10-K it filed with the SEC on 8 February 2024.

Revenue$4.4 billionup 8.6%

Net income$504 millionup 14.8%

Diluted EPS$2.17

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	4,424	4,883	n/a	n/a
Cost of revenue	n/a	3,225	n/a	n/a
Gross profit	n/a	1,658	n/a	n/a
Gross margin	n/a	34.0%	n/a
Selling, general and administrative	784	794	n/a	n/a
Operating income	688	864	n/a	n/a
Operating margin	15.5%	17.7%	n/a
Interest expense	57.4	57.9	n/a	n/a
Pre-tax income	615	796	n/a	n/a
Income tax	98.1	158	n/a	n/a
Effective tax rate	16.0%	19.8%	n/a
Net income	504	626	n/a	n/a
Net margin	11.4%	12.8%	n/a
Diluted EPS	$2.17	$2.72	n/a	n/a

$ million except per share. Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	935	922	n/a	n/a
Capital expenditure	83.5	83.2	n/a	n/a
Free cash flow	851	839	n/a	n/a
Free cash flow margin	19.2%	17.2%	n/a
Depreciation and amortisation	87.9	92.0	n/a	n/a
Share-based compensation	10.4	14.3	n/a	n/a
Buybacks	210	160	n/a	n/a
Dividends paid	171	172	n/a	n/a
Dividend per share	n/a	$0.00	n/a	n/a
Diluted shares, weighted	231m	231m	n/a	n/a
Shares outstanding at period end	252m	228m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Total assets	19,392	18,903	n/a	n/a
Cash and equivalents	1,095	n/a	n/a	n/a
Receivables	2,957	3,142	n/a	n/a
Inventory	2,152	2,192	n/a	n/a
Goodwill	6,095	5,719	n/a	n/a
Long-term debt	4,780	4,476	n/a	n/a
Shareholders' equity	6,995	6,682	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	4,883	4,424	4,216	5,307	5,441	4,874	4,688	5,746	5,742	5,144	4,969	6,354
Cost of revenue	3,225	n/a	2,756	3,372	3,467	n/a	3,011	3,586	3,624	n/a	3,241	4,094
Gross profit	1,658	n/a	1,460	1,936	1,974	n/a	1,678	2,161	2,118	n/a	1,728	2,260
Gross margin	34%	n/a	35%	36%	36%	n/a	36%	38%	37%	n/a	35%	36%
SG&A	794	784	826	901	950	903	859	996	953	935	952	1,035
Operating income	864	688	634	1,034	1,025	808	819	1,164	1,165	819	776	1,224
Operating margin	18%	16%	15%	19%	19%	17%	17%	20%	20%	16%	16%	19%
Interest expense	57.9	57.4	58.1	57.5	63.0	59.8	58.1	57.4	55.6	55.6	55.6	53.1
Pre-tax income	796	615	551	973	968	751	753	1,093	1,092	741	n/a	n/a
Tax rate	20%	16%	19%	21%	19%	18%	18%	20%	21%	17%	n/a	n/a
Net income	626	504	436	755	772	604	605	875	848	591	584	926
Net margin	13%	11%	10%	14%	14%	12%	13%	15%	15%	11%	12%	15%
Diluted EPS	$2.72	$2.17	$1.90	$3.30	$3.39	$2.65	$2.67	$3.89	$3.78	$2.64	$2.62	$4.16
Operating cash flow	922	935	247	696	1,303	900	340	692	1,004	1,159	626	1,088
Capital expenditure	83.2	83.5	83.8	72.9	88.3	126	119	89.9	68.4	106	79.7	76.4
Free cash flow	839	851	163	623	1,214	774	221	602	936	1,053	546	1,011
Buybacks	160	210	300	324	302	355	478	402	370	231	287	469
Dividends paid	172	171	190	190	189	189	210	210	209	208	232	232
Shares outstanding	228m	252m	226m	226m	225m	249m	223m	223m	222m	221m	221m	220m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2023, filed 8 February 2024, accession 0001466258-24-000047: the filing on EDGAR. All of Trane Technologies plc's filings: EDGAR company page.

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