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Trane Technologies (TT) FY2025 results: revenue $21.3 billion, up 7.5% on the year

Trane Technologies plc (TT) reported revenue of $21.3 billion for fiscal 2025, the year ended 31 December 2025, up 7.5% on the year before. Net income was $2.9 billion, up 13.7%, and diluted earnings per share $12.98. The figures are the company's own, from the 10-K it filed with the SEC on 5 February 2026.

Revenue
$21.3 billion
+7.5% on the year
FY2018FY2025
Operating margin
18.6%
17.6% a year earlier
FY2018FY2025
Net income
$2.9 billion
+13.7% on the year
FY2018FY2025
Diluted EPS
$12.98
+15.5% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 3 new, 1 kept.

  • Fourth-quarter bookings grew 24 percent: Bookings were $5.8 billion, up 24 percent, with organic bookings up 22 percent.
  • Full-year adjusted EPS up 16 percent: Full-year GAAP continuing EPS was $13.14 and adjusted continuing EPS was $13.06, up 16 percent.
  • Americas bookings led by commercial HVAC: Americas bookings were $4.7 billion, up 27 percent, led by Americas Commercial HVAC, which was up more than 35 percent.
  • Commercial HVAC pipelines expanding: Management said pipelines in its commercial HVAC businesses are growing rapidly, led by the Americas.
  • Enterprise backlog reached $7.8 billion: Enterprise backlog closed the year at $7.8 billion, which management said provides visibility to future market outgrowth.
Read the Q4 FY2025 earnings call summary

From this 10-K

Trane Technologies is a public limited company incorporated in Ireland in 2009 that designs, manufactures, sells and services heating, ventilation and air conditioning systems, transport refrigeration and custom refrigeration solutions. The filing describes it as a global climate innovator, working through the strategic brands Trane and Thermo King. Its stated growth strategy includes expanding recurring income through services and rental options off a large installed base. It also carries what it calls its 2030 Sustainability Commitments, including a Gigaton Challenge to cut customer greenhouse gas emissions by a billion metric tons and a target of reducing embodied carbon by 40%.

Trane Technologies plc, the 10-K for 2025

Trane Technologies is a public limited company incorporated in Ireland in 2009 that designs, manufactures, sells and services heating, ventilation and air conditioning systems, transport refrigeration and custom refrigeration solutions. The filing describes it as a global climate innovator, working through the strategic brands Trane and Thermo King. Its stated growth strategy includes expanding recurring income through services and rental options off a large installed base. It also carries what it calls its 2030 Sustainability Commitments, including a Gigaton Challenge to cut customer greenhouse gas emissions by a billion metric tons and a target of reducing embodied carbon by 40%.

Three segments

The Americas segment, the largest of the three, serves North America and Latin America with commercial heating, cooling and ventilation systems, building controls and solutions, energy services and solutions, residential heating and cooling, and transport refrigeration. The EMEA segment serves Europe, the Middle East and Africa with heating, cooling and ventilation systems and services, energy services and solutions, and transport refrigeration. The Asia Pacific segment covers heating, cooling and ventilation systems, services and solutions for commercial buildings, plus transport refrigeration. Outside the U.S. the company took in approximately 25% of the 2025 total, and it sold products in approximately 100 countries.

What it makes

The stationary side runs from air conditioners, air handlers, airside and terminal devices, air-sourced and water source heat pumps, chillers, coils and condensers, condensing units, furnaces, geothermal systems, packaged rooftop units, multi-pipe and variable refrigerant flow systems and unitary systems to ductless systems, dehumidifiers, humidifiers, energy recovery ventilators, thermostats and controls, home automation, building and asset management systems and indoor air quality assessments. The refrigeration side covers trailer, truck, rail and bus systems in diesel, electric and hybrid form, self-powered and vehicle-powered truck units, auxiliary power units, cold storage units, portable and mobile systems, medical grade and ultra-low temperature freezers and industrial process refrigeration. Around the equipment sit services and programmes: installation contracting, parts and supplies for both aftermarket and OEM, service agreements, rental services, telematics, decarbonization and energy efficiency programmes, data center liquid cooling and services, thermal energy storage, battery storage, refrigerant reclamation and smart and AI-enabled services.

Selling and seasons

U.S. sales are made through branch sales offices, distributors and dealers across the country, and sales elsewhere go through numerous subsidiary sales and service companies with a supporting chain of distributors. No single external customer accounted for more than 10% of consolidated net revenues in 2025, 2024 or 2023, and the filing states that no material part of the business depends on one customer or a small group of them. Demand for certain products and services follows the weather: commercial and residential HVAC sales have historically been higher in the second and third quarters, which are spring and summer in the U.S. and other northern hemisphere markets and the peak season for air conditioning. The filing describes the markets as highly competitive, with competitors varying by product line from well-established regional or specialized firms to larger corporations and divisions of larger companies, and names price, quality, delivery, service and support, technology and innovation as the principal methods of competition.

Backlog, inputs and people

Backlog of orders believed to be firm stood at $7,769.4 million at 31 December 2025 against $6,747.7 million a year earlier, made up of $6,298.6 million in the Americas, $775.9 million in EMEA and $694.9 million in Asia Pacific, and it counts only equipment, contracting and installation obligations. The company both manufactures and procures components, and for those it makes itself it sources commodities such as steel, copper and aluminum from a large number of independent suppliers, primarily within the region where the products are made. Research and development work goes into new products, product effectiveness, ease of use and reliability, with a stated focus on energy efficiency and on products that allow the use of lower global warming potential refrigerants. At 31 December 2025 the company employed approximately 44,000 people in 62 countries, including over 16,000 outside the United States, and it reports a 2025 voluntary retention rate across all employees of 92.1%, excluding retirements.

From Trane Technologies' annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 5 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue21,32219,83817,678+7.5%
Cost of revenue13,61212,75811,820+6.7%
Gross profit7,7107,0805,857+8.9%
Gross margin36.2%35.7%33.1%
Research and development348310252+12.3%
Selling, general and administrative3,7433,5802,963+4.5%
Operating income3,9673,5002,894+13.4%
Operating margin18.6%17.6%16.4%
Interest expense227238234-4.9%
Pre-tax income3,6793,2422,567+13.5%
Income tax706628498+12.5%
Effective tax rate19.2%19.4%19.4%
Net income2,9192,5682,024+13.7%
Net margin13.7%12.9%11.4%
Diluted EPS$12.98$11.24$8.77+15.5%
$ million except per share.
Read moreFree 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

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow3,1943,1462,390+1.6%
Capital expenditure383371301+3.3%
Free cash flow2,8122,7752,089+1.3%
Free cash flow margin13.2%14.0%11.8%
Cash from investing-640-563-1,172
Cash from financing-2,496-2,021-1,350
Depreciation and amortisation376379348-0.8%
Share-based compensation86.682.964.3+4.5%
Buybacks1,4811,281669+15.7%
Dividends paid837758684+10.5%
Dividend per share$3.76$3.36$3.00+11.9%
Diluted shares, weighted225m228m231m-1.5%
Shares outstanding at period endn/a249m252m

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity8,5797,4576,995+15.0%
Non-controlling interest21.729.521.8-26.4%
Debt4,6154,7704,780-3.3%
Other liabilities8,2057,8907,595+4.0%
Total liabilities and equity21,42120,14719,392+6.3%
Fixed assets2,2512,0241,772+11.2%
Goodwill6,4576,1286,095+5.4%
Intangible assets3,2373,3083,440-2.2%
Cash and equivalents1,7631,5901,095+10.9%
Receivables3,2353,0902,957+4.7%
Inventory2,1041,9722,152+6.7%
Other assets2,3742,0341,880+16.7%
Total assets21,42120,14719,392+6.3%

10-K for the year ended 31 December 2025, filed 5 February 2026: the filing.