Q4 2025 Trane Technologies PLC Earnings Call Transcript
Key Points
- Trane Technologies PLC (TT) reported exceptional enterprise organic bookings up 22%, driving a record backlog of $7.8 billion.
- Americas Commercial HVAC delivered record Q4 organic bookings, up more than 35% year over year, with Applied Solutions bookings up more than 120%.
- The company achieved a 24% adjusted EPS compound annual growth rate since 2020, with expanded adjusted EBITDA margins by 470 basis points.
- Trane Technologies PLC (TT) maintained robust free cash flow, funding strategic M&A, a growing dividend, and significant share repurchases.
- The Services business, accounting for about one-third of enterprise revenue, remains a durable growth engine with a low teens compound annual growth rate since 2020.
- Residential and transport refrigeration markets showed softness, impacting overall performance.
- Margins were impacted by proactive measures to normalize residential inventory, resulting in roughly 60% deleverage in that business.
- In Asia Pacific, organic revenue declined 6%, with challenges particularly in China.
- Adjusted EBITDA margin in EMEA declined 160 basis points due to year 1 acquisition and integration costs.
- The Americas transport refrigeration bookings were down mid-single digits, and revenues were down low single digits, despite outperforming a declining market.
Good morning, and welcome to the Trane Technologies fourth-quarter 2025 earnings conference call. My name is Regina, and I will be your operator for the call. The call will begin in a few moments with the speaker remarks and the Q&A session. (Operator Instructions)
I will now turn the call over to Zac Nagle, Vice President of Investor Relations. Please go ahead.
Thanks, operator. Good morning, and thank you for joining us for Trane Technologies' fourth-quarter 2025 earnings conference call. This call is being webcast on our website at tranetechnologies.com where you'll find the accompanying presentation. We're also recording and archiving this call on our website.
Please go to slide 2. Statements made in today's call that are not historical facts are considered forward-looking statements and are made pursuant to the safe harbor provisions of federal securities law. Please see our SEC filings for a description of some of the factors that may cause our actual results
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