Q2 2025 Trane Technologies PLC Earnings Call Transcript
Key Points
- Trane Technologies PLC (TT) reported record bookings and revenues in Q2 2025, with a 90-basis point expansion in adjusted operating margins and an 18% growth in adjusted EPS.
- The Americas Commercial HVAC business achieved all-time high bookings, with a growth of over 20%, and Applied Solutions orders surged by over 60%.
- The company's services business remains robust, representing one-third of enterprise revenues, and delivered low teens growth in the quarter.
- Trane Technologies PLC (TT) raised its full-year revenue and EPS guidance, with expectations of approximately 8% organic growth and adjusted EPS of $13.05.
- The company maintains a strong backlog of $7.1 billion, with a book-to-bill ratio exceeding 100% in all regions, indicating continued demand and future growth opportunities.
- Residential HVAC revenues fell short of expectations due to a near-term industry shortage of R-454B refrigerant cylinders, impacting overall performance.
- The EMEA segment experienced a decline in adjusted EBITDA margin by 200 basis points, attributed to channel investments and M&A integrations.
- Asia Pacific revenues declined by high single digits, primarily due to lower volumes in China, affecting overall regional performance.
- The transport refrigeration markets remain volatile, with bookings and revenues down, significantly outperforming end markets but still facing challenges.
- The company anticipates a $150 million revenue impact in the second half of 2025 due to inventory normalization and cylinder-related headwinds in the Residential segment.
Good morning, and welcome to the Trane Technologies second quarter 2025 earnings conference call. My name is Regina, and I will be your operator for the call. (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 second 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 actual results to differ materially from anticipated results. This presentation also includes non-GAAP
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