Trane Technologies PLC - Class A

During the second quarter, we added a new position in the Industrials sector with Trane Technologies (TT), a leading provider of heating and cooling systems, building controls, and energy-related services. In the near term, we believe that Trane will benefit from the pent-up demand after refrigerant regulations are resolved, technical, legal, and supply-chain complications are worked through, and residential inventory levels normalize. We like that Trane is a direct beneficiary of AI data center growth, which is highlighted by its inclusion in Nvidia’s reference designs for data centers. The company’s vertical product infrastructure gives it the ability to deliver system-level solutions, helping to reinforce Trane’s dominant position in the data center market. We also believe that Trane’s service revenue growth remains underappreciated, especially as the installed base of data center customers grows.

Trane Technologies continued to demonstrate strong order intake for its efficient commercial cooling solutions in the US. This resilience is notable despite subdued new build activity in the US and Europe. The company is well-positioned to benefit from the ongoing energy transition, as it plays a key role in the heating and cooling industries, which are critical for energy efficiency. The demand for their products aligns with the broader trend towards sustainable energy solutions, indicating a robust growth trajectory.

Trane Technologies continued to demonstrate strong order intake for its efficient commercial cooling solutions in the US. This resilience is notable despite subdued new build activity in the US and Europe. The company is well-positioned to benefit from the ongoing energy transition, as it plays a key role in the heating and cooling industries, which are critical for energy efficiency. The demand for their products aligns with the broader trend towards sustainable energy solutions, indicating a robust growth trajectory.

Trane Technologies continued to demonstrate strong order intake for its efficient commercial cooling solutions in the US. This resilience is notable despite subdued new build activity in the US and Europe. The company is well-positioned to benefit from the ongoing energy transition, as it plays a key role in the heating and cooling industries, which are critical for energy efficiency. The demand for their products aligns with the broader trend towards sustainable energy solutions, indicating a robust growth trajectory.