Trane Technologies (FRA:2IS) EBIT: €3,340 Mil (TTM As of Mar. 2026)


FRA:2IS Trane Technologies PLC FRA:2IS
92 GF Score
Price €421.30
GF Value €369.36
Valuation Modestly Overvalued
! 6 Warning Signs
View Full Analysis

What is Trane Technologies EBIT?

Trane Technologies FRA:2IS -1.45% 92 EBIT is €3,340 Mil as of Mar. 2026. GuruFocus rates FRA:2IS with a GF Score™ of 92/100 and a GF Value™ of €369.36 (Modestly Overvalued). The stock has 6 warning signs investors should review.

Trane Technologies's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €685 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €3,340 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Trane Technologies's annualized ROC % for the quarter that ended in Mar. 2026 was 16.50%. Trane Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 117.76%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Trane Technologies's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 3.52%.


Trane Technologies  (FRA:2IS) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Trane Technologies's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=2685.304 * ( 1 - 18.52% )/( (12695.137 + 13822.96)/ 2 )
=2187.9856992/13259.0485
=16.50 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=18293.278 - 4251.981 - ( 1505.858 - max(0, 5368.842 - 6715.002+1505.858))
=12695.137

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=19682.902 - 5258.508 - ( 929.183 - max(0, 6319.344 - 6920.778+929.183))
=13822.96

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Trane Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2738.244/( ( (1922.61 + max(432.124, 0)) + (2024.013 + max(271.782, 0)) )/ 2 )
=2738.244/( ( 2354.734 + 2295.795 )/ 2 )
=2738.244/2325.2645
=117.76 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2762.946 + 1796.474 + 649.724) - (4251.981 + 0 + 525.039)
=432.124

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3261.309 + 2074.962 + 655.324) - (5258.508 + 0 + 461.305)
=271.782

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Trane Technologies's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=3340.444/94883.493
=3.52 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Trane Technologies EBIT Related Terms


Trane Technologies EBIT Historical Data

* Premium members only.

The historical data trend for Trane Technologies's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Trane Technologies EBIT Chart

Trane Technologies Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,791.59 2,261.45 2,569.25 3,323.59 3,335.13

Trane Technologies Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 750.18 997.83 977.50 680.55 684.56

FRA:2IS vs JCI, CARR, MAIR: EBIT Comparison

For the Building Products & Equipment subindustry, Trane Technologies's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Trane Technologies EV-to-EBIT vs Construction Industry

For the Construction industry and Industrials sector, Trane Technologies's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Trane Technologies's EV-to-EBIT falls into.


FRA:2IS
92GF Score
Trane Technologies PLC FRA:2IS
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Trane Technologies EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €3,340 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €3,340 Mil mean?
Trane Technologies (FRA:2IS) has a EBIT of €3,340 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Trane Technologies.
Is Trane Technologies' EBIT too high?
Trane Technologies' current EBIT is €3,340 Mil. Overall, Trane Technologies has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Trane Technologies' EBIT compare to JCI and CARR?
Trane Technologies' EBIT of €3,340 Mil can be compared against companies in the Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Construction company?
A good EBIT depends on the Construction industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Trane Technologies. Trane Technologies's current EBIT is €3,340 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trane Technologies stock overvalued right now?
Based on GuruFocus' analysis, Trane Technologies (FRA:2IS) is currently considered Modestly Overvalued. The stock's GF Value™ is €369.36, compared to a current price of €421.30 — trading 14.1% above its estimated fair value. The current EBIT is €3,340 Mil. Trane Technologies' overall GF Score™ is 92/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Trane Technologies (FRA:2IS), the current EBIT is €3,340 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Trane Technologies (FRA:2IS) Overvalued in 2026?

Based on GuruFocus' analysis, Trane Technologies stock appears to be overvalued. The current stock price of €421.30 is trading 14.1% above its estimated GF Value™ of €369.36. GuruFocus considers Trane Technologies to be Modestly Overvalued.

Key valuation signals for FRA:2IS:

  • EBIT: €3,340 Mil
  • GF Value™: €369.36 vs. price of €421.30 (14.1% above fair value)
  • GF Score™: 92/100 with 6 warning signs

No single metric tells the full story. See the FRA:2IS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Trane Technologies Business Description

Address 170/175 Lakeview Drive, Airside Business Park, Swords County, Dublin, IRL
Trane Technologies manufactures and services commercial and residential HVAC systems and transportation refrigeration solutions under its prominent Trane, American Standard, and Thermo King brands. The company generates approximately 70% of sales from equipment and 30% from parts and services. While the firm is domiciled in Ireland, North America accounts for approximately 80% of its revenue, with 13% from EMEA and 7% Asia-Pacific. The company was formed in 2020 when its former parent, Ingersoll Rand, merged with Gardner Denver in a tax-advantaged reverse Morris trust transaction.
92GF Score

Get the complete analysis for FRA:2IS

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€421.30
Price
€369.36
GF Value