Trane TechnologiesFRA:2IS -0.59%92 Gross Margin % is 34.77% as of Mar. 2026, which is 12% above its 10-year median of 31.08. GuruFocus rates FRA:2IS with a GF Score™ of 92/100 and a GF Value™ of €367.72 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,719 Construction companies, Trane Technologies ranks better than 77.37% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Trane Technologies had a gross margin of 34.77% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Trane Technologies Gross Margin % Related Terms
Trane Technologies Gross Margin % Historical Data
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The historical data trend for Trane Technologies's Gross Margin % 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.
FRA:2IS vs JCI, CARR, MAIR: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Trane Technologies's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Trane Technologies's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Trane Technologies (FRA:2IS) has a Gross Margin % of 34.77% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Trane Technologies and its competitors. This is 12% above median its historical median of 31.08. Over the past decade, Trane Technologies' Gross Margin % has ranged from 30.47 to 36.16. According to the industry distribution chart, Trane Technologies ranks #389 out of 1719 companies in the Construction industry, placing it in the top 22.6%.
Is Trane Technologies' Gross Margin % too high?
Trane Technologies' current Gross Margin % of 34.77% is 12% above median its 10-year median of 31.08. Over the past 10 years, this metric has ranged from a low of 30.47 to a high of 36.16. The Construction industry median Gross Margin % is 20.71. Trane Technologies' value of 34.77% is 67.9% above this industry median. Based on the distribution chart, Trane Technologies ranks #389 out of 1719 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. 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' Gross Margin % compare to JCI and CARR?
According to the Construction industry distribution chart, Trane Technologies ranks #389 out of 1719 companies for Gross Margin %. This places Trane Technologies in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.71. Trane Technologies' value of 34.77% is 67.9% above this benchmark. Historically, Trane Technologies' own Gross Margin % has ranged from 30.47 to 36.16 over the past decade. While the company's 10-year median is 31.08 vs. the industry median of 20.71, Trane Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.71, based on 1,719 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trane Technologies's current Gross Margin % of 34.77% is 67.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Trane Technologies and its competitors. For the Construction industry, the median Gross Margin % is 20.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trane Technologies's current Gross Margin % is 34.77%, which is 12% above median its own 10-year median of 31.08. 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 €367.72, compared to a current price of €422.30 — trading 14.8% above its estimated fair value. The current Gross Margin % is 34.77%, which is 12% above median its 10-year median of 31.08 and 67.9% above the Construction industry median of 20.71. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Trane Technologies (FRA:2IS), the current Gross Margin % is 34.77% 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 €422.30 is trading 14.8% above its estimated GF Value™ of €367.72.
GuruFocus considers Trane Technologies to be Modestly Overvalued.
Key valuation signals for FRA:2IS:
Gross Margin %: 34.77% (12% above median its 10-year median of 31.08)
GF Value™: €367.72 vs. price of €422.30 (14.8% above fair value)
Industry Position: 67.9% above the Construction median (#389 of 1719)
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 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
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