TT · Trane Technologies plc

Trane Technologies delivered a strong first quarter in 2026, with enterprise bookings surging 27% (organic +24%) to a record $6.7 billion, driven by exceptional demand in Americas Commercial HVAC, which saw bookings up approximately 40% and applied equipment bookings up over 160%. This led to a record backlog of $10.7 billion, up over 30% from year-end, providing robust visibility for future revenue. Reported revenues grew 6% to $5.0 billion, with organic growth of 3%. GAAP operating income declined 5% to $776 million, and GAAP operating margin contracted 190 bps to 15.6%, primarily due to higher costs and mix. However, adjusted operating income rose 5% to $795 million, with adjusted operating margin down only 20 bps to 16.0%, reflecting operational discipline. Adjusted EBITDA grew 4% to $881 million, with margin down 40 bps to 17.7%. GAAP continuing EPS fell 2% to $2.66, while adjusted continuing EPS increased 7% to $2.63, benefiting from lower non-GAAP adjustments. Segment performance varied: Americas reported 5% revenue growth (organic +4%) and adjusted operating margin expansion of 10 bps to 17.9%; EMEA revenue grew 12% (organic -1%) but margins contracted sharply due to mix and investments; Asia Pacific revenue grew 5% (organic +3%) with margin expansion of 90 bps. Cash flow was strong, with operating cash flow of $636 million and free cash flow of $573 million, up significantly from $230 million a year ago. The company deployed $0.9 billion in capital year-to-date, including $232 million in dividends, $340 million in M&A, and $300 million in share repurchases. Management raised full-year 2026 guidance, now expecting reported revenue growth of approximately 9.5% (organic ~7%) and GAAP/adjusted EPS of $14.75-$14.95, up from prior outlook. CEO Dave Regnery highlighted the strong start and confidence in delivering differentiated results, driven by sustainable product demand and consistent strategy execution.