Record backlog of $10.7 billion, up over 30% from year-end.
Trane Technologies reported a strong Q1 2026 with record bookings and backlog, driven by commercial HVAC and data center demand, and raised full-year guidance. The company detailed its strategy to mitigate tariffs through in-region manufacturing and price increases, while noting resilience in transport and residential markets. Q1 organic revenue growth of 3%, with adjusted EPS growth of 7%.
Buzzberg readRecord backlog of $10.7 billion, up over 30% from year-end.Trane Technologies reported a strong Q1 2026 with record bookings and backlog, driven by commercial HVAC and data center demand, and raised full-year guidance. The company detailed its strategy to mitigate tariffs through in-region manufacturing and price increases, while noting resilience in transport and residential markets. Q1 organic revenue growth of 3%, with adjusted EPS growth of 7%.Read full analysisCollapse analysis
Trane Technologies reported a strong Q1 2026 with record bookings and backlog, driven by commercial HVAC and data center demand, and raised full-year guidance. The company detailed its strategy to mitigate tariffs through in-region manufacturing and price increases, while noting resilience in transport and residential markets. Q1 organic revenue growth of 3%, with adjusted EPS growth of 7%.
Record enterprise organic bookings up 24% and backlog of $10.7 billion, with applied bookings up over 160%.
Raised FY2026 revenue growth guidance to ~7% (organic) and EPS to $14.75-$14.95.
Strong demand from data centers; Stellar Energy acquisition expected to contribute ~$500 million in revenue in 2026.
Revenue$4.9694B
-3% QoQ
EPS$2.63
-8% QoQ
Gross margin34.77%
reported
Op margin15.62%
reported
What changed this quarter
01
Demand
Record backlog of $10.7 billion, up over 30% from year-end.
Management expressed strong conviction in the business, citing record bookings, backlog growth, and raising full-year guidance.
02
Demand
Applied bookings up over 160% in Americas, third consecutive quarter.
Record backlog of $10.7 billion, up over 30% from year-end.. Management expressed strong conviction in the business, citing record bookings, backlog growth, and raising full-year guidance.
03
Guidance
Raising full-year revenue and EPS guidance.
Guidance · revenue to 7%
04
Capex
CapEx increased to 2%-3% of revenue for expansions.
The company is raising its CapEx target to 2%-3% of revenue from 1%-2%, to fund expansions in Florida and Texas for Stellar Energy and to stay ahead of growth in applied commercial HVAC.
AI, capex & demand read
AI
Platform & monetization
Management is leveraging AI opportunities in data centers, noting that reference designs and innovations are driving content and positioning the company well in that vertical.
Demand
Bookings & conversion
Record backlog of $10.7 billion, up over 30% from year-end.. Management expressed strong conviction in the business, citing record bookings, backlog growth, and raising full-year guidance.
Capex
Investment and capacity
The company is raising its CapEx target to 2%-3% of revenue from 1%-2%, to fund expansions in Florida and Texas for Stellar Energy and to stay ahead of growth in applied commercial HVAC.
Tone · Confident
Management expressed strong conviction in the business, citing record bookings, backlog growth, and raising full-year guidance.
Supply-chain alpha
A1
Trane's Q1 book-to-bill was 150%, with applied solutions bookings up over 160% for the third consecutive quarter.
“Our Q1 book to bill was approximately 150%, and our backlog is up nearly 70% year over year”
Trane expects Q2 organic revenue growth of 5% and low-teens growth in the second half, indicating backend loaded growth due to backlog conversion timing.
“we expect approximately 10% revenue growth in Q2 ... We expect revenues to accelerate to low teens growth as we move through the second half of the year”