Trane Technologies reported another exceptionally strong quarter, driven by record bookings and a historic backlog, leading to another raise in full-year guidance. Growth is broad-based across verticals and geographies, with significant tailwinds expected in the second half. Enterprise organic bookings were up 37%, and backlog reached a record $12.1 billion, up 70% YoY.
Trane Technologies reported another exceptionally strong quarter, driven by record bookings and a historic backlog, leading to another raise in full-year guidance. Growth is broad-based across verticals and geographies, with significant tailwinds expected in the second half. Enterprise organic bookings were up 37%, and backlog reached a record $12.1 billion, up 70% YoY.
Management conveyed strong confidence with record bookings, raised guidance, and a robust pipeline, while highlighting broad-based growth across verticals and regions.
Record backlog of $12.1 billion, up 70% year over year. Management conveyed strong confidence with record bookings, raised guidance, and a robust pipeline, while highlighting broad-based growth across verticals and regions.
Guidance · revenue to 9%
Management raised full-year 2026 organic revenue growth guidance to ~9% and adjusted EPS guidance to $15.20-$15.30.
Management highlighted that customers are choosing Trane Technologies for enhanced performance, energy savings, and reduced operating costs, with smart systems, integrated controls, and agentic AI allowing buildings to predict, act, and optimize in real time. They also noted the innovation cycle in data centers is moving fast and they are working with engineers on next-generation solutions.
Record backlog of $12.1 billion, up 70% year over year. Management conveyed strong confidence with record bookings, raised guidance, and a robust pipeline, while highlighting broad-based growth across verticals and regions.
Management is investing in capacity expansions and strategic reinvestment to support robust growth, with expected capex of 2-3% of revenue in 2026. They are expanding applied capacity 4x over the last three years and making brick-and-mortar investments, including in Stellar and Grand Rapids, while also pulling forward investments and deploying lean principles.
Management conveyed strong confidence with record bookings, raised guidance, and a robust pipeline, while highlighting broad-based growth across verticals and regions.
“Applied bookings were up 130%, marking our fourth consecutive quarter of growth above 100%. On a two-year stack, Applied bookings are up more than 4x.”
“These are all good long-term investments for our future. Some of these investments are just flowing through the P&L as you think about ramping up production and bringing our business operating system to line.”
“The overall market has trended more towards air-cooled... with air-cooled technology today, we can get similar, if not better, efficiencies. So it really just depends on what the design is for the customer.”
“Rejection rates have remained high for several months. That's a key indicator. Spot the contract spread is training positively for several months. And utilization rates have trended positive for the last 10 months.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2026 | $15.20–$15.30 | $15.25 | RAISED |
| EPS | FY2026 Q3 | $4.70 | $4.70 | MAINTAINED |
| Revenue | FY2026 | 9% | 9% | RAISED |
| Revenue | FY2026 Q3 | 10% | 10% | MAINTAINED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2026 Q1 | EPS | FY2026 Q2 | $4.20–$4.25 | $4.31 | Met / beat |
| FY2025 Q4 | EPS | FY2026 Q1 | $2.50 | $2.63 | Met / beat |