Trane raises 2026 revenue forecast, reaffirms EPS outlook

Trane Technologies plc (NYSE: TT) said on Oct. 29 that its third-quarter 2026 revenue was $6.76 billion, above the $6.68 billion consensus estimate compiled by Finnhub. The company also raised its full-year 2026 reported revenue growth forecast.

Adjusted continuing earnings per share were $4.86, in line with the $4.87 consensus estimate compiled by Finnhub. Adjusted EPS rose 25% from a year earlier, the company said in a press release.

Here's how the company did:

• Revenue: $6.76 billion vs. $5.74 billion a year earlier, and above the $6.68 billion consensus estimate, according to Finnhub
• Adjusted continuing EPS: $4.86 vs. $3.88 a year earlier, and in line with the $4.87 consensus estimate, according to Finnhub
• GAAP continuing EPS: $4.79 vs. $3.82 a year earlier

Bookings rose 21% to $7.25 billion. Organic bookings were up 20%. Backlog reached $12.5 billion, up 73% from a year earlier.

"We delivered strong performance in the third quarter, including organic revenue growth of 16 percent, record operating income and earnings-per-share growth of 25 percent," said Dave Regnery, chair and CEO of Trane Technologies.

Guidance

The company raised its full-year 2026 reported revenue growth forecast to about 13.5%, from the approximately 11.5% it gave in its previous results release on July 30. It raised its organic revenue growth forecast to about 11%, from about 9%.

It reaffirmed its EPS forecast. GAAP continuing EPS is expected to be $15.00 to $15.10, including $0.20 for non-GAAP adjustments. Adjusted continuing EPS is expected to be $15.20 to $15.30, the same range given on July 30.

Regnery said the company's "focus on sustainability and energy efficiency continues to resonate with customers, driving bookings growth of 20 percent in the quarter and elevating our backlog to $12.5 billion." He added that the company is raising its revenue outlook and reaffirming EPS guidance "even as we navigate supply chain and inflationary headwinds."

Segment results

The Americas segment generated net revenues of $5.65 billion, up 21% from a year earlier, including about 2 percentage points from acquisitions. Its adjusted operating margin rose 50 basis points to 22.3%.

Europe, Middle East and Africa revenue was $755.8 million, up 1%. Organic revenue grew 2%, and bookings rose 40%. Adjusted operating margin fell 250 basis points to 17.2%.

Asia Pacific revenue was $356.0 million, up 8%. Adjusted operating margin fell 390 basis points to 18.6%.

Cash and capital returns

Cash from continuing operating activities was $3.1 billion through Sept. 30, and free cash flow was $2.8 billion for the first nine months.

Through October, the company deployed or committed about $3.4 billion of capital. That included about $930 million for dividends, $1.08 billion for acquisitions and $1.4 billion for share repurchases. The company said it expects to pay a competitive and growing dividend and to deploy 100% of excess cash to shareholders over time.

The company's cash balance was $1.23 billion at the end of September. Debt stood at $4.22 billion.