Trane Technologies plc (NYSE:TT) posted better-than-expected results for the fourth quarter on Thursday, supported by robust demand in commercial HVAC, and issued an upbeat outlook for 2026 growth.
Adjusted earnings per share for the quarter came in at $2.86, ahead of the $2.82 analysts had forecast. Revenue totaled $5.15 billion, beating the consensus estimate of $5.09 billion and marking a 6% increase year on year. Despite the solid results, the shares slipped 0.30% in pre-market trading.
Organic revenue rose 4% over the quarter, with particularly strong momentum across the Americas, where commercial activity continued to accelerate.
“Thanks to our purpose-driven strategy, talented team and disciplined execution, 2025 was another strong year for our company,” said Dave Regnery, chair and CEO. “We continue to see tremendous strength and rapidly growing pipelines in our commercial HVAC businesses, led by the Americas, where fourth quarter applied bookings were up more than 120%.”
Trane ended the year with a record backlog of $7.8 billion, up 15% from the end of 2024, providing increased visibility into future revenue. Backlog in Americas Commercial HVAC alone climbed 25%. Organic bookings rose 22% in the quarter, driven by growth of more than 35% in Americas Commercial HVAC.
For full-year 2025, the group delivered 6% organic revenue growth and expanded its adjusted EBITDA margin to 20.1%, a 70 basis point improvement from the prior year. Adjusted EPS reached $13.06, up 16% from 2024, while free cash flow conversion remained strong at 98%.
Looking ahead, Trane Technologies struck a confident tone on fiscal 2026. The company expects earnings per share in a range of $14.65 to $14.85, broadly in line with the analyst consensus of $14.79. Revenue growth is projected at around 8.5% to 9.5%, including organic growth of 6% to 7%.
“Since launching Trane Technologies in 2020, we’ve built a powerful long-term track record,” Regnery added. “With significant opportunities ahead, record backlog levels and strong customer demand, we remain confident in delivering differentiated results into the future.”