Trane Technologies plc (NYSE:TT) reported first-quarter results on Thursday that exceeded analyst expectations, while also raising its guidance for the full year.
Adjusted earnings per share came in at $2.63, beating the consensus estimate of $2.53 by $0.10.
Revenue reached $4.97 billion, above the $4.81 billion forecast and up 6% from $4.69 billion in the same period last year.
The company increased its full-year 2026 adjusted EPS outlook to a range of $14.75 to $14.95, with the midpoint of $14.85 slightly above the $14.81 consensus estimate.
Trane Technologies also expects reported revenue growth of around 9.5% for the year, with organic growth of approximately 7%.
Demand remained strong in the quarter, with organic bookings surging 24%, led by the Americas Commercial HVAC segment, which grew about 40%. The company ended the quarter with a record backlog of $10.7 billion, more than 30% higher than at the end of 2025, with Americas Commercial HVAC backlog up over 40%.
“We are off to a strong start in 2026, with exceptional demand for our sustainable products and services,” said Chair and CEO Dave Regnery.
“Enterprise bookings grew 24% percent, led by nearly 40% growth in our Americas Commercial HVAC business.”
Adjusted operating margin slipped slightly to 16.0%, down 20 basis points from 16.2% a year earlier.
Regionally, the Americas delivered 4% organic revenue growth, while EMEA saw a 1% decline and Asia Pacific recorded a 3% increase.
Free cash flow for the quarter rose to $573 million, compared with $230 million in the first quarter of 2025.
During the period through April, the company allocated or committed approximately $0.9 billion in capital, including $232 million in dividends, $340 million toward acquisitions, and $300 million for share buybacks.