Want to see TT full AI Analyst Report?
Top Page
Trane Technologies
(NYSE:TT)
Select Model
Select Model
Rating:69Neutral
Price Target:
$489.00
â–²(1.67% Upside)
Action:Downgraded
Date:07/30/26
The score is supported most by strong financial quality (margin expansion, strong ROE, solid cash generation) and a very upbeat earnings update with raised guidance and record backlog/booking momentum. These positives are tempered by weak technical positioning (below key short- and mid-term moving averages) and a rich valuation (P/E ~36 with a sub-1% yield), which reduces near-term risk/reward despite strong operating momentum.
Positive Factors
Free Cash Flow Conversion
Consistently high free cash flow conversion (~81%–90%) and positive TTM FCF momentum provide durable funding for capex, buybacks, dividends and acquisitions. This cash generation cushions cyclical revenue swings and sustains capital allocation flexibility over the medium term.
Negative Factors
TTM Revenue Decline
A steep TTM revenue drop of ~26.6% is a structural red flag: prolonged top-line weakness can erode operating leverage and pressure margins, slowing deleveraging and limiting the effectiveness of otherwise strong cash flow and profitability until revenue normalizes.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Conversion
Consistently high free cash flow conversion (~81%–90%) and positive TTM FCF momentum provide durable funding for capex, buybacks, dividends and acquisitions. This cash generation cushions cyclical revenue swings and sustains capital allocation flexibility over the medium term.
Read all positive factors
Trane Technologies Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyTrane Technologies (TT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$106.12B
Dividend Yield0.83%
Average Volume (3M)1.20M
Price to Earnings (P/E)36.4
Beta (1Y)1.05
Revenue Growth7.04%
EPS Growth4.58%
CountryUS
Employees44,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)13.26
Shares Outstanding220,023,180
10 Day Avg. Volume1,095,496
30 Day Avg. Volume1,196,700
Financial Highlights & Ratios
PEG Ratio2.06
Price to Book (P/B)10.12
Price to Sales (P/S)4.08
P/FCF Ratio30.95
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$538.80Price Target Upside12.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)15.19
Revenue Forecast (FY)$23.67B
Trane Technologies Business Overview & Revenue Model
Company Description
Trane Technologies plc designs, manufactures, sells, and services of solutions for heating, ventilation, air conditioning, and custom and transport refrigeration. It offers air conditioners, exchangers, and handlers; airside and terminal devices; ...
How the Company Makes Money
Trane Technologies primarily makes money by selling equipment and providing recurring aftermarket services tied to its installed base. The core revenue streams are: (1) New equipment sales: revenue from manufacturing and selling HVAC systems and r...
Trane Technologies Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strong operational and commercial momentum: record bookings, a $12.1B backlog (up 70% YoY), double-digit applied/data center momentum, raised full-year revenue and EPS guidance, robust geographic and portfolio breadth, and continued capital returns. These positives are tempered by near-term margin pressure from inflation and accelerated reinvestments (including Stellar integration), EMEA headwinds related to the Middle East conflict (revenues down ~30% there), manageable but present supply-chain constraints, and a transport segment still recovering. Management communicated confidence in backlog conversion, capacity expansions and margin expansion into H2, while explicitly acknowledging areas of temporary weakness and taking cost actions where appropriate.Positive Updates
Record Bookings and Backlog
Enterprise organic bookings rose 37% year-over-year, driving a record backlog of $12.1 billion (up 70% YoY). Applied bookings surged 130% (fourth consecutive quarter >100% growth) and on a 2-year stack are more than 4x, with approximately $6.0 billion of backlog slated for 2027 and beyond.
Negative Updates
EMEA Impact from Middle East Conflict
Conflict in the Middle East materially weighed on EMEA results: the Middle East represents <3% of enterprise revenue but ~15% of the EMEA segment. Middle East revenues were down ~30% in Q2 and management expects similar ~30% weakness baked into the second-half guide. EMEA margins were impacted and the company took cost actions (rightsizing positions, infrastructure) at the end of June.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Bookings and Backlog
Enterprise organic bookings rose 37% year-over-year, driving a record backlog of $12.1 billion (up 70% YoY). Applied bookings surged 130% (fourth consecutive quarter >100% growth) and on a 2-year stack are more than 4x, with approximately $6.0 billion of backlog slated for 2027 and beyond.
Read all positive updates
Company Guidance
Management raised full‑year guidance, calling for organic revenue growth of approximately 9% and adjusted EPS of $15.20–$15.30, with Q3 organic revenue growth expected at ~10% and adjusted EPS of about $4.70; Q2 results included enterprise organic revenue +9% and adjusted EPS +11%. They pointed to strong demand drivers — enterprise organic bookings +37%, record backlog of $12.1B (+70% YoY) with ~95% in commercial HVAC and roughly $6B slated for 2027+, applied bookings +130% (2‑yr stack >4x) and applied revenue up >40% in Q2, Americas commercial HVAC bookings +50% (organic revenue up low‑teens), residential bookings up high‑20s (organic revenue up low‑teens), and services representing ~1/3 of revenue with a low‑teens CAGR since 2020. On capital and margins, management expects stronger second‑half margins (~50 bps expansion in Q3 and >100 bps in Q4), a CapEx guide of 2–3% of revenue, target capital deployment of $2.8–$3.3B, a 12% dividend increase to $4.20 annualized, ~$840M buybacks YTD with $3.8B remaining authorizations, and said the raised guidance already absorbs EMEA/Middle‑East headwinds (Middle East <3% of enterprise revenue but ~15% of EMEA; EMEA revenues were ~30% lower in Q2 and are modeled similarly in H2).Trane Technologies Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.21B | 21.32B | 19.84B | 17.68B | 15.99B | 14.14B |
| Gross Profit | 7.86B | 7.71B | 7.08B | 5.86B | 4.96B | 4.47B |
| EBITDA | 4.23B | 4.17B | 3.86B | 3.15B | 2.72B | 2.32B |
| Net Income | 2.95B | 2.92B | 2.57B | 2.02B | 1.76B | 1.42B |
Balance Sheet | ||||||
| Total Assets | 23.93B | 21.42B | 20.15B | 19.39B | 18.08B | 18.06B |
| Cash, Cash Equivalents and Short-Term Investments | 1.32B | 1.76B | 1.59B | 1.10B | 1.22B | 2.16B |
| Total Debt | 4.62B | 4.62B | 5.38B | 4.78B | 4.84B | 4.84B |
| Total Liabilities | 15.28B | 12.82B | 12.66B | 12.37B | 11.98B | 11.79B |
| Stockholders Equity | 8.65B | 8.60B | 7.46B | 7.00B | 6.11B | 6.27B |
Cash Flow | ||||||
| Free Cash Flow | 3.75B | 2.81B | 2.77B | 2.09B | 1.21B | 1.37B |
| Operating Cash Flow | 3.92B | 3.19B | 3.15B | 2.39B | 1.50B | 1.59B |
| Investing Cash Flow | -1.05B | -640.00M | -562.90M | -1.17B | -540.40M | -545.70M |
| Financing Cash Flow | -1.93B | -2.50B | -2.02B | -1.35B | -1.85B | -2.13B |
Trane Technologies Technical Analysis
Positive
480.99
Price Trends
471.56
Positive
463.35
Positive
439.87
Positive
Market Momentum
-0.06
Negative
55.25
Neutral
85.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TT, the sentiment is Positive. The current price of 480.99 is above the 20-day moving average (MA) of 471.72, above the 50-day MA of 471.56, and above the 200-day MA of 439.87, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 85.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TT.
Trane Technologies Risk Analysis
Trane Technologies disclosed 28 risk factors in its most recent earnings report. Trane Technologies reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Trane Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $92.20B | 26.38 | 26.94% | 1.12% | 6.81% | 70.90% | |
69 Neutral | $106.12B | 36.37 | 34.49% | 0.83% | 7.04% | 4.58% | |
66 Neutral | $52.77B | 44.05 | 8.89% | 1.37% | -1.58% | -43.59% | |
65 Neutral | $15.39B | 22.12 | 41.06% | 1.31% | 1.90% | -2.79% | |
65 Neutral | $15.20B | 19.83 | 65.30% | 0.97% | -2.11% | -5.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $7.77B | 65.40 | 13.40% | 0.39% | 28.27% | -25.82% |
* Industrials Sector Average
TT
Trane Technologies
482.31
58.19
13.72%
AAON
Aaon
94.83
23.06
32.13%
CSL
Carlisle Companies
387.49
25.65
7.09%
JCI
Johnson Controls
152.21
47.85
45.86%
LII
Lennox International
439.77
-136.53
-23.69%
CARR
Carrier Global
64.01
0.11
0.18%
Trane Technologies Corporate Events
Business Operations and StrategyExecutive/Board Changes
Trane Technologies Announces Leadership Change in Supply Chain
Neutral
Jul 22, 2026
On July 20, 2026, Trane Technologies plc and Senior Vice President and Chief Global Integrated Supply Chain Officer Mingxiao (Gary) Guo agreed that he would depart the company effective August 1, 2026. The departure was stated not to arise from an...
Business Operations and StrategyExecutive/Board Changes
Trane Technologies Names Donny Simmons Chief Operating Officer
Positive
Jun 10, 2026
On June 10, 2026, Trane Technologies announced that Donny (Donald E.) Simmons, a 25-year company veteran, has been appointed Executive Vice President and Chief Operating Officer, effective July 1, 2026, reporting to Chair and CEO Dave Regnery. Sim...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Trane Technologies Shareholders Approve Directors and Governance Measures
Positive
Jun 5, 2026
At its 2026 Annual General Meeting, Trane Technologies’ shareholders elected all eleven director nominees to serve until the next annual meeting and gave advisory approval to the compensation of the company’s named executive officers. ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.