Trane (TT) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 11:10 AM CDT 36 min read

Image source: The Motley Fool.

DATE

Thursday, April 30, 2026 astatine 10 a.m. ET

CALL PARTICIPANTS

• Chair and Chief Executive Officer — David S. Regnery

• Executive Vice President and Chief Financial Officer — Christopher J. Kuehn

Full Conference Call Transcript

David S. Regnery: Thanks, Zach, and everyone for joining today's call. Please crook to descent fig three. I volition commencement with a fewer thoughts connected however our [inaudible] driven strategy continues to substance beardown show implicit time. The dynamic planetary situation and rising request for powerfulness are pushing customers to deliberation otherwise astir energy. With our starring innovation, Trane Technologies plc is uniquely positioned to win. Our high-efficiency systems and astute controls assistance customers prevention energy, little operating cost, and summation resiliency, proving that sustainability and show spell manus successful hand. Our strategy is built connected a beardown foundation: a robust concern operating system, a almighty currency travel engine, and an uplifting, engaging culture.

This look positions america to present differentiated semipermanent worth to our people, our customers, our shareholders, and our communities. Please crook to descent fig four. Q1 was different beardown 4th marked by exceptional endeavor integrated bookings, up 24%, and grounds backlog of 10.7 billion, up implicit 30% versus year-end 2025. We delivered integrated gross maturation of 3%, led by our Americas commercialized HVAC business, and double-digit planetary services growth. This beardown show translated to adjusted EPS maturation of 7%.

Our commercialized HVAC businesses delivered outstanding performance, peculiarly successful the Americas, wherever our commercialized HVAC bookings reached an all-time high, up astir 40% twelvemonth implicit year, with applied solutions bookings up implicit 160%—our 3rd consecutive 4th of applied bookings maturation of greater than 100%. The spot of our commercialized HVAC concern is further underscored by our combined Americas and EMEA backlog, which is up astir 2.7 cardinal implicit year-end 2025. This includes astir 1 cardinal from our acquisition of Stellar Energy, a person successful modular information halfway cooling solutions. We are exceptionally good positioned for continued maturation successful 2026 and beyond.

Our exceptional bookings and grounds backlog supply beardown visibility to continued marketplace outgrowth and gross maturation acceleration successful the 2nd fractional of the year. Our robust and rapidly increasing commercialized HVAC pipeline crossed cardinal verticals, including semipermanent capableness and maestro acquisition agreements successful information centers, bolsters our assurance successful the semipermanent outlook. Our services business, which represents 1 3rd of our endeavor revenue, continues to beryllium a accordant and durable maturation driver, boasting a low-teens compound yearly maturation complaint since 2020. Additionally, we expect residential marketplace tailwinds successful 2026, driven by improving marketplace fundamentals and easier prior-year comparisons. The Americas transport marketplace besides continued betterment successful fundamentals, strengthening the outlook for a precocious 2026 and 2027 recovery.