Trane Technologies Reports Strong Full-Year 2024 Results with Robust Bookings and Backlog Growth

Trane Technologies has announced its financial results for the full year 2024, reporting a 12% increase in revenues to $19.8 billion and an 11% rise in bookings to $20.3 billion. The company also achieved strong profitability, with GAAP operating margin up 120 basis points (bps) and adjusted operating margin up 130 bps compared to 2023.

“Our talented team delivered another year of standout financial performance in 2024,” said Dave Regnery, chair and CEO of Trane Technologies. “We achieved record financial results with organic revenue growth of 12%, powerful free cash flow conversion of 109%, and adjusted earnings per share growth of 24% – our fourth consecutive year of earnings per share growth of 20% or more.”

Financial Highlights (Full-Year 2024 vs. Full-Year 2023)

• Revenue: $19.8 billion, up 12%
• Bookings: $20.3 billion, up 11%, led by Americas Commercial HVAC (+14%)
• GAAP Operating Margin: 17.6% (+120 bps)
• Adjusted Operating Margin: 17.6% (+130 bps)
• Adjusted EBITDA Margin: 19.4% (+140 bps)
• GAAP Continuing EPS: $11.35, up 28%
• Adjusted Continuing EPS: $11.22, up 24%
• Backlog: $6.75 billion, positioning the company for growth in 2025

The company attributed its strong performance to higher volumes, positive pricing strategies, and productivity improvements, which offset inflationary pressures. Trane Technologies also continued high levels of business reinvestment to drive future growth.

Cash Flow and Capital Deployment

• Cash from Operating Activities: $3.2 billion (up $751 million YoY)
• Free Cash Flow: $2.8 billion, 109% of adjusted net earnings
• Working Capital as a Percentage of Revenue: 0.8% (down from 3.0%)
• Total Capital Deployment: $2.5 billion, including:
  • $760 million for dividends
  • $470 million for M&A
  • $1.3 billion for share repurchases

The company reaffirmed its commitment to paying a competitive and growing dividend and deploying 100% of excess cash to shareholders over time.

2025 Outlook

For full-year 2025, Trane Technologies expects:

• Reported revenue growth of 6.5% to 7.5%
• Organic revenue growth of 7% to 8%
• GAAP and adjusted continuing EPS in the range of $12.70 to $12.90

With a strong backlog and continued investment in sustainability and innovation, Trane Technologies anticipates continued strong financial performance in 2025.