Trane Technologies Raises Guidance as Bookings Accelerate
The climate control company projected adjusted continuing earnings per share between $15.20 and $15.30 for the full year.
Trane Technologies (TT) reported a significant acceleration in organic bookings and revenue growth for the second quarter. The climate control company saw a sharp increase in demand for its commercial heating and cooling systems, particularly in the Americas, which offset weakening performance in Europe.
Organic revenue grew 9% year over year in the second quarter, accelerating from 3% in the first quarter and 4% in each of the two preceding quarters. Adjusted continuing earnings per share rose 11% to $4.31, up from a 7% increase in the first quarter.
Demand indicators showed a steep upward trajectory. Organic bookings grew 37% year over year, an increase from 24% in the first quarter, 22% in the fourth quarter of 2024, and 13% in the third quarter of 2024. This momentum pushed the enterprise backlog to a record $12.1 billion, a 70% increase from the prior year.
The growth was driven largely by the Americas Commercial HVAC segment, where bookings rose 50% in the second quarter. This followed a period of steady acceleration from approximately 30% in the third quarter of 2024 to 40% in the first quarter of 2025.
Performance in the EMEA segment declined. Organic revenues fell 4% in the second quarter, and the adjusted operating margin fell 420 basis points year over year to 13.1%. This followed a 260 basis point decline in the first quarter.
Overall adjusted operating margin compressed 60 basis points year over year to 19.7%. The company previously reported a 20 basis point decline in the first quarter, following a 170 basis point expansion in the third quarter of 2024.
Trane Technologies raised its full-year 2025 guidance, projecting reported revenue growth of approximately 11.5% and adjusted continuing earnings per share of $15.20 to $15.30.
The company appointed Donny Simmons as Chief Operating Officer effective July 1, 2025, to align leadership with increased scale.