Trane Sets 2026 Revenue Growth at About 13.5%

The Tip Desk · October 29, 2026 · 3 min read

Third-quarter net revenues were $6.76 billion, up 18%, as organic revenue growth accelerated to 16% from 9% in the second quarter.

Trane Technologies plc (TT), a global climate innovator, reported third-quarter net revenues of $6.76 billion, up 18% from a year earlier, as organic revenue growth accelerated to 16% from 9% in the second quarter.

GAAP continuing earnings were $4.79 a share and adjusted continuing earnings were $4.86 a share, both up 25%. A year earlier, those figures were $3.82 and $3.88. In the second quarter, GAAP continuing EPS had been $4.20 and adjusted continuing EPS $4.31, up 9% and 11%.

Chair and CEO Dave Regnery said the company delivered organic revenue growth of 16 percent, record operating income and earnings-per-share growth of 25 percent, and that a focus on sustainability and energy efficiency continued to resonate with customers. He said Trane is reaffirming earnings-per-share guidance even as it navigates supply chain and inflationary headwinds.

Bookings were $7.25 billion, up 21%; organic bookings were up 20%. That organic bookings pace slowed from 37% in the second quarter, when reported bookings were $7.82 billion, up 39%. Book-to-bill was 107%, down from 123% in the second quarter, and remained above 100% in all segments. Backlog rose to $12.5 billion, up 73%, from a record $12.1 billion, up 70%, in the second quarter. Americas Commercial HVAC backlog was up approximately 80%.

GAAP operating income was $1.34 billion and GAAP operating margin was 19.9%, down 40 basis points. Adjusted operating income was $1.36 billion and adjusted operating margin was 20.2%. Adjusted EBITDA was $1.45 billion and adjusted EBITDA margin was 21.4%.

The Americas segment, which covers North and Latin America commercial HVAC, building controls, energy services, residential heating and cooling, and transport refrigeration, generated net revenues of $5.65 billion, up 21%, including about 2 percentage points related to acquisitions. Organic revenues were up 19%. Americas bookings were $5.68 billion, up 18% (organic 16%), with book-to-bill of 101%. GAAP operating margin was 21.9%, up 40 basis points; adjusted operating margin was 22.3%, up 50 basis points. The company said Americas bookings growth was strong across Commercial HVAC, Residential and Transport.

EMEA net revenues were $755.8 million, up 1%, including about 1 percentage point of unfavorable foreign exchange. Organic revenues were up 2%. EMEA bookings were $1.11 billion, up 40% (organic 41%), with book-to-bill of 147%. GAAP operating margin fell 240 basis points to 17.2%; adjusted operating margin fell 250 basis points to 17.2%.

Asia Pacific net revenues were $356.0 million, up 8%, including about 1 percentage point of positive foreign exchange. Organic revenues were up 7%. Asia Pacific bookings were $457.1 million, up 22% (organic 21%), with book-to-bill of 128%. GAAP operating margin fell 390 basis points to 18.6%.

For the nine months ended September 30, 2026, cash from continuing operating activities was $3.06 billion and free cash flow was $2.83 billion, up approximately 60% from $1.79 billion a year earlier. Cash was $1.23 billion at September 30; debt was $4.22 billion. Through October, the company said it deployed or committed about $3.4 billion of capital, including about $930 million for dividends, $1.08 billion for M&A, and $1.4 billion for share repurchases.

Trane said it expects full-year 2026 reported revenue growth of approximately 13.5% and organic revenue growth of approximately 11% versus 2025. It expects GAAP continuing EPS of about $15.00 to $15.10, including $0.20 for non-GAAP adjustments, and adjusted continuing EPS of $15.20 to $15.30.