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Mar 31, 2021

Trane Q1 2021 Earnings Report

Reported strong first-quarter results and raised full-year revenue and EPS guidance.

Key Takeaways

Trane Technologies reported a strong first quarter with significant growth in bookings, revenues, and margins. The company has raised its full-year 2021 guidance for both revenue growth and EPS.

Reported bookings increased by 34 percent, with organic bookings up 31 percent.

Reported revenues increased by 14 percent, with organic revenues up 11 percent.

GAAP operating margin increased by 590 bps, and adjusted operating margin increased by 500 bps.

GAAP continuing EPS was $0.96, and adjusted continuing EPS was $1.01, up 135 percent.

Total Revenue
$3.02B
Previous year: $800M
+277.3%
EPS
$1.01
Previous year: $0.27
+274.1%
Organic Revenue Growth
11%
Gross Profit
$953M
Previous year: $743M
+28.4%
Cash and Equivalents
$2.84B
Previous year: $2.65B
+7.2%
Free Cash Flow
$236M
Previous year: -$122M
-293.4%
Total Assets
$17.8B
Previous year: $17.6B
+1.1%

Trane

Trane

Forward Guidance

Trane Technologies raised its full year 2021 guidance above previous ranges for both revenue growth and EPS. The company now expects revenue growth of approximately 10.5 percent and adjusted EPS of approximately $6.00.

Positive Outlook

  • Revenue up approximately 10.5 percent.
  • Organic revenues up approximately 9 percent versus 2020.
  • GAAP continuing EPS of $5.75.
  • Adjusted continuing EPS of $6.00.
  • Adjusted continuing EPS up 35 percent versus 2020.