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Mar 31, 2023

Trane Q1 2023 Earnings Report

Reported strong first-quarter results and raised 2023 guidance.

Key Takeaways

Trane Technologies reported a strong first quarter with organic revenue growth of 9 percent and adjusted EPS growth of 26 percent. The company raised its full-year guidance for organic revenue and adjusted EPS growth.

Delivered strong first-quarter revenue, operating income, EBITDA and EPS growth.

Enterprise reported and organic revenues were both up 9 percent.

Strong book-to-bill ratio of 117 percent.

GAAP operating margin was up 90 basis points, adjusted operating margin was up 140 basis points and adjusted EBITDA margin was up 100 basis points.

Total Revenue
$3.67B
Previous year: $3.36B
+9.2%
EPS
$1.41
Previous year: $1.12
+25.9%
Organic Revenue Growth
9%
Previous year: 12%
-25.0%
Gross Profit
$1.14B
Previous year: $989M
+15.6%
Cash and Equivalents
$693M
Previous year: $1.35B
-48.6%
Free Cash Flow
-$52M
Previous year: $27M
-292.6%
Total Assets
$17.9B
Previous year: $17.6B
+1.5%

Trane

Trane

Forward Guidance

The Company expects full-year reported revenue growth of approximately 9 percent to 10 percent; organic revenue growth of approximately 7 percent to 8 percent versus full-year 2022. The Company expects GAAP continuing EPS for full-year 2023 of $8.20 to $8.40. This includes EPS of $0.10 for non-GAAP adjustments. The Company expects adjusted continuing EPS for full-year 2023 of $8.30 to $8.50.