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Jun 30, 2020

Trane Q2 2020 Earnings Report

Trane Technologies' financial performance was negatively impacted by the COVID-19 pandemic, but strong execution enabled the company to outperform end market conditions.

Key Takeaways

Trane Technologies reported a decrease in revenue and EPS due to the impact of the COVID-19 pandemic. However, strong execution allowed the company to manage deleverage within gross margin target levels and maintain high levels of business reinvestment.

Reported bookings of $3.3 billion, reported and organic bookings down 7 percent.

Reported revenues of $3.1 billion, reported and organic revenues down 13 percent.

GAAP continuing EPS of $1.14; adjusted continuing EPS of $1.27.

Bookings, revenues, EPS heavily impacted by continued impacts from COVID-19 pandemic.

Total Revenue
$3.14B
Previous year: $4.53B
-30.7%
EPS
$1.27
Previous year: $2.09
-39.2%
Gross Profit
$978M
Previous year: $1.43B
-31.8%
Cash and Equivalents
$2.37B
Previous year: $851M
+178.3%
Free Cash Flow
$180M
Total Assets
$17.2B
Previous year: $20.7B
-16.7%

Trane

Trane

Forward Guidance

Given the current uncertainty created by the COVID-19 pandemic and its impact on the Company's end markets, the Company has not reinstated financial guidance for 2020. The Company intends to reevaluate guidance on its third quarter earnings call.