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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

Trane Revenue by Segment

Trane Revenue by Geographic Location

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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income