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Jun 30, 2021

Trane Q2 2021 Earnings Report

Reported strong results driven by robust bookings and revenue growth, significant margin expansion and healthy free cash flow.

Key Takeaways

Trane Technologies reported a strong second quarter with a 22% increase in revenues and a 51% increase in adjusted EPS. The company saw robust bookings and revenue growth and record backlog, improving overall visibility for 2021 and into 2022.

Reported bookings of $4.4 billion, up 34 percent; organic bookings up 30 percent

Reported revenues of $3.8 billion, up 22 percent; organic revenues up 18 percent

GAAP operating margin up 350 bps; adjusted operating margin up 210 bps

GAAP continuing EPS of $1.91; adjusted continuing EPS of $1.92, up 51 percent

Total Revenue
$3.83B
Previous year: $3.14B
+22.0%
EPS
$1.92
Previous year: $1.27
+51.2%
Organic Revenue Growth
18%
Gross Profit
$1.27B
Previous year: $978M
+29.9%
Cash and Equivalents
$2.91B
Previous year: $2.37B
+23.1%
Free Cash Flow
$696M
Previous year: $180M
+286.2%
Total Assets
$18.4B
Previous year: $17.2B
+6.7%

Trane

Trane

Forward Guidance

Company expects full-year 2021 reported revenues up approximately 13.5 percent; organic revenues up approximately 11 percent versus 2020. GAAP continuing EPS of $5.80, including EPS of $(0.25) for transformation and other restructuring costs; adjusted continuing EPS of $6.05, up 36 percent versus 2020.