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Jun 30, 2023

Trane Q2 2023 Earnings Report

Reported strong results and raised 2023 revenue and EPS guidance.

Key Takeaways

Trane Technologies reported a strong second quarter with significant growth in revenue, operating income, EBITDA, and EPS. The company raised its full-year revenue and adjusted EPS guidance due to solid operating performance and a resilient portfolio.

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

Strong bookings of $4.5 billion with a book-to-bill of 96 percent.

GAAP operating margin was up 180 basis points, adjusted operating margin was up 110 basis points to a quarterly record of 18 percent, and adjusted EBITDA margin was up 100 basis points.

Enterprise exited the second quarter of 2023 with backlog at 2.5 times historical norms.

Total Revenue
$4.71B
Previous year: $4.19B
+12.3%
EPS
$2.68
Previous year: $2.16
+24.1%
Organic Revenue Growth
11%
Previous year: 11%
+0.0%
Gross Profit
$1.58B
Previous year: $1.32B
+19.7%
Cash and Equivalents
$664M
Previous year: $1.09B
-39.1%
Free Cash Flow
$427M
Previous year: $387M
+10.3%
Total Assets
$18.9B
Previous year: $17.7B
+6.9%

Trane

Trane

Forward Guidance

The Company expects full-year reported revenue growth of approximately 10 percent; organic revenue growth of approximately 8 percent versus full-year 2022. The Company expects GAAP continuing EPS for full-year 2023 of $8.65 to $8.75. The Company expects adjusted continuing EPS for full-year 2023 of $8.80 to $8.90.

Positive Outlook

  • Expected full-year reported revenue growth of approximately 10 percent.
  • Expected organic revenue growth of approximately 8 percent versus full-year 2022.
  • Expected GAAP continuing EPS for full-year 2023 of $8.65 to $8.75.
  • Expected adjusted continuing EPS for full-year 2023 of $8.80 to $8.90.