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Sep 30, 2020

Trane Q3 2020 Earnings Report

Reported strong third-quarter results in a challenging economic environment.

Key Takeaways

Trane Technologies reported a strong third quarter with revenue growth and margin expansion, exceeding prior outlook. Strong execution drove continuing EPS and operating income growth despite ongoing COVID-19 pandemic related impacts.

Reported bookings of $3.5 billion, reported and organic bookings up 7 percent.

Reported revenues of $3.5 billion, reported revenues up 1 percent; organic revenues up 50 bps.

GAAP operating margin up 70 bps; adjusted operating margin up 80 bps.

GAAP continuing EPS of $1.67; adjusted continuing EPS of $1.72, up 6 percent.

Total Revenue
$3.5B
Previous year: $4.34B
-19.5%
EPS
$1.72
Previous year: $1.99
-13.6%
Gross Profit
$1.13B
Previous year: $1.41B
-19.4%
Cash and Equivalents
$3.19B
Previous year: $806M
+295.8%
Free Cash Flow
$1.13B
Total Assets
$17.9B
Previous year: $20.3B
-11.7%

Trane

Trane

Forward Guidance

The Company expects 2020 free cash flow to be equal to or greater than 125 percent of adjusted net earnings.