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Sep 30, 2021

Trane Q3 2021 Earnings Report

Reported strong bookings and revenue growth, driven by robust customer demand and effective management of headwinds.

Key Takeaways

Trane Technologies reported a strong third quarter with robust bookings and revenue growth. Despite facing material inflation and supply chain challenges, the company reaffirmed its 2021 outlook and strengthened its view into 2022, driven by continued customer demand for its climate control products and services.

Reported bookings increased by 22 percent, with organic bookings up by 20 percent.

Reported revenues grew by 6 percent, and organic revenues increased by 4 percent.

GAAP continuing EPS was $1.73, while adjusted continuing EPS was $1.80, a 5 percent increase.

The company delivered record third-quarter backlog of approximately $5 billion.

Total Revenue
$3.72B
Previous year: $3.5B
+6.4%
EPS
$1.8
Previous year: $1.72
+4.7%
Gross Profit
$1.2B
Previous year: $1.13B
+6.1%
Cash and Equivalents
$2.74B
Previous year: $3.19B
-14.1%
Free Cash Flow
$367M
Previous year: $1.13B
-67.5%
Total Assets
$18.2B
Previous year: $17.9B
+1.5%

Trane

Trane

Trane Revenue by Segment

Trane Revenue by Geographic Location

Forward Guidance

The company reaffirmed its 2021 guidance.

Positive Outlook

  • Reported revenues up approximately 13.5 percent versus 2020.
  • Organic revenues up approximately 11 percent versus 2020.
  • GAAP continuing EPS of $5.80.
  • Adjusted continuing EPS of $6.05, up 36 percent versus 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income