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Sep 30, 2022

Trane Q3 2022 Earnings Report

Delivered strong third-quarter operating results and raised full-year revenue and EPS guidance.

Key Takeaways

Trane Technologies reported strong third-quarter financial performance with 8 percent organic bookings growth, 19 percent organic revenue growth and 26 percent adjusted EPS growth. The company raised its full-year guidance for revenue and EPS due to high levels of customer demand for its innovative, sustainable solutions.

Reported revenues of $4.4 billion, up 18 percent; organic revenues up 19 percent.

GAAP operating margin up 120 bps; adjusted operating margin up 60 bps.

GAAP continuing EPS of $2.38; adjusted continuing EPS of $2.27, up 26 percent.

Strong backlog of $6.4 billion, up 28 percent.

Total Revenue
$4.37B
Previous year: $3.72B
+17.5%
EPS
$2.27
Previous year: $1.8
+26.1%
Organic Revenue Growth
19%
Gross Profit
$1.43B
Previous year: $1.2B
+19.0%
Cash and Equivalents
$1.08B
Previous year: $2.74B
-60.6%
Free Cash Flow
$891M
Previous year: $367M
+143.1%
Total Assets
$17.7B
Previous year: $18.2B
-2.5%

Trane

Trane

Forward Guidance

The Company expects full-year reported revenue growth of approximately 11 percent to 12 percent; organic revenue growth of approximately 13 percent to 14 percent versus full-year 2021. The Company expects GAAP continuing EPS for full-year 2022 of $7.24 to $7.29. The Company expects adjusted continuing EPS for full-year 2022 of $7.15 to $7.20.