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Dec 31, 2020

Trane Q4 2020 Earnings Report

Trane Technologies reported strong fourth-quarter and full-year 2020 results, delivering solid bookings growth, flat revenue, strong margin expansion and compelling EPS growth.

Key Takeaways

Trane Technologies reported flat revenue but achieved strong margin expansion and EPS growth in Q4 2020. The company's adjusted continuing EPS was up 12 percent. Exceptional full-year free cash flow of $1.7 billion, or 158% of adjusted net earnings.

GAAP operating margin up 180 bps and adjusted operating margin up 150 bps

GAAP continuing EPS of $1.01; adjusted continuing EPS of $1.03, up 12 percent

Exceptional cash conversion for full-year 2020; free cash flow of $1.7 billion, 158 percent of adjusted net earnings

Enterprise reported revenues were flat; enterprise organic revenues were down 1 percent.

Total Revenue
$3.18B
Previous year: $4.15B
-23.4%
EPS
$1.03
Previous year: $1.4
-26.4%
Organic Revenue Growth
-1%
Previous year: 5%
-120.0%
Gross Profit
$948M
Previous year: $1.25B
-24.0%
Cash and Equivalents
$3.29B
Previous year: $1.3B
+152.4%
Free Cash Flow
$1.71B
Previous year: $1.84B
-6.8%
Total Assets
$18.2B
Previous year: $20.5B
-11.4%

Trane

Trane

Forward Guidance

The company expects strong adjusted earnings per share in 2021, guiding to a range of $5.30 to $5.50, up 19% to 23%.