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Dec 31, 2023

Trane Q4 2023 Earnings Report

Trane Technologies reported strong fourth-quarter results, with revenue up 9 percent and organic revenue up 6 percent.

Key Takeaways

Trane Technologies reported a strong fourth quarter with revenues of $4.4 billion, up 9% and organic revenues up 6%. GAAP EPS was $2.23 and adjusted EPS was $2.17, a 19% increase. The company's backlog is $6.9 billion.

Reported revenues of $4.4 billion, up 9 percent; organic revenues up 6 percent

GAAP operating margin up 120 bps; adjusted operating margin up 190 bps

Organic bookings up 12 percent, with growth in all segments

GAAP continuing EPS of $2.23; adjusted continuing EPS of $2.17, up 19 percent

Total Revenue
$4.42B
Previous year: $4.07B
+8.6%
EPS
$2.17
Previous year: $1.82
+19.2%
Organic Revenue Growth
6%
Previous year: 16%
-62.5%
Gross Profit
$1.47B
Previous year: $1.22B
+20.6%
Cash and Equivalents
$1.1B
Previous year: $1.22B
-10.3%
Free Cash Flow
$832M
Previous year: $1.57B
-46.9%
Total Assets
$19.4B
Previous year: $18.1B
+7.2%

Trane

Trane

Forward Guidance

The Company expects full-year 2024 reported revenue growth of approximately 7 percent to 8 percent; organic revenue growth of approximately 6 percent to 7 percent versus full-year 2023. The Company expects GAAP continuing EPS for full-year 2024 of $9.90 to $10.20. This includes EPS of $0.10 for non-GAAP adjustments. The Company expects adjusted continuing EPS for full-year 2024 of $10.00 to $10.30.

Positive Outlook

  • Expects full-year 2024 reported revenue growth of approximately 7 percent to 8 percent
  • Expects organic revenue growth of approximately 6 percent to 7 percent versus full-year 2023.
  • Expects GAAP continuing EPS for full-year 2024 of $9.90 to $10.20.
  • Includes EPS of $0.10 for non-GAAP adjustments.
  • Expects adjusted continuing EPS for full-year 2024 of $10.00 to $10.30.