Trane Technologies plc earnings

Management highlights

Dave mentioned purpose - driven strategy fuels performance, Q1 was strong with exceptional enterprise organic bookings up 24%, record backlog $10.7B up over 30% vs year - end 2025, organic revenue growth 3%, adjusted EPS growth 7%. Commercial HVAC businesses performed well, Americas commercial HVAC bookings at all - time high. Services business is a consistent growth driver. Operational excellence core, expect to mitigate tariff and inflationary pressures through business operating system. Raising full - year revenue and EPS guidance.

Guidance

Raising full - year organic revenue growth guidance to approx 7%, reported revenue guidance to approx 9.5%, adjusted EPS guidance range to $14.75 - $14.95. Q2 2026 expected approx 5% organic revenue growth and adjusted EPS in range of $4.20 - $4.25. On capital allocation, committed to balanced strategy, deploying $2.8 - $3.3B in 2026, including $900M for dividends.

Segment performance

Americas commercial HVAC bookings up approx 40% y - o - y, revenues up high single digits; residential bookings up low single digits, revenues declined mid - single digits; Americas transport refrigeration bookings up double digits, revenues up low single digits; EMEA results solid, consistent with expectations excluding geopolitical headwinds; Asia Pacific commercial HVAC bookings up high 20s, revenues grew low single digits. Enterprise organic revenue growth 3%, led by services growth up double digits. Adjusted EPS growth 7%.

Risks & headwinds

Tariff and inflationary pressures; geopolitical events in EMEA region impacting results.

Analyst Q&A

• Q: About America's applied orders lead times and delivery schedule.

  A: Dave said published lead times vary, some products have quick ship, customers are asking for longer lead times. Second question:

• Q: Impact of cost/tariff changes on back half price and US production advantages.

  A: Chris said expecting more inflation, will manage through year, US manufacturing strategy with many factories in US, over 95% products sold in US manufactured/assembled in US. Third question:

• Q: Operating leverage.

  A: Julian was told first quarter leverage high teens, second quarter mid - 20s range, second half mid - to high 20s. Fourth question:

• Q: Resi HVAC one - step vs two - step and inventory.

  A: Said resi came in better than anticipated, inventory set properly in channel. Fifth question:

• Q: America's applied orders non - data center verticals and factory capacity.

  A: Dave said broad - based growth, some factories have flex with only two or one shifts running. Sixth question:

• Q: Global data center growth and Stellar's impact.

  A: Dave said Stellar specializes in modular chiller plants for data centers, expected to be billion - dollar business, Chris talked about data center service revenue ramp - up. Seventh question:

• Q: Data center behind - the - meter power and absorption chiller technology.

  A: Dave said behind - the - meter needs in all buildings, working on smarter building technologies. Eighth question:

• Q: Data center dialogue with customers after acquisitions and service presence.

  A: Dave said dialogue with customers didn't change, service organization expertise alleviates customer fears. Ninth question:

• Q: Transport outlook and ACT's projection.

  A: Dave said transport market to trough in second quarter, upside in back half, ACT's projection may be aggressive. Tenth question:

• Q: AI reference design in data centers and chiller innovation.

  A: Dave said reference design is in between 12 - 24 months, working on smarter chiller systems. Eleventh question:

• Q: Resi outlook and ACT's refa bill.

  A: Dave said resi full year guide flattish, ACT's refa bill raise didn't change outlook much. Twelfth question:

• Q: Data center DC power and AI reference design impact on trainers.

  A: Dave said will make system work on DC power, reference design helps in integrated unit sales. Thirteenth question:

• Q: US production advantages and chiller reference design.

  A: Dave said proud of US manufacturing, reference design is in development for data center deployments.