Research · Sep 3, 2026
[TT] Trane Technologies Thesis 2026: Datacenter HVAC Demand Accelerates Americas Bookings
Trane Technologies FY25 (Dec 31, 2025) at $21.32B revenue (+7.5%). Q4 Americas Comm HVAC organic bookings +35% (record); applied solutions bookings >100% Q3. EMEA Comm HVAC bookings +mid-to-high teens 2 quarters straight. APAC mixed (China weak; rest of APAC +low double digits). Operating income $3.97B (18.6% margin); Net income $2.92B (+14%); Diluted EPS $12.98 (+15%). Backlog record $7.8B end-FY25. FCF $2.81B; capex $383M. Capital return $2.32B (buyback $1.48B +16%, div $837M). Total debt $4.62B (-$0.8B). Stellar Energy acquisition (data center cooling) Q1 FY26 close. Since 2020: 11% rev CAGR, 24% EPS CAGR. 9 analysts: 6 Buy / 2 Hold / 1 Sell; consensus $493.33, range $400-$550. BNP Paribas initiated OP $550; Evercore initiated OP $535; Keybanc $500→$525.