Earnings Trane Technologies $TT (-2.29%)
Trane Technologies on Wednesday raised its full-year earnings and sales guidance, citing strong demand for heating and air conditioning systems from commercial building owners.
The company now expects adjusted earnings of $11.10 per share in 2024, up from its previous expectations of $10.80 per share.
Revenue totaled $5.4 billion, above the consensus forecast of $5.31 billion and representing an 11% year-over-year increase on both a reported and organic basis.
Trane Technologies' strong performance was driven by robust demand for its sustainable solutions. Order intake reached 5.2 billion US dollars, up 5% year-on-year. The company's order backlog increased to USD 7.2 billion, compared to USD 6.9 billion at the end of 2023.
"The third quarter continues our track record of delivering industry-leading sales and earnings per share growth," said Dave Regnery, Chairman and CEO of Trane Technologies. "Customers continue to choose our sustainable solutions. With order intake near an all-time high and a strong project pipeline, particularly in commercial heating, ventilation and air conditioning, we are raising our full-year 2024 sales and adjusted earnings per share guidance and expect 2025 to be another strong year."
The company improved its profitability metrics. GAAP operating margin increased 110 basis points, while adjusted EBITDA margin increased 120 basis points to 20.7%. These improvements were attributed to strong volume growth, positive pricing and productivity gains, which more than offset inflationary pressures.
Rising global temperatures, fueled by climate change, have boosted demand for cooling systems as households and businesses turn up their air conditioning systems to escape extreme heat.
Trane Technologies, which owns Thermo King and Frigoblock, has also seen an increase in demand for heating and cooling systems due to the rapid growth of data centers fueled by the AI boom.
