Trane Technologies (TT)
Industrials · $96.1B market cap · SEC CIK 0001466258
fundamentals score out of 100
Next reports on Oct 26, 2026, before the open, with analysts expecting $4.87 in earnings per share.
The case for TT
- Earns 35% back on shareholder equity.
- Has compounded revenue at 11.3% a year over five years.
- Pays a modest 1.3% dividend.
The case against
- Pricey at 32.6× earnings, against a long-run market average nearer 20×.
- Weakest against its peers: free-cash-flow yield of 2.9% is lower than 72% of Industrials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 33 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 62 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 66 |
| Momentumhow the price has behaved lately | 47 |
| Stabilityhow violently it moves, what it owes and what it pays you | 65 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 32.6× |
|---|---|
| Price / book | 12.59× |
| Price / sales | 4.3× |
| Revenue growth (YoY) | +7.0% |
| EPS growth (YoY) | +4.7% |
| Gross margin | 35% |
| Operating margin | 18% |
| Net margin | 13% |
| Return on equity | 35% |
| Debt / equity | 0.54× |
| Current ratio | 1.07 |
| Dividend yield | 1.31% |
| Beta | 1.18 |
| 52-week range | $348.06 – $505.87 |
| Position in that range | 57% of the way up |
| 3-month return | -10.4% |
| 1-year return | +6.6% |
Five years of financials, as filed
Pulled from Trane Technologies's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $21.3B | $19.8B | $17.7B | $16.0B | $14.1B |
| Operating income | $4.0B | $3.5B | $2.9B | $2.4B | $2.0B |
| Net income | $2.9B | $2.6B | $2.0B | $1.8B | $1.4B |
| Operating cash flow | $3.2B | $3.1B | $2.4B | $1.5B | $1.6B |
| Capital expenditure | $383M | $371M | $301M | $292M | $223M |
| Total assets | $21.4B | $20.1B | $19.4B | $18.1B | $18.1B |
| Total liabilities | $12.8B | $12.7B | $12.4B | $12.0B | $11.8B |
| Shareholder equity | $8.6B | $7.5B | $7.0B | $6.1B | $6.3B |
| Cash | $1.8B | $1.6B | $1.1B | $1.2B | $2.2B |
| Long-term debt | $3.9B | $4.3B | $4.0B | $3.8B | $4.5B |
| Free cash flow | $2.8B | $2.8B | $2.1B | $1.2B | $1.4B |
| Operating margin | 18.6% | 17.6% | 16.4% | 15.1% | 14.3% |
| Net margin | 13.7% | 12.9% | 11.4% | 11.0% | 10.1% |
| Diluted shares | 225M | 228M | 231M | 235M | 242M |
Share count is down 7.2% over 4 years. Buybacks have been shrinking the pie.
What Trane Technologies says it does
" for additional details. As we integrate acquisitions into our portfolio of solutions, we may face new competitors in our target markets and incur increased competition from alternative solutions, which could lead to decreased demand or reduced market share for our products and services. We must maintain the quality of our products, retain longstanding relationships with major customers, continue to grow our business by establishing relationships with new customers, and continually innovate new or enhanced products and services to maintain and expand our brand recognition and market leadership position to effectively compete in the markets that we serve. AI also presents emerging issues and the pace presents uncertainties, and we may experience competitive harm, harm to our reputation, or legal liability. A failure or inability to effectively address market trends, incorporate technology developments, adapt to changes in customer…
Risk factors TT lists in its 10-K
- Reorganization of Aldrich and Murray
- Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 - Consolidated Results
- Selling and Administrative Expenses
- Supplemental Guarantor Financial Information
- Net cash provided by (used in) continuing operating activities
- Postretirement Benefits Other than Pensions
- Other Indefinite-lived intangible assets
- Accumulated other comprehensive income (loss)
- Evaluation of Disclosure Controls and Procedures
- Management's Report on Internal Control Over Financial Reporting
- Changes in Internal Control Over Financial Reporting
- Securities Trading Plans of Directors and Executive Officers
- Executive Vice President and Chief Financial Officer
- Report of Independent Registered Public Accounting Firm