Trane Technologies Reports Strong Fourth-Quarter and Full-Year 2024 Results; Robust Bookings and Backlog Provide Strong Visibility Entering 2025
Trane Technologies (NYSE:TT) reported strong fourth-quarter and full-year 2024 results. Q4 highlights include reported revenues of $4.9 billion (up 10%), GAAP operating margin up 110 bps, and adjusted continuing EPS of $2.61 (up 20%).
Full-year 2024 performance showed reported revenues of $19.8 billion (up 12%), GAAP continuing EPS of $11.35, and adjusted continuing EPS of $11.22 (up 24%). The company achieved strong free cash flow conversion of 109% and bookings of $20.3 billion (up 11%).
For 2025, Trane Technologies expects organic revenue growth of 7-8% and GAAP and adjusted continuing EPS of $12.70 to $12.90. The company maintains a robust $6.75 billion backlog entering 2025.
Trane Technologies (NYSE:TT) ha riportato risultati solidi per il quarto trimestre e l'intero anno 2024. I punti salienti del Q4 includono ricavi riportati di 4,9 miliardi di dollari (in aumento del 10%), un margine operativo GAAP aumentato di 110 punti base e un utile per azione continuato rettificato di 2,61 dollari (in aumento del 20%).
Le performance dell'intero anno 2024 hanno mostrato ricavi riportati di 19,8 miliardi di dollari (in aumento del 12%), un utile per azione continuato GAAP di 11,35 dollari e un utile per azione continuato rettificato di 11,22 dollari (in aumento del 24%). L'azienda ha raggiunto una forte conversione del flusso di cassa libero del 109% e prenotazioni di 20,3 miliardi di dollari (in aumento dell'11%).
Per il 2025, Trane Technologies prevede una crescita organica dei ricavi del 7-8% e un utile per azione continuato GAAP e rettificato tra i 12,70 e i 12,90 dollari. L'azienda mantiene un robusto portafoglio di 6,75 miliardi di dollari all'inizio del 2025.
Trane Technologies (NYSE:TT) reportó resultados sólidos para el cuarto trimestre y todo el año 2024. Los aspectos destacados del Q4 incluyen ingresos reportados de 4,9 mil millones de dólares (aumento del 10%), un margen operativo GAAP que aumentó 110 puntos básicos, y un BPA continuado ajustado de 2,61 dólares (aumento del 20%).
El rendimiento del año completo 2024 mostró ingresos reportados de 19,8 mil millones de dólares (aumento del 12%), un BPA continuado GAAP de 11,35 dólares, y un BPA continuado ajustado de 11,22 dólares (aumento del 24%). La empresa logró una fuerte conversión de flujo de caja libre del 109% y reservas de 20,3 mil millones de dólares (aumento del 11%).
Para 2025, Trane Technologies espera un crecimiento orgánico de ingresos del 7-8% y un BPA continuado GAAP y ajustado de 12,70 a 12,90 dólares. La compañía mantiene un sólido backlog de 6,75 mil millones de dólares entrando en 2025.
트레인 테크놀로지스 (NYSE:TT)는 2024년 4분기 및 전체 연도 실적을 발표했습니다. 4분기 주요 내용으로는 49억 달러의 수익(10% 증가), GAAP 운영 마진 110bps 증가, 조정된 지속 EPS 2.61달러(20% 증가)가 포함됩니다.
2024년 전체 성과는 198억 달러의 수익(12% 증가), GAAP 지속 EPS 11.35달러, 조정된 지속 EPS 11.22달러(24% 증가)를 보였습니다. 회사는 109%의 강력한 자유 현금 흐름 전환과 203억 달러의 예약(11% 증가)을 달성했습니다.
2025년도에는 트레인 테크놀로지스가 7-8%의 유기적 수익 성장과 GAAP 및 조정 지속 EPS를 12.70~12.90달러로 예상하고 있습니다. 회사는 2025년 초에 67억 5천만 달러의 강력한 백로그를 유지하고 있습니다.
Trane Technologies (NYSE:TT) a rapporté de solides résultats pour le quatrième trimestre et l'année complète 2024. Les faits saillants du T4 incluent des revenus déclarés de 4,9 milliards de dollars (hausse de 10 %), une marge opérationnelle GAAP en hausse de 110 points de base, et un BPA continu ajusté de 2,61 dollars (hausse de 20 %).
Les performances de l'année complète 2024 ont montré des revenus déclarés de 19,8 milliards de dollars (hausse de 12 %), un BPA continu GAAP de 11,35 dollars, et un BPA continu ajusté de 11,22 dollars (hausse de 24 %). L'entreprise a enregistré une forte conversion des flux de trésorerie disponibles de 109 % et des commandes de 20,3 milliards de dollars (hausse de 11 %).
Pour 2025, Trane Technologies prévoit une croissance organique des revenus de 7 à 8 % et un BPA continu GAAP et ajusté de 12,70 à 12,90 dollars. L'entreprise maintient un solide carnet de commandes de 6,75 milliards de dollars à l'approche de 2025.
Trane Technologies (NYSE:TT) hat starke Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 berichtet. Zu den Höhepunkten des Q4 gehören berichtete Umsätze von 4,9 Milliarden Dollar (10% Anstieg), eine GAAP-Betriebsgewinnmarge, die um 110 Basispunkte gestiegen ist, und ein bereinigter fortlaufender Gewinn pro Aktie von 2,61 Dollar (20% Anstieg).
Die Leistung für das gesamte Jahr 2024 zeigte berichtete Umsätze von 19,8 Milliarden Dollar (12% Anstieg), GAAP fortlaufender Gewinn pro Aktie von 11,35 Dollar und bereinigter fortlaufender Gewinn pro Aktie von 11,22 Dollar (24% Anstieg). Das Unternehmen erzielte eine starke Umwandlungsrate des freien Cashflows von 109% und Buchungen von 20,3 Milliarden Dollar (11% Anstieg).
Für 2025 erwartet Trane Technologies ein organisches Umsatzwachstum von 7-8% sowie GAAP- und bereinigten fortlaufenden Gewinn pro Aktie zwischen 12,70 und 12,90 Dollar. Das Unternehmen hält einen robusten Auftragsbestand von 6,75 Milliarden Dollar zu Beginn des Jahres 2025.
- Q4 2024 revenue increased 10% to $4.9 billion
- Full-year 2024 revenue up 12% to $19.8 billion
- Adjusted continuing EPS grew 24% to $11.22 for full-year 2024
- Strong free cash flow conversion at 109%
- Bookings increased 11% to $20.3 billion in 2024
- $6.75 billion backlog entering 2025
- None.
Insights
Trane Technologies' Q4 and full-year 2024 results showcase exceptional operational excellence and market leadership. The company delivered 12% organic revenue growth to reach
Several key metrics deserve attention:
- Working capital efficiency improved significantly, dropping from
3.0% to0.8% of revenue, freeing up substantial operating cash - Free cash flow conversion of
109% demonstrates superior capital efficiency and operational execution - The
$6.75 billion backlog provides strong visibility into 2025
The Americas segment, representing the largest portion of revenue, showed particular strength with
Looking ahead, the 2025 guidance of
Since its launch in 2020, Trane has demonstrated remarkable consistency, achieving a
Highlights (fourth-quarter 2024 versus fourth-quarter 2023, unless otherwise noted):
-
Reported revenues of
$4.9 billion - GAAP operating margin up 110 bps; adjusted operating margin* up 70 bps
- Adjusted EBITDA margin* of 18.3 percent, up 110 bps
-
GAAP continuing EPS of
$2.67 $2.61 - Organic bookings up 2 percent, led by Americas Commercial HVAC, up high single-digits
Highlights (full-year 2024 versus full-year 2023, unless otherwise noted):
-
Reported revenues of
$19.8 billion - GAAP operating margin up 120 bps; adjusted operating margin up 130 bps
- Adjusted EBITDA margin of 19.4 percent, up 140 bps
-
GAAP continuing EPS of
$11.35 $11.22 - Strong free cash flow conversion* of 109 percent
-
Bookings of
$20.3 billion -
$6.75 billion
*This news release contains non-GAAP financial measures. Definitions of the non-GAAP financial measures can be found in the footnotes of this news release. See attached tables for additional details and reconciliations.
SWORDS,
Fourth-Quarter 2024 Results
Financial Comparisons - Fourth-Quarter Continuing Operations
$, millions except EPS |
Q4 2024 |
Q4 2023 |
Y-O-Y Change |
Organic Y-O-Y
|
Bookings |
|
|
|
|
Net Revenues |
|
|
|
|
GAAP Operating Income |
|
|
|
|
GAAP Operating Margin |
|
|
110 bps |
|
Adjusted Operating Income* |
|
|
|
|
Adjusted Operating Margin |
|
|
70 bps |
|
Adjusted EBITDA* |
|
|
|
|
Adjusted EBITDA Margin* |
|
|
110 bps |
|
GAAP Continuing EPS |
|
|
|
|
Adjusted Continuing EPS |
|
|
|
|
Pre-tax Non-GAAP Adjustments, net** |
|
|
|
|
**For details see tables 2 and 3 of the news release. |
||||
“I’m proud of our talented team for delivering another year of standout financial performance in 2024,” said Dave Regnery, chair and CEO, Trane Technologies. “We achieved record financial results with strong organic revenue growth of
Since launching Trane Technologies in 2020, we have delivered a compound annual revenue growth rate of
Highlights from the Fourth Quarter of 2024 (all comparisons against fourth-quarter 2023 unless otherwise noted):
- Delivered strong revenue, operating income, EBITDA and EPS growth.
-
Strong bookings of
$4.7 billion - Enterprise reported revenues and organic revenues were both up 10 percent.
- GAAP operating margin was up 110 basis points, adjusted operating margin was up 70 basis points and adjusted EBITDA margin was up 110 basis points.
- Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment.
Fourth-Quarter Business Review (all comparisons against fourth-quarter 2023 unless otherwise noted)
Americas Segment: innovates for customers in the
$, millions |
Q4 2024 |
Q4 2023 |
Y-O-Y Change |
Organic Y-O-Y
|
Bookings |
|
|
|
|
Net Revenues |
|
|
|
|
GAAP Operating Income |
|
|
|
|
GAAP Operating Margin |
|
|
130 bps |
|
Adjusted Operating Income |
|
|
|
|
Adjusted Operating Margin |
|
|
100 bps |
|
Adjusted EBITDA |
|
|
|
|
Adjusted EBITDA Margin |
|
|
140 bps |
-
Bookings of
$3.7 billion - Reported revenues were up 12 percent, including approximately 1 percentage point related to acquisitions. Organic revenues were up 11 percent.
- GAAP operating margin was up 130 basis points, adjusted operating margin was up 100 basis points and adjusted EBITDA margin was up 140 basis points.
- Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment.
$, millions |
Q4 2024 |
Q4 2023 |
Y-O-Y Change |
Organic Y-O-Y
|
Bookings |
|
|
|
|
Net Revenues |
|
|
|
|
GAAP Operating Income |
|
|
|
|
GAAP Operating Margin |
|
|
30 bps |
|
Adjusted Operating Income |
|
|
|
|
Adjusted Operating Margin |
|
|
20 bps |
|
Adjusted EBITDA |
|
|
|
|
Adjusted EBITDA Margin |
|
|
20 bps |
- Strong bookings up 8 percent; organic bookings up 9 percent.
- Reported revenues were up 5 percent including approximately 2 percentage points of negative foreign exchange impact. Organic revenues were up 7 percent.
- GAAP operating margin was up 30 basis points, adjusted operating margin was up 20 basis points and adjusted EBITDA margin was up 20 basis points.
- Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment.
Asia Pacific Segment: innovates for customers throughout the
$, millions |
Q4 2024 |
Q4 2023 |
Y-O-Y Change |
Organic Y-O-Y
|
Bookings |
|
|
|
|
Net Revenues |
|
|
|
|
GAAP Operating Income |
|
|
|
|
GAAP Operating Margin |
|
|
210 bps |
|
Adjusted Operating Income |
|
|
|
|
Adjusted Operating Margin |
|
|
280 bps |
|
Adjusted EBITDA |
|
|
|
|
Adjusted EBITDA Margin |
|
|
280 bps |
- Reported and organic bookings both up 8 percent.
- Reported and organic revenues were both up 1 percent.
- GAAP operating margin was up 210 basis points, adjusted operating margin was up 280 basis points and adjusted EBITDA margin was up 280 basis points.
- Positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment.
Full-Year 2024 Results (all comparisons against full-year 2023 unless otherwise noted)
Financial Comparisons - Full-year Continuing Operations
$, millions except EPS |
2024 |
2023 |
Y-O-Y Change |
Organic Y-O-Y |
Bookings |
|
|
|
|
Net Revenues |
|
|
|
|
GAAP Operating Income |
|
|
|
|
GAAP Operating Margin |
|
|
120 bps |
|
Adjusted Operating Income |
|
|
|
|
Adjusted Operating Margin |
|
|
130 bps |
|
Adjusted EBITDA |
|
|
|
|
Adjusted EBITDA Margin |
|
|
140 bps |
|
GAAP Continuing EPS |
|
|
|
|
Adjusted Continuing EPS |
|
|
|
-
Strong bookings of
$20.3 billion - Reported and organic revenues were both up 12 percent.
- GAAP operating margin was up 120 basis points, adjusted operating margin was up 130 basis points and adjusted EBITDA margin was up 140 basis points.
- Strong volume, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment.
Balance Sheet and Cash Flow
$, millions |
2024 |
2023 |
Y-O-Y Change |
Cash From Continuing Operating Activities Y-T-D |
|
|
|
Free Cash Flow Y-T-D* |
|
|
|
Working Capital/Revenue* |
|
|
220 bps decrease |
Cash Balance 31 December |
|
|
|
Debt Balance 31 December |
|
|
( |
-
Full-year 2024 cash flow from continuing operating activities was
$3.2 billion -
Full-year 2024 free cash flow was
$2.8 billion -
For full-year 2024, the Company deployed or committed
$2.5 billion $760 million $470 million $1.3 billion - The Company expects to continue to pay a competitive and growing dividend and to deploy 100 percent of excess cash to shareholders over time.
Full-Year 2025 Guidance
- The Company expects full-year 2025 reported revenue growth of approximately 6.5 percent to 7.5 percent; organic revenue growth of approximately 7 percent to 8 percent versus full-year 2024.
-
The Company expects GAAP and adjusted continuing EPS for full-year 2025 of
$12.70 $12.90 - Additional information regarding the Company's 2025 guidance is included in the Company's earnings presentation found at www.tranetechnologies.com in the Investor Relations section.
This news release includes “forward-looking" statements within the meaning of securities laws, which are statements that are not historical facts, including statements that relate to our future financial performance and targets, including revenue, EPS, and earnings; our business operations; demand for our products and services, including bookings and backlog; capital deployment, including the amount and timing of our dividends, our share repurchase program, anticipated capital commitments for M&A activity, and our capital allocation strategy; our available liquidity; our anticipated revenue growth, and the performance of the markets in which we operate.
These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, global economic conditions, including recessions and economic downturns, inflation, volatility in interest rates and foreign exchange; trade protection measures such as import or export restrictions, tariffs, or quotas; changing energy prices; worldwide geopolitical conflict; financial institution disruptions; climate change and our sustainability strategies and goals; future health care emergencies on our business, our suppliers and our customers; commodity shortages; price increases; government regulation; restructurings activity and cost savings associated with such activity; secular trends toward decarbonization, energy efficiency and internal air quality, the outcome of any litigation, including the risks and uncertainties associated with the Chapter 11 proceedings for our deconsolidated subsidiaries Aldrich Pump LLC and Murray Boiler LLC; cybersecurity risks; and tax audits and tax law changes and interpretations. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2023, as well as our subsequent reports on Form 10-Q and other SEC filings. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events and how they may affect the Company. We assume no obligation to update these forward-looking statements.
This news release also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non-GAAP financial information and reconciliation to GAAP are attached to this news release.
All amounts reported within the earnings release above related to net earnings (loss), earnings (loss) from continuing operations, earnings (loss) from discontinued operations, adjusted EBITDA and per share amounts are attributed to Trane Technologies' ordinary shareholders.
Trane Technologies (NYSE:TT) is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more information, visit tranetechnologies.com.
# # #
1/30/25
(See Accompanying Tables)
- Table 1: Condensed Consolidated Income Statement
- Tables 2 - 7: Reconciliation of GAAP to Non-GAAP
- Table 8: Condensed Consolidated Balance Sheets
- Table 9: Condensed Consolidated Statement of Cash Flows
- Table 10: Balance Sheet Metrics and Free Cash Flow
*Q4 Year-to-date Non-GAAP measures definitions
Adjusted operating income in 2024 is defined as GAAP operating income adjusted for restructuring costs, a non-cash adjustment for contingent consideration, merger and acquisition transaction costs, and legacy legal liability. Adjusted operating income in 2023 is defined as GAAP operating income adjusted for restructuring costs, transformation costs, a non-cash adjustment for contingent consideration, merger and acquisition transaction costs, and an insurance settlement on a property claim. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2, 3 and 4 of the news release.
Adjusted operating margin is defined as the ratio of adjusted operating income divided by net revenues.
Adjusted earnings from continuing operations attributable to Trane Technologies plc (Adjusted net earnings) in 2024 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, a non-cash adjustment for contingent consideration, merger and acquisition transaction costs, legacy legal liability, and a
Adjusted continuing EPS in 2024 is defined as GAAP continuing EPS adjusted for net of tax impacts of restructuring costs, a non-cash adjustment for contingent consideration, merger and acquisition transaction costs, legacy legal liability, and a
Adjusted EBITDA in 2024 is defined as adjusted operating income adjusted to exclude depreciation and amortization expense and include other income / (expense), net. Adjusted EBITDA in 2023 is defined as adjusted operating income adjusted for depreciation and amortization expense, and other income / (expense), net, and an impairment of an equity investment. Other income / (expense), net mainly comprises interest income, foreign currency exchange gains and losses and certain components pension and postretirement benefit costs. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 4 and 5 of the news release.
Adjusted EBITDA margin is defined as the ratio of adjusted EBITDA divided by net revenues.
Adjusted effective tax rate for 2024 is defined as the ratio of income tax expense adjusted for a
Free cash flow in 2024 is defined as net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs, legacy legal liability, and merger and acquisition transaction costs less an adjustment for multi-year outperformance incentive compensation program. Free cash flow in 2023 defined as net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs, transformation costs and merger and acquisition transaction costs, and an insurance settlement on a property claim. Please refer to the free cash flow reconciliation on table 10 of the news release.
- Free cash flow conversion is defined as the ratio of free cash flow divided by adjusted net earnings.
Operating leverage is defined as the ratio of the change in adjusted operating income for the current period (e.g. Q4 2024) less the prior period (e.g. Q4 2023), divided by the change in net revenues for the current period less the prior period.
Organic revenue is defined as GAAP net revenues adjusted for the impact of currency, acquisitions and divestitures.
Organic bookings is defined as reported orders in the current period adjusted for the impact of currency, acquisitions and divestitures.
Working capital measures a firm’s operating liquidity position and its overall effectiveness in managing the enterprise's current accounts.
- Working capital is calculated by adding net accounts and notes receivables and inventories and subtracting total current liabilities that exclude short-term debt, dividend payables and income tax payables.
- Working capital as a percent of revenue is calculated by dividing the working capital balance (e.g. as of December 31) by the annualized revenue for the period (e.g. reported revenues for the three months ended December 31 multiplied by 4 to annualize for a full year).
The Company reports its financial results in accordance with generally accepted accounting principles in
The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to, financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may not be comparable to non-GAAP financial measures reported by other companies.
We believe the non-GAAP financial information provides important supplemental information to both management and investors regarding financial and business trends used in assessing our financial condition and results of operations.
Non-GAAP financial measures assist investors with analyzing our business results as well as with predicting future performance. In addition, these non-GAAP financial measures are also reviewed by management in order to evaluate the financial performance of each segment. Presentation of these non-GAAP financial measures helps investors and management to assess the operating performance of the Company.
As a result, one should not consider these measures in isolation or as a substitute for our results reported under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.
Table 1 |
|||||||||||||||
TRANE TECHNOLOGIES PLC Condensed Consolidated Income Statement (In millions, except per share amounts) UNAUDITED |
|||||||||||||||
|
For the quarter |
|
For the year |
||||||||||||
ended December 31, |
|
ended December 31, |
|||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Net revenues |
$ |
4,874.0 |
|
|
$ |
4,424.1 |
|
|
$ |
19,838.2 |
|
|
$ |
17,677.6 |
|
Cost of goods sold |
|
(3,163.1 |
) |
|
|
(2,952.8 |
) |
|
|
(12,757.7 |
) |
|
|
(11,820.4 |
) |
Selling and administrative expenses |
|
(903.3 |
) |
|
|
(783.6 |
) |
|
|
(3,580.4 |
) |
|
|
(2,963.2 |
) |
Operating income |
|
807.6 |
|
|
|
687.7 |
|
|
|
3,500.1 |
|
|
|
2,894.0 |
|
Interest expense |
|
(59.9 |
) |
|
|
(57.3 |
) |
|
|
(238.4 |
) |
|
|
(234.5 |
) |
Other income/(expense), net |
|
2.8 |
|
|
|
(15.6 |
) |
|
|
(19.9 |
) |
|
|
(92.2 |
) |
Earnings before income taxes |
|
750.5 |
|
|
|
614.8 |
|
|
|
3,241.8 |
|
|
|
2,567.3 |
|
Provision for income taxes |
|
(135.2 |
) |
|
|
(98.2 |
) |
|
|
(627.6 |
) |
|
|
(498.4 |
) |
Earnings from continuing operations |
|
615.3 |
|
|
|
516.6 |
|
|
|
2,614.2 |
|
|
|
2,068.9 |
|
Discontinued operations, net of tax |
|
(3.4 |
) |
|
|
(9.0 |
) |
|
|
(24.7 |
) |
|
|
(27.2 |
) |
Net earnings |
|
611.9 |
|
|
|
507.6 |
|
|
|
2,589.5 |
|
|
|
2,041.7 |
|
Less: Net earnings from continuing operations attributable to noncontrolling interests |
|
(7.6 |
) |
|
|
(3.3 |
) |
|
|
(21.6 |
) |
|
|
(17.8 |
) |
Net earnings attributable to Trane Technologies plc |
$ |
604.3 |
|
|
$ |
504.3 |
|
|
$ |
2,567.9 |
|
|
$ |
2,023.9 |
|
|
|
|
|
|
|
|
|
||||||||
Amounts attributable to Trane Technologies plc ordinary shareholders: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
607.7 |
|
|
$ |
513.3 |
|
|
$ |
2,592.6 |
|
|
$ |
2,051.1 |
|
Discontinued operations |
|
(3.4 |
) |
|
|
(9.0 |
) |
|
|
(24.7 |
) |
|
|
(27.2 |
) |
Net earnings |
$ |
604.3 |
|
|
$ |
504.3 |
|
|
$ |
2,567.9 |
|
|
$ |
2,023.9 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share attributable to Trane Technologies plc ordinary shareholder: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
2.67 |
|
|
$ |
2.23 |
|
|
$ |
11.35 |
|
|
$ |
8.89 |
|
Discontinued operations |
|
(0.01 |
) |
|
|
(0.04 |
) |
|
|
(0.11 |
) |
|
|
(0.12 |
) |
Net earnings |
$ |
2.66 |
|
|
$ |
2.19 |
|
|
$ |
11.24 |
|
|
$ |
8.77 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Diluted |
|
227.3 |
|
|
|
229.9 |
|
|
|
228.4 |
|
|
|
230.7 |
|
Table 2 |
||||||||||||||||||||||||
TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions, except per share amounts) UNAUDITED |
||||||||||||||||||||||||
|
|
For the quarter ended December 31, 2024 |
|
For the year ended December 31, 2024 |
||||||||||||||||||||
|
|
As |
|
|
|
As |
|
As |
|
|
|
As |
||||||||||||
|
|
Reported |
|
Adjustments |
|
Adjusted |
|
Reported |
|
Adjustments |
|
Adjusted |
||||||||||||
|
Net revenues |
$ |
4,874.0 |
|
|
$ |
— |
|
|
$ |
4,874.0 |
|
|
$ |
19,838.2 |
|
|
$ |
— |
|
|
$ |
19,838.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating income |
|
807.6 |
|
|
|
(13.2 |
) |
(a,b,c,d) |
|
794.4 |
|
|
|
3,500.1 |
|
|
|
(13.3 |
) |
(a,b,c,d) |
|
3,486.8 |
|
|
Operating margin |
|
16.6 |
% |
|
|
|
|
16.3 |
% |
|
|
17.6 |
% |
|
|
|
|
17.6 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Earnings from continuing operations before income taxes |
|
750.5 |
|
|
|
(13.2 |
) |
(a,b,c,d) |
|
737.3 |
|
|
|
3,241.8 |
|
|
|
(13.3 |
) |
(a,b,c,d) |
|
3,228.5 |
|
|
Provision for income taxes |
|
(135.2 |
) |
|
|
(1.6 |
) |
(f) |
|
(136.8 |
) |
|
|
(627.6 |
) |
|
|
(16.8 |
) |
(e,f) |
|
(644.4 |
) |
|
Tax rate |
|
18.0 |
% |
|
|
|
|
18.6 |
% |
|
|
19.4 |
% |
|
|
|
|
20.0 |
% |
||||
|
Earnings from continuing operations attributable to Trane Technologies plc |
$ |
607.7 |
|
|
$ |
(14.8 |
) |
(g) |
$ |
592.9 |
|
|
$ |
2,592.6 |
|
|
$ |
(30.1 |
) |
(g) |
$ |
2,562.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Diluted earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Continuing operations |
$ |
2.67 |
|
|
$ |
(0.06 |
) |
|
$ |
2.61 |
|
|
$ |
11.35 |
|
|
$ |
(0.13 |
) |
|
$ |
11.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Diluted |
|
227.3 |
|
|
|
— |
|
|
|
227.3 |
|
|
|
228.4 |
|
|
|
— |
|
|
|
228.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Detail of Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(a) |
Restructuring costs (COGS & SG&A) |
|
|
$ |
1.5 |
|
|
|
|
|
|
$ |
5.1 |
|
|
|
||||||||
(b) |
Legacy legal liability (SG&A) |
|
|
|
(1.1 |
) |
|
|
|
|
|
|
2.4 |
|
|
|
||||||||
(c) |
M&A transaction costs (SG&A) |
|
|
|
2.5 |
|
|
|
|
|
|
|
4.2 |
|
|
|
||||||||
(d) |
Non-cash adjustments for contingent consideration (SG&A) |
|
|
|
(16.1 |
) |
|
|
|
|
|
|
(25.0 |
) |
|
|
||||||||
(e) |
|
|
|
|
— |
|
|
|
|
|
|
|
(12.9 |
) |
|
|
||||||||
(f) |
Tax impact of adjustments (a,b,c) |
|
|
|
(1.6 |
) |
|
|
|
|
|
|
(3.9 |
) |
|
|
||||||||
(g) |
Impact of adjustments on earnings from continuing operations attributable to Trane Technologies plc |
|
|
$ |
(14.8 |
) |
|
|
|
|
|
$ |
(30.1 |
) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Pre-tax impact of adjustments on cost of goods sold |
|
|
$ |
0.1 |
|
|
|
|
|
|
$ |
(1.0 |
) |
|
|
||||||||
|
Pre-tax impact of adjustments on selling & administrative expenses |
|
|
|
(13.3 |
) |
|
|
|
|
|
|
(12.3 |
) |
|
|
||||||||
|
Pre-tax impact of adjustments on operating income |
|
|
$ |
(13.2 |
) |
|
|
|
|
|
$ |
(13.3 |
) |
|
|
||||||||
Table 3 |
||||||||||||||||||||||||
TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions, except per share amounts) UNAUDITED |
||||||||||||||||||||||||
|
|
For the quarter ended December 31, 2023 |
|
For the year ended December 31, 2023 |
||||||||||||||||||||
|
|
As |
|
|
|
As |
|
As |
|
|
|
As |
||||||||||||
|
|
Reported |
|
Adjustments |
|
Adjusted |
|
Reported |
|
Adjustments |
|
Adjusted |
||||||||||||
|
Net revenues |
$ |
4,424.1 |
|
|
$ |
— |
|
|
$ |
4,424.1 |
|
|
$ |
17,677.6 |
|
|
$ |
— |
|
|
$ |
17,677.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating income |
|
687.7 |
|
|
|
0.7 |
|
(a,b,c,d) |
|
688.4 |
|
|
|
2,894.0 |
|
|
|
(5.6 |
) |
(a,b,c,d,e,f) |
|
2,888.4 |
|
|
Operating margin |
|
15.5 |
% |
|
|
|
|
15.6 |
% |
|
|
16.4 |
% |
|
|
|
|
16.3 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Earnings from continuing operations before income taxes |
|
614.8 |
|
|
|
0.7 |
|
(a,b,c,d) |
|
615.5 |
|
|
|
2,567.3 |
|
|
|
46.6 |
|
(a,b,c,d,e,f,g) |
|
2,613.9 |
|
|
Provision for income taxes |
|
(98.2 |
) |
|
|
(15.9 |
) |
(h,i) |
|
(114.1 |
) |
|
|
(498.4 |
) |
|
|
(13.1 |
) |
(h,i) |
|
(511.5 |
) |
|
Tax rate |
|
16.0 |
% |
|
|
|
|
18.5 |
% |
|
|
19.4 |
% |
|
|
|
|
19.6 |
% |
||||
|
Earnings from continuing operations attributable to Trane Technologies plc |
$ |
513.3 |
|
|
$ |
(15.2 |
) |
(j) |
$ |
498.1 |
|
|
$ |
2,051.1 |
|
|
$ |
33.5 |
|
(j) |
$ |
2,084.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Diluted earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Continuing operations |
$ |
2.23 |
|
|
$ |
(0.06 |
) |
|
$ |
2.17 |
|
|
$ |
8.89 |
|
|
$ |
0.15 |
|
|
$ |
9.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Diluted |
|
229.9 |
|
|
|
— |
|
|
|
229.9 |
|
|
|
230.7 |
|
|
|
— |
|
|
|
230.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Detail of Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(a) |
Insurance settlement on a property claim (COGS) |
|
|
$ |
(10.0 |
) |
|
|
|
|
|
$ |
(10.0 |
) |
|
|
||||||||
(b) |
Restructuring costs (COGS & SG&A) |
|
|
|
5.0 |
|
|
|
|
|
|
|
15.1 |
|
|
|
||||||||
(c) |
Transformation costs (SG&A) |
|
|
|
1.2 |
|
|
|
|
|
|
|
4.7 |
|
|
|
||||||||
(d) |
M&A transaction costs (SG&A) |
|
|
|
4.5 |
|
|
|
|
|
|
|
15.4 |
|
|
|
||||||||
(e) |
Acquisition inventory step-up and backlog amortization (COGS & SG&A) |
|
|
|
— |
|
|
|
|
|
|
|
18.5 |
|
|
|
||||||||
(f) |
Non-cash adjustments for contingent consideration (SG&A) |
|
|
|
— |
|
|
|
|
|
|
|
(49.3 |
) |
|
|
||||||||
(g) |
Impairment of Equity Investment (OIOE) |
|
|
|
— |
|
|
|
|
|
|
|
52.2 |
|
|
|
||||||||
(h) |
International discrete non-cash tax benefit |
|
|
|
(14.9 |
) |
|
|
|
|
|
|
(14.9 |
) |
|
|
||||||||
(i) |
Tax impact of adjustments (a,b,c,d,e,f) |
|
|
|
(1.0 |
) |
|
|
|
|
|
|
1.8 |
|
|
|
||||||||
(j) |
Impact of adjustments on earnings from continuing operations attributable to Trane Technologies plc |
|
|
$ |
(15.2 |
) |
|
|
|
|
|
$ |
33.5 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Pre-tax impact of adjustments on cost of goods sold |
|
|
$ |
(5.1 |
) |
|
|
|
|
|
$ |
9.6 |
|
|
|
||||||||
|
Pre-tax impact of adjustments on selling & administrative expenses |
|
|
|
5.8 |
|
|
|
|
|
|
|
(15.2 |
) |
|
|
||||||||
|
Pre-tax impact of adjustments on operating income |
|
|
|
0.7 |
|
|
|
|
|
|
|
(5.6 |
) |
|
|
||||||||
|
Pre-tax impact of adjustments on other, net |
|
|
|
— |
|
|
|
|
|
|
|
52.2 |
|
|
|
||||||||
|
Pre-tax impact of adjustments on earnings from continuing operations |
|
|
$ |
0.7 |
|
|
|
|
|
|
$ |
46.6 |
|
|
|
||||||||
Table 4 |
||||||||||||||
TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions) UNAUDITED |
||||||||||||||
|
|
For the quarter ended
|
|
For the quarter ended
|
||||||||||
|
|
As Reported |
|
Margin |
|
As Reported |
|
Margin |
||||||
|
Net revenues |
$ |
3,802.5 |
|
|
|
|
$ |
3,390.3 |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
Segment operating income |
$ |
685.0 |
|
|
18.0 |
% |
|
$ |
566.8 |
|
|
16.7 |
% |
|
Restructuring/Other(a) |
|
(15.7 |
) |
|
(0.4 |
)% |
|
|
(4.2 |
) |
|
(0.1 |
)% |
|
Adjusted operating income * |
|
669.3 |
|
|
17.6 |
% |
|
|
562.6 |
|
|
16.6 |
% |
|
Depreciation and amortization |
|
76.0 |
|
|
2.0 |
% |
|
|
67.7 |
|
|
2.0 |
% |
|
Other income/(expense), net |
|
(3.9 |
) |
|
(0.1 |
)% |
|
|
(16.8 |
) |
|
(0.5 |
)% |
|
Adjusted EBITDA * |
$ |
741.4 |
|
|
19.5 |
% |
|
$ |
613.5 |
|
|
18.1 |
% |
|
|
|
|
|
|
|
|
|
||||||
|
Net revenues |
$ |
690.3 |
|
|
|
|
$ |
654.6 |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
Segment operating income |
$ |
119.8 |
|
|
17.4 |
% |
|
$ |
111.7 |
|
|
17.1 |
% |
|
Restructuring/Other |
|
(0.7 |
) |
|
(0.1 |
)% |
|
|
— |
|
|
— |
% |
|
Adjusted operating income * |
|
119.1 |
|
|
17.3 |
% |
|
|
111.7 |
|
|
17.1 |
% |
|
Depreciation and amortization |
|
11.1 |
|
|
1.6 |
% |
|
|
10.8 |
|
|
1.6 |
% |
|
Other income/(expense), net |
|
0.2 |
|
|
— |
% |
|
|
(0.1 |
) |
|
— |
% |
|
Adjusted EBITDA * |
$ |
130.4 |
|
|
18.9 |
% |
|
$ |
122.4 |
|
|
18.7 |
% |
|
|
|
|
|
|
|
|
|
||||||
|
Net revenues |
$ |
381.2 |
|
|
|
|
$ |
379.2 |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
Segment operating income |
$ |
94.3 |
|
|
24.7 |
% |
|
$ |
85.7 |
|
|
22.6 |
% |
|
Restructuring/Other |
|
1.8 |
|
|
0.5 |
% |
|
|
(0.8 |
) |
|
(0.2 |
)% |
|
Adjusted operating income * |
|
96.1 |
|
|
25.2 |
% |
|
|
84.9 |
|
|
22.4 |
% |
|
Depreciation and amortization |
|
4.6 |
|
|
1.2 |
% |
|
|
4.4 |
|
|
1.2 |
% |
|
Other income/(expense), net |
|
0.2 |
|
|
0.1 |
% |
|
|
0.4 |
|
|
0.1 |
% |
|
Adjusted EBITDA * |
$ |
100.9 |
|
|
26.5 |
% |
|
$ |
89.7 |
|
|
23.7 |
% |
|
|
|
|
|
|
|
|
|
||||||
Corporate |
Unallocated corporate expense |
$ |
(91.5 |
) |
|
|
|
$ |
(76.5 |
) |
|
|
||
|
Restructuring/Other (b) |
|
1.4 |
|
|
|
|
|
5.7 |
|
|
|
||
|
Adjusted corporate expense * |
|
(90.1 |
) |
|
|
|
|
(70.8 |
) |
|
|
||
|
Depreciation and amortization |
|
5.1 |
|
|
|
|
|
5.0 |
|
|
|
||
|
Other income/(expense), net |
|
6.3 |
|
|
|
|
|
0.9 |
|
|
|
||
|
Adjusted EBITDA * |
$ |
(78.7 |
) |
|
|
|
$ |
(64.9 |
) |
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Total Company |
Net revenues |
$ |
4,874.0 |
|
|
|
|
$ |
4,424.1 |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
Operating income |
$ |
807.6 |
|
|
16.6 |
% |
|
$ |
687.7 |
|
|
15.5 |
% |
|
Restructuring/Other (a,b) |
|
(13.2 |
) |
|
(0.3 |
)% |
|
|
0.7 |
|
|
0.1 |
% |
|
Adjusted operating income |
|
794.4 |
|
|
16.3 |
% |
|
|
688.4 |
|
|
15.6 |
% |
|
Depreciation and amortization |
|
96.8 |
|
|
2.0 |
% |
|
|
87.9 |
|
|
2.0 |
% |
|
Other income/(expense), net |
|
2.8 |
|
|
— |
% |
|
|
(15.6 |
) |
|
(0.4 |
)% |
|
Adjusted EBITDA * |
$ |
894.0 |
|
|
18.3 |
% |
|
$ |
760.7 |
|
|
17.2 |
% |
*Represents a non-GAAP measure, refer to pages 6-7 in the Earnings Release for definitions.
(a) Restructuring/Other within
(b) Restructuring/Other within Corporate in 2024 includes |
||||||||||||||
Table 5 |
||||||||||||||
TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions) UNAUDITED |
||||||||||||||
|
|
For the year ended
|
|
For the year ended
|
||||||||||
|
|
As Reported |
|
Margin |
|
As Reported |
|
Margin |
||||||
|
Net revenues |
$ |
15,903.2 |
|
|
|
|
$ |
13,832.0 |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
Segment operating income |
$ |
3,061.8 |
|
|
19.3 |
% |
|
$ |
2,490.0 |
|
|
18.0 |
% |
|
Restructuring/Other(a) |
|
(22.7 |
) |
|
(0.2 |
)% |
|
|
(44.1 |
) |
|
(0.3 |
)% |
|
Adjusted operating income * |
|
3,039.1 |
|
|
19.1 |
% |
|
|
2,445.9 |
|
|
17.7 |
% |
|
Depreciation and amortization(b) |
|
299.8 |
|
|
1.9 |
% |
|
|
258.8 |
|
|
1.9 |
% |
|
Other income/(expense), net(c) |
|
(20.6 |
) |
|
(0.1 |
)% |
|
|
(35.1 |
) |
|
(0.3 |
)% |
|
Adjusted EBITDA * |
$ |
3,318.3 |
|
|
20.9 |
% |
|
$ |
2,669.6 |
|
|
19.3 |
% |
|
|
|
|
|
|
|
|
|
||||||
|
Net revenues |
$ |
2,556.7 |
|
|
|
|
$ |
2,401.2 |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
Segment operating income |
$ |
472.4 |
|
|
18.5 |
% |
|
$ |
408.3 |
|
|
17.0 |
% |
|
Restructuring/Other(d) |
|
0.4 |
|
|
— |
% |
|
|
16.2 |
|
|
0.7 |
% |
|
Adjusted operating income * |
|
472.8 |
|
|
18.5 |
% |
|
|
424.5 |
|
|
17.7 |
% |
|
Depreciation and amortization(e) |
|
43.5 |
|
|
1.7 |
% |
|
|
40.5 |
|
|
1.7 |
% |
|
Other income/(expense), net |
|
(11.2 |
) |
|
(0.4 |
)% |
|
|
(0.3 |
) |
|
— |
% |
|
Adjusted EBITDA * |
$ |
505.1 |
|
|
19.8 |
% |
|
$ |
464.7 |
|
|
19.4 |
% |
|
|
|
|
|
|
|
|
|
||||||
|
Net revenues |
$ |
1,378.3 |
|
|
|
|
$ |
1,444.4 |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
Segment operating income |
$ |
307.0 |
|
|
22.3 |
% |
|
$ |
299.9 |
|
|
20.8 |
% |
|
Restructuring/Other(f) |
|
1.8 |
|
|
0.1 |
% |
|
|
0.9 |
|
|
— |
% |
|
Adjusted operating income * |
|
308.8 |
|
|
22.4 |
% |
|
|
300.8 |
|
|
20.8 |
% |
|
Depreciation and amortization(g) |
|
17.9 |
|
|
1.3 |
% |
|
|
18.3 |
|
|
1.3 |
% |
|
Other income/(expense), net |
|
2.6 |
|
|
0.2 |
% |
|
|
2.2 |
|
|
0.1 |
% |
|
Adjusted EBITDA * |
$ |
329.3 |
|
|
23.9 |
% |
|
$ |
321.3 |
|
|
22.2 |
% |
|
|
|
|
|
|
|
|
|
||||||
Corporate |
Unallocated corporate expense |
$ |
(341.1 |
) |
|
|
|
$ |
(304.2 |
) |
|
|
||
|
Restructuring/Other (h) |
|
7.2 |
|
|
|
|
|
21.4 |
|
|
|
||
|
Adjusted corporate expense * |
|
(333.9 |
) |
|
|
|
|
(282.8 |
) |
|
|
||
|
Depreciation and amortization |
|
18.2 |
|
|
|
|
|
18.4 |
|
|
|
||
|
Other income/(expense), net |
|
9.3 |
|
|
|
|
|
(6.8 |
) |
|
|
||
|
Adjusted EBITDA * |
$ |
(306.4 |
) |
|
|
|
$ |
(271.2 |
) |
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Total Company |
Net revenues |
$ |
19,838.2 |
|
|
|
|
$ |
17,677.6 |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
Operating income |
$ |
3,500.1 |
|
|
17.6 |
% |
|
$ |
2,894.0 |
|
|
16.4 |
% |
|
Restructuring/Other (a,d,f,h) |
|
(13.3 |
) |
|
— |
% |
|
|
(5.6 |
) |
|
(0.1 |
)% |
|
Adjusted operating income |
|
3,486.8 |
|
|
17.6 |
% |
|
|
2,888.4 |
|
|
16.3 |
% |
|
Depreciation and amortization(b,e,g) |
|
379.4 |
|
|
1.9 |
% |
|
|
336.0 |
|
|
1.9 |
% |
|
Other income/(expense), net (c) |
|
(19.9 |
) |
|
(0.1 |
)% |
|
|
(40.0 |
) |
|
(0.2 |
)% |
|
Adjusted EBITDA * |
$ |
3,846.3 |
|
|
19.4 |
% |
|
$ |
3,184.4 |
|
|
18.0 |
% |
*Represents a non-GAAP measure, refer to pages 6-7 in the Earnings Release for definitions.
(a) Restructuring/Other within
(b) Depreciation and amortization within
(c ) Other income/(expense), net with
(d) Other within EMEA in 2023 includes
(e) Depreciation and amortization within EMEA in 2023 excludes
(f) Other within
(g) Depreciation and amortization within
(h) Other within Corporate in 2024 includes |
||||||||||||||
Table 6 |
|||||||
TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions) UNAUDITED |
|||||||
|
For the quarter |
||||||
|
ended December 31, |
||||||
|
2024 |
|
2023 |
||||
Total Company |
|
|
|
||||
Adjusted EBITDA * |
$ |
894.0 |
|
|
$ |
760.7 |
|
Less: items to reconcile adjusted EBITDA to net earnings attributable to Trane Technologies plc |
|
|
|
||||
Depreciation and amortization |
|
(96.8 |
) |
|
|
(87.9 |
) |
Interest expense |
|
(59.9 |
) |
|
|
(57.3 |
) |
Provision for income taxes |
|
(135.2 |
) |
|
|
(98.2 |
) |
Restructuring |
|
(1.5 |
) |
|
|
(5.0 |
) |
Transformation Costs |
|
— |
|
|
|
(1.2 |
) |
M&A transaction costs |
|
(2.5 |
) |
|
|
(4.5 |
) |
Non-cash adjustments for contingent consideration |
|
16.1 |
|
|
|
— |
|
Insurance settlements on property claims |
|
— |
|
|
|
10.0 |
|
Legacy legal liability |
|
1.1 |
|
|
|
— |
|
Discontinued operations, net of tax |
|
(3.4 |
) |
|
|
(9.0 |
) |
Net earnings from continuing operations attributable to noncontrolling interests |
|
(7.6 |
) |
|
|
(3.3 |
) |
Net earnings attributable to Trane Technologies plc |
$ |
604.3 |
|
|
$ |
504.3 |
|
*Represents a non-GAAP measure, refer to pages 6-7 in the Earnings Release for definitions. |
|||||||
Table 7 |
|||||||
TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions) UNAUDITED |
|||||||
|
For the year |
||||||
|
ended December 31, |
||||||
|
2024 |
|
2023 |
||||
Total Company |
|
|
|
||||
Adjusted EBITDA * |
$ |
3,846.3 |
|
|
$ |
3,184.4 |
|
Less: items to reconcile adjusted EBITDA to net earnings attributable to Trane Technologies plc |
|
|
|
||||
Depreciation and amortization(1) |
|
(379.4 |
) |
|
|
(336.0 |
) |
Interest expense |
|
(238.4 |
) |
|
|
(234.5 |
) |
Provision for income taxes |
|
(627.6 |
) |
|
|
(498.4 |
) |
Restructuring |
|
(5.1 |
) |
|
|
(15.1 |
) |
Transformation Costs |
|
— |
|
|
|
(4.7 |
) |
M&A transaction costs |
|
(4.2 |
) |
|
|
(15.4 |
) |
Non-cash adjustments for contingent consideration |
|
25.0 |
|
|
|
49.3 |
|
Acquisition inventory step-up and backlog amortization |
|
— |
|
|
|
(18.5 |
) |
Insurance settlements on property claims |
|
— |
|
|
|
10.0 |
|
Impairment of equity investment |
|
— |
|
|
|
(52.2 |
) |
Legacy legal liability |
|
(2.4 |
) |
|
|
— |
|
Discontinued operations, net of tax |
|
(24.7 |
) |
|
|
(27.2 |
) |
Net earnings from continuing operations attributable to noncontrolling interests |
|
(21.6 |
) |
|
|
(17.8 |
) |
Net earnings attributable to Trane Technologies plc |
$ |
2,567.9 |
|
|
$ |
2,023.9 |
|
(1) Depreciation and amortization in 2023 excludes acquisition backlog amortization of *Represents a non-GAAP measure, refer to pages 6-7 in the Earnings Release for definitions. |
|||||||
Table 8 |
|||||
TRANE TECHNOLOGIES PLC Condensed Consolidated Balance Sheets (In millions) UNAUDITED |
|||||
|
December 31, |
|
December 31, |
||
|
2024 |
|
2023 |
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
1,590.1 |
|
$ |
1,095.3 |
Accounts and notes receivable, net |
|
3,090.2 |
|
|
2,956.8 |
Inventories |
|
1,971.5 |
|
|
2,152.1 |
Other current assets |
|
686.0 |
|
|
665.7 |
Total current assets |
|
7,337.8 |
|
|
6,869.9 |
Property, plant and equipment, net |
|
2,024.5 |
|
|
1,772.2 |
Goodwill |
|
6,127.9 |
|
|
6,095.3 |
Intangible assets, net |
|
3,308.2 |
|
|
3,439.8 |
Other noncurrent assets |
|
1,348.3 |
|
|
1,214.7 |
Total assets |
$ |
20,146.7 |
|
$ |
19,391.9 |
|
|
|
|
||
LIABILITIES AND EQUITY |
|
|
|
||
Accounts payable |
$ |
2,148.0 |
|
$ |
2,025.2 |
Accrued expenses and other current liabilities |
|
3,468.7 |
|
|
3,226.4 |
Short-term borrowings and current maturities of long-term debt |
|
452.2 |
|
|
801.9 |
Total current liabilities |
|
6,068.9 |
|
|
6,053.5 |
Long-term debt |
|
4,318.1 |
|
|
3,977.9 |
Other noncurrent liabilities |
|
2,272.8 |
|
|
2,343.5 |
Shareholders' Equity |
|
7,486.9 |
|
|
7,017.0 |
Total liabilities and equity |
$ |
20,146.7 |
|
$ |
19,391.9 |
Table 9 |
|||||||
TRANE TECHNOLOGIES PLC Condensed Consolidated Statement of Cash Flows (In millions) UNAUDITED |
|||||||
|
For the year |
||||||
|
ended December 31, |
||||||
|
2024 |
|
2023 |
||||
Operating Activities |
|
|
|
||||
Earnings from continuing operations |
$ |
2,614.2 |
|
|
$ |
2,068.9 |
|
Depreciation and amortization |
|
379.4 |
|
|
|
348.1 |
|
Changes in assets and liabilities and other non-cash items |
|
184.1 |
|
|
|
9.8 |
|
Net cash provided by (used in) continuing operating activities |
|
3,177.7 |
|
|
|
2,426.8 |
|
Net cash provided by (used in) discontinued operating activities |
|
(32.1 |
) |
|
|
(37.2 |
) |
Net cash provided by (used in) operating activities |
|
3,145.6 |
|
|
|
2,389.6 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Capital expenditures, net |
|
(370.6 |
) |
|
|
(300.7 |
) |
Acquisition of businesses, net of cash acquired |
|
(180.3 |
) |
|
|
(862.8 |
) |
Other investing activities, net |
|
(12.0 |
) |
|
|
(8.7 |
) |
Net cash provided by (used in) investing activities |
|
(562.9 |
) |
|
|
(1,172.2 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Net proceeds from (payments of) debt |
|
(9.0 |
) |
|
|
(57.3 |
) |
Dividends paid to ordinary shareholders |
|
(757.5 |
) |
|
|
(683.7 |
) |
Repurchase of ordinary shares |
|
(1,280.8 |
) |
|
|
(669.3 |
) |
Other financing activities, net |
|
26.7 |
|
|
|
60.0 |
|
Net cash provided by (used in) financing activities |
|
(2,020.6 |
) |
|
|
(1,350.3 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
(67.3 |
) |
|
|
7.7 |
|
Net increase (decrease) in cash and cash equivalents |
|
494.8 |
|
|
|
(125.2 |
) |
Cash and cash equivalents - beginning of period |
|
1,095.3 |
|
|
|
1,220.5 |
|
Cash and cash equivalents - end of period |
$ |
1,590.1 |
|
|
$ |
1,095.3 |
|
Table 10 |
||||||||
TRANE TECHNOLOGIES PLC Balance Sheet Metrics and Free Cash Flow ($ in millions) UNAUDITED |
||||||||
|
|
December 31, |
|
December 31, |
||||
|
|
2024 |
|
2023 |
||||
Net Receivables |
|
$ |
3,090.2 |
|
|
$ |
2,956.8 |
|
Days Sales Outstanding |
|
|
57.9 |
|
|
|
61.0 |
|
|
|
|
|
|
||||
Net Inventory |
|
$ |
1,971.5 |
|
|
$ |
2,152.1 |
|
Inventory Turns |
|
|
6.4 |
|
|
|
5.5 |
|
|
|
|
|
|
||||
Accounts Payable |
|
$ |
2,148.0 |
|
|
$ |
2,025.2 |
|
Days Payable Outstanding |
|
|
62.0 |
|
|
|
62.6 |
|
-------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
||||||||
|
|
|
|
|
||||
|
|
Year ended |
|
Year ended |
||||
|
|
December 31, 2024 |
|
December 31, 2023 |
||||
|
|
|
|
|
||||
Cash flow provided by continuing operating activities |
|
$ |
3,177.7 |
|
|
$ |
2,426.8 |
|
Capital expenditures |
|
|
(370.6 |
) |
|
|
(300.7 |
) |
Cash payments for restructuring |
|
|
8.6 |
|
|
|
12.3 |
|
Legacy legal liability |
|
|
2.7 |
|
|
|
— |
|
Transformation costs paid |
|
|
— |
|
|
|
3.9 |
|
M&A transaction costs |
|
|
1.7 |
|
|
|
18.9 |
|
Insurance settlements on property claims |
|
|
— |
|
|
|
(10.0 |
) |
Adjustment for Outperformance Incentive Program** |
|
|
(31.1 |
) |
|
|
— |
|
Free cash flow* |
|
$ |
2,789.0 |
|
|
$ |
2,151.2 |
|
|
|
|
|
|
||||
Adjusted earnings from continuing operations attributable to Trane Technologies plc* |
|
$ |
2,562.5 |
|
|
$ |
2,084.6 |
|
Free cash flow conversion* |
|
|
109 |
% |
|
|
103 |
% |
*Represents a non-GAAP measure, refer to pages 6-7 in the Earnings Release for definitions. **The Company implemented a special three-year Outperformance Incentive Program during the year ended December 31, 2024 that provides additional incentive-based cash compensation to eligible participants based primarily on the achievement of outsized revenue performance beyond what is achievable under the Company’s existing short-term incentive programs. Performance is measured over three annual periods representing the years ended December 31, 2024, 2025 and 2026. Cash payments related to performance achieved will be made in the quarter ended March 31, 2027. This adjustment represents amounts earned in the respective performance period that will be paid during the quarter ended March 31, 2027. |
||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130035009/en/
Media:
Travis Bullard
919-802-2593, Travis.Bullard@tranetechnologies.com
Investors:
Zac Nagle
704-990-3913, InvestorRelations@tranetechnologies.com
Source: Trane Technologies
FAQ
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