Trane Technologies plc (TT) Stock

Trane Technologies plc (TT) is a Technology stock trading at $440.07 (as of 2026-09-01), with a market capitalization of $97.28B and a trailing P/E of 33.1. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Trane Technologies plc and its subsidiaries design, manufacture, market, and service heating, ventilation, air conditioning, and transport refrigeration solutions. Its offerings include HVAC equipment and controls as well as refrigeration systems such as chillers, heat pumps, and auxiliary power units, serving customers needing building climate and vehicle or transport refrigeration.

Understand Trane Technologies plc: how it makes money

Trane Technologies designs and services commercial and residential HVAC systems plus transport-refrigeration units for freight logistics, earning revenue from equipment sales, installation, and ongoing service contracts. The commercial-building franchise is the volume and pricing-power core, while Thermo King's transport-refrigeration loop layers in a freight-cycle swing tied to global shipping volumes.

Every installed HVAC system seeds a multi-year parts-and-service annuity, so the profit model blends a cyclical equipment-sale margin peak with a lower-magnitude recurring service stream that keeps cash flowing through the 18-to-24-month replacement cycle and sustains mid-teens operating margins in demand troughs.

Revenue by segment (latest quarter)
Americas$4.0B
EMEA$0.6B
Asia Pacific$0.3B

Business quality (Solid): Solid franchise: 19% operating margin and 34% ROE on a 36% gross-margin base, with a service annuity that de-ranks the cyclicality of pure equipment sales.

Valuation: At 34× earnings, TT trades 35% below the Measuring & Control Equipment average (52×).

Bull case

  • Record backlog locks in revenue: Backlog grew 70% year over year to $12.1 billion, giving the company a multi-quarter revenue runway that de-risks the near-term top-line trajectory even if new bookings slow.
  • Americas growth is broad-based: Commercial HVAC demand was firm across every tracked vertical in the Americas, meaning the recovery is not pinned to a single end-market or a handful of large projects.
  • Trading at a 35% discount: The stock prices at 34.1x earnings versus a 52x industry average, a 35% gap that implies the market is charging a permanent-cyclicality haircut the recurring service layer may not warrant.

Bear case

  • EMEA down 30% on conflict: Management expects Middle East conflict to keep Europe, Middle East and Africa revenue down approximately 30% through the second half, directly capping consolidated growth regardless of Americas strength.
  • Supply chain bends under demand: Higher volumes are creating above-normal supply-chain constraints, a risk to delivery timelines and to converting the $12.1 billion backlog into booked revenue within the expected window.
Valuation — source: SEC EDGAR (first-party)
Price$440.07
Market Cap$97.28B
P/E Ratio33.1
EV / EBITDA23.4
Price / Book11.25
Price / Sales4.38
FCF Yield2.9%
DCF Value (model)$198.01
DCF Upside vs Price-55.0%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$21.32B
Net Margin13.7%
Revenue Growth (YoY)10.6%
EPS Growth (YoY)6.9%
FCF Growth (YoY)158.7%
Financial Health — source: SEC EDGAR
Altman Z-Score6.93 (safe)
Valuation vs Sector & Industry
Stock P/E33.1
Sector P/E (Technology)31.8
Industry P/E (Measuring & Control Equipment)50.5
vs Sector3.9%
vs Industry-34.5%
Company
SectorTechnology
IndustryMeasuring & Control Equipment
CEODavid S. Regnery
Employees45,000
CountryIE
IPO Date1980-03-17

Trane Technologies plc earnings call transcripts

  • TT Q2 FY26 earnings call transcript (reported 2026-07-30) · analysis
  • TT Q4 FY25 earnings call transcript (reported 2026-01-29) · analysis
  • TT Q2 FY25 earnings call transcript (reported 2025-07-30) · analysis
  • TT Q1 FY25 earnings call transcript (reported 2025-04-30) · analysis
  • TT Q4 FY24 earnings call transcript (reported 2025-01-30) · analysis
  • TT Q3 FY24 earnings call transcript (reported 2024-10-30) · analysis

All TT earnings calls

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TT earnings history · TT institutional & insider holders · TT KPIs & operating metrics · TT financials · TT investor presentations & press releases · TT SEC filings · TT peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-01.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.