Trane Technologies Delivers Strong Q1 2025 Results: Industry-Leading Revenue Growth, EPS Expansion, and Robust Bookings
Trane Technologies, a global leader in climate control and indoor air quality solutions, reported strong first-quarter (Q1) 2025 results, continuing its track record of industry-leading revenue and earnings per share (EPS) growth. The company's global team achieved 11% organic revenue growth, with significant expansion in adjusted EBITDA margin and adjusted EPS.
In a conference call transcript released on April 30, Trane Technologies' CEO David Regnery highlighted the company's purpose-driven strategy, which has enabled its differentiated financial results over time. Regnery emphasized that the company's solutions offer attractive paybacks, helping customers reduce energy use, emissions, and operating costs.
"We delivered strong financial results in the first quarter, continuing our track record of industry-leading revenue and EPS growth," Regnery said, referencing Slide #4 in the presentation. "Our global team achieved 11% organic revenue growth, 130 basis points of adjusted EBITDA margin expansion, and 26% adjusted EPS growth."
The company's Commercial HVAC and Services businesses have shown outstanding durability and resiliency, compounding growth over multiple years. Trane Technologies' direct sales strategy enables the company to capture more than its fair share of opportunities and consistently outgrow its end markets.
Regnery also highlighted the strength of the company's Service business, which represents one-third of its enterprise revenues. This segment has achieved a high single-digit compound annual growth rate (CAGR) since 2019 and a low teens CAGR since the inception of Trane Technologies.
"We pride ourselves on strong execution and delivering for our customers and stakeholders," Regnery said. "Despite a dynamic macroeconomic environment, we are confident in our ability to outperform."
Trane Technologies' Q1 2025 results were driven by robust bookings across its segments. The company's Americas segment set a new quarterly record for Commercial HVAC bookings, surpassing last year's high. Revenue growth was strong, with mid-teens growth in equipment and low teens in services.
In the EMEA segment, Commercial HVAC bookings were very strong, up mid-teens, while revenue was up mid-single digits. Transport bookings were up high single digits, and revenues were also up mid-single digits, outperforming end markets which were down mid-single digits.
Trane Technologies' Q1 2025 results demonstrate the company's ability to navigate dynamic environments and deliver robust free cash flow. The company is confident in its ability to deliver results towards the higher end of its full-year revenue and EPS guidance ranges, despite modest cost inflation expectations."
