Trane Technologies Set to Report Strong Q1 Earnings Growth

Swords, Ireland-based Trane Technologies plc (TT) specializes in climate control products including heating, ventilation, air conditioning, and transport solutions. With a market capitalization of $77.2 billion, the company employs nearly 45,000 people and operates globally across the Americas, Indo-Pacific, and EMEA regions.

Upcoming Q1 Earnings Announcement

Trane Technologies is scheduled to announce its first-quarter results on Wednesday, April 30, before the market opens. Analysts anticipate a non-GAAP profit of $2.19 per share, which represents a 12.9% increase from the previous year’s figure of $1.94 per share. Furthermore, Trane has consistently exceeded Wall Street’s earnings expectations for the last four quarters.

Fiscal Projections for 2025 and 2026

For the entirety of fiscal 2025, Trane is projected to achieve an adjusted earnings per share (EPS) of $12.66, reflecting a 12.8% rise from $11.22 in fiscal 2024. Looking ahead to fiscal 2026, market analysts estimate a year-over-year earnings growth of 10.8%, bringing the expected EPS to $14.03.

Stock Performance and Market Comparison

Trane Technologies’ stock has appreciated by 11.8% over the past 52 weeks, significantly outpacing the Industrial Select Sector SPDR Fund’s (XLI) increase of 2.4% and the S&P 500 Index’s ($SPX) 4.4% gain during the same period.

Strong Q4 Earnings Drive Market Confidence

Following the release of its better-than-expected fourth-quarter results on January 30, Trane Technologies saw a slight uptick in stock price. The company reported a year-over-year revenue surge of 10.2% to $4.9 billion, exceeding market expectations by 2.2%. Its adjusted EPS rose by 20.3% to $2.61, beating consensus estimates by 2.8%. Moreover, Trane’s bookings increased by 2.8% year-over-year to $4.7 billion, enhancing confidence for the upcoming fiscal year.

Analyst Ratings and Price Target

The consensus rating for Trane Technologies’ stock remains “Moderate Buy.” Among the 20 analysts covering the stock, there are six “Strong Buys,” 13 “Holds,” and one “Strong Sell.” The average price target of $406.06 indicates a potential upside of 22.8% from current levels.

On the date of publication, Aditya Sarawgi did not hold any positions in the securities mentioned. All information here is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

More news from Barchart

The views expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.