Trane Technologies reported very strong first-quarter financial results, featuring 14% organic revenue growth, 230 basis points of adjusted operating margin expansion to 15.2%, and 38% adjusted earnings per share growth to $1.94. Bookings grew 17% organically in the quarter, resulting in a healthy 1.20 book/bill ratio. Trane’s backlog stands at $7.7 billion, 10% above its 2023 year-end backlog value.
Trane should benefit from secular trends in global urbanization and increased demand for energy-efficient building solutions.
The residential HVAC business has benefited from a strong replacement cycle related to the last housing boom, but after surging demand during the pandemic, replacement spending has softened.
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Metric
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TT
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LII
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CARR
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|---|---|---|---|
Price/Earnings (Normalized) | 33.14 | 24.89 | 21.72 |
Price/Book Value | 10.44 | 44.76 | 4.79 |
Price/Sales | 4.01 | 3.33 | 2.32 |
Price/Cash Flow | 27.54 | 21.93 | 24.78 |
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Metric
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TT
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LII
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CARR
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|---|---|---|---|
Quick Ratio | 0.62 | 0.61 | 0.55 |
Current Ratio | 1.13 | 1.43 | 1.36 |
Interest Coverage | 12.55 | 15.22 | 4.76 |
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Metric
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TT
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LII
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CARR
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|---|---|---|---|
Return on Assets (Normalized) | 11.89% | 23.03% | 8.02% |
Return on Equity (Normalized) | 34.17% | 442.69% | 27.54% |
Return on Invested Capital (Normalized) | 21.14% | 37.71% | 12.64% |
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Name
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