NYSE$TT

Trane Technologies · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong first-quarter results and raised full-year revenue and EPS guidance.

Trane Technologies reported a strong first quarter with significant growth in bookings, revenues, and margins. The company has raised its full-year 2021 guidance for both revenue growth and EPS.

  • Reported bookings increased by 34 percent, with organic bookings up 31 percent.
  • Reported revenues increased by 14 percent, with organic revenues up 11 percent.
  • GAAP operating margin increased by 590 bps, and adjusted operating margin increased by 500 bps.
  • GAAP continuing EPS was $0.96, and adjusted continuing EPS was $1.01, up 135 percent.

Headline financials

Total Revenue

$3.02B

Previous: $2.64B+14.2%
EPS (adj)

$1.01

Previous: $0.27+274.1%
Capital Expenditures

-$43.9M

Previous: $34.7M-226.5%
Free Cash Flow

$191M

Previous: -$29.2M+755.1%
Net Income

$235M

Previous: -$29.2M+905.5%
Operating Income

$353M

Previous: $154M+128.8%
Gross Profit

$953M

Previous: $743M+28.4%
Cash & Equivalents

$2.84B

Previous: $2.65B+7.2%
Total Assets

$17.8B

Previous: $17.6B+1.1%
Stock-Based Comp

$24.7M

Previous: $29M-14.8%

Revenue & EPS history

Trane · Revenue · Quarterly

$3.02B

Q1 2021+14.2%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Trane · $2.77B total across 2 segments · Q1 2021

  • Americas HVAC & Transport
    $2.33B+10.9%
  • EMEA Climate Solutions
    $444M+22.0%

Forward guidance

Trane Technologies raised its full year 2021 guidance above previous ranges for both revenue growth and EPS. The company now expects revenue growth of approximately 10.5 percent and adjusted EPS of approximately $6.00.

Tailwinds

  • Revenue up approximately 10.5 percent.
  • Organic revenues up approximately 9 percent versus 2020.
  • GAAP continuing EPS of $5.75.
  • Adjusted continuing EPS of $6.00.
  • Adjusted continuing EPS up 35 percent versus 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.6%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+4.7%

Avg return

30 days after

66%

48 / 73 earnings

Positive

+12.0%

Q3 2023

Best reaction

-8.4%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%-0.4%-5.8%
Q4 2025+8.1%+10.4%+17.3%
Q3 2025+4.6%+1.3%-1.4%
Q2 2025-8.4%-7.9%-11.8%
Q1 2025+8.5%+14.0%+21.7%
Q4 2024+0.6%-2.3%-2.8%
Q3 2024-5.2%-3.5%+6.6%
Q2 2024+1.4%-4.4%+10.0%
Q1 2024+4.7%+6.1%+8.0%
Q4 2023+9.8%+7.2%+13.5%
Q3 2023+12.0%+14.1%+19.6%
Q2 2023+3.1%+4.7%+3.1%
Q1 2023-6.7%-6.3%-8.2%
Q4 2022+4.2%+0.9%+8.6%
Q3 2022+3.1%+4.9%+12.0%
Q2 2022+6.7%+7.4%+7.0%
Q1 2022-2.0%-3.6%-0.8%
Q4 2021-2.9%-7.8%-9.8%
Q3 2021-1.1%+2.3%+5.6%
Q2 2021-5.4%-6.1%-3.2%
Q1 2021+4.1%+6.8%+4.0%
Q4 2020+0.1%-0.3%+7.8%
Q3 2020+6.8%+11.2%+16.0%
Q2 2020+6.9%+8.2%+16.0%
Q1 2020-6.3%-0.9%+12.2%
Q4 2019+3.3%+4.1%-1.3%
Q3 2019+4.7%+5.6%+7.9%
Q2 2019+1.2%-1.1%-1.7%
Q1 2019+1.3%+3.5%-0.6%
Q4 2018+3.4%+4.1%+9.6%
Q3 2018+3.9%+1.5%+10.9%
Q2 2018+7.3%+6.7%+9.3%
Q1 2018+5.8%+4.4%+11.7%
Q4 2017+4.4%-2.2%-6.7%
Q3 2017-5.2%-7.0%-11.9%
Q2 2017-3.0%-2.9%-6.5%
Q1 2017+4.2%+3.6%+4.3%
Q4 2016-1.7%+0.7%+0.8%
Q3 2016+3.8%+4.2%+17.8%
Q2 2016-2.5%-2.6%-0.8%
Q1 2016+3.2%
Q4 2015+0.2%
Q3 2015+3.3%
Q2 2015-5.4%
Q1 2015+1.7%
Q4 2014+2.3%
Q3 2014+2.9%
Q2 2014+3.9%
Q1 2014+2.8%
Q4 2013-1.5%
Q3 2013+6.7%
Q2 2013+3.0%
Q1 2013+0.3%
Q4 2012+0.8%
Q3 2012+1.9%
Q2 2012-2.7%
Q1 2012+0.3%
Q4 2011-0.2%
Q3 2011-1.2%
Q2 2011-0.5%
Q4 2010-0.5%
Q1 2011-1.0%
Q3 2010+0.5%
Q2 2010-1.0%
Q1 2009+3.9%
Q1 2010+3.9%
Q4 2007+2.2%
Q4 2009+2.2%
Q3 2008+4.6%
Q3 2009+4.6%
Q4 2008-0.6%
Q2 2009-0.6%
Q2 2008-0.6%

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