NYSE$TT

Trane Technologies · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Trane Technologies' financial performance was negatively impacted by the COVID-19 pandemic, but strong execution enabled the company to outperform end market conditions.

Trane Technologies reported a decrease in revenue and EPS due to the impact of the COVID-19 pandemic. However, strong execution allowed the company to manage deleverage within gross margin target levels and maintain high levels of business reinvestment.

  • Reported bookings of $3.3 billion, reported and organic bookings down 7 percent.
  • Reported revenues of $3.1 billion, reported and organic revenues down 13 percent.
  • GAAP continuing EPS of $1.14; adjusted continuing EPS of $1.27.
  • Bookings, revenues, EPS heavily impacted by continued impacts from COVID-19 pandemic.

Headline financials

Total Revenue

$3.14B

Previous: $4.53B-30.7%
EPS (adj)

$1.27

Previous: $2.09-39.2%
Capital Expenditures

$24.9M

No prior period
Free Cash Flow

$239M

Previous: $456M-47.6%
Net Income

$239M

Previous: $456M-47.6%
Operating Income

$424M

Previous: $651M-34.9%
Gross Profit

$978M

Previous: $1.43B-31.8%
Cash & Equivalents

$2.37B

Previous: $876M+170.3%
Total Assets

$17.2B

Previous: $20.7B-16.7%
Stock-Based Comp

$16.5M

Previous: $11.5M+43.5%

Revenue & EPS history

Trane · Revenue · Quarterly

$3.14B

Q2 2020-30.7%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Trane · $2.83B total across 2 segments · Q2 2020

  • Americas HVAC & Transport
    $2.46B
  • EMEA Climate Solutions
    $373M

Forward guidance

Given the current uncertainty created by the COVID-19 pandemic and its impact on the Company's end markets, the Company has not reinstated financial guidance for 2020. The Company intends to reevaluate guidance on its third quarter earnings call.

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 Q2 2020

Historical avgQ2 2020

+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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