NYSE$TT

Trane Technologies · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported strong bookings and revenue growth, driven by robust customer demand and effective management of headwinds.

Trane Technologies reported a strong third quarter with robust bookings and revenue growth. Despite facing material inflation and supply chain challenges, the company reaffirmed its 2021 outlook and strengthened its view into 2022, driven by continued customer demand for its climate control products and services.

  • Reported bookings increased by 22 percent, with organic bookings up by 20 percent.
  • Reported revenues grew by 6 percent, and organic revenues increased by 4 percent.
  • GAAP continuing EPS was $1.73, while adjusted continuing EPS was $1.80, a 5 percent increase.
  • The company delivered record third-quarter backlog of approximately $5 billion.

Headline financials

Total Revenue

$3.72B

Previous: $3.5B+6.4%
EPS (adj)

$1.80

Previous: $1.72+4.7%
Capital Expenditures

-$122M

Previous: $29.5M-512.2%
Free Cash Flow

$284M

Previous: $401M-29.1%
Net Income

$406M

Previous: $401M+1.3%
Operating Income

$583M

Previous: $567M+2.9%
Gross Profit

$1.2B

Previous: $1.13B+6.1%
Cash & Equivalents

$2.74B

Previous: $3.19B-14.1%
Total Assets

$18.2B

Previous: $17.9B+1.5%
Stock-Based Comp

$12.7M

Previous: $12M+5.8%

Revenue & EPS history

Trane · Revenue · Quarterly

$3.72B

Q3 2021+6.4%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Trane · $3.41B total across 2 segments · Q3 2021

  • Americas HVAC & Transport
    $2.91B+6.0%
  • EMEA Climate Solutions
    $495M+11.2%

Forward guidance

The company reaffirmed its 2021 guidance.

Tailwinds

  • Reported revenues up approximately 13.5 percent versus 2020.
  • Organic revenues up approximately 11 percent versus 2020.
  • GAAP continuing EPS of $5.80.
  • Adjusted continuing EPS of $6.05, up 36 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 Q3 2021

Historical avgQ3 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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