NYSE$TT

Trane Technologies · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Trane Technologies reported strong fourth-quarter and full-year 2020 results, delivering solid bookings growth, flat revenue, strong margin expansion and compelling EPS growth.

Trane Technologies reported flat revenue but achieved strong margin expansion and EPS growth in Q4 2020. The company's adjusted continuing EPS was up 12 percent. Exceptional full-year free cash flow of $1.7 billion, or 158% of adjusted net earnings.

  • GAAP operating margin up 180 bps and adjusted operating margin up 150 bps
  • GAAP continuing EPS of $1.01; adjusted continuing EPS of $1.03, up 12 percent
  • Exceptional cash conversion for full-year 2020; free cash flow of $1.7 billion, 158 percent of adjusted net earnings
  • Enterprise reported revenues were flat; enterprise organic revenues were down 1 percent.

Headline financials

Total Revenue

$3.18B

Previous: $4.15B-23.4%
EPS (adj)

$1.03

Previous: $1.40-26.4%
Capital Expenditures

$57.1M

Previous: $254M-77.5%
Free Cash Flow

$1.71B

Previous: $1.84B-6.8%
Net Income

$245M

Previous: $301M-18.7%
Operating Income

$388M

Previous: $425M-8.7%
Gross Profit

$948M

Previous: $1.25B-24.0%
Cash & Equivalents

$3.29B

Previous: $1.3B+152.4%
Total Assets

$18.2B

Previous: $20.5B-11.4%
Stock-Based Comp

$12M

Previous: $12M+0.0%

Revenue & EPS history

Trane · Revenue · Quarterly

$3.18B

Q4 2020-23.4%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Trane · $2.85B total across 2 segments · Q4 2020

  • Americas HVAC & Transport
    $2.39B
  • EMEA Climate Solutions
    $465M

Forward guidance

The company expects strong adjusted earnings per share in 2021, guiding to a range of $5.30 to $5.50, up 19% to 23%.

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 Q4 2020

Historical avgQ4 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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