Trane Technologies · Q4 2022 earnings

Briefing

Trane reported strong fourth-quarter and full-year results, with robust backlog providing strong visibility entering 2023.

Trane Technologies reported a 14% increase in revenue to $4.1 billion, with organic revenues up 16%. GAAP EPS was $1.91, while adjusted EPS was $1.82, a 34% increase. The company's backlog remained strong at $6.9 billion, up 27% year-over-year.

• Delivered strong fourth-quarter revenue, operating income, EBITDA and EPS growth.
• Enterprise reported revenues were up 14 percent, including approximately 1 percentage point of acquisitions offset by approximately 3 percentage points of negative foreign exchange impact. Organic revenues were up 16 percent.
• GAAP operating margin was up 210 basis points, adjusted operating margin was up 120 basis points and adjusted EBITDA margin was up 100 basis points.
• Strong volume growth, positive price realization and productivity more than offset material and other inflation related to supply chain challenges and higher costs to serve customers.

Headline financials

Revenue & EPS history

The Company expects full-year 2023 reported revenue growth of approximately 7 percent to 9 percent; organic revenue growth of approximately 6 percent to 8 percent versus full-year 2022. The Company expects GAAP continuing EPS for full-year 2023 of $8.10 to $8.40. This includes EPS of $0.10 for non-GAAP adjustments. The Company expects adjusted continuing EPS for full-year 2023 of $8.20 to $8.50.