Trane tops fourth-quarter estimates

Trane Technologies (NYSE: TT) reports $1.36 fourth-quarter EPS, which tops the $1.31 analyst estimates by $0.05. The company recorded $3.6 billion in revenue, which was more than the $3.55 billion consensus estimate. The full-year EPS for 2022 came to around $6.95-$7.15, more than the $6.97 consensus. 

Trane tops Q4 consensus earnings estimates 

Trane reported $4.1 billion in bookings, representing a 28% increase, while organic bookings grew by 27%. The company recorded $3.6 billion in revenue in the fourth quarter, representing a 12% increase. In addition, organic revenue grew by about 11%. It also reported a record backlog of about $5.4 billion, representing a year-over-year increase of 88%. 

Trane Technologies Chief Executive Officer and Chairman Dave Regnery said:

The CEO continued and said:

Key financial highlights 

Enterprise reported revenues and bookings increased by 12% and 28%, respectively, while organic revenues and bookings increased by 11% and 27%, respectively. The increase in these two areas is helped drive the growth in all the other segments. Enterprise reported revenue comprised of roughly two percentage points from the acquisitions area of the business. 

The company reported a flat GAAP operating margin, but the adjusted EBITDA margin grew by 30 base points, and the adjusted operating margin grew by 10 base points. Positive price and volume growth versus cost were affected by the negative impacts on company productivity arising from logistics, freight, and supply chain challenges. 

The Americas segment delivered record-breaking bookings and revenue in the fourth quarter as customer demands for its products and services remained solid. Americas revenues and bookings increased by 15% and 33%, respectively, while organic revenues and bookings increased 14% and 31%, respectively.