Revenue Growth Momentum
TT grew total revenue by 7.5% year-over-year to $21.3B in FY2025, up from $19.8B in the prior year, reflecting continued demand strength across its business segments.
Source: 10-K Income Statement, Financial Data
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
TT delivered solid FY2025 results with revenue growing 7.5% to $21.3B and net income rising 13.7% to $2.9B, driven by expanding operating margins and disciplined cost management.
Revenue
$21.32B
+7.48% YoY
EPS (Diluted)
$12.98
+15.48% YoY
Operating Income
$3.97B
+13.35% YoY
Source: SEC XBRL
Trane Technologies (TT) reported FY2025 revenue of $21.32B, up 7.5% year over year. Operating margin was 18.6%, up 1.0 points from 17.6% a year earlier. Operating cash flow was $3.19B, up 1.6% year over year.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 4.31 | 4.39 | Miss -1.9% |
| Mar 2026 | 2.63 | 2.61 | Beat +0.9% |
| Dec 2025This filing | 2.86 | 2.90 | Miss -1.2% |
| Sep 2025 | 3.88 | 3.89 | Miss -0.3% |
Reported EPS of $2.86 versus the $2.90 analyst consensus — a -1.2% miss for Dec 2025.
Compiled by AI from this SEC filing
TT grew total revenue by 7.5% year-over-year to $21.3B in FY2025, up from $19.8B in the prior year, reflecting continued demand strength across its business segments.
Source: 10-K Income Statement, Financial Data
Operating margin improved approximately 100 basis points to 18.6% in FY2025 from 17.6% in FY2024, indicating that revenue growth outpaced cost increases and operational leverage is being realized.
Source: 10-K Income Statement, Financial Data
Diluted EPS grew 15.5% to $12.98 in FY2025 versus $11.24 in FY2024, meaningfully outpacing the 7.5% revenue growth rate, partly driven by share buybacks of $1.48B during the year.
Source: 10-K Income Statement & Cash Flow, Financial Data
R&D expense rose 12.3% to $347.6M in FY2025, growing faster than revenue, signaling continued investment in innovation and future product development to sustain competitive positioning.
Source: 10-K Income Statement, Financial Data
TT repurchased $1.48B in shares during FY2025, a 15.7% increase over the $1.28B repurchased in FY2024, reflecting management's confidence in the business and commitment to returning capital to shareholders.
Source: 10-K Cash Flow Statement, Financial Data
Compiled by AI from this SEC filing · 0 high, 4 medium, 1 low
TT carries $4.6B in long-term debt against stockholders' equity of $8.6B, resulting in a debt-to-equity ratio of approximately 1.49. While long-term debt declined 3.3% year-over-year, the leverage level remains meaningful and could constrain financial flexibility if business conditions deteriorate.
Source: 10-K Balance Sheet, Financial Data
SG&A expenses totaled $3.74B in FY2025, representing a significant portion of revenue. Although SG&A growth of 4.5% was below revenue growth, the absolute cost base is large and could pressure margins if revenue growth slows.
Source: 10-K Income Statement, Financial Data
Financing cash outflows surged 23.5% to -$2.50B in FY2025, driven by increased share buybacks and debt service. Aggressive capital return programs reduce the cash available for strategic investments or to buffer against economic downturns.
Source: 10-K Cash Flow Statement, Financial Data
TT's current ratio stands at approximately 1.25, meaning current assets cover current liabilities by only a modest margin. With $6.3B in current liabilities, any unexpected cash demands or revenue shortfall could tighten near-term liquidity.
Source: 10-K Balance Sheet, Financial Data
R&D spending grew 12.3% to $347.6M, faster than revenue, indicating increasing investment in new technologies. If these investments do not translate into commercially successful products or services, the company may face margin pressure without corresponding revenue benefits.
Source: 10-K Income Statement, Financial Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 21.32 $B | 19.84 $B | +7.48% |
Operating Income $B | 3.97 $B | 3.50 $B | +13.35% |
Net Income $B | 2.92 $B | 2.57 $B | +13.66% |
EPS (Basic) $ | 13.09 $ | 11.35 $ | +15.33% |
EPS (Diluted) $ | 12.98 $ | 11.24 $ | +15.48% |
R&D Expense $M | 347.60 $M | 309.60 $M | +12.27% |
SG&A Expense $B | 3.74 $B | 3.58 $B | +4.54% |
Answers draw on this SEC filing and the data on this page
Trane Technologies reported strong net revenue growth of 10.6% YoY to $6.35B in Q2 FY2026, driven by volume growth in the Americas and Asia Pacific, though gross margin contracted 200 bps due to inflation and investments.
TT reported Q1 FY2026 revenue of $4.97B (+6.0% YoY) but saw operating income decline 5.2% to $776.1M as rising SG&A expenses (+10.9%) and cost of revenue (+7.6%) compressed margins, while operating cash flow surged 84.4% to $626.2M.
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