IGI Logo

Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $1.35 for the first quarter of 2023. Adjusted continuing EPS was $1.41, up 26 percent, excluding $15.6 million of pre-tax non-GAAP adjustments.

First-Quarter 2023 Results
Financial Comparisons - First-Quarter Continuing Operations

“In the first quarter, we continued our track record of strong financial results and expect our performance to once again rank in the top quartile among industrials,” said Dave Regnery, chair and CEO, Trane Technologies. "Our global team delivered robust bookings, organic revenue growth of 9 percent, adjusted EBITDA margin expansion of 100 basis points and adjusted EPS growth of 26 percent.

"Our strong first-quarter performance, diverse and resilient portfolio and unprecedented backlog give us confidence in raising our full-year guidance for organic revenue and adjusted EPS growth. With our  focused sustainability strategy, leading innovation and uplifting culture, we are well positioned to continue delivering superior growth and differentiated shareholder returns over the long term.”

Highlights from the First Quarter of 2023 (all comparisons against first-quarter 2022 unless otherwise noted)

• Delivered strong first-quarter revenue, operating income, EBITDA and EPS growth.

• Enterprise reported and organic bookings were both down 1 percent.

• Enterprise reported and organic revenues were both up 9 percent.

• Strong book-to-bill ratio of 117 percent.

• GAAP operating margin was up 90 basis points, adjusted operating margin was up 140 basis points and adjusted EBITDA margin was up 100 basis points.

• Strong positive price realization, volume and productivity more than offset inflation related to supply chain challenges and higher costs to serve customers. The Company also continued high levels of business reinvestment.

• Enterprise exited the first quarter of 2023 with backlog more than 2.5 times historical norms.

First-Quarter Business Review (all comparisons against first-quarter 2022 unless otherwise noted)

Americas Segment: innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions.

• Reported and organic bookings were both down 4 percent.

• Reported revenues were up 9 percent; organic revenues were up 8 percent.

• Strong book-to-bill ratio of 116 percent.

• Americas segment exited the first quarter of 2023 with backlog at approximately 3 times historical norms.

• GAAP operating margin was up 40 basis points, adjusted operating margin was up 90 basis points and adjusted EBITDA margin was up 50 basis points.

• Strong positive price realization, volume and productivity more than offset inflation related to supply chain challenges and higher costs to serve customers. The Company also continued high levels of business reinvestment.

Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.

• Reported and organic bookings were both up 10 percent.

• Reported revenues were up 16 percent, including approximately 6 percentage points related to acquisitions offset by approximately 6 percentage points of negative foreign exchange impact. Organic revenues were up 15 percent.

• Strong book-to-bill ratio of 116 percent.

• EMEA segment exited the first quarter of 2023 with backlog approximately 60 percent more than historical norms.

• GAAP operating margin was up 530 basis points, adjusted operating margin was up 540 basis points and adjusted EBITDA margin was up 510 basis points.

• Strong positive price realization, volume and productivity more than offset inflation related to supply chain challenges and higher costs to serve customers. The Company also continued high levels of business reinvestment.

To Read Complete Report & Disclaimer Click Here

Above views are of the author and not of the website kindly read disclaimer