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Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $1.92 for the first quarter of 2024. Adjusted continuing EPS was $1.94, up 38 percent.

First-Quarter 2024 Results

Financial Comparisons - First-Quarter Continuing Operations

“Our strong first quarter performance demonstrates the power of our purpose-driven sustainability strategy, uplifting culture and highly engaged team,” said Dave Regnery, chair and CEO, Trane Technologies. “We continue to deliver a leading growth profile among industrials through relentless investment in our business, our proven business operating system, and focused execution in high growth verticals that play to our unique strengths.

“In the first quarter, we achieved double-digit revenue growth, an increase of 38% in adjusted earnings per share, and exceptional bookings that drove backlog to $7.7 billion. Our performance gives us confidence in raising our full-year guidance for organic revenue and adjusted EPS growth and positions us well to continue delivering leading growth and differentiated shareholder returns over the long term.”

Highlights from the First Quarter of 2024 (all comparisons against first-quarter 2023 unless otherwise noted)

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

* Strong bookings of $5.1 billion; organic bookings were up 17 percent. Book-to-bill was 120 percent.

* Backlog of $7.7 billion. Added approximately $800 million of Commercial HVAC backlog for 2025 and beyond.

* Enterprise reported revenues were up 15 percent, including 2 percentage points related to acquisitions and approximately 1 percentage point of negative foreign exchange impact. Organic revenues were up 14 percent.

* GAAP operating margin was up 250 basis points, adjusted operating margin was up 230 basis points and adjusted EBITDA margin was up 200 basis points.

* Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment.

First-Quarter Business Review (all comparisons against first-quarter 2023 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 solutions, energy services and solutions, residential heating and cooling; and transport refrigeration systems and solutions.

* Strong bookings of $4.0 billion. Book-to-bill was 120 percent.

* Organic bookings were up 20 percent, led by Commercial HVAC, which was up 30 percent year-overyear and up more than 60 percent on a 3-year stack.

* Reported revenues were up 17 percent, including 2 percentage points related to acquisitions. Organic revenues were up 15 percent.

* GAAP operating margin was up 260 basis points, adjusted operating margin was up 240 basis points and adjusted EBITDA margin was up 220 basis points.

* Strong volume growth, positive price realization and productivity more than offset inflation. 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.

* Bookings were up 12 percent; organic bookings were up 7 percent. Book-to-bill was 119 percent.

*  Reported revenues were up 8 percent, including approximately 4 percentage points related to acquisitions. Organic revenues were up 4 percent.

* GAAP operating margin was up 30 basis points; adjusted operating margin was up 30 basis points impacted by lower contribution from year one M&A. Adjusted EBITDA margin was down 50 basis points due to the negative impact of foreign exchange losses.

* Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment.

Asia Pacific Segment: innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.

* Bookings were up 2 percent; organic bookings were up 6 percent. Book-to-bill was 121 percent.

* Reported revenues were up 11 percent, including approximately 5 percentage points of negative foreign exchange impact. Organic revenues were up 16 percent. 

* GAAP operating margin was up 350 basis points, adjusted operating margin was up 310 basis points and adjusted EBITDA margin was up 220 basis points.

* Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment.

Balance Sheet and Cash Flow

* First quarter of 2024, cash flow from continuing operating activities was $254 million and free cash flow was $175 million.

* Year-to-date through April, the Company deployed approximately $621 million, including $190 million for dividends and $431 million for share repurchases.

* The Company expects to continue to pay a competitive and growing dividend and to deploy 100 percent of excess cash to shareholders over time. In the first quarter of 2024, the Company increased its annual dividend by 12 percent to $3.36 per share annualized. Since launching Trane Technologies in March of 2020, the Company has raised the quarterly dividend by 58 percent.

Raising Full-Year 2024 Revenue and EPS Guidance

* The Company expects full-year reported and organic revenue growth of 8 to 9 percent; reported revenue growth includes approximately 1 percentage point of M&A offset by approximately 1 percentage point of negative foreign exchange.

* The Company expects GAAP continuing EPS for full-year 2024 of approximately $10.30 to $10.40. This includes EPS of $0.10 for non-GAAP adjustments. The Company expects adjusted continuing EPS for full-year 2024 of $10.40 to $10.50.

* Additional information regarding the Company's 2024 guidance is included in the Company's earnings presentation found at www.tranetechnologies.com in the Investor Relations section.

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