NEW YORK - Trane Technologies (NYSE:TT) reported a robust first quarter, with adjusted earnings per share (EPS) climbing 38% to $1.94, surpassing analyst expectations by $0.29.
The company's revenue also exceeded forecasts, reaching $4.2 billion against the anticipated $3.99 billion, marking a 15% increase from the previous year.
The positive earnings news propelled the company's stock upward by 3.3% as investors reacted favorably to the earnings beat and upwardly revised full-year guidance.
The company's adjusted operating margin expanded by 230 basis points, while the adjusted EBITDA margin grew by 200 basis points to 16.8%. Organic bookings, a key indicator of future revenue, rose by 17%, with the Americas Commercial HVAC segment leading the growth at 30%.
This strong demand has resulted in a backlog of $7.7 billion, a significant 10% jump from year-end 2023 and more than double the historical norms. Chair and CEO Dave Regnery attributed the impressive results to the company's strategic focus on sustainability and a dynamic business operating system.
"Our performance gives us confidence in raising our full-year guidance for organic revenue and adjusted EPS growth," Regnery stated, signaling optimism for continued robust performance and shareholder returns.
Looking ahead, Trane Technologies has raised its full-year 2024 revenue growth forecast to 8-9%, which includes the effects of recent mergers and acquisitions as well as foreign exchange impacts.
For the second quarter of 2024, the company anticipates adjusted EPS to be between $10.40 and $10.50, higher than the analyst consensus of $10.26. The full-year 2024 GAAP continuing EPS is projected to be approximately $10.30 to $10.40, with non-GAAP adjustments expected to contribute $0.10 to this figure.
The company's upward revision of its full-year guidance reflects its strong first-quarter performance and the anticipation of sustained growth. Trane Technologies' commitment to investment and focus on high-growth sectors appears to be paying off, as evidenced by the positive response from the market and the company's confident outlook for the future.
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