# Trane Technologies (TT.US)

Canonical: https://gigainvestors.com/s/TT

Analysis as of: 2026-10-16T07:32:34.590Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $457.36 per share; close as of 2026-10-15.

Estimated value: low $175.72 per share, central $254.51 per share, high $298.45 per share. Buy at or below the central value $254.51 per share. Valuation as of 2026-10-16T07:32:34.590Z; scenarios are not confidence intervals.

Expected annual return: 7.0% at the stated quote. About 7.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.17×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.12×

- FY2018: 0.12×

- FY2019: 0.13×

- FY2020: 0.12×

- FY2021: 0.14×

- FY2022: 0.15×

- FY2023: 0.16×

- FY2024: 0.18×

- FY2025: 0.19×

- LTM to Jun 2026: 0.18×

### moat: pass

- ROIC, median of available years: 47.6%

- ROIC, second-lowest year: 28.9%

- Typical minus recent gross margin: -4.1 pp

- Typical gross margin (annual median): 31.3%

- Recent gross margin (lower of latest and 3-year median): 35.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 16.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 41.5%

- FY2018: 28.6%

- FY2019: 28.9%

- FY2020: 38.5%

- FY2021: 47.7%

- FY2022: 47.4%

- FY2023: 50.9%

- FY2024: 55.1%

- FY2025: 64.2%

- LTM to Jun 2026: 65.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $11B

- Net income, five-year total: $11B

- Return on incremental invested capital: 646.9%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -2.0 pp

- Working capital / revenue, final three-year average: 16.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.05×

- FY2022: 1.02×

- FY2023: 1.02×

- FY2024: 1.00×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 39.4% vs 55.1%

- Per-share earnings: 5.13 to 11.30 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.7%

- Ordinary dilution, 5-year annual growth: -1.8%

- Market cap gain: $72B

- Cumulative retained earnings: $2.4B

- Diluted shares, 10-year annual growth: -1.7%

- Diluted shares, 5-year annual growth: -1.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.4%

- Per-share value change: $6.17

- Per-share value, starting three-year median: $5.13

- Per-share value, ending three-year median: $11.30

- Buybacks concentrated in cheaper years (correlation): 0.58

- Average buyback yield: 2.6%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $2.8B

- Cumulative net income, 10 years: $17B

- ROIC, first three-year median: 39.4%

- ROIC, last three-year median: 55.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $5.62

- FY2017: $5.13

- FY2018: $5.40

- FY2019: $5.81

- FY2020: $3.50

- FY2021: $5.91

- FY2022: $7.56

- FY2023: $8.80

- FY2024: $11.30

- FY2025: $13.05

### accounting: pass

- Sloan accruals: -1.3%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.09×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.13×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.3%

- FY2017: -1.2%

- FY2018: -0.4%

- FY2019: -2.5%

- FY2020: -3.2%

- FY2021: -0.9%

- FY2022: 1.4%

- FY2023: -1.9%

- FY2024: -2.9%

- FY2025: -1.3%

## Holders

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 14.9% a year for ten years · sales +4.2%

Story as of 2026-10-16T09:59:44.035Z; price observation 2026-10-15.

Price needs cash profits to grow 14.9% a year for ten years

- 2025-05-05: TT Q1 Earnings Call: Trane Technologies Exceeds Expectations, Focuses on Pricing Amid Tariffs ([finance.yahoo.com](https://finance.yahoo.com/news/tt-q1-earnings-call-trane-233838947.html))

- 2025-10-31: Trane Leans on Commercial Strength to Balance Residential Weakness, RBC Says ([finance.yahoo.com](https://finance.yahoo.com/news/trane-leans-commercial-strength-balance-154648231.html))

- 2026-02-12: Trane Stock Rises To All-Time High Amid AI Data Center Buildouts ([finance.yahoo.com](https://finance.yahoo.com/m/04565f5a-702c-3445-a3cc-e8f81265621e/trane-stock-rises-to-all-time.html))

- 2026-04-30: Trane raises annual profit forecast on commercial HVAC demand ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/trane-raises-annual-profit-forecast-112316191.html))

- 2026-06-25: Trane Technologies Rides on HVAC Momentum and AI-Driven Cooling Demand ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/trane-technologies-rides-hvac-momentum-161800820.html))

- 2026-09-26: Trane Technologies (TT) Could Be 13% Undervalued Following HVAC And Heat Pump Growth Forecasts ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/trane-technologies-tt-could-13-220709035.html))

### Sales · FY2025–2026

sales +4.2%; source https://www.sec.gov/Archives/edgar/data/836102/000119312508034362/d10k.htm; observed 2008-02-20.

- FY2017: $14B 

- FY2018: $12B 

- FY2019: $13B 

- FY2020: $12B 

- FY2021: $14B 

- FY2022: $16B 

- FY2023: $18B 

- FY2024: $20B 

- FY2025: $21B 

- FY2026: $22B 

### Gross margin · FY2026

gross margin 35.4%; source https://www.sec.gov/Archives/edgar/data/836102/000119312508034362/d10k.htm; observed 2008-02-20.

- FY2017: 30.9% 

- FY2018: 30.5% 

- FY2019: 30.8% 

- FY2020: 30.5% 

- FY2021: 31.6% 

- FY2022: 31.0% 

- FY2023: 33.1% 

- FY2024: 35.7% 

- FY2025: 36.2% 

- FY2026: 35.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in building products & equipment; annual sales are USD 21.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2025: revenue 21321900000; grossProfit 7710200000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TT.US: Trane Technologies plc designs, manufactures, sells, and services of solutions for heating, ventilation, air conditioning, and custom and transport refrigeration. It offers air conditioners, exchangers, and handlers; airside and terminal devices; air sourced heat pumps; chillers; coils and condensers; auxiliary power, cold storage, and condensing units; controls contracting and commissioning, decarbonization programs, and gensets; dehumidifiers; energy and water efficiency programs; energy recovery ventilators and power solutions; energy storage; furnaces; home automation; humidifiers; HVAC performance-monitoring products; and indoor air quality assessments and related products for HVAC and transport solutions. The company also provides asset management, building management, bus air purification, bus and rail HVAC, container refrigeration, control, ductless, geothermal, data center and multi-pipe HVAC, package heating and cooling, rail refrigeration, residential air filtration, self and vehicle powered truck refrigeration, temporary heating and cooling, truck refrigeration, unitary, variable refrigerant flow, and trailer refrigeration systems. In addition, it offers industrial process refrigeration, installation contracting, lighting retrofit, medical grade refrigeration, refrigerant reclamation, renewable energy and storage, residential hybrid heating, telematics, thermostats/controls and associated digital, ventilation, and stationary cold storage solutions; packaged rooftop units; rate chambers; residential air filters; thermal energy storage; transport heater products; temperature freezers; energy infrastructure programs and management, repair and maintenance, smart and AI-enabled, and rental services; water source heat pumps; and aftermarket and OEM parts and supplies. The company was formerly known as Ingersoll-Rand Plc and changed its name to Trane Technologies plc in March 2020. The company was founded in 1885 and is headquartered in Swords, Ireland.

### Why customers stay

Margins ranged from 33.1% to 36.2% during 2023–25; it earns 47.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2023: grossProfit / revenue = 33.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2024: grossProfit / revenue = 35.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2025: grossProfit / revenue = 36.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); 10-year return on capital observations [[2017,0.41499984997818007],[2018,0.28643163427194646],[2019,0.28864650183958246],[2020,0.38468756009881155],[2021,0.47707480639876365],[2022,0.47430564673988873],[2023,0.5087201051319455],[2024,0.5507950422256068],[2025,0.6417681430789899],[2026,0.657182987604396]]; median 0.4756902265693262. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 1.4% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2016: growth capex 0; upkeep 182700000; owner earnings 1645700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2017: growth capex 0; upkeep 221300000; owner earnings 1434600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2018: growth capex 0; upkeep 365600000; owner earnings 1254300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2019: growth capex 0; upkeep 254100000; owner earnings 1445600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2020: growth capex 0; upkeep 146200000; owner earnings 1003000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2021: growth capex 0; upkeep 223000000; owner earnings 1499800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2022: growth capex 0; upkeep 291800000; owner earnings 1788300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2023: growth capex 0; upkeep 300700000; owner earnings 2071300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2024: growth capex 0; upkeep 370600000; owner earnings 2576700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2025: growth capex 41500001; upkeep 341499999; owner earnings 2918600000. Growth capex / owner earnings = 0.014219146508600013.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); Incremental return on capital 6.4691524087956385, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); Dividend observations: [[2016,348600000],[2017,430100000],[2018,479500000],[2019,510100000],[2020,507300000],[2021,561100000],[2022,620200000],[2023,683700000],[2024,757500000],[2025,837299999]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); FY2025: cash repurchases 1481300000 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TT.US SharesStats.PercentInsiders = 0.266 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 14.9% yearly over ten years; actual growth was 16.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2008-02-20); Ten-year compound average after fade. Initial solved rate 0.2734510486526801. Price 457.36; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.9377828054298645 → FY2025 13.052772808586763. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-11: $57.83 per share

- 2016-12: $58.22 per share

- 2017-01: $61.56 per share

- 2017-02: $61.57 per share

- 2017-03: $63.09 per share

- 2017-04: $68.85 per share

- 2017-05: $69.51 per share

- 2017-06: $70.90 per share

- 2017-07: $68.18 per share

- 2017-08: $66.25 per share

- 2017-09: $69.18 per share

- 2017-10: $68.74 per share

- 2017-11: $67.98 per share

- 2017-12: $69.19 per share

- 2018-01: $73.41 per share

- 2018-02: $68.89 per share

- 2018-03: $66.34 per share

- 2018-04: $65.08 per share

- 2018-05: $67.91 per share

- 2018-06: $69.61 per share

- 2018-07: $76.42 per share

- 2018-08: $78.58 per share

- 2018-09: $79.36 per share

- 2018-10: $74.43 per share

- 2018-11: $80.31 per share

- 2018-12: $70.78 per share

- 2019-01: $77.61 per share

- 2019-02: $81.89 per share

- 2019-03: $83.75 per share

- 2019-04: $95.12 per share

- 2019-05: $91.81 per share

- 2019-06: $98.27 per share

- 2019-07: $95.93 per share

- 2019-08: $93.94 per share

- 2019-09: $95.59 per share

- 2019-10: $98.44 per share

- 2019-11: $101.71 per share

- 2019-12: $103.12 per share

- 2020-01: $103.36 per share

- 2020-02: $100.11 per share

- 2020-03: $82.59 per share

- 2020-04: $87.42 per share

- 2020-05: $90.21 per share

- 2020-06: $88.98 per share

- 2020-07: $111.87 per share

- 2020-08: $118.39 per share

- 2020-09: $121.25 per share

- 2020-10: $132.75 per share

- 2020-11: $146.24 per share

- 2020-12: $145.16 per share

- 2021-01: $143.35 per share

- 2021-02: $153.24 per share

- 2021-03: $165.56 per share

- 2021-04: $173.83 per share

- 2021-05: $186.40 per share

- 2021-06: $184.14 per share

- 2021-07: $203.61 per share

- 2021-08: $198.50 per share

- 2021-09: $172.65 per share

- 2021-10: $180.93 per share

- 2021-11: $186.65 per share

- 2021-12: $202.03 per share

- 2022-01: $173.10 per share

- 2022-02: $153.93 per share

- 2022-03: $152.70 per share

- 2022-04: $139.89 per share

- 2022-05: $138.06 per share

- 2022-06: $129.87 per share

- 2022-07: $146.99 per share

- 2022-08: $154.07 per share

- 2022-09: $144.81 per share

- 2022-10: $159.63 per share

- 2022-11: $178.42 per share

- 2022-12: $168.09 per share

- 2023-01: $179.12 per share

- 2023-02: $184.97 per share

- 2023-03: $183.98 per share

- 2023-04: $185.81 per share

- 2023-05: $163.23 per share

- 2023-06: $191.26 per share

- 2023-07: $199.44 per share

- 2023-08: $205.26 per share

- 2023-09: $202.91 per share

- 2023-10: $190.31 per share

- 2023-11: $225.41 per share

- 2023-12: $243.90 per share

- 2024-01: $252.05 per share

- 2024-02: $281.97 per share

- 2024-03: $300.20 per share

- 2024-04: $317.34 per share

- 2024-05: $327.46 per share

- 2024-06: $328.93 per share

- 2024-07: $334.28 per share

- 2024-08: $361.66 per share

- 2024-09: $388.73 per share

- 2024-10: $370.16 per share

- 2024-11: $416.22 per share

- 2024-12: $369.35 per share

- 2025-01: $362.75 per share

- 2025-02: $353.70 per share

- 2025-03: $336.92 per share

- 2025-04: $383.31 per share

- 2025-05: $430.27 per share

- 2025-06: $437.41 per share

- 2025-07: $438.08 per share

- 2025-08: $415.60 per share

- 2025-09: $421.96 per share

- 2025-10: $448.65 per share

- 2025-11: $421.48 per share

- 2025-12: $389.20 per share

- 2026-01: $420.58 per share

- 2026-02: $462.32 per share

- 2026-03: $416.74 per share

- 2026-04: $492.54 per share

- 2026-05: $451.30 per share

- 2026-06: $491.16 per share

- 2026-07: $454.95 per share

- 2026-08: $444.40 per share

- 2026-09: $451.98 per share

- 2026-10: $478.01 per share

## Annual estimated value (USD per share)

- FY2016: low $50.45 per share, central $56.65 per share, high $64.90 per share

- FY2017: low $53.85 per share, central $60.58 per share, high $69.55 per share

- FY2018: low $57.69 per share, central $65.28 per share, high $75.38 per share

- FY2019: low $64.08 per share, central $72.32 per share, high $83.30 per share

- FY2020: low $69.07 per share, central $76.88 per share, high $87.27 per share

- FY2021: low $73.03 per share, central $82.02 per share, high $93.99 per share

- FY2022: low $83.67 per share, central $94.67 per share, high $109.32 per share

- FY2023: low $103.30 per share, central $126.35 per share, high $146.81 per share

- FY2024: low $138.49 per share, central $187.95 per share, high $219.48 per share

- FY2025: low $168.22 per share, central $242.65 per share, high $284.16 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:38:19.912Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/836102/000119312508034362/d10k.htm); period 2007-12-31, filed 2008-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.