Trane tops fourth-quarter estimates

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Trane Technologies (NYSE: TTreports $1.36 fourth-quarter EPS, which tops the $1.31 analyst estimates by $0.05. The company recorded $3.6 billion in revenue, which was more than the $3.55 billion consensus estimate. The full-year EPS for 2022 came to around $6.95-$7.15, more than the $6.97 consensus. 

Trane tops Q4 consensus earnings estimates 

Trane reported $4.1 billion in bookings, representing a 28% increase, while organic bookings grew by 27%. The company recorded $3.6 billion in revenue in the fourth quarter, representing a 12% increase. In addition, organic revenue grew by about 11%. It also reported a record backlog of about $5.4 billion, representing a year-over-year increase of 88%. 

Trane Technologies Chief Executive Officer and Chairman Dave Regnery said:

Our global teams delivered record bookings, revenue, operating margins and earnings per share. Our strong free cash flow enabled ongoing investment in business innovation, decarbonization and expanded plant capacity, while returning $1.7 billion to shareholders. We are entering 2022 with record backlog of $5.4 billion, up 88 percent from the prior year.

The CEO continued and said:

With healthy end markets, record customer demand for sustainable solutions and historic levels of backlog, we are well positioned to deliver another strong year of financial performance in 2022 and differentiated profitable growth and shareholder returns over the long term.

Key financial highlights 

Enterprise reported revenues and bookings increased by 12% and 28%, respectively, while organic revenues and bookings increased by 11% and 27%, respectively. The increase in these two areas is helped drive the growth in all the other segments. Enterprise reported revenue comprised of roughly two percentage points from the acquisitions area of the business. 

The company reported a flat GAAP operating margin, but the adjusted EBITDA margin grew by 30 base points, and the adjusted operating margin grew by 10 base points. Positive price and volume growth versus cost were affected by the negative impacts on company productivity arising from logistics, freight, and supply chain challenges. 

The Americas segment delivered record-breaking bookings and revenue in the fourth quarter as customer demands for its products and services remained solid. Americas revenues and bookings increased by 15% and 33%, respectively, while organic revenues and bookings increased 14% and 31%, respectively. 

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