Trane Technologies (TT) 19th Annual Global Transportation & Industrials Conference summary

Business performance and outlook

• Bookings rose 24% in Q1, with commercial HVAC bookings up 40% and applied bookings up over 160%.

• Backlog reached $10.7 billion at Q1 end, up nearly $3 billion, with two-thirds organic and one-third from acquisitions.

• Raised full-year guidance for both top and bottom line, expecting strong acceleration in the second half, especially in commercial HVAC.

• Residential market guidance now flattish for the year, with normalized inventories and cautious optimism.

• Transport markets expected to see growth in the second half, with positive underlying trends and aging fleets.

Strategic initiatives and acquisitions

• Stellar Energy acquisition added $1 billion in backlog, with $500 million revenue expected this year and mid-teens EBITDA targeted in 2-3 years.

• Investments in scaling Stellar include a new Texas facility and increased CapEx guidance to 2%-3% of revenue.

• LiquidStack acquisition enhances liquid cooling capabilities and innovation pipeline for data centers.

• Modular chiller plants now produced in a factory environment, enabling expansion into multiple verticals beyond data centers.

Market trends and operational strategies

• Commercial HVAC growth is back-half loaded due to customer delivery requirements and backlog conversion timing.

• Data center segment order timelines have extended to 12-18 months, improving supply chain visibility.

• Level-loaded production strategy in residential aims for stable inventory and improved factory absorption in the second half.

• Price increases of up to 5% announced in April, with 2% expected to be realized; competitors have higher increases.

• In-region manufacturing footprint provides tariff advantages and pricing flexibility.