Trane Technologies (TT) Morgan Stanley’s 13th Annual Laguna Conference summary

Five-year performance and growth

• Revenue grew from $12.5B to over $21B, market cap nearly tripled to $90B, and employee count rose to 46,000 in five years.

• Achieved a 12% compound annual growth rate over the last five years.

• Record Q2 enterprise bookings of $5.6B (up 5%) and organic revenue up 7%; adjusted EPS up 18%.

• Q2 ending backlog at $7.1B, up 6% from year-end 2024, with strong visibility for 2025 and 2026.

• CEO sees more growth opportunities ahead, driven by energy efficiency and sustainability trends.

Strategic priorities and business model

• Focus on sustainable innovation, execution excellence, and dynamic capital allocation to drive differentiated shareholder returns.

• Pure-play climate control business with leading brands and a high aftermarket mix, generating $19.8B in FY 2024 sales.

• Strong operating system and performance culture underpin a foundation of powerful cash flow and uplifting company culture.

Sustainability leadership and recognition

• Committed to reducing one gigaton of customer CO₂e emissions by 2030 through clean technologies and energy efficiency.

• Recognized for sustainability leadership, including listings on Dow Jones Sustainability Index, CDP Climate A List, and TIME World's Most Sustainable Companies.

• Sustainability strategy yields social and financial benefits, driving innovation, employee engagement, and productivity.

• 2030 commitments include reducing one gigaton of customer CO₂e, achieving carbon-neutral operations, and reducing embodied carbon by 40%.

• First in industry to have 2050 Net-Zero target approved by SBTI; history of leadership in sustainability and diversity initiatives.