Trane Technologies (TT) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered record results with organic revenue up 9%–10.6% year-over-year and adjusted EPS up 11%, driven by strong Americas commercial HVAC, services, and residential segments.

• Organic bookings surged 37%–39% year-over-year, resulting in a record backlog of $12.1B, up 70% year-over-year, providing strong visibility into the second half and 2027.

• Net revenues for Q2 2026 reached $6.4B, with net earnings attributable to shareholders at $925.7M.

• Adjusted EPS increased to $4.31, reflecting operational excellence and strategic reinvestment.

• Full-year 2026 revenue and EPS guidance raised, absorbing EMEA headwinds from Middle East conflict.

Financial highlights

• Q2 2026 net revenue reached $6.35B–$6.4B, up 9%–11% organically year-over-year.

• Adjusted EBITDA margin was 21.1% (down 70 bps YoY); adjusted operating margin was 19.3%–20.3%.

• Adjusted EPS rose to $4.31 from $3.88 in Q2 2025.

• Free cash flow for six months ended June 30, 2026, was $1.6B, nearly doubling year-over-year.

• Americas commercial HVAC bookings up 50% year-over-year; residential bookings up high 20s percent.

Outlook and guidance

• Full-year 2026 organic revenue growth outlook raised to ~9%; reported revenue growth expected at ~11.5%.

• Adjusted EPS guidance increased to $15.20–$15.30.

• Q3 2026 organic revenue growth expected at ~10% with adjusted EPS of ~$4.70.

• EMEA headwinds from Middle East conflict fully absorbed in guidance.

• Free cash flow expected to be at least 100% of adjusted net earnings.