Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Trane Technologies Plc

TT · NYSE · Industrial

Fundamental quality

ATTRACTIVE

85

out of 100

Trane Technologies Plc earns a fundamental-quality score of 85 out of 100, profiling it as a company with solid fundamentals. Its score rests mainly on its financial strength (net debt 0.65× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Trane Technologies makes climate control for buildings and refrigerated transport (Thermo King): the trucks and containers keeping the food and pharma cold chain alive. It sells itself as the climate company with a mission: decarbonizing heating and cooling.

What will shape its future

  • Replacement with heat pumps and efficient equipment, its favorable regulatory wave.
  • Data centers and industry, demanding cooling at unprecedented scale.
  • Refrigerated transport, cyclical and tied to truck sales.

Breakdown by area

I.Growth
80

EPS growth: 25.3% · Revenue growth: 11.1%

II.Profitability
84

Net margin: 13.3% · ROE: 34.2% · ROIC: 28.1%

III.Financial health
91

Net debt/EBITDA: 0.65x · FCF: 16%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 70%
ROEbeats 80%
Growthbeats 69%
Cash generationbeats 77%
Less debtbeats 83%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Trane Technologies Plc strengths

  • Outstanding return on equity (ROE of 34.2%): it puts shareholder capital to good use.
  • Growing earnings per share (25.3% annualized).
  • Strong free-cash-flow generation (FCF margin of 16%): profit turns into real cash.
  • Expanding margins: net margin has risen from 7% to 14% in recent years.

Trane Technologies Plc risks and weaknesses

  • Its net debt has grown over the period.

Trane Technologies Plc historical evolution

YearRevenueNet incomeFree cash flowNet debt
202012,4558551,2891,982
202114,1361,4231,3652,683
202215,9921,7571,2123,616
202317,6782,0242,0893,685
202419,8382,5682,7753,180
202521,3222,9192,8122,852

Between 2020 and 2025, revenue went from $12,455M to $21,322M (+71%) and net income went from $855M to $2,919M (+241%). Meanwhile, its margins have widened (from 7% to 14%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+8.5%
  • Net income+2.1%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • FCF margin14.5%16%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0

per share, yearly

28.7% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Trane Technologies Plc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Trane Technologies Plc a good company to invest in?

In terms of business quality, Trane Technologies Plc scores 85 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Trane Technologies Plc a profitable company?

Yes. Trane Technologies Plc shows a net margin of 13.3% and an ROE of 34.2%, a sign of a profitable business.

Does Trane Technologies Plc have a lot of debt?

Not particularly. Its net debt is 0.65 times its EBITDA, a low level.

Is Trane Technologies Plc growing?

Its revenue has grown 11.1% annualized in recent years and its earnings per share 25.3%, and without interruption since 2020.

Does Trane Technologies Plc generate cash?

Yes. It converts about 16% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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