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Highlights (first-quarter 2024 versus first-quarter 2023, unless otherwise noted):
*This news release contains non-GAAP financial measures. Definitions of the non-GAAP financial measures can be found in the footnotes of the news release. See attached tables for additional details and reconciliations. |
SWORDS, Ireland, May 7, 2024 /PRNewswire/ -- Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $1.92 for the first quarter of 2024. Adjusted continuing EPS was $1.94, up 38 percent.
First-Quarter 2024 Results
Financial Comparisons - First-Quarter Continuing Operations
$, millions except EPS |
Q1 2024 |
Q1 2023 |
Y-O-Y Change |
Organic Y-O-Y |
|
Change |
|||||
Bookings |
$5,073 |
$4,306 |
18 % |
17 % |
|
Net Revenues |
$4,216 |
$3,666 |
15 % |
14 % |
|
GAAP Operating Income |
$634 |
$457 |
39 % |
||
GAAP Operating Margin |
15.0 % |
12.5 % |
250 bps |
||
Adjusted Operating Income* |
$640 |
$472 |
36 % |
||
Adjusted Operating Margin* |
15.2 % |
12.9 % |
230 bps |
||
Adjusted EBITDA* |
$706 |
$542 |
30 % |
||
Adjusted EBITDA Margin* |
16.8 % |
14.8 % |
200 bps |
||
GAAP Continuing EPS |
$1.92 |
$1.35 |
42 % |
||
Adjusted Continuing EPS |
$1.94 |
$1.41 |
38 % |
||
Pre-Tax Non-GAAP Adjustments, net** |
$5.8 |
$15.6 |
$(9.8) |
**For details see table 2 and 3 of the news release.
"Our strong first quarter performance demonstrates the power of our purpose-driven sustainability strategy, uplifting culture and highly engaged team," said Dave Regnery, chair and CEO, Trane Technologies. "We continue to deliver a leading growth profile among industrials through relentless investment in our business, our proven business operating system, and focused execution in high growth verticals that play to our unique strengths.
"In the first quarter, we achieved double-digit revenue growth, an increase of 38% in adjusted earnings per share, and exceptional bookings that drove backlog to $7.7 billion. Our performance gives us confidence in raising our full-year guidance for organic revenue and adjusted EPS growth and positions us well to continue delivering leading growth and differentiated shareholder returns over the long term."
Highlights from the First Quarter of 2024 (all comparisons against first-quarter 2023 unless otherwise noted)
First-Quarter Business Review (all comparisons against first-quarter 2023 unless otherwise noted)
Americas Segment: innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, energy services and solutions, residential heating and cooling; and transport refrigeration systems and solutions.
$, millions |
Q1 2024 |
Q1 2023 |
Y-O-Y Change |
Organic Y-O-Y |
|
Change |
|||||
Bookings |
$4,016.3 |
$3,324.1 |
21 % |
20 % |
|
Net Revenues |
$3,334.8 |
$2,861.0 |
17 % |
15 % |
|
GAAP Operating Income |
$542.5 |
$391.6 |
39 % |
||
GAAP Operating Margin |
16.3 % |
13.7 % |
260 bps |
||
Adjusted Operating Income |
$545.3 |
$400.0 |
36 % |
||
Adjusted Operating Margin |
16.4 % |
14.0 % |
240 bps |
||
Adjusted EBITDA |
$604.8 |
$455.8 |
3 % |
||
Adjusted EBITDA Margin |
18.1 % |
15.9 % |
220 bps |
Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.
$, millions |
Q1 2024 |
Q1 2023 |
Y-O-Y Change |
Organic Y-O-Y |
|
Change |
|||||
Bookings |
$660.2 |
$591.7 |
12 % |
7 % |
|
Net Revenues |
$553.4 |
$510.5 |
8 % |
4 % |
|
GAAP Operating Income |
$94.5 |
$85.7 |
10 % |
||
GAAP Operating Margin |
17.1 % |
16.8 % |
30 bps |
||
Adjusted Operating Income |
$95.6 |
$86.6 |
10 % |
||
Adjusted Operating Margin |
17.3 % |
17.0 % |
30 bps |
||
Adjusted EBITDA |
$99.4 |
$94.4 |
5 % |
||
Adjusted EBITDA Margin |
18.0 % |
18.5 % |
(50) bps |
Asia Pacific Segment: innovates for customers throughout the Asia Pacific region. The Asia Pacific segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.
$, millions |
Q1 2024 |
Q1 2023 |
Y-O-Y Change |
Organic Y-O-Y |
|
Change |
|||||
Bookings |
$396.9 |
$390.1 |
2 % |
6 % |
|
Net Revenues |
$327.3 |
$294.3 |
11 % |
16 % |
|
GAAP Operating Income |
$66.4 |
$49.3 |
35 % |
||
GAAP Operating Margin |
20.3 % |
16.8 % |
350 bps |
||
Adjusted Operating Income |
$66.4 |
$50.6 |
31 % |
||
Adjusted Operating Margin |
20.3 % |
17.2 % |
310 bps |
||
Adjusted EBITDA |
$70.8 |
$57.2 |
24 % |
||
Adjusted EBITDA Margin |
21.6 % |
19.4 % |
220 bps |
Balance Sheet and Cash Flow
$, millions |
Q1 2024 |
Q1 2023 |
Y-O-Y Change |
Cash From Continuing Operating Activities Y-T-D |
$254 |
$17 |
$237 |
Free Cash Flow Y-T-D* |
$175 |
($52) |
$227 |
Working Capital/Revenue* |
5.4 % |
6.6 % |
(120) bps |
Cash Balance March 31 |
$850 |
$693 |
$157 |
Debt Balance March 31 |
$4,881 |
$4,830 |
$51 |
Raising Full-Year 2024 Revenue and EPS Guidance
This news release includes "forward-looking" statements within the meaning of securities laws, which are statements that are not historical facts, including statements that relate to our future financial performance and targets, including revenue, EPS, and earnings; our business operations; demand for our products and services, including bookings and backlog; capital deployment, including the amount and timing of our dividends, our share repurchase program, anticipated capital commitments for M&A activity, and our capital allocation strategy; our available liquidity; our anticipated revenue growth, and the performance of the markets in which we operate.
These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, global economic conditions, including recessions and economic downturns, inflation, volatility in interest rates and foreign exchange; changing energy prices; national and international conflict; impacts of global health crises, epidemics, pandemics, or other contagious outbreaks on our business operations, financial results and financial position and on the world economy; financial institution disruptions; climate change and our sustainability strategies and goals; commodity shortages; supply chain constraints and price increases; government regulation; restructurings activity and cost savings associated with such activity; secular trends toward decarbonization, energy efficiency and internal air quality, the outcome of any litigation, including the risks and uncertainties associated with the Chapter 11 proceedings for our deconsolidated subsidiaries Aldrich Pump LLC and Murray Boiler LLC; cybersecurity risks; and tax audits and tax law changes and interpretations. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2023, as well as our subsequent reports on Form 10-Q and other SEC filings. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events and how they may affect the Company. We assume no obligation to update these forward-looking statements.
This news release also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non-GAAP financial information and reconciliation to GAAP are attached to this news release.
All amounts reported within the earnings release above related to net earnings (loss), earnings (loss) from continuing operations, earnings (loss) from discontinued operations, adjusted EBITDA and per share amounts are attributed to Trane Technologies' ordinary shareholders.
Trane Technologies (NYSE:TT) is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more information, visit tranetechnologies.com.
5/7/2024
(See Accompanying Tables)