On this page of StockholderLetter.com we present the 4/24/2025 shareholder letter from Trane Technologies plc — ticker symbol TT. Reading current and past TT letters to shareholders can bring important insights into the investment thesis.

 •  4/24/2025 Letter Continued (Full PDF)
 •  4/21/2023 TT Stockholder Letter
 •  4/25/2024 TT Stockholder Letter
 •  4/23/2026 TT Stockholder Letter
 •  More "Metals Fabrication & Products" Category Stockholder Letters
 •  TT Benford's Law Stock Score = 80

TT 4/24/2025 Shareholder/Stockholder Letter Transcript:

2024 Annual Report
2025 Notice and Proxy Statement

To boldly challenge what   s possible
 for a sustainable world.
External Recognition & Rankings
Dow Jones Sustainability Indices
    4 consecutive years on the North America Index
    4 consecutive years on the World Index
CDP Climate A List
    3 consecutive years on the A List
JUST Capital
    Ranked 6th overall on JUST 100; 4 consecutive
years on list
    Industry leader for 3 consecutive years
Ethisphere World   s Most Ethical Companies  
    2 consecutive years
Fortune World   s Most Admired Companies*
    13 consecutive years
Fortune Best Workplaces
for Manufacturing & Production*
    Ranked 5th overall
*From Fortune.    2025 Fortune Media IP Limited All rights reserved. Used under license. Fortune and Fortune Media IP Limited are not affiliated with,
and do not endorse products or services of Trane Technologies.
   World   s Most Ethical Companies    and    Ethisphere    names and marks are registered trademarks of Ethisphere LLC.
Trane Technologies / 2024 Annual Report

A Letter from Our Board of Directors
Dear Fellow Shareholders:
As the Trane Technologies Board of Directors, we are dedicated to ensuring the company   s purpose and strategy deliver long-term value for
shareholders as we create a more sustainable future.
We are pleased to share that Trane Technologies achieved another year of outstanding financial performance. In 2024, the company delivered
organic revenue growth of 12%*, adjusted earnings per share growth of 24%* and powerful free cash flow conversion. Since 2020, Trane
Technologies has achieved a compound annual revenue growth rate of 12%, and this year marks the fourth consecutive year of adjusted
earnings per share growth exceeding 20%.
This strong performance is powered by ongoing investment in innovation, consistent execution through the business operating system, and a
continuous focus on an uplifting, inclusive culture. The company   s strategy and portfolio align with long-term megatrends like decarbonization,
electrification and digital transformation, driving significant customer demand. Trane Technologies    direct sales and service channels in
Commercial HVAC and our broad dealer network in other businesses help customers achieve a strong return on investment while reducing
energy use and emissions.
In 2024, Trane Technologies continued to make significant progress across the three pillars of our 2030 Sustainability Commitments:
    Gigaton Challenge: We launched 190 new products that help our customers reduce their carbon emissions. Since our 2019 baseline, we
have reduced 237 million metric tons of customers    emissions toward our goal of reducing one gigaton of carbon by 2030.
    Leading by Example: Even as we grow, the company has reduced operational emissions by 44% since 2019, leveraging our own thermal
management systems and increasing use of renewable energy. We also expanded our 2030 commitments with a goal to reduce embodied
carbon in our products by 40%.
    Opportunity for All: Our investments in people and communities include a state-of-the-art training facility for HVAC service technicians
opening in 2025, a network of 900 Sustainability Ambassadors integrating sustainability into everyday work, and a Global Time of Service
event, which delivered nearly 5,000 hours of volunteer time in communities around the world.
Our profitable growth is driven by the pride, energy and optimism that Trane Technologies team members have in our purpose, as
demonstrated by our annual employee engagement score of 82, which ranks in the top quartile of external benchmarks.
We are proud of Trane Technologies    strong financial performance and global leadership in sustainability. We invite you to review our 2024
Annual Report and 2025 Proxy Statement, along with additional sustainability reporting, for a comprehensive overview of our performance.
Sincerely,
The Board of Directors of Trane Technologies plc
(Left to Right) Melissa N. Schaeffer, John P. Surma, Matthew F. Pine, Ann C. Berzin, Mark R. George, Gary D. Forsee, Ana P. Assis,
David S. Regnery (Chair), Myles P. Lee, Kirk E. Arnold, April Miller Boise, Linda P. Hudson, and John A. Hayes

These are non-GAAP financial measures. Reconciliation of non-GAAP financial measures can be found on subsequent pages of our 2024 Annual Report.
Trane Technologies / 2024 Annual Report

2024 FINANCIAL PERFORMANCE
$20.3B
Bookings
12%
+140 bps
24%
39.6%
$6.75B
$2.6B
Adjusted EBITDA
Margin Expansion*
Organic Revenue
Growth*
+11% Organic Growth*
102% Book-to-Bill
109%
Free Cash Flow
Conversion*
Cash Flow Return
on Invested
Capital (CROIC)*
2024 Total Revenue
$19.8B
Adjusted
Continuing EPS
Growth*
Backlog
Balanced Capital
Deployment
-3% vs.    23
+133% vs.    20
[Includes Dividends, Share
Repurchases, Acquisitions,
and CapEx]
Consistent Track Record of Strong Financial Results
Revenue by Segment
Revenue
Adjusted EBITDA*
(growth %)
(margin %)
+12% CAGR
Asia
7%
16.7%
EMEA
18.0%
16.8%
15.4%
Americas
13%
19.4%
+400 bps
80%
$10
$12.5
2020
$14.1
$16.0
$17.7
$19.8
2021
2022
2023
2024
$0.5
Revenue ($B)
$2.7
$3.2
2020
2021
2022
2023
FCF as a % of Adj.
Net Earnings    20-   24
$11.22
$9.7
$6.9
$9.04
$7.36
67%
2024
Margin %
108% Average
33%
Equipment
$3.8
Cumulative Free
Cash Flow Since 2020*
+26% CAGR
Services
$2.4
EBITDA ($B)
Adjusted Continuing
Earnings Per Share*
Revenue by Stream
$1.9
$4.7
$6.09
$3.1
$1.7
$4.46
$4
$1
2020
2021
2022
2023
2024
2020
Adjusted Continuing EPS
2021
2022
2023
2024
Cumulative FCF ($B)
Shareholder Returns
$400
286% 5-year Total Shareholder Return
$386 / 286% Trane Technologies
Index Value
    Approx. 3X the S&P 500
    Approx. 3.5X the S&P 500 Industrials Index
$300
$200
$100
2019

2020
2021
2022
2023
$197 / 97%
S&P 500
$176 / 76%
S&P 500
Industrials
Index
2024
These are non-GAAP financial measures. Reconciliation of non-GAAP financial measures can be found on subsequent pages of our 2024 Annual Report.
Trane Technologies / 2024 Annual Report

Reconciliation of GAAP to Non-GAAP
ADJUSTED EBITDA
($ IN MILLIONS)
UNAUDITED
For the year ended
December 31, 2024
As Reported
For the year ended
December 31, 2023
Margin
As Reported
Margin
Total Company
Net revenues
$19,838.2
Operating Income
$ 3,500.1
Restructuring/Other
Adjusted Operating Income
16.4%
(13.3)

(5.6)
(0.1%)
17.6%
$ 2,888.4
16.3%
379.4
1.9%
336.0
1.9%
(19.9)
(0.1%)
(40.0)
(0.2%)
$ 3,846.3
19.4%
$ 3,184.4
18.0%
Other Income/(Expense), net
(1)
$ 2,894.0
$ 3,486.8
Depreciation and Amortization(1)
Adjusted EBITDA
$17,677.6
17.6%
Depreciation and amortization in 2023 excludes acquisition backlog amortization of $12.1 million, which has been accounted for in the Restructuring/Other line.
ADJUSTED EBITDA / NET EARNINGS RECONCILIATION
($ IN MILLIONS)
UNAUDITED
Year ended
December 31, 2024
Year ended
December 31, 2023
$ 3,846.3
$ 3,184.4
Depreciation and Amortization(2)
(379.4)
(336.0)
Interest expense
(238.4)
(234.5)
Provision for income taxes
(627.6)
(498.4)
(5.1)
(15.1)
Total Company
Adjusted EBITDA
Less: items to reconcile adjusted EBITDA to net earnings attributable to Trane Technologies plc
Restructuring
Transformation Costs

(4.7)
M&A transaction costs
(4.2)
(15.4)
Non-cash adjustments for contingent consideration
25.0
49.3
Acquisition inventory step-up and backlog amortization

(18.5)
Insurance settlements on property claims

10.0

(52.2)
Impairment of equity investment
Legacy legal liability
Discontinued operations, net of tax
Net earnings from continuing operations attributable to noncontrolling interests
Net earnings attributable to Trane Technologies plc
(2)
(2.4)

(24.7)
(27.2)
(21.6)
(17.8)
$ 2,567.9
$ 2,023.9
Depreciation and amortization in 2023 excludes acquisition backlog amortization of $12.1 million which has been included in the acquisition inventory step-up and
backlog amortization line.
Trane Technologies / 2024 Annual Report

4/24/2025 Letter Continued (Full PDF)

 

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.