Back to top

Image: Bigstock

Reasons to Retain Trane Technologies Stock in Your Portfolio Now

Read MoreHide Full Article

Key Takeaways

  • TT stock rose 19.7% in a year, topping the industry and S&P 500 gains.
  • TT's Q2 2025 revenues rose 8% on strong Commercial HVAC demand.
  • The launch of the BrainBox AI Lab accelerates smart, sustainable solutions.

Trane Technologies plc (TT - Free Report) stock has had an impressive run over the past year. Shares have appreciated 19.7%, outperforming the 11.4% growth of the industry and the 15% rise of the S&P 500.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s earnings for 2025 and 2026 are expected to improve 16.3% and 11.1%, respectively, year over year. Revenues for 2025 and 2026 are anticipated to increase 8.7% and 6.9%, respectively.

Factors That Bode Well for TT

Trane Technologies’ top line benefits from a strong Commercial HVAC marketwith revenues growing 8% in the second quarter of 2025. The increasing demand for its innovative customer-centric solutions, energy-efficient products and decarbonization efforts driven by government policies in the United States and Europe is fueling TT’s growth in this market.

The company’s launch of the BrainBox AI Lab marks a strategic leap toward redefining energy management and sustainability in the built environment through cutting-edge artificial intelligence. By transforming innovative ideas into practical, real-world applications, the company is accelerating the shift to smarter, more autonomous HVAC and building systems. The BrainBox AI Lab serves as a center for advanced research, product development and ethical AI deployment — all rooted in sustainability and aimed at reducing global emissions. This initiative reflects Trane Technologies’ broader commitment to digital transformation, industry leadership and its 2030 Sustainability Commitments, reinforcing its position at the forefront of climate and technology innovation.

Trane Technologies' Healthy Spaces podcast is a proactive move to position the company as a leader in climate innovation and sustainability. Through engaging conversations with experts and pioneers in emerging technologies, the company showcases real-world solutions that address environmental challenges in buildings and transportation. Trane Technologies uses the podcast to educate stakeholders, influence industry thinking and inspire actionable change, all while reinforcing its mission to challenge what’s possible for a sustainable world.

Trane Technologies’ recognition by Forbes as one of America’s Best Employers for Women in 2025 underscores the company’s strategic commitment to fostering an inclusive, equitable workplace where women are empowered to lead, grow and succeed. This acknowledgment reflects both its internal culture built on support, opportunity, and innovation and its measurable progress in gender representation and leadership diversity. Backed by programs like tuition advancement, inclusive benefits and leadership development, TT continues to set a high standard for what it means to be a truly people-centered, purpose-driven employer in the climate innovation space.

TT's current ratio (a measure of liquidity) at the end of the second quarter of 2025 was 1.10.  A current ratio of more than 1 is favorable as it indicates that the company has sufficient cash to meet its short-term debt obligations.

TT: Risks to Watch

Trane Technologies operates in a highly competitive HVAC market dominated by major players like Honeywell International, Siemens, Carrier and Daikin Industries. This intense competition puts constant pressure on the company to innovate and differentiate its offerings while staying cost-effective. As a result, the need to invest heavily in advanced technology and top talent becomes critical, making it increasingly challenging to strike a balance between driving growth and maintaining profitability.

TT’s Zacks Rank and Stocks to Consider

Trane Technologies currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader Zacks Business Services sector are Maximus (MMS - Free Report) and AppLovin APP)

Maximus sports a Zacks Rank of #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here   

MMS has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missing once. The average beat is 29.3%.

AppLovin also sports a Zacks Rank of 1

APP has a robust earnings surprise history, topping the Zacks Consensus estimate in each of the trailing four quarters. The average beat is 22.36%.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Maximus, Inc. (MMS) - free report >>

AppLovin Corporation (APP) - free report >>

Trane Technologies plc (TT) - free report >>

Published in