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Why Is Trane Technologies (TT) Down 3.1% Since Last Earnings Report?

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A month has gone by since the last earnings report for Trane Technologies (TT - Free Report) . Shares have lost about 3.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Trane Technologies due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Trane Technologies plc before we dive into how investors and analysts have reacted as of late.

Trane Technologies Q2 Earnings Beat Estimates

Trane Technologies reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.

Adjusted EPS of $3.88 surpassed the Zacks Consensus Estimate by 3.2% and increased 17.6% year over year.

Revenues of $5.75 billion marginally missed the consensus mark by 0.3% but rose 8.3% year over year on a reported basis and organically. Bookings were up 5% year over year on a reported basis and 4% year over year organically.

TT’s Revenues and Bookings

The Americas segment’s revenues of $4.7 billion missed our estimate of $4.76 billion but increased 9% year over year on a reported basis and organically. Bookings were up 8% on a reported basis and 7% organically to $4.54 billion.

The Europe, Middle East and Africa segment’s revenues came in at $707.9 million, up 10% year over year on a reported basis and 3% organically, beating our estimate of $641.2 million. Bookings were up 5% year over year on a reported basis and decreased 2% organically to $669.4 million.

Revenues from the Asia Pacific segment were down 7% year over year on a reported basis and 8% organically to $346.2 million, beating our estimate of $333.3 million. Bookings declined 16% year over year on a reported basis and 17% organically to $377.7 million.

Balance Sheet and Cash Flow Figures of TT

Trane ended the quarter with a cash balance of $774.2 million compared with $1.6 billion in the March-end quarter of 2025. The debt balance was $3.9 billion compared with $4.3 billion in the March-end quarter of 2025. The company generated $1.04 billion of cash from operating activities and free cash of $841 million in the quarter.

TT’s 2025 Guidance

For 2025, TT expects revenue growth of approximately 9% and organic revenue growth of approximately 8% compared with full-year 2024.

Adjusted EPS for full-year 2025 is expected to be approximately $13.05. The guidance is higher than the Zacks Consensus Estimate of $12.92.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

VGM Scores

At this time, Trane Technologies has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Trane Technologies has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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