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Here's Why You Should Retain Trane Technologies Stock Right Now

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Key Takeaways

  • Trane Technologies expects earnings to rise 16.1% in 2025 and 13.5% in 2026, with revenues growing over 7%.
  • TT benefits from U.S. and European policies driving demand for HVAC and decarbonization solutions.
  • TT's Brainbox AI acquisition enhances HVAC services, lowering energy use and reducing carbon emissions.

Trane Technologies (TT - Free Report) has a Growth Score of B. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.

The company’s fourth-quarter 2025 earnings are expected to be up 8% year over year. Earnings for 2025 and 2026 are expected to rise 16.1% and 13.5%, respectively, year over year. Revenues are expected to increase 7.1% in 2025 and 7.4% in 2026.

Factors That Bode Well for TT

Trane Technologies’ business is primarily driven by the commercial HVAC (Heating, Ventilation and Air Conditioning) market. Favorable government policies in the United States and Europe increase demand for TT’s innovative customer-centric solutions, energy-efficient products and decarbonization efforts, resulting in long-term growth in this market.

TT’s recent acquisition, Brainbox AI, adds considerable value to the HVAC services provided to buildings. As the green environment initiatives grow globally, this Agentic AI leverages organizations to achieve measurable reductions in energy consumption and improvements in sustainability by lowering their carbon emissions.

The Collective International HVAC business is performing decently. The company is seeing growth in EMEA and Asia, with the strongest being in China. TT’s expert workforce in direct sales and service teams allows it to pivot quickly across verticals and markets, giving it a competitive edge in capturing growth opportunities.

Although below the industry average of 1.58, its current ratio (a measure of liquidity) rose to 1.21 in the third quarter of 2025 from 1.1 in the second quarter due to an increase in cash reserves. A current ratio of above 1 will assist the company in paying off short-term obligations efficiently.

A Risk

TT operates in a competitive market, with large companies such as Honeywell International, Siemens, Carrier and Daikin Industries. The competition and rising commodity prices, primarily that of steel and non-ferrous metals, collectively increase the difficulty of balancing growth and profitability while continuously innovating and differentiating its offerings and maintaining cost efficiency.

Zacks Rank & Stocks to Consider

Trane Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

A couple of better-ranked stocks in the broader Business Services sector are Information Services Group (III - Free Report)  and Charles River Associates (CRAI - Free Report) .

Information Services holds a Zacks Rank #2 (Buy) at present. III has a long-term earnings growth expectation of 18.5%. The company delivered a trailing four-quarter earnings surprise of 15.9% on average.

Charles River also has a Zacks Rank of 2 at present, with a long-term earnings growth expectation of 16%. CRAI delivered a trailing four-quarter earnings surprise of 15% on average.


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Charles River Associates (CRAI) - free report >>

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