Trane Technologies Stock

Trane Technologies plc and its consolidated subsidiaries operate as a manufacturer of HVAC systems and services and transport temperature control products and services worldwide.

The company brings sustainable and efficient solutions to buildings, homes and transportation through its strategic brands, Trane and Thermo King, and the company’s environmentally responsible portfolio of products, services and connected intelligent controls.

The company generates revenue and cash primarily through the design, manufacture, sales and service of solutions for Heating, Ventilation and Air Conditioning (HVAC), transport refrigeration, and custom refrigeration solutions. As an industry leader with an extensive global install base, the company’s growth strategy includes expanding recurring revenue through services and rental options.

Segments

The company operates under three reportable segments: Americas, EMEA, and Asia Pacific.

The company’s Americas segment innovates for customers in North America and Latin America. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions.

The company’s EMEA segment innovates for customers in the Europe, the 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.

The company’s 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.

Products and Services

The company’s principal products and services include the following: air conditioners; air exchangers; air handlers; airside and terminal devices; air-sourced heat pumps; asset management systems; auxiliary power units (electric and diesel); building management systems; bus air purification systems; bus and rail HVAC systems; chillers; coils and condensers; container refrigeration systems and gensets; control systems; cryogenic refrigeration systems; decarbonization programs; dehumidifiers; ductless systems; energy efficiency programs; energy infrastructure programs; energy management services; furnaces; geothermal systems; home automation; humidifiers; HVAC performance-monitoring applications; indoor air quality assessments and related products for HVAC and transport solutions; industrial refrigeration; installation contracting; multi-pipe HVAC systems; package heating and cooling systems; packaged rooftop units; parts and supplies (aftermarket and OEM); rail refrigeration systems; rate chambers; refrigerant reclamation; renewable energy projects; repair and maintenance services; rental services; residential air filters; residential air filtration system; residential hybrid heating solutions; self-powered truck refrigeration systems; service agreements; telematics solutions; temporary heating and cooling systems; thermal energy storage; thermostats/controls & associated digital solutions; trailer refrigeration systems (diesel, electric and hybrid); transport heater products; truck refrigeration systems (diesel, electric and hybrid); ultra-low temperature freezers; unitary systems (light and large); variable refrigerant flow systems; vehicle-powered truck refrigeration systems; ventilation; and water source heat pumps. These products are sold primarily under the company’s tradenames, including Trane and Thermo King.

Distribution

The company’s products are distributed by a number of methods, which are appropriate to the type of product. The U.S. sales are made through branch sales offices, distributors and dealers across the country. Non-U.S. sales are made through numerous subsidiary sales and service companies with a supporting chain of distributors throughout the world.

Operations by Geographic Area

Approximately 28% of the company’s net revenues in 2023 were derived outside the U.S. and the company sold products in approximately 100 countries.

Seasonality

Sales in the company’s commercial and residential HVAC businesses historically tend to be higher in the second and third quarters of the year (year ended December 2023) because this represents spring and summer in the U.S. and other northern hemisphere markets, which are the peak seasons for sales of air conditioning systems and services.

Research and Development

For the year ended December 31, 2023, the company’s research and development expenditures amounted to $252.3 million.

History

The company was founded in 1885. It was incorporated in Ireland in 2009. The company was formerly known as Ingersoll-Rand Plc and changed its name to Trane Technologies plc in 2020.