Trane Technologies Clocks 6% Revenue Growth In Q3, Misses Consensus; Reaffirms FY21 Outlook

Trane Technologies PLC TT reported third-quarter revenue growth of 6% year-over-year to $3.72 billion, missing the consensus of $3.78 billion. Organic sales growth was 4%.
Bookings increased by 22% Y/Y to $4.3 billion and were up 20% organically.
Sales by segments: Americas $2.91 billion (+6% Y/Y), EMEA $495 million (+11% Y/Y) and Asia Pacific $314.5 million (+3% Y/Y).
Adjusted continuing EPS of $1.80 beat the consensus of $1.78.
The adjusted operating margin contracted by 60 bps to 16.1%. The adjusted EBITDA margin contracted by 70 bps to 18%
Trane Technologies generated cash from operating activities for the nine months of $1.2 billion and held $2.7 billion in cash and equivalents.
"Customer demand for our innovative, climate control products and services continues to grow. In the third quarter, our global team delivered another quarter of robust bookings growth and record backlog, reaffirming our outlook for 2021 and strengthening our view into 2022," CEO Dave Regnery said.
FY21 outlook: Trane reaffirmed its FY21 outlook for reported revenues growth of 13.5% and organic revenues growth of 11%, representing $14.136 billion (consensus $14.1 billion).
Trane sees adjusted continuing EPS of $6.05, below the consensus of $6.07.
Price Action: TT shares traded lower by 1.71% at $179.87 on the last check Wednesday.

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