Trane Technologies plc (NYSE:TT) shares are trading higher on Wednesday. The company reported first-quarter net revenue growth of 11% year-over-year to $4.69 billion, surpassing the consensus of $4.46 billion.

Bookings increased 4% Y/Y to $5.28 billion in the quarter. Enterprise reported an 11% Y/Y increase in both revenues and organic revenues.

Enterprise backlog totaled $7.3 billion at the end of the quarter.

Adjusted EBITDA rose 21% Y/Y to $851 million, with a margin expansion of 130 bps Y/Y to 18.1% in the quarter.

Adjusted EPS of $2.45 (+26% Y/Y) surpassed the street view of $2.20.

As of March 31, 2025:

• Operating cash flow from continuing operating activities reached $346 million, and free cash flow was $230 million through March 31, 2025.
• Cash and cash equivalents stood at $860.5 million.
• The Swords, Ireland-based company deployed or committed $1.1 billion in capital.
• The deployment includes $210 million for dividends and $650 million for share repurchases.

Trane Technologies plans to deploy 100% of excess cash to shareholders over time.

2025 Outlook: Trane Technologies has reaffirmed its FY25 adjusted EPS guidance range of $12.70-$12.90 vs. the consensus estimate of $12.74.

The company raised its FY25 sales guidance to $21.33 billion-$21.52 billion from $21.13 billion-$21.33 billion earlier versus consensus estimate of $21.24 billion.

Dave Regnery, chair and CEO of Trane Technologies, said, “With strong execution through our proven business operating system, we continue to navigate a dynamic macro environment. Demand for our innovative solutions remains robust, with customers selecting Trane Technologies as their partner of choice.”

”Our strong order growth in the first quarter included another all-time high in bookings for our Americas commercial HVAC business, further elevating our backlog. With our leading innovation, elevated backlog and strong financial position, we are confident in our full-year guidance and expect to perform towards the high-end of the range.”

Investors can gain exposure to the stock via Invesco Building & Construction ETF (NYSE:PKB) and SMI 3Fourteen Full-Cycle Trend ETF (NASDAQ:FCTE).

Price Action: Trane Technologies shares are up 5.52% at $372.96 premarket at the last check Wednesday.

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