Trane Technologies PLC's stock surged 5.28% during pre-market trading on Thursday, following the release of its fourth-quarter 2025 financial results that exceeded analyst expectations.
The company reported adjusted earnings per share of $2.86 for Q4 2025, beating the FactSet consensus estimate of $2.81. Revenue reached $5.15 billion, also surpassing estimates of $5.09 billion. This performance was driven by a 24% increase in quarterly bookings, with organic bookings up 22%, largely fueled by strong demand in the Americas Commercial HVAC segment which saw bookings rise over 35%.
Trane Technologies also reported a record backlog of $7.8 billion, providing strong visibility for future growth. The company issued positive guidance for 2026, expecting revenue growth of 8.5% to 9.5% and adjusted EPS between $14.65 and $14.85, which aligns with analyst expectations. The strong results were attributed to increased demand for commercial air-conditioning systems, particularly from the rapid expansion of artificial intelligence-focused data centers.