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What changed in Trane Technologies's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Trane Technologies's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+263 added−281 removedSource: 10-K (2026-02-05) vs 10-K (2025-02-06)

Top changes in Trane Technologies's 2025 10-K

263 paragraphs added · 281 removed · 221 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

99 edited+23 added−32 removed149 unchanged
Biggest changeThere are a number of risks and uncertainties associated with these Chapter 11 cases, including, among others, those related to: • the ability to consummate the agreement in principle reached with the court appointed legal representative of future asbestos claimants (the FCR); • the outcome of negotiations with the committee representing current asbestos claimants (ACC) and other participants in the Chapter 11 cases, including insurers, concerning the terms of a plan of reorganization, including the size and structure of a potential section 524(g) trust to pay the asbestos liability of Aldrich and Murray and the means for funding that trust, and the risk that the ACC will object to, and the risk that insurers will not support, a plan of reorganization having terms acceptable to Aldrich and Murray; • the actions of representatives of the asbestos claimants, including the ACC's pursuit of certain causes of action against us, following the Bankruptcy Court's grant of the ACC's motion seeking standing to investigate and pursue certain causes of action at a hearing held on January 27, 2022, and other potential actions by the ACC in opposition to, or otherwise inconsistent with, the efforts by Aldrich and Murray to diligently prosecute the Chapter 11 cases and ultimately seek Bankruptcy Court approval of a plan of reorganization; 15 Table of Contents • the decisions of the Bankruptcy Court relating to numerous substantive and procedural aspects of the Chapter 11 cases, including in connection with a proceeding by Aldrich and Murray to estimate their aggregate liability for asbestos claims, following the Bankruptcy Court's grant of their motion seeking such a proceeding, and other efforts by Aldrich and Murray to diligently prosecute the Chapter 11 cases and ultimately seek Bankruptcy Court approval of a plan of reorganization, whether such decisions are in response to actions of representatives of the asbestos claimants or otherwise; • the ultimate determination of the asbestos liability of Aldrich and Murray to be satisfied under a plan of reorganization pursuant to the court-approved estimation proceeding; • the ability of Aldrich and Murray to obtain the necessary approvals of the Bankruptcy Court or the United States District Court for the Western District of North Carolina (the District Court) of a plan of reorganization; • the decisions of the appellate courts regarding any orders of the Bankruptcy Court or the District Court that may be appealed, including the Bankruptcy Court's order dated December 28, 2023 denying the motions to dismiss the Chapter 11 cases brought by the ACC and certain individual claimants and any orders of the Bankruptcy Court or District Court approving a plan of reorganization; • any orders approving a plan of reorganization and issuing the channeling injunction not becoming final and non-appealable; • the terms and conditions of any plan of reorganization that is ultimately confirmed in the Chapter 11 cases; • delays in the confirmation or effective date of a plan of reorganization due to factors beyond the Company's control; and • the risk that the ultimate amount required under any final plan of reorganization may exceed the amounts agreed to with the FCR in the Plan.
Biggest changeThere are a number of risks and uncertainties associated with these Chapter 11 cases, including, among others, those related to: • the ability to consummate the agreement in principle reached with the court appointed legal representative of future asbestos claimants (the FCR); • the outcome of negotiations with the committee representing current asbestos claimants (ACC) and other participants in the Chapter 11 cases, including insurers, concerning the terms of a plan of reorganization, including the size and structure of a potential section 524(g) trust to pay the asbestos liability of Aldrich and Murray and the means for funding that trust, and the risk that the ACC will object to, and the risk that insurers will not support, a plan of reorganization having terms acceptable to Aldrich and Murray; • the actions of representatives of the asbestos claimants, including the ACC's pursuit of certain causes of action against us, and other potential actions by the ACC in opposition to, or otherwise inconsistent with, the efforts by Aldrich and Murray to diligently prosecute the Chapter 11 cases and ultimately seek Bankruptcy Court approval of a plan of reorganization; • the decisions of the Bankruptcy Court relating to numerous substantive and procedural aspects of the Chapter 11 cases, and other efforts by Aldrich and Murray to diligently prosecute the Chapter 11 cases and ultimately seek Bankruptcy Court approval of a plan of reorganization, whether such decisions are in response to actions of representatives of the asbestos claimants or otherwise; • the ultimate determination of the asbestos liability of Aldrich and Murray to be satisfied under a plan of reorganization pursuant to the court-approved estimation proceeding; • the ability of Aldrich and Murray to obtain the necessary approvals of the Bankruptcy Court or the United States District Court for the Western District of North Carolina (the District Court) of a plan of reorganization; • the decisions of the appellate courts regarding any orders of the Bankruptcy Court or the District Court that may be appealed; 17 Table of Contents • any orders approving a plan of reorganization and issuing the channeling injunction not becoming final and non-appealable; • the terms and conditions of any plan of reorganization that is ultimately confirmed in the Chapter 11 cases; • delays in the confirmation or effective date of a plan of reorganization due to factors beyond the Company's control; and • the risk that the ultimate amount required under any final plan of reorganization may exceed the amounts agreed to with the FCR in the Plan.
World geopolitical conflicts have created humanitarian crises, materially impacted economic activities, and may materially impact our global and regional operations. The global economy has been negatively impacted by geopolitical conflicts, including the military conflict between Russia and Ukraine and conflict in the Middle East.
World geopolitical conflicts have created humanitarian crises, materially impacted economic activities, and may materially impact our global and regional operations. The global economy has been negatively impacted by geopolitical conflicts, including the military conflict between Russia and Ukraine and conflicts in the Middle East.
Although neither the Russia-Ukraine conflict nor the Middle East conflict have, to date, caused any material adverse effect on our business or financial performance, until there are peaceful resolutions, these conflicts could have a material adverse effect on our operations, results of operations, financial condition, liquidity, growth prospects and business outlook.
Although neither the Russia-Ukraine conflict nor the Middle East conflicts have, to date, caused any material adverse effect on our business or financial performance, until there are peaceful resolutions, these conflicts could have a material adverse effect on our operations, results of operations, financial condition, liquidity, growth prospects and business outlook.
For many components we procure, we have an effective supply chain resiliency plan and multiple capable sources to ensure sufficient supply, however there are certain categories of components that could occasionally see limited availability or shortages. Seasonality Demand for certain products and services is influenced by weather conditions.
For many components we procure, we have an effective supply chain resiliency plan and capable sources to ensure sufficient supply, however there are certain categories of components that could occasionally see limited availability or shortages. Seasonality Demand for certain products and services is influenced by weather conditions.
These activities are subject to risks that are inherent in operating globally, including: • changes in local laws and regulations including potential imposition of currency restrictions; new or changing tax laws, including the implementation of a global minimum tax; variations in monetary policies; and other restraints; • trade protection measures such as import or export restrictions and requirements, the imposition of tariffs and quotas or revocation or material modification of trade agreements; • limitation of ownership rights, including expropriation of assets by a local government, and limitation on the ability to repatriate earnings; • sovereign debt crises and currency instability in developed and developing countries; • difficulty in staffing and managing global operations including supply chain disruptions which may be exacerbated by pandemics or other public health crises, natural disasters, or other events affecting the supply of labor, materials and components; • difficulty of enforcing agreements, collecting receivables and protecting assets through non-U.S. legal systems; • national and international conflict, including war, civil disturbances and terrorist acts; and • recessions, economic downturns, price instability, inflation, slowing economic growth and social and political instability.
These activities are subject to risks that are inherent in operating globally, including: • changes in local laws and regulations including potential imposition of currency restrictions; new or changing tax laws, including the implementation of a global minimum tax; variations in monetary policies; and other restraints; • trade protection measures such as import or export restrictions and requirements, the imposition of tariffs and quotas, trade embargoes, or revocation or material modification of trade agreements; • limitation of ownership rights, including expropriation of assets by a local government, and limitation on the ability to repatriate earnings; • sovereign debt crises and currency instability in developed and developing countries; • difficulty in staffing and managing global operations including supply chain disruptions which may be exacerbated by pandemics or other public health crises, natural disasters, or other events affecting the supply of labor, materials and components; • difficulty of enforcing agreements, collecting receivables and protecting assets through non-U.S. legal systems; • national and international conflict, including war, civil disturbances and terrorist acts or the threat thereof; and • recessions, economic downturns, price instability, inflation, slowing economic growth and social and political instability.
Risks associated with world geopolitical conflicts that have arisen or could arise in the future, include, but are not limited to, adverse effects on political developments and on general economic conditions, including inflation and consumer spending; disruptions to our supply chains; disruptions to our information systems, including through network failures, malicious or disruptive software, or cyberattacks; trade disruptions; energy shortages or rationing that may adversely impact our manufacturing facilities and consumer spending, particularly in Europe; rising fuel and/or rising costs of producing, procuring and shipping our products; our exposure to foreign currency exchange rate fluctuations; and constraints, volatility or disruption in the financial markets.
Risks associated with world geopolitical conflicts that have arisen or could arise in the future, include, but are not limited to, adverse effects on political developments and on general economic conditions, including inflation and consumer spending; disruptions to our supply chains; disruptions to our information systems, including through network failures, malicious or disruptive software, or cyberattacks; trade disruptions; additional tariffs; energy shortages or rationing that may adversely impact our manufacturing facilities and consumer spending, particularly in Europe; rising fuel and/or rising costs of producing, procuring and shipping our products; our exposure to foreign currency exchange rate fluctuations; and constraints, volatility or disruption in the financial markets.
Governments including the U.S., United Kingdom, and those of the European Union have imposed export controls on certain products and financial and economic sanctions on certain industry sectors and parties in Russia which has triggered retaliatory sanctions by the Russian government and its allies.
Governments including the U.S., China, United Kingdom, and those of the European Union have imposed export controls on certain products and financial and economic sanctions on certain industry sectors and parties in Russia which has triggered retaliatory sanctions by the Russian government and its allies.
Such transactions involve numerous other risks, including: • diversion of management time and attention from daily operations; • difficulties integrating acquired businesses, technologies and personnel into our business, including doing so without high costs; • difficulties in obtaining and verifying the financial statements and other business and other due diligence information of acquired businesses; • inability to obtain required regulatory approvals and/or required financing on favorable terms; • potential loss of key employees, key contractual relationships or key customers of either acquired businesses or our business; 19 Table of Contents • assumption of the liabilities and exposure to unforeseen or undisclosed liabilities of acquired businesses, and exposure to regulatory sanctions; • inheriting internal control deficiencies; • dilution of interests of holders of our common shares through the issuance of equity securities or equity-linked securities; and • in the case of joint ventures and other investments, interests that diverge from those of our partners without the ability to direct the management and operations of the joint venture or investment in the manner we believe most appropriate to achieve the expected value.
Such transactions involve numerous other risks, including: • diversion of management time and attention from daily operations; • difficulties integrating acquired businesses, technologies and personnel into our business, including doing so without high costs; • difficulties in obtaining and verifying the financial statements and other business and other due diligence information of acquired businesses; • inability to obtain required regulatory approvals and/or required financing on favorable terms; • potential loss of key employees, key contractual relationships or key customers of either acquired businesses or our business; • assumption of the liabilities and exposure to unforeseen or undisclosed liabilities of acquired businesses, and exposure to regulatory sanctions; • inheriting internal control deficiencies; • dilution of interests of holders of our common shares through the issuance of equity securities or equity-linked securities; and • in the case of joint ventures and other investments, interests that diverge from those of our partners without the ability to direct the management and operations of the joint venture or investment in the manner we believe most appropriate to achieve the expected value.
These kinds of restrictions could be adopted with little to no advanced notice, and we may not be able to effectively mitigate the adverse impacts from such measures. Political uncertainty surrounding trade or other international disputes also could have a negative impact on customer confidence and willingness to spend money, which could impair our future growth.
These kinds of restrictions could be adopted with little to no advance notice, and we may not be able to effectively mitigate the adverse impacts from such measures. Political uncertainty surrounding trade or other international disputes also could have a negative impact on customer confidence and willingness to spend money, which could impair our future growth.
If we are unable to effectively respond to changes to applicable laws and regulations, interpretations of applicable laws and regulations, or comply with existing and future laws and regulations, our competitive position, results of operations, financial condition and cash flows could be materially adversely impacted. 18 Table of Contents Global climate change and related regulations could negatively affect our business.
If we are unable to effectively respond to changes to applicable laws and regulations, interpretations of applicable laws and regulations, or comply with existing and future laws and regulations, our competitive position, results of operations, financial condition and cash flows could be materially adversely impacted. 20 Table of Contents Global climate change and related regulations could negatively affect our business.
In addition to tariffs, trade embargoes, and sanctions, countries also could adopt other measures, such as controls on imports or exports of goods, technology, or data, which could adversely affect our operations and supply chain and limit our ability to offer our products and services as intended.
In addition to tariffs, duties, quotas, trade embargoes, and sanctions, countries also could adopt other measures, such as controls on imports or exports of goods, technology, or data, which could adversely affect our operations and supply chain and limit our ability to offer our products and services as intended.
The extent to which a pandemic, epidemic, or other widespread outbreaks of infectious disease or other public health crises, including a resurgence of any previously identified outbreaks of infectious diseases, may impact our business going forward 14 Table of Contents will depend on factors such as the duration and scope of infections; governmental, business, and individuals' actions in response to the health crisis; travel and other restrictions; and the impact on economic activity including the possibility of financial market instability or recession.
The extent to which a pandemic, epidemic, or other widespread outbreaks of infectious disease or other public health crises, including a resurgence of any previously identified outbreaks of infectious diseases, may impact our business going forward will depend on factors such as the duration and scope of infections; governmental, business, and individuals' actions in response to the health crisis; travel and other restrictions; and the impact on economic activity including the possibility of financial market instability or recession.
Opportunity for All We are committed to creating Opportunity for All by uplifting our people and communities. We invest in our people and an inclusive culture where everyone can grow and thrive; and we give back in our communities to support the next generation of the workforce with the potential to transform our world.
Opportunity for All We are committed to creating Opportunity for All by uplifting our people and communities. We invest in our people and an inclusive culture where everyone can grow and thrive; and we give back to our communities supporting the next generation of the workforce with the potential to transform our world.
In 2024, we partnered with Opportunity at Work, a non-profit coalition dedicated to hiring skilled talent through alternative routes (STARs), which prioritizes skills and experience for workforce entry and removes the requirement of degrees where unnecessary.
In 2025, we partnered with Opportunity at Work, a non-profit coalition dedicated to hiring skilled talent through alternative routes (STARs), which prioritizes skills and experience for workforce entry and removes the requirement of degrees where unnecessary.
All salaried employees and service technicians globally complete our compliance curriculum annually, while hourly production employees complete Code of Conduct and Preventing Workplace Harassment training every other year. 9 Table of Contents • Sustainability Learning – We offer sustainability learning that is available to everyone in the organization in our Learning Management System starting with the Sustainability Starts with Us course that provides a foundational understanding of how our purpose connects to every role.
All salaried employees and service technicians globally complete our compliance curriculum annually, while hourly production employees complete Code of Conduct and Preventing Workplace Harassment training every other year. • Sustainability Learning – We offer sustainability learning that is available to everyone in the organization in our Learning Management System starting with the Sustainability Starts with Us course that provides a foundational understanding of how our purpose connects to every role.
Customers are increasingly requiring cybersecurity protections and mandating cybersecurity standards in our products, and we may incur additional costs to comply with such demands. 17 Table of Contents Data privacy and protection laws are evolving and present increasing compliance challenges.
Customers are increasingly requiring cybersecurity protections and mandating cybersecurity standards in our products, and we may incur additional costs to comply with such demands. 19 Table of Contents Data privacy and protection laws are evolving and present increasing compliance challenges.
A resurgence or development of new strains of COVID-19, or other public health emergencies, could result in unpredictable responses by authorities around the world which could negatively impact our global operations, customers and suppliers. Risks Related to Litigation Material adverse legal judgments, fines, penalties or settlements could adversely affect our results of operations or financial condition.
A resurgence or development of new strains of COVID-19, or other public health emergencies, could result in unpredictable responses by authorities around the world which could negatively impact our global operations, customers and suppliers. 16 Table of Contents Risks Related to Litigation Material adverse legal judgments, fines, penalties or settlements could adversely affect our results of operations, and our financial condition.
Our effective tax rate has been adversely impacted by these changes; we continue to monitor the effects of proposed and enacted legislative changes, in Ireland and elsewhere. In addition to the above, the European Commission has been very active in investigating whether various tax regimes or private tax rulings provided by a country to particular taxpayers may constitute State Aid.
Our effective tax rate has been adversely impacted by these changes; we continue to monitor the effects of proposed and enacted legislative changes, in Ireland and elsewhere. 23 Table of Contents In addition to the above, the European Commission has been very active in investigating whether various tax regimes or private tax rulings provided by a country to particular taxpayers may constitute State Aid.
Our shareholders who receive their dividends subject to Irish dividend withholding tax will generally have no further liability to Irish income tax on the dividends unless the beneficial owner of the dividend has some connection with Ireland other than his or her shareholding in Trane Technologies plc. 23 Table of Contents Item 1B. UNRESOLVED STAFF COMMENTS None.
Our shareholders who receive their dividends subject to Irish dividend withholding tax will generally have no further liability to Irish income tax on the dividends unless the beneficial owner of the dividend has some connection with Ireland other than his or her shareholding in Trane Technologies plc. Item 1B. UNRESOLVED STAFF COMMENTS None.
A major portion of our residential products are built in advance of order and either shipped or assembled from stock. We expect to ship a majority of the December 31, 2024 backlog during 2025.
A major portion of our residential products are built in advance of order and either shipped or assembled from stock. We expect to ship a majority of the December 31, 2025 backlog during 2026.
While we use financial derivatives, supplier price locks or indices-based pricing mechanisms to partially hedge against this volatility, by using these instruments we may potentially forego the benefits that might result from favorable fluctuations in prices and could experience lower margins in periods of declining commodity prices.
While we use financial derivatives, supplier price locks or indices-based pricing mechanisms to partially hedge against this volatility, by using these instruments we may potentially forego the benefits that might result from favorable fluctuations in prices and could experience lower margins in periods of declining commodity 13 Table of Contents prices.
Hardware, software, artificial intelligence technology, or applications we develop or obtain from third parties sometimes contain defects in design or deployment or other problems that could unexpectedly result in security breaches or disruptions. Open source software components embedded into certain software that we use have in the past contained vulnerabilities and others may be discovered in the future.
Hardware, software, AI technology, or applications we develop or obtain from third parties sometimes contain defects in design or deployment or other problems that could unexpectedly result in security breaches or disruptions. Open source software components embedded into certain software that we use have in the past contained vulnerabilities and others may be discovered in the future.
In addition, while hedging activity may minimize near-term volatility of the commodity prices, it would not protect us from long-term commodity price increases. 12 Table of Contents Some of our purchases are from sole or limited source suppliers for reasons of cost effectiveness, regulatory requirements, uniqueness of design, or product quality.
In addition, while hedging activity may minimize near-term volatility of the commodity prices, it would not protect us from long-term commodity price increases. Some of our purchases are from sole or limited source suppliers for reasons of cost effectiveness, regulatory requirements, uniqueness of design, or product quality.
If we are unable to obtain these authorizations from our shareholders or are otherwise limited by the terms of our authorizations, our ability to issue shares or otherwise raise capital could be adversely affected. Dividends and share repurchases are subject to uncertainty and could be modified, accelerated, or discontinued, which could affect the price of our common stock.
If we are unable to obtain these authorizations from our shareholders or are otherwise limited by the terms of our authorizations, our ability to issue shares or otherwise raise capital could be adversely affected. 24 Table of Contents Dividends and share repurchases are subject to uncertainty and could be modified, accelerated, or discontinued, which could affect the price of our common stock.
Culture and Purpose In 2024, we continued to drive our purpose to boldly challenge what's possible for a sustainable world with a sharp focus on our strategic priorities and 2030 Sustainability Commitments.
Culture and Purpose In 2025, we continued to drive our purpose to boldly challenge what's possible for a sustainable world with a sharp focus on our strategic priorities and 2030 Sustainability Commitments.
The occurrence of any of these events could increase our insurance and other operating costs or harm our sales in affected areas. Our business success depends on attracting, developing, and retaining highly qualified talent. The skills, experience, and industry knowledge of our employees significantly benefit our operations and performance.
The occurrence of any of these events could increase our insurance and other operating costs or harm our sales in affected areas. Our business success depends on attracting, developing, and retaining highly qualified talent. The skills, experience, industry knowledge, and relationships built by our employees significantly benefit our operations and performance.
Simmons (53) 1/4/2024 Group President, Americas (since January 2024); Americas Segment Leader and CHVAC Americas President (January 2022 to December 2023); President, CHVAC Americas (January 2020 to December 2021) Elizabeth Elwell (51) 2/12/2024 Vice President and Chief Accounting Officer (since February 2024); Vice President, Finance Residential HVAC and Supply (May 2022-February 2024); Vice President, Financial Planning & Analysis (January 2019-May 2022) No family relationship exists between any of the above-listed executive officers of our Company.
Simmons (54) 1/4/2024 Group President, Americas (since January 2024); Americas Segment Leader and CHVAC Americas President (January 2022 to December 2023); President, CHVAC Americas (January 2020 to December 2021) Elizabeth Elwell (52) 2/12/2024 Vice President and Chief Accounting Officer (since February 2024); Vice President, Finance Residential HVAC and Supply (May 2022-February 2024); Vice President, Financial Planning & Analysis (January 2019-May 2022) No family relationship exists between any of the above-listed executive officers of our Company.
This program highlights how to recognize and react to mental health concerns and leverage support resources. To date more than 7,000 employees have voluntarily completed this training program. Our enterprise Mental Well-Being Hub is a global employee resource that provides access to self-help information, team member stories, trainings, and guidance for supporting others, all in one place.
This program highlights how to recognize and react to mental health concerns and leverage support resources. To date more than 10,400 employees have voluntarily completed this training program. Our enterprise Mental Well-Being Hub is a global employee resource that provides access to self-help information, team member stories, trainings, and guidance for supporting others, all in one place.
Regnery (62) 8/5/2017 Chair of the Board (since January 2022); Chief Executive Officer and Director (since July 2021); President and Chief Operating Officer (January 2020 to June 2021) Christopher J.
Regnery (63) 8/5/2017 Chair of the Board (since January 2022); Chief Executive Officer and Director (since July 2021); President and Chief Operating Officer (January 2020 to June 2021) Christopher J.
The performance of the financial markets and interest rates can also impact the value of our defined benefit pension plans and other post-retirement benefit programs. Significant decreases in discount rate or investment losses on plan assets may increase our funding obligations, which may adversely affect our financial results.
The performance of the financial markets and interest rates can also impact the value of our defined benefit pension plans and other post-retirement benefit programs. Significant decreases in discount rate or the value of plan assets may increase our funding obligations, which may adversely affect our financial results.
This segment had 2024 net revenues of $1,378.3 million. 4 Table of Contents Products and Services Our principal products and services include the following: Air conditioners Industrial process refrigeration Air exchangers Installation contracting Air handlers Lighting retrofit solutions Airside and terminal devices Medical grade refrigeration solutions Air-sourced heat pumps Multi-pipe HVAC systems Asset management systems Package heating and cooling systems Auxiliary power units (electric and diesel) Packaged rooftop units Building management systems Parts and supplies (aftermarket and OEM) Bus air purification systems Rail refrigeration systems Bus and rail HVAC systems Rate chambers Chillers Refrigerant reclamation Coils and condensers Renewable energy and storage projects Cold storage units Repair and maintenance services Condensing units Rental services Container refrigeration systems and gensets Residential air filters Control systems Residential air filtration system Controls contracting and commissioning Residential hybrid heating solutions Cryogenic refrigeration systems Self-powered truck refrigeration systems Data center HVAC systems Service agreements Decarbonization programs Smart and AI-enabled services Dehumidifiers Telematics solutions Ductless systems Temporary heating and cooling systems Energy and water efficiency programs Thermal energy storage Energy infrastructure programs Thermostats/controls & associated digital solutions Energy management services Trailer refrigeration systems (diesel, electric and hybrid) Energy recovery ventilators Transport heater products Energy storage (battery) Truck refrigeration systems (diesel, electric and hybrid) Furnaces Ultra-low temperature freezers Geothermal systems Unitary systems (light and large) Home automation Variable refrigerant flow systems Humidifiers Vehicle-powered truck refrigeration systems HVAC Performance-monitoring applications Ventilation Indoor air quality assessments and related products for HVAC and Transport solutions Water source heat pumps These products are sold primarily under our tradenames including Trane ® and Thermo King ® .
This segment had 2025 net revenues of $1,351.0 million. 4 Table of Contents Products and Services Our principal products and services include the following: Air conditioners Industrial process refrigeration Air exchangers Installation contracting Air handlers Lighting retrofit solutions Airside and terminal devices Medical grade refrigeration solutions Air-sourced heat pumps Multi-pipe HVAC systems Asset management systems Package heating and cooling systems Auxiliary power units (electric and diesel) Packaged rooftop units Building management systems Parts and supplies (aftermarket and OEM) Bus air purification systems Portable and mobile refrigeration systems Bus and rail HVAC systems Rail refrigeration systems Chillers Rate chambers Coils and condensers Refrigerant reclamation Cold storage units Renewable energy and storage projects Condensing units Rental services Container refrigeration systems and gensets Repair and maintenance services Control systems Residential air filters Controls contracting and commissioning Residential air filtration system Data center facility controls Residential cold climate heat pumps Data center HVAC systems Residential hybrid heating solutions Data center liquid cooling solutions Self-powered truck refrigeration systems Data center services Service agreements Decarbonization programs Smart and AI-enabled services Dehumidifiers Stationary cold storage solutions Ductless systems Telematics solutions Energy and water efficiency programs Temporary heating and cooling systems Energy infrastructure programs Thermal energy storage Energy management services Thermostats/controls & associated digital solutions Energy recovery - power solutions Trailer refrigeration systems (diesel, electric and hybrid) Energy recovery ventilators Transport heater products Energy storage (battery) Truck refrigeration systems (diesel, electric and hybrid) Furnaces Ultra-low temperature freezers Geothermal systems Unitary systems (light and large) Home automation Variable refrigerant flow systems Humidifiers Vehicle-powered truck refrigeration systems HVAC Performance-monitoring applications Ventilation Indoor air quality assessments and related products for HVAC and Transport solutions Water source heat pumps These products are sold primarily under our tradenames including Trane ® and Thermo King ® .
Therefore, the attendant risks of manufacturing or selling in a particular country, such as currency devaluation, nationalization and establishment of common markets, may have an adverse impact on our non-U.S. operations. Customers We have no customer that accounted for more than 10% of our consolidated net revenues in 2024, 2023 or 2022.
Therefore, the attendant risks of manufacturing or selling in a particular country, such as currency devaluation, nationalization and establishment of common markets, may have an adverse impact on our non-U.S. operations. Customers We have no single external customer that accounted for more than 10% of our consolidated net revenues in 2025, 2024 or 2023.
See Note 11 – "Pensions and Postretirement Benefits Other Than Pensions." 13 Table of Contents Currency exchange rate fluctuations and other related risks may adversely affect our results. We are exposed to a variety of market risks, including the effects of changes in currency exchange rates.
See Note 11 – "Pensions and Postretirement Benefits Other Than Pensions." Currency exchange rate fluctuations and other related risks may adversely affect our results. We are exposed to a variety of market risks, including the effects of changes in currency exchange rates.
In 2024, 90% of our workforce participated in our annual engagement survey, and our overall employee engagement score remains high relative to external benchmarks. While our work on culture is never done, our scores indicate that we continue to raise the bar to increase pride, energy and optimism and help create the best employee experience as a destination employer.
In 2025, 91% of our workforce participated in our annual engagement survey, and our overall employee engagement score remains high relative to external benchmarks. While our work on culture is never done, our scores indicate that we continue to raise the bar to increase pride, energy and optimism and help create the best employee experience as a destination employer.
There has been consolidation and new entrants (including non-traditional competitors) within our industries and there may be future consolidation and new entrants which could result in increased competition and significantly alter the dynamics of the competitive landscape in which we operate.
There has been consolidation and new entrants (including non-traditional competitors) within our industries and there may be future consolidation and new entrants, either of which could result in increased competition and pricing pressures and significantly alter the dynamics of the competitive landscape in which we operate.
All officers are elected to hold office for one year or until their successors are elected and qualified. 11 Table of Contents Item 1A .
All officers are elected to hold office for one year or until their successors are elected and qualified. 12 Table of Contents Item 1A .
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 26% of our net revenues in 2024 were derived outside the U.S. and we sold products in approximately 100 countries.
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 25% of our net revenues in 2025 were derived outside the U.S. and we sold products in approximately 100 countries.
In 2024, we spent $309.6 million on research and development, focused on product and system sustainability improvements such as increasing energy efficiency, developing products that allow for use of lower global warming potential refrigerants, reducing material content in products, and designing products for circularity.
In 2025, we spent $347.6 million on research and development, focused on product and system sustainability improvements such as increasing energy efficiency, developing products that allow for use of lower global warming potential refrigerants, reducing material content in products, and designing products for circularity.
Examples of these programs include: • Team Leader Development Program – A seven-week experiential development program that engages, teaches and empowers hourly team leaders in our manufacturing facilities to apply continuous improvement methods, make sound business decisions, solve problems, and serve as a coach to their teams. • Group Leader Development Program – A three-week cohort program for salaried, front-line leaders in our manufacturing facilities focuses on enhancing knowledge, skills and ability to lead front-line workers within a world class lean enterprise. • Graduate Training Program – A five-month development program designed to prepare university graduate engineers for a rewarding career in technical sales.
Examples of these programs include: • Team Leader Development Program – A seven-week experiential development program that engages, teaches and empowers hourly team leaders in our manufacturing facilities to apply continuous improvement methods, make sound business decisions, solve problems, and serve as a coach to their teams. • Group Leader Development Program – A three-week cohort program for salaried, front-line leaders in our manufacturing facilities that focuses on enhancing knowledge, skills and capabilities required to lead front-line workers within a world class lean enterprise. • Graduate Training Program – A 14-week development program designed to prepare university graduates for a rewarding career in technical sales.
Such a resolution, if achieved, would likely include a channeling injunction to enjoin asbestos claims resolved in the Chapter 11 cases from being filed or pursued against us or our affiliates. The Chapter 11 cases remain pending as of February 6, 2025.
Such a resolution, if achieved, would likely include a channeling injunction to enjoin asbestos claims resolved in the Chapter 11 cases from being filed or pursued against us or our affiliates. The Chapter 11 cases remain pending as of February 5, 2026.
Risks Related to Regulatory Matters Our reputation, ability to do business and results of operations could be impaired by improper conduct by any of our employees, agents or business partners.
Risks Related to Regulatory Matters Our reputation, ability to do business and results of operations could be impaired by improper conduct by any of our employees, agents, business partners, or other third parties.
We partner with best-in-class external leadership development experts such as INSEAD, Center for Creative Leadership, and the NeuroLeadership Institute to deliver programs such as our Executive Leadership Program, Leading for Impact, and our Women's Leadership Program globally each year.
We partner with best-in-class external leadership development experts such as INSEAD, Center for Creative Leadership, and the NeuroLeadership Institute to deliver programs such as our Executive Leadership Program, Leading for Impact, and Leaders on the Rise globally each year.
Prior experience with the Coronavirus Disease 2019 (COVID-19) pandemic demonstrated widespread, rapidly evolving and unpredictable impacts on global society, economics, financial markets and business practices. Government efforts to contain the pandemic included travel bans and restrictions, quarantines, shelter in place orders and shutdowns.
The global spread of the Coronavirus Disease 2019 (COVID-19) pandemic demonstrated widespread, rapidly evolving and unpredictable impacts on global society, economics, financial markets and business practices. Government efforts to contain the pandemic included travel bans and restrictions, quarantines, shelter in place orders and shutdowns.
Moreover, any insurance or indemnification rights that we may have may be insufficient or unavailable to protect us against the total aggregate amount of losses sustained as a result of such proceedings and contingencies. As required by generally accepted accounting principles in the United States, we establish reserves based on our assessment of contingencies.
Moreover, any insurance or indemnification rights that we may have may be insufficient or unavailable to protect us against the total aggregate amount of losses sustained as a result of such proceedings and contingencies. As required by U.S. Generally Accepted Accounting Principles (GAAP), we establish reserves based on our assessment of contingencies.
We also collaborate with organizations such as Federation for Advanced Manufacturing Education, National Association of Manufacturers, Society for Women Engineers, National Society of Black Engineers, and Society of Hispanic Professional Engineers, that help us recruit qualified talent from varied backgrounds.
We also collaborate with organizations such as National Association of Manufacturers, Society for Women Engineers, National Society of Black Engineers, and Society of Hispanic Professional Engineers, that help us recruit qualified talent from varied backgrounds.
We may not identify acquisition or joint venture candidates or investment opportunities at the same rate as the past. Acquisitions, dispositions, joint ventures and investments that we identify could be unsuccessful or consume significant resources, which could adversely affect our operating results.
We also occasionally divest businesses that we own. We may not identify acquisition or joint venture candidates or investment opportunities at the same rate as the past. Acquisitions, dispositions, joint ventures and investments that we identify could be unsuccessful or consume significant resources, which could adversely affect our operating results.
We further align our leadership globally, fostering collaboration to drive profitable, market-leading revenue growth. Trane Technologies' benefit programs and policies are designed to support the well-being of employees and their families. Purpose-driven and locally relevant benefit programs are provided globally.
We further align our leadership globally, fostering collaboration to drive profitable, market-leading revenue growth. Trane Technologies provides purpose-driven and locally relevant benefit programs and policies that are designed to support the well-being of employees and their families.
If these systems cease to function properly, if these systems experience security breaches or disruptions or if these systems do not provide the anticipated benefits or if we are unable to commit sufficient resources to maintain and enhance our information technology infrastructure to keep 16 Table of Contents pace with continuous development in information processing technology, our ability to manage our operations could be impaired, which could have a material adverse impact on our results of operations, financial condition, and cash flows.
If these systems cease to function properly, if these systems experience security breaches or disruptions, if these systems do not provide the anticipated benefits or if we are unable to commit sufficient resources to maintain and enhance our information technology infrastructure to ensure data quality and to keep pace with continuous development in information processing technology, our ability to manage our operations could be impaired, which could have a material adverse impact on our results of operations, financial condition, and cash flows. 18 Table of Contents Security breaches or disruptions of the technology systems, infrastructure or products of the Company or our vendors could negatively impact our business and financial results.
As of December 31, 2024, we employed approximately 45,000 people in 61 countries including over 16,000 employees outside of the United States. Our Trane Technologies EEO-1 Report published on our website outlines additional details on our U.S. workforce composition.
As of December 31, 2025, we employed approximately, 44,000 people in 62 countries including over 16,000 employees outside of the United States. Our Trane Technologies EEO-1 Report published on our website outlines additional details on our U.S. workforce composition.
Through our sustainability-focused strategy and purpose to boldly challenge what's possible for a sustainable world , we meet critical needs and growing global demand for innovation that reduces greenhouse gas emissions while enabling healthier, efficient indoor environments and safe, reliable delivery of essential temperature-controlled cargo.
Through our sustainability-focused strategy and purpose to boldly challenge what's possible for a sustainable world , we meet critical needs and growing global demand for innovation that reduces greenhouse gas emissions while enabling more efficient buildings and industry, and reliable delivery of essential temperature-controlled cargo.
This segment had 2024 net revenues of $2,556.7 million. • Our 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.
This segment had 2025 net revenues of $2,802.1 million. • Our 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.
Risk Factors." 6 Table of Contents Backlog Our backlog of orders, believed to be firm, at December 31, was as follows: In millions 2024 2023 Americas $ 5,323.1 $ 5,302.9 EMEA 585.3 614.9 Asia Pacific 839.3 1,012.7 Total $ 6,747.7 $ 6,930.5 These backlog figures are based on orders received and only include amounts associated with our equipment and contracting and installation performance obligations.
Risk Factors." 6 Table of Contents Backlog Our backlog of orders, believed to be firm, at December 31, was as follows: In millions 2025 2024 Americas $ 6,298.6 $ 5,323.1 EMEA 775.9 585.3 Asia Pacific 694.9 839.3 Total $ 7,769.4 $ 6,747.7 These backlog figures are based on orders received and only include amounts associated with our equipment and contracting and installation performance obligations.
In addition to core and competitive medical, welfare and retirement programs, we offer programs to support work-life balance and deliver benefits access and opportunity to all. We structure our benefit offerings with a focus on access to affordable benefits based on employee need. Our proxy statement provides more detail on the competitive compensation and benefit programs we offer.
In addition to core and competitive medical, welfare and retirement programs, we offer programs to support work-life balance and to deliver benefits access and opportunity to all. We structure our benefit offerings with a focus on access to affordable benefits based on employee need.
Like other large companies, certain of our information technology systems and the systems of our vendors have been subject to computer viruses, malicious code, unauthorized access, phishing attempts, denial-of-service attacks and other cyber attacks and we expect that we and our vendors will be subject to similar attacks in the future.
Although we maintain processes and procedures designed to mitigate cybersecurity risk, like other large companies, certain of our information technology systems and the systems of our vendors have been subject to computer viruses, malicious code, unauthorized access, phishing attempts, denial-of-service attacks and other cyber attacks and we expect that we and our vendors will be subject to similar attacks in the future.
We also continue to maintain all our locations globally as tobacco free workplaces. 10 Table of Contents Available Information We have used, and intend to continue to use, the homepage, the Investor Relations and the "News" sections of our website (www.tranetechnologies.com), among other sources such as press releases, public conference calls and webcasts, as a means of disclosing additional information, which may include future developments regarding the Company and/or material non-public information.
Available Information We have used, and intend to continue to use, the homepage, the Investor Relations and the "News" sections of our website (www.tranetechnologies.com), among other sources such as press releases, public conference calls and webcasts, as a means of disclosing additional information, which may include future developments regarding the Company and/or material non-public information.
Our continued focus on building an uplifting culture, where our employees can be at their best, has positively contributed to retaining employees at strong levels. The 2024 retention rate of our key talent, those with the highest potential rating, was 97.6%, excluding retirements. Our company‑wide (all employees) voluntary retention rate excluding retirements was 91.9%.
Our continued focus on building an uplifting culture, where our employees can be at their best, has positively contributed to retaining employees at strong levels. The 2025 retention rate of our key talent, those with the highest potential rating, was 96.4%, excluding retirements. Our company‑wide (all employees) voluntary retention rate excluding retirements was 92.1%.
We cannot provide assurance our internal controls will always protect us from the improper conduct of our employees, agents and business partners.
We cannot provide assurance our internal controls will always protect us from the improper conduct of our employees, agents, business partners, or other third parties.
The market for employees and leaders with certain skills and experiences is very competitive, and difficulty attracting, developing, and retaining members of our management team and key employees could have a negative effect on our business, operating results, and financial condition.
The market for employees and leaders with certain skills and experiences is very competitive, and difficulty attracting, developing, and retaining members of our management team and key employees, or a failure to adequately ensure effective succession planning or knowledge transfer, could have a negative effect on our business, operating results, and financial condition.
The Board of Directors of our Company has also adopted and posted in the Investor Relations section of our website the Corporate Governance Guidelines and charters for each of the Board's standing committees. The contents of our website are not incorporated by reference in this report.
The Board of Directors of our Company has also adopted and posted in the Investor Relations section of our website the Corporate Governance Guidelines and charters for each of the Board's standing committees.
There can be no assurance that we would be able to reduce our costs (through negotiations with suppliers or other measures) to offset any such price concessions which could adversely impact results of operations and cash flows.
Conversely, in the event there is deflation, we may experience pressure from our customers to reduce prices. There can be no assurance that we would be able to reduce our costs (through negotiations with suppliers or other measures) to offset any such price concessions which could adversely impact results of operations and cash flows.
Our business may be adversely affected by the outcome of these proceedings and other contingencies (including, without limitation, contract claims or other commercial disputes, product liability, product defects, environmental matters, and asbestos-related matters) that cannot be predicted with certainty.
Our business may be adversely affected by the outcome of these proceedings and other contingencies (including, without limitation, contract claims or other commercial disputes, product liability, product defects, environmental matters, intellectual property claims, employment claims, and asbestos-related matters) that cannot be predicted with certainty. These lawsuits may include claims for compensatory damages, punitive and consequential damages, and/or injunctive relief.
The full extent to which a pandemic, epidemic, or spread of infectious diseases or other public health crises will affect us will depend on future developments that are highly uncertain and cannot be accurately predicted.
The full extent to which public health crises will affect us will depend on future developments that are highly uncertain and cannot be accurately predicted.
This segment had 2024 net revenues of $15,903.2 million. • Our EMEA segment innovates for customers in the Europe, 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.
This segment had 2025 net revenues of $17,168.8 million. • Our EMEA segment innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems and services, energy services and solutions, and transport refrigeration systems and solutions.
The unavailability of some commodities and third-party parts and components could have a material adverse impact on our results of operations and cash flows. Volatility in the prices of commodities and third-party parts and components or the impact of inflationary increases could increase the costs of our products and services.
Volatility in the prices of commodities and third-party parts and components or the impact of inflationary increases could increase the costs of our products and services. We may not be able to pass on these costs to our customers and this could have a material adverse impact on our results of operations and cash flows.
Exchange controls may limit our ability to convert foreign currencies into U.S. dollars or to remit dividends and other payments by our foreign subsidiaries or businesses located in or conducted within a country imposing controls. Currency devaluations result in a diminished value of funds denominated in the currency of the country instituting the devaluation.
We also face risks arising from the imposition of exchange controls and currency devaluations. Exchange controls may limit our ability to convert foreign currencies into U.S. dollars or to remit dividends and other payments by our foreign subsidiaries or businesses located in or conducted within a country imposing controls.
Our aspiration is a workforce that mirrors the communities where we live and work. This helps us to reach a broader talent pool, drive innovation and meet the needs of our global customer base.
Our aspiration is a workforce that cultivates belonging, embeds inclusion creating organizational purpose and opportunity for all in the communities where we live and work. This helps us to reach a broader talent pool, drive innovation and meet the needs of our global customer base.
Intellectual property infringement claims of others and the inability to protect our intellectual property rights could harm our competitive position. Our intellectual property (IP) rights are important to our business and include numerous patents, trademarks, copyrights, trade secrets, proprietary technology, technical data, business processes, and other confidential information.
Our intellectual property (IP) rights are important to our business and include numerous patents, trademarks, copyrights, trade secrets, proprietary technology, technical data, business processes, and other confidential information.
A failure or inability to effectively address market trends, adapt to changes in customer preferences, and compete in our market may adversely affect demand for our products and services, which may cause a material adverse effect on our financial condition. Our growth is dependent, in part, on the timely development, commercialization and acceptance of new and enhanced products and services.
A failure or inability to effectively address market trends, incorporate technology developments, adapt to changes in customer preferences, and compete in our market may adversely affect demand for our products and services, which may cause a material adverse effect on our financial condition.
We must continually innovate new or enhanced products and services to maintain and expand our brand recognition and market leadership position to effectively compete in the markets that we serve.
We must maintain the quality of our products, retain longstanding relationships with major customers, continue to grow our business by establishing relationships with new customers, and continually innovate new or enhanced products and services to maintain and expand our brand recognition and market leadership position to effectively compete in the markets that we serve.
Security breaches or disruptions of the technology systems, infrastructure or products of the Company or our vendors could negatively impact our business and financial results. Our information technology systems, networks, connected services, and infrastructure and technology, including artificial intelligence technology, embedded in certain of our control products have been and are at risk to cyber attacks and unauthorized access.
Our information technology systems, networks, connected services, and infrastructure and technology, including artificial intelligence (AI) technology, embedded in certain of our control products have been and are at risk to cyber attacks and unauthorized access.
Our corporate citizenship strategy, Sustainable Futures, focuses on expanding access to science, technology, engineering, and mathematics (STEM) education and career opportunities.
It turns intention into action and shapes behaviors that drive our leadership principles. Our corporate citizenship strategy, Sustainable Futures, focuses on expanding access to science, technology, engineering, and mathematics (STEM) education and career opportunities.
Executive Officers of the Registrant The following is a list of our executive officers as of February 6, 2025. Name and Age Date of Service as an Executive Officer Principal Occupation and Other Information for Past Five Years David S.
The contents of our website are not incorporated by reference in this report. 11 Table of Contents Executive Officers of the Registrant The following is a list of our executive officers as of February 5, 2026. Name and Age Date of Service as an Executive Officer Principal Occupation and Other Information for Past Five Years David S.
In addition, governmental authorities are actively engaged in formulating new legislative proposals. Any future legislative changes to the tax laws and judicial or regulatory interpretation thereof, the geographic mix of earnings, changes in overall profitability, and other factors could also materially impact our effective tax rate. 20 Table of Contents We continue to monitor for other tax changes, U.S.
Any future legislative changes to the tax laws and judicial or regulatory interpretation thereof, the geographic mix of earnings, changes in overall profitability, and other factors could also materially impact our effective tax rate. We continue to monitor for other tax changes, U.S. (including state and local) and non-U.S. related, which can also adversely impact our overall tax burden.
Disruptions have previously occurred and may occur in the future due to global pandemics, natural disasters, regulatory changes, geopolitical events, electronic component shortages, supplier capacity constraints, labor shortages, port congestion, logistical problems, political unrest, and other issues. Some of these disruptions have resulted in supply chain constraints affecting our business including our ability to timely produce and ship our products.
Disruptions have previously occurred and may occur in the future due to public health crises, natural disasters, regulatory changes, geopolitical events, electronic component shortages, supplier capacity constraints, labor shortages, port congestion, logistical problems, political unrest, and other issues.
The regulatory environment surrounding data privacy and protection is increasingly demanding, with the frequent imposition of new and changing requirements across businesses and geographic areas. We are required to comply with complex regulations when collecting, transferring and using personal data, which increases our costs, affects our competitiveness and can expose us to substantial fines or other penalties.
The regulatory environment surrounding data privacy and protection is increasingly demanding, with the frequent imposition of new and changing requirements across businesses and geographic areas. We are required to comply with complex regulations when collecting, transferring and using personal data, including the E.U. Global Data Protection Regulation (GDPR), the various state privacy laws, and other regulatory requirements.
Kuehn (52) 6/1/2015 Executive Vice President and Chief Financial Officer (since July 2021); Senior Vice President and Chief Financial Officer (March 2020 to June 2021); Vice President and Chief Accounting Officer (June 2015 to February 2020) Mauro Atalla (56) 1/6/2025 Senior Vice President, Chief Technology and Sustainability Officer (since January 2025); Senior Vice President, Engineering and Technology Leader at Collins Aerospace Systems (November 2018 to December 2024) Raymond D.
Kuehn (53) 6/1/2015 Executive Vice President and Chief Financial Officer (since July 2021); Senior Vice President and Chief Financial Officer (March 2020 to June 2021) Mauro Atalla (57) 1/6/2025 Senior Vice President, Chief Technology and Sustainability Officer (since January 2025); Senior Vice President, Engineering and Technology Leader at Collins Aerospace Systems (November 2018 to December 2024) Mingxiao (Gary) Guo (57) 12/4/2025 Senior Vice President, Chief Global Integrated Supply Officer (since December 2025); President, Global Supply Chain, the Coca-Cola Company (November 2020 to November 2025) Victoria V.
While we are committed to pursuing these sustainability objectives, our ability to achieve our sustainability objectives is subject to numerous risks and uncertainties, including increased operation costs and future changes in regulation, and there can be no assurance that we will successfully achieve our commitments. Failure to meet these commitments could result in reputational and other harm to our company.
While we are committed to pursuing these sustainability objectives, our ability to achieve our sustainability objectives is subject to numerous risks and uncertainties, including increased operating costs and future changes in regulation, and there can be no assurance that we will successfully achieve our commitments or that any future investments we make in furtherance of achieving our sustainability targets and goals will meet investor expectations or any future legal requirements regarding sustainability performance.
Failure to timely and accurately predict customer needs and preferences, anticipate regulatory conditions affecting current and future products, mitigate supply chain disruptions on new products, or our failure to develop new and enhanced products and services that are accepted by these markets could have a material adverse impact on our competitive position, operations, financial condition, and cash flows.
Failure to timely and accurately predict customer needs and preferences, anticipate regulatory conditions affecting current and future products, mitigate supply chain disruptions on new products, or our failure to develop new and enhanced products and services in a timely fashion, including implementing emerging technological changes such as integrated AI solutions in our products and services, could have a material adverse impact on our competitive position, operations, financial condition, and cash flows. 14 Table of Contents Capital and credit market conditions could adversely affect our business operations, investments, and financial performance.
Natural disasters or other unexpected catastrophic events may disrupt our operations, adversely affect our results of operations and financial condition, and may not be fully covered by insurance.
Any acquisitions, divestitures, joint ventures or investments may ultimately harm our business, financial condition, results of operations, cash flows, and/or our stock price. 22 Table of Contents Natural disasters or other unexpected catastrophic events may disrupt our operations and our supply chain, and may adversely affect our results of operations and financial condition, and may not be fully covered by insurance.
Turtz (56) 4/3/2019 Senior Vice President and General Counsel (since April 2019); Secretary (since October 2013) Mairéad A. Magner (47) 1/6/2022 Senior Vice President, Chief Human Resources Officer (since January 2022); Vice President, Talent and Organization Capability (January 2018 to January 2022) Donald E.
Magner (48) 1/6/2022 Senior Vice President, Chief Human Resources Officer (since January 2022); Vice President, Talent and Organization Capability (January 2018 to January 2022) Donald E.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

4 edited+2 added−0 removed12 unchanged
Biggest changeIn addition, our Audit Committee provides Board-level oversight for management's actions with respect to practices, procedures and controls used to identify, assess and manage our key cybersecurity programs and risks. We also maintain an Enterprise Risk Intelligence Committee (ERIC), a management-level cross-functional group designed to monitor and mitigate risks, including cybersecurity risks, that pose a threat to our strategic objectives.
Biggest changeWe also maintain an Enterprise Risk Intelligence Committee (ERIC), a management-level cross-functional group designed to monitor and mitigate risks, including cybersecurity risks, that pose a threat to our strategic objectives.
Findings from such analyses are then reviewed and utilized to create action plans where applicable and relevant to our environment and industry; • Maintain an enterprise-wide disaster recovery governance program, which includes cybersecurity-related disaster recovery standards and compliance procedures related thereto; • Regularly perform cybersecurity-related disaster recovery testing to ensure that the Company's mission-critical systems are recoverable, in support of the business continuity needs of our various business lines; • Maintain an operational technology (OT) security program to address cyber risks that are inherent and unique to our industry and manufacturing environment; • Maintain a centralized product security program that unifies company-wide strategy to ensure our customer-facing products and services are secure by design; and • Integrate each of our business and corporate groups with our internal cybersecurity team to ensure cybersecurity requirements are embedded into operating environments as appropriate, which drives business strategies, budgeting, and similar processes.
Findings from such analyses are then reviewed and utilized to create action plans where applicable and relevant to our environment and industry; • Maintain an enterprise-wide disaster recovery governance program, which includes cybersecurity-related disaster recovery standards and compliance procedures related thereto; • Regularly perform cybersecurity-related disaster recovery testing to ensure that the Company's mission-critical systems are recoverable, in support of the business continuity needs of our various business lines; • Maintain an operational technology (OT) security program to address cyber risks that are inherent and unique to our industry and manufacturing environment; 25 Table of Contents • Maintain a centralized product security program that unifies company-wide strategy to ensure our customer-facing products and services are secure by design; and • Integrate each of our business and corporate groups with our internal cybersecurity team to ensure cybersecurity requirements are embedded into operating environments as appropriate, which drives business strategies, budgeting, and similar processes.
The ERIC is charged with providing guidance and direction for integrating enterprise risk 24 Table of Contents intelligence with important business processes, such as strategic planning, business forecasting, operational management, and investment allocation to ensure consistent consideration of risks in decision making.
The ERIC is charged with providing guidance and direction for integrating enterprise risk intelligence with important business processes, such as strategic planning, business forecasting, operational management, and investment allocation to ensure consistent consideration of risks in decision making.
Finally, we maintain an Enterprise Cybersecurity Governance Committee that presents updates on cybersecurity initiatives, known and emerging issues and risks, and program updates to a cross-section of our senior management.
Finally, we maintain an Enterprise Cybersecurity Governance Committee (ECGC) that presents updates on cybersecurity initiatives, known and emerging issues and risks, and program updates to a cross-section of our senior management. ERIC members are leaders responsible for assessing, managing, and reporting on enterprise risks, including, but not limited to, Cybersecurity.
Added
In addition, our Audit Committee provides Board-level oversight for management's actions with respect to practices, procedures and controls used to identify, assess and manage our key cybersecurity programs and risks. The Audit Committee receives a report from our Chief Information Security Officer on cybersecurity matters at least twice per year.
Added
ECGC members are leaders whose roles and responsibilities require engagement with and input into the enterprise Cybersecurity program. Members involved in these committees possess experience across general management, risk management, cybersecurity and technology. 26 Table of Contents

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−0 removed1 unchanged
Biggest changeThe locations of our principal plant facilities, by segment, at December 31, 2024 were as follows: Americas EMEA Asia Pacific Arecibo, Puerto Rico Barcelona, Spain Bangkok, Thailand Charlotte, North Carolina Bari, Italy Taicang, China Clarksville, Tennessee Charmes, France Wujiang, China Columbia, South Carolina Conselve, Italy Zhongshan, China Fort Smith, Arkansas Essen, Germany Fremont, Ohio Galway, Ireland Grand Rapids, Michigan Golbey, France Greenville, South Carolina Jettingen-Scheppach, Germany Hastings, Nebraska King Abdullah Economic City, Saudi Arabia La Crosse, Wisconsin Kolin, Czech Republic Lynn Haven, Florida Tribano, Italy Monterrey, Mexico Wittenberg, Germany Noblesville, Indiana Pueblo, Colorado Rushville, Indiana St.
Biggest changeThe locations of our principal plant facilities, by segment, at December 31, 2025 were as follows: Americas EMEA Asia Pacific Arecibo, Puerto Rico Barcelona, Spain Bangkok, Thailand Charlotte, North Carolina Bari, Italy Taicang, China Clarksville, Tennessee Charmes, France Wujiang, China Columbia, South Carolina Conselve, Italy Zhongshan, China Fort Smith, Arkansas Essen, Germany Fremont, Ohio Galway, Ireland Grand Rapids, Michigan Golbey, France Greenville, South Carolina Jettingen-Scheppach, Germany Hastings, Nebraska King Abdullah Economic City, Saudi Arabia La Crosse, Wisconsin Kolin, Czech Republic Lynn Haven, Florida Leipheim, Germany Monterrey, Mexico Tribano, Italy Noblesville, Indiana Wittenberg, Germany Pueblo, Colorado Rushville, Indiana St.
Item 2. PROPERTIES As of December 31, 2024, we owned or leased approximately 30 million square feet of space worldwide. Manufacturing and assembly operations are principally conducted in 36 plants across the world. We also maintain various warehouses, offices, technology centers, and repair centers throughout the world.
Item 2. PROPERTIES As of December 31, 2025, we owned or leased approximately 31 million square feet of space worldwide. Manufacturing and assembly operations are principally conducted in 38 plants across the world. We also maintain various warehouses, offices, technology centers, and repair centers throughout the world.
Paul, Minnesota Trenton, New Jersey Tyler, Texas Vidalia, Georgia Waco, Texas
Paul, Minnesota Trenton, New Jersey Tyler, Texas Vidalia, Georgia Waco, Texas York, Pennsylvania

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+0 added−2 removed1 unchanged
Biggest change(b) We may also reacquire shares outside of the repurchase program from time to time in connection with the surrender of shares to cover taxes on vesting of share-based awards.
Biggest changeDuring the fourth quarter of 2025, we repurchased approximately $231 million of our ordinary shares, consistent with our capital allocation strategy, leaving $4.8 billion remaining under the 2024 Authorization. (b) We may also reacquire shares outside of the repurchase program from time to time in connection with the surrender of shares to cover taxes on vesting of share-based awards.
The graph assumes an investment of $100 in our ordinary shares, the Standard & Poor's 500 Stock Index and the Standard & Poor's 500 Industrial Index on December 31, 2019 and assumes the reinvestment of dividends.
The graph assumes an investment of $100 in our ordinary shares, the Standard & Poor's 500 Stock Index and the Standard & Poor's 500 Industrial Index on December 31, 2020 and assumes the reinvestment of dividends.
We reacquired 791 shares in October, 14 shares in November, and 168 shares in December in transactions outside the repurchase programs. 26 Table of Contents Performance Graph The following graph compares the cumulative total shareholder return on our ordinary shares with the cumulative total return on (i) the Standard & Poor's 500 Stock Index and (ii) the Standard & Poor's 500 Industrial Index for the five years ended December 31, 2024.
We reacquired 826 shares in October, 305 shares in November, and 243 shares in December in transactions outside the repurchase programs. 28 Table of Contents Performance Graph The following graph compares the cumulative total shareholder return on our ordinary shares with the cumulative total return on (i) the Standard & Poor's 500 Stock Index and (ii) the Standard & Poor's 500 Industrial Index for the five years ended December 31, 2025.
As of January 31, 2025, the approximate number of record holders of ordinary shares was 2,171.
As of January 30, 2026, the approximate number of record holders of ordinary shares was 2,067.
Repurchases occur in the open market or through one or more other public or private transactions pursuant to plans complying with Rules 10b5-1 under the Exchange Act.
Repurchases occur in the open market or through one or more other public or private transactions pursuant to plans complying with Rules 10b5-1 under the Exchange Act. In December 2024, our Board of Directors authorized the repurchase of up to $5.0 billion of our ordinary shares (2024 Authorization).
Issuer Purchases of Equity Securities The following table provides information with respect to purchases of our ordinary shares during the quarter ended December 31, 2024: Period Total number of shares purchased (000's) (a) (b) Average price paid per share (a) (b) Total number of shares purchased as part of program (000's) (a) Approximate dollar value of shares still available to be purchased under the program ($000's) (a) October 1 - October 31 266.8 $ 393.81 266.0 $ 1,499,772 November 1 - November 30 354.6 402.91 354.6 1,356,912 December 1 - December 31 268.0 400.06 267.8 1,249,772 Total 889.4 $ 399.32 888.4 (a) Share repurchases are made from time to time in accordance with management's capital allocation strategy, subject to market conditions and regulatory requirements.
Issuer Purchases of Equity Securities The following table provides information with respect to purchases of our ordinary shares during the quarter ended December 31, 2025: Period Total number of shares purchased (000's) (a) (b) Average price paid per share (a) (b) Total number of shares purchased as part of program (000's) (a) Approximate dollar value of shares still available to be purchased under the program ($000's) (a) October 1 - October 31 285.8 $ 422.18 285.0 $ 4,879,537 November 1 - November 30 88.2 422.81 87.9 4,842,360 December 1 - December 31 187.0 395.52 186.7 4,768,514 Total 561.0 $ 413.40 559.6 (a) Share repurchases are made from time to time in accordance with management's capital allocation strategy, subject to market conditions and regulatory requirements.
Company/Index 2019 2020 2021 2022 2023 2024 Trane Technologies 100 144 202 171 252 386 S&P 500 100 118 152 125 157 197 S&P 500 Industrials Index 100 111 134 127 150 176 Item 6. [Reserved] 27 Table of Contents
Company/Index 2020 2021 2022 2023 2024 2025 Trane Technologies 100 141 119 176 269 286 S&P 500 100 129 105 133 166 196 S&P 500 Industrials Index 100 121 114 135 158 189 Item 6. [Reserved] 29 Table of Contents
Removed
In February 2022, our Board of Directors authorized the repurchase of up to $3.0 billion of our ordinary shares (2022 Authorization) and in December 2024, our Board of Directors authorized the repurchase of up to an additional $5.0 billion of our ordinary shares (2024 Authorization) upon the completion of the 2022 Authorization.
Removed
During the fourth quarter of 2024, we repurchased approximately $355 million of our ordinary shares, consistent with our capital allocation strategy, leaving $1.2 billion remaining under the 2022 Authorization and $5.0 billion remaining under the 2024 Authorization.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

101 edited+16 added−26 removed71 unchanged
Biggest changeWe continue to see material and wage inflation impact our cost structure. Our performance may be impacted by future developments that are uncertain. Geopolitical risks and macroeconomic events could cause disruptions to operations, supply chains, end markets, financial markets and overall economic conditions which could negatively impact our business.
Biggest changeGeopolitical risks and macroeconomic developments, including changes in global trade policies, tariffs and other measures could cause disruptions to operations, supply chains, end markets, financial markets and overall economic conditions which could negatively impact our business. 31 Table of Contents We continue to monitor macroeconomic indicators and uncertainties resulting from the tariffs announced and implemented by the United States in 2025, as well as the tariffs imposed by other countries in response.
We use assumptions to value the intangible assets including projected cash flows, including revenue growth rates and margins, customer attrition rates, royalty rates, tax rates and discount rates. The excess, if any, of total consideration transferred in a business combination over the fair value of identifiable assets acquired, liabilities assumed, and any non-controlling interest is recognized as goodwill.
We use assumptions to value the intangible assets including projected cash flows, revenue growth rates and margins, customer attrition rates, royalty rates, tax rates and discount rates. The excess, if any, of total consideration transferred in a business combination over the fair value of identifiable assets acquired, liabilities assumed, and any non-controlling interest is recognized as goodwill.
To the extent that the ultimate results differ from our original or adjusted estimates, the effect will be recorded in the provision for income taxes in the period that the matter is finally resolved. • Employee benefit plans – We provide a range of benefits to eligible employees and retirees, including pensions, postretirement and postemployment benefits.
To the extent that the ultimate results differ from our original or adjusted estimates, the effect will be recorded in the provision for income taxes in the period that the matter is finally resolved. • Employee benefit plans – We provide a range of benefits, including pensions, postretirement and postemployment benefits to eligible employees and retirees.
The goal of these Chapter 11 filings is to resolve equitably and permanently all current and future asbestos-related claims in a manner beneficial to claimants, Aldrich and Murray through court approval of a plan of reorganization that would create a trust pursuant to section 524(g) of the Bankruptcy Code, establish claims resolution procedures for all current and future asbestos-related claims against Aldrich and Murray and channel such claims to the trust for resolution in accordance with those procedures. 28 Table of Contents Aldrich and its wholly-owned subsidiary 200 Park and Murray and its wholly-owned subsidiary ClimateLabs were deconsolidated as of the Petition Date and their respective assets and liabilities were derecognized from our Consolidated Financial Statements.
The goal of these Chapter 11 filings is to resolve equitably and permanently all current and future asbestos-related claims in a manner beneficial to claimants, Aldrich and Murray through court approval of a plan of reorganization that would create a trust pursuant to section 524(g) of the Bankruptcy Code, establish claims resolution procedures for all current and future asbestos-related claims against Aldrich and Murray and channel such claims to the trust for resolution in accordance with those procedures. 30 Table of Contents Aldrich and its wholly-owned subsidiary 200 Park and Murray and its wholly-owned subsidiary ClimateLabs were deconsolidated as of the Petition Date and their respective assets and liabilities were derecognized from our Consolidated Financial Statements.
GAAP. The preparation of financial statements in conformity with those accounting principles requires management to use judgment in making estimates and assumptions based on the relevant information available at the end of each period.
The preparation of financial statements in conformity with those accounting principles requires management to use judgment in making estimates and assumptions based on the relevant information available at the end of each period.
Additionally, we are investing substantial resources to innovate and develop new products and services which we expect to drive future growth. 30 Table of Contents Results of Operations Non-GAAP Financial Measures Organic Revenue We define organic revenue as net revenues adjusted for the impact of currency, acquisitions and divestitures . Organic revenue is not defined under U.S.
Additionally, we are investing substantial resources to innovate and develop new products and services which we expect to drive future growth. 32 Table of Contents Results of Operations Non-GAAP Financial Measures Organic Revenue We define organic revenue as net revenues adjusted for the impact of currency, acquisitions and divestitures . Organic revenue is not defined under U.S.
Our cash requirements primarily consist of the following: • Funding of working capital • Debt service requirements • Funding of capital expenditures • Dividend payments • Funding of acquisitions, joint ventures and equity investments • Share repurchases Our primary sources of liquidity include cash balances on hand, cash flows from operations, proceeds from debt offerings, commercial paper, and borrowing availability under our existing credit facilities.
Our cash requirements primarily consist of the following: • Business reinvestment • Funding of working capital • Debt service requirements • Funding of capital expenditures • Dividend payments • Funding of acquisitions, joint ventures and equity investments • Share repurchases Our primary sources of liquidity include cash balances on hand, cash flows from operations, proceeds from debt offerings, commercial paper, and borrowing availability under our existing credit facilities.
For financial market risk impacting the Company, see Part II, Item 7A, "Quantitative and Qualitative Disclosure About Market Risk." 38 Table of Contents Capitalization Financing rates and conditions associated with future borrowings under our commercial paper program or term debt offerings will be affected by general financing conditions and our credit ratings.
For financial market risk impacting the Company, see Part II, Item 7A, "Quantitative and Qualitative Disclosure About Market Risk." 40 Table of Contents Capitalization Financing rates and conditions associated with future borrowings under our commercial paper program or term debt offerings will be affected by general financing conditions and our credit ratings.
See Note 7, "Debt and Credit Facilities," to the Consolidated Financial Statements and further below in Supplemental Guarantor Financial Information for additional information regarding the terms of our long-term obligations and their related guarantees. 36 Table of Contents Cash Flows The following table reflects the major categories of cash flows for the years ended December 31, respectively.
See Note 7, "Debt and Credit Facilities," to the Consolidated Financial Statements and further below in Supplemental Guarantor Financial Information for additional information regarding the terms of our long-term obligations and their related guarantees. 38 Table of Contents Cash Flows The following table reflects the major categories of cash flows for the years ended December 31, respectively.
The following table shows our guarantor relationships as of December 31, 2024: Parent, issuer or guarantors Notes issued Notes guaranteed Trane Technologies plc (Plc) None All registered notes and debentures Trane Technologies Irish Holdings Unlimited Company (TT Holdings) None All notes issued by TTFL and TTC HoldCo Trane Technologies Global Holding II Company (TT Global II) None All notes issued by TTFL and TTC HoldCo Trane Technologies Lux International Holding Company S.à.r.l.
The following table shows our guarantor relationships as of December 31, 2025: Parent, issuer or guarantors Notes issued Notes guaranteed Trane Technologies plc (Plc) None All registered notes and debentures Trane Technologies Irish Holdings Unlimited Company (TT Holdings) None All notes issued by TTFL and TTC HoldCo Trane Technologies Global Holding II Company (TT Global II) None All notes issued by TTFL and TTC HoldCo Trane Technologies Lux International Holding Company S.à.r.l.
See Note 11, "Pensions and Postretirement Benefits Other Than Pensions," to the Consolidated Financial Statements for additional information regarding postretirement benefits other than pensions. 39 Table of Contents Supplemental Guarantor Financial Information Trane Technologies plc (Plc or Parent Company) and certain of its 100% directly or indirectly owned subsidiaries provide guarantees of public debt issued by other 100% directly or indirectly owned subsidiaries of Plc.
See Note 11, "Pensions and Postretirement Benefits Other Than Pensions," to the Consolidated Financial Statements for additional information regarding postretirement benefits other than pensions. 41 Table of Contents Supplemental Guarantor Financial Information Trane Technologies plc (Plc or Parent Company) and certain of its 100% directly or indirectly owned subsidiaries provide guarantees of public debt issued by other 100% directly or indirectly owned subsidiaries of Plc.
We monitor key competitors and customers in order to gauge relative performance and the outlook for the future. We regularly perform detailed evaluations of the different market segments we serve to proactively detect trends and to adapt our strategies accordingly, including potential triggers and actions to be taken under recessionary scenarios.
We monitor key competitors and customers in order to gauge relative performance and the outlook for the future. We regularly perform detailed evaluations of the different market segments we serve to proactively detect trends and to adapt our strategies accordingly, including potential triggers and actions to be taken under recessionary and other macroeconomic scenarios.
Discussions of 2022 significant items and year-to-year comparisons between 2023 and 2022 have been excluded in this Form 10-K and can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for year ended December 31, 2023.
Discussions of 2023 significant items and year-to-year comparisons between 2024 and 2023 have been excluded in this Form 10-K and can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for year ended December 31, 2024.
The following tables present summarized financial information for the Parent Company and subsidiary debt issuers and guarantors on a combined basis (together, "obligor group") after elimination of intercompany transactions and balances based on the Company's legal entity ownerships and guarantees outstanding at December 31, 2024.
The following tables present summarized financial information for the Parent Company and subsidiary debt issuers and guarantors on a combined basis (together, "obligor group") after elimination of intercompany transactions and balances based on the Company's legal entity ownerships and guarantees outstanding at December 31, 2025.
However, to the extent that we repatriate funds from non-U.S. subsidiaries for which we assert permanent reinvestment to fund our U.S. operations, we would be required to accrue and pay applicable non-U.S. taxes. As of December 31, 2024, we currently have no plans to repatriate funds from subsidiaries for which we assert permanent reinvestment.
However, to the extent that we repatriate funds from non-U.S. subsidiaries for which we assert permanent reinvestment to fund our U.S. operations, we would be required to accrue and pay applicable non-U.S. taxes. As of December 31, 2025, we currently have no plans to repatriate funds from subsidiaries for which we assert permanent reinvestment.
We believe we have a solid foundation of global brands that are highly differentiated in all of our major product lines. Our geographic mix, diversity of our portfolio, and our large installed product base, provide growth opportunities from replacement demand and within our service revenue streams.
We believe we have a solid foundation of global brands that are highly differentiated in all of our major product lines. Our geographic mix, our diverse portfolio, and our large installed product base, provide growth opportunities from replacement demand and within our service revenue streams.
The capital expenditure program for 2025 is estimated to be approximately 2.0% of revenues, including amounts approved in prior periods. Many of these projects are subject to review and cancellation at our option without incurring substantial charges.
The capital expenditure program for 2026 is estimated to be approximately 2.0% of revenues, including amounts approved in prior periods. Many of these projects are subject to review and cancellation at our option without incurring substantial charges.
Contractual Obligations Our contractual cash obligations include required payments of long-term debt principal and interest, purchase obligations and expected obligations under our pension and postretirement benefit plans. In addition, we have required payments of operating leases, income taxes and expected obligations under the Funding agreement, environmental and product liability matters.
Contractual Obligations Our contractual cash obligations include required payments of long-term debt principal and interest, purchase obligations and expected obligations under our pension and postretirement benefit plans. In addition, we have required payments of operating leases, income taxes and expected obligations under the Funding Agreements, environmental and product liability matters.
Under the program, the maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, is $2.0 billion as of December 31, 2024. We had no commercial paper outstanding at December 31, 2024 and December 31, 2023.
Under the program, the maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, is $2.0 billion as of December 31, 2025. We had no commercial paper outstanding at December 31, 2025 and December 31, 2024.
In testing our other indefinite-lived intangible assets for impairment, we forecasted revenues for a period of five years with discount rates ranging from 8.5% to 14.0%, terminal growth rates of 3.5%, and royalty rates ranging from 1.0% to 4.5%.
In testing our other indefinite-lived intangible assets for impairment, we forecasted revenues for a period of five years with discount rates ranging from 9.5% to 14.5%, terminal growth rates of 3.5%, and royalty rates ranging from 1.0% to 4.5%.
For detailed information on the bankruptcy cases of Aldrich and Murray, see Part I, Item 1, "Business - Asbestos-Related Matters," Part I, Item 1A, "Risk Factors - Risks Related to Litigation," Part I, Item 3, "Legal Proceedings," and Part II, Item 8, Consolidated Financial Statements, and Note 20, "Commitments and Contingencies." 29 Table of Contents Trends and Economic Events We are a global corporation with worldwide operations.
For detailed information on the bankruptcy cases of Aldrich and Murray, see Part I, Item 1, "Business - Asbestos-Related Matters," Part I, Item 1A, "Risk Factors - Risks Related to Litigation," Part I, Item 3, "Legal Proceedings," and Part II, Item 8, Consolidated Financial Statements, and Note 20, "Commitments and Contingencies." Trends and Economic Events We are a global corporation with worldwide operations.
See Note 7, "Debt and Credit Facilities," to the Consolidated Financial Statements for additional information regarding the terms of our short-term obligations. Our long-term obligations primarily consist of long-term debt with final maturity dates ranging between 2026 and 2049.
See Note 7, "Debt and Credit Facilities," to the Consolidated Financial Statements for additional information regarding the terms of our short-term obligations. Our long-term obligations primarily consist of long-term debt with final maturity dates ranging between 2027 and 2049.
Our public debt does not contain financial covenants and our revolving credit lines have a debt-to-total capital covenant of 65%. As of December 31, 2024, our debt-to-total capital ratio was significantly beneath this limit.
Our public debt does not contain financial covenants and our revolving credit lines have a debt-to-total capital covenant of 65%. As of December 31, 2025, our debt-to-total capital ratio was significantly beneath this limit.
In addition, we believe our backlog and order levels are indicative of future revenue and thus are a key measure of anticipated performance. We expect conditions to remain mixed across our served end markets and geographies.
In addition, we believe our backlog and order levels are indicative of future revenue and thus are a key measure of anticipated performance. Conditions remain mixed across our served end markets and geographies.
In accordance with notice requirements as specified in the offering documents, holders had the option to exercise puts up to $37.2 million for settlement in February 2025 but did not exercise such option.
In accordance with notice requirements as specified in the offering documents, holders had the option to exercise puts up to $37.2 million for settlement in February 2026 but did not exercise such option.
As of December 31, 2024, our credit ratings were as follows: Short-term Long-term Moody's P-2 A3 Standard and Poor's A-2 BBB+ The credit ratings set forth above are not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal by the assigning rating organization. Each rating should be evaluated independently of any other rating.
As of December 31, 2025, our credit ratings were as follows: Short-term Long-term Moody's P-2 A3 Standard and Poor's A-1 A- The credit ratings set forth above are not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal by the assigning rating organization. Each rating should be evaluated independently of any other rating.
The test compares the carrying amount of the reporting unit to its estimated fair value. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the 41 Table of Contents reporting unit is not impaired.
The test compares the carrying amount of the reporting unit to its estimated fair value. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the 43 Table of Contents reporting unit is not impaired.
This section discusses 2024 and 2023 significant items affecting our consolidated operating results, financial condition and liquidity and provides a year-to-year comparison between 2024 and 2023.
This section discusses 2025 and 2024 significant items affecting our consolidated operating results, financial condition and liquidity and provides a year-to-year comparison between 2025 and 2024.
These valuation techniques are weighted 50%, 40% and 10%, respectively. Under the income approach, we assumed a forecasted cash flow period of five to ten years with discount rates ranging from 8.5% to 15.5% and a terminal growth rate of 3.5% to 4.0%.
These valuation techniques are weighted 50%, 40% and 10%, respectively. Under the income approach, we assumed a forecasted cash flow period of five to ten years with discount rates ranging from 9.5% to 13.5% and a terminal growth rate of 3.5% to 4.0%.
In addition, we maintain two $1.0 billion senior unsecured revolving credit facilities, one of which matures in June 2026 and the other which matures in April 2027. The facilities provide support for our commercial paper program and can be used for working capital and other general corporate purposes.
In addition, we maintain two $1.0 billion senior unsecured revolving credit facilities, one of which matures in April 2027 and the other which matures in May 2030. The facilities provide support for our commercial paper program and can be used for working capital and other general corporate purposes.
Estimated sensitivities to the expected 2025 net periodic pension cost of a 0.25% rate decline in the two basic assumptions are as follows: the decline in the discount rate would increase expense by $0.2 million and the decline in the estimated return on assets would increase expense by $4.8 million.
Estimated sensitivities to the expected 2026 net periodic pension cost of a 0.25% rate decline in the two basic assumptions are as follows: the decline in the discount rate would increase expense by $0.2 million and the decline in the estimated return on assets would increase expense by $4.6 million.
At December 31, 2024, we had purchase obligations of $1,161.2 million, which are primarily payable within 12 months. Pensions It is our objective to contribute to the pension plans to ensure adequate funds are available in the plans to make benefit payments to plan participants and beneficiaries when required.
At December 31, 2025, we had purchase obligations of $1,245.1 million, which are primarily payable within 12 months. Pensions It is our objective to contribute to the pension plans to ensure adequate funds are available in the plans to make benefit payments to plan participants and beneficiaries when required.
(TTC HoldCo) 3.750% Senior Notes due 2028 5.750% Senior Notes due 2043 4.300% Senior Notes due 2048 All notes issued by TTFL Trane Technologies Company LLC (TTC) 7.200% Debentures due 2025 6.480% Debentures due 2025 Puttable debentures due 2027-2028 All notes issued by TTFL and TTC HoldCo Each subsidiary debt issuer and guarantor is owned 100% directly or indirectly by the Parent Company.
(TTC HoldCo) 3.750% Senior Notes due 2028 5.750% Senior Notes due 2043 4.300% Senior Notes due 2048 All notes issued by TTFL Trane Technologies Company LLC (TTC) Puttable debentures due 2027-2028 All notes issued by TTFL and TTC HoldCo Each subsidiary debt issuer and guarantor is owned 100% directly or indirectly by the Parent Company.
A 0.25% rate decrease in the discount rate for postretirement benefits would increase expected 2025 net periodic postretirement benefit cost by $0.3 million. Recent Accounting Pronouncements See Note 2, "Summary of Significant Accounting Policies" to the Consolidated Financial Statements for a discussion of recent accounting pronouncements.
A 0.25% rate decrease in the discount rate for postretirement benefits would increase expected 2026 net periodic postretirement benefit cost by $0.3 million. Recent Accounting Pronouncements See Note 2, "Summary of Significant Accounting Policies" to the Consolidated Financial Statements for a discussion of recent accounting pronouncements. 45 Table of Contents
The EMEA segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings, and transport refrigeration systems and solutions. • Our 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.
The EMEA segment encompasses heating, cooling and ventilation systems and services, energy services and solutions, and transport refrigeration systems and solutions. • Our Asia Pacific segment innovates for customers throughout the Asia Pacific region.
Actual results may differ from the actuarial assumptions and are generally accumulated and amortized into earnings over future periods. We review our actuarial assumptions at each measurement date and make modifications to the assumptions based on current rates and trends, if appropriate.
Actual results may differ from the actuarial assumptions and are generally accumulated into Accumulated other comprehensive income (loss) and amortized into Net earnings over future periods. We review our actuarial assumptions at each measurement date and make modifications to the assumptions based on current rates and trends, if appropriate.
Capital expenditures were $370.6 million, $300.7 million and $291.8 million for the years ended December 31, 2024, 2023 and 2022, respectively. Our investments continue to improve manufacturing productivity, expand capacity, reduce costs, provide environmental enhancements, upgrade information technology infrastructure and security and advanced technologies for existing facilities.
Capital expenditures were $383.0 million, $370.6 million and $300.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. Our investments continue to improve manufacturing productivity, expand capacity, reduce costs, provide environmental enhancements, upgrade information technology infrastructure and security and advanced technologies for existing facilities.
The maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, under the commercial paper program is $2.0 billion, of which we had no outstanding balance as of December 31, 2024.
The 36 Table of Contents maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, under the commercial paper program is $2.0 billion, of which we had no outstanding balance as of December 31, 2025.
Total commitments of $2.0 billion were unused at December 31, 2024 and December 31, 2023.
Total commitments of $2.0 billion were unused at December 31, 2025 and December 31, 2024.
We believe organic revenue growth provides investors with useful supplemental information about our revenues in both periods presented. Segment Adjusted EBITDA We define Segment Adjusted EBITDA as net earnings excluding interest expense, income taxes, depreciation and amortization, restructuring, non-cash adjustments for contingent consideration, merger and acquisition-related costs, unallocated corporate expenses, discontinued operations and other non-recurring items.
We believe organic revenue growth provides investors with useful supplemental information about our revenues in both periods presented. Segment Adjusted EBITDA We define Segment Adjusted EBITDA as net earnings excluding interest expense, income taxes, depreciation and amortization, restructuring, merger and acquisition transaction costs, unallocated corporate expenses, discontinued operations and other significant non-recurring or non-cash items.
In accordance with notice requirements as specified in the offering documents, holders will have the option to exercise puts up to $257.8 million for settlement in November 2025. We also maintain a commercial paper program which is used for general corporate purposes.
In accordance with notice requirements as specified in the offering documents, holders will have the option to exercise puts up to $256.0 million for settlement in November 2026. We also maintain a commercial paper program which is used for general corporate purposes.
We expect to pay a competitive and growing dividend. Since the launch of Trane Technologies in March 2020, we have increased our quarterly dividend per share by 58%, from $0.53 to $0.84 per ordinary share, or $2.12 to $3.36 per share annualized. All four 2024 quarterly dividends were paid during the year ended December 31, 2024.
We expect to pay a competitive and growing dividend. Since the launch of Trane Technologies in March 2020, we have increased our quarterly dividend per share by 77%, from $0.53 to $0.94 per ordinary share, or $2.12 to $3.76 per share annualized. All four 2025 quarterly dividends were paid during the year ended December 31, 2025.
In February 2025, our Board of Directors declared an increase in our quarterly share dividend by 12%, from $0.84 to $0.94 per ordinary share, or $3.36 to $3.76 per share annualized starting in the first quarter of 2025. We continue to actively manage and strengthen our business portfolio to meet the current and future needs of our customers.
In February 2026, our Board of Directors declared an increase in our quarterly share dividend by 12%, from $0.94 to $1.05 per ordinary share, or $3.76 to $4.20 per share annualized starting in the first quarter of 2026. We continue to actively manage and strengthen our business portfolio to meet the current and future needs of our customers.
Future interest payments on long-term debt total $2,348.6 million, with $220.5 million payable within 12 months. See Note 7, "Debt and Credit Facilities," to the Consolidated Financial Statements for additional information regarding debt. Purchase Obligations Purchase obligations include commitments under legally enforceable contracts or purchase orders.
Future interest payments on long-term debt total $2,127.8 million, with $208.3 million payable within 12 months. See Note 7, "Debt and Credit Facilities," to the Consolidated Financial Statements for additional information regarding debt. Purchase Obligations Purchase obligations include commitments under legally enforceable contracts or purchase orders.
Determining the cost associated with such benefits is dependent on various actuarial assumptions including discount rates, expected return on plan assets, compensation increases, mortality, turnover rates and healthcare cost trend rates. Actuarial valuations are performed to determine expense in accordance with GAAP.
Determining the cost associated with such benefits is dependent on various actuarial assumptions including discount rates, expected return on plan assets, compensation increases, mortality, turnover rates and healthcare cost trend rates. Actuaries perform the required calculations to determine expense in accordance with GAAP.
The components of the period change were as follows: Volume 9.4 % Pricing 2.3 % Organic revenue (1) 11.7 % Acquisitions 1.0 % Currency translation (0.5) % Total 12.2 % (1) Represents a non-GAAP measure.
The components of the period change were as follows: Volume 3.2 % Pricing 3.0 % Organic revenue (1) 6.2 % Acquisitions 0.8 % Currency translation 0.5 % Total 7.5 % (1) Represents a non-GAAP measure.
Under the guideline public company method, we used multiples of earnings before interest, taxes, depreciation and amortization (EBITDA) or revenues based on the market information of comparable companies. Additionally, we compared the estimated aggregate fair value of our reporting units to our overall market capitalization.
Under the guideline public company method, we used multiples of EBITDA or revenues based on the market information of comparable companies. Additionally, we compared the estimated aggregate fair value of our reporting units to our overall market capitalization.
Segment Adjusted Operating Income We define Segment Adjusted Operating Income as operating income adjusted to exclude restructuring costs, merger and acquisition-related costs, non-cash adjustments for contingent consideration and other non-recurring items. Segment Adjusted Operating Income, and ratios based on it, are used to provide a comprehensive view of segment profitability and evaluate efficient returns on assets.
Segment Adjusted Operating Income We define Segment Adjusted Operating Income as operating income adjusted to exclude restructuring costs, merger and acquisition transaction costs, and other significant non-recurring or non-cash items. Segment Adjusted Operating Income, and ratios based on it, are used to provide a comprehensive view of segment profitability and evaluate efficient returns on assets.
Debt At December 31, 2024, we had outstanding aggregate long-term debt principal payments of $4,802.2 million, with $452.2 million payable within 12 months. The amount payable within 12 months includes $295.0 million of debt redeemable at the option of the holder. The scheduled maturities of these bonds range between 2027 and 2028.
Debt At December 31, 2025, we had outstanding aggregate long-term debt principal payments of $4,615.1 million, with $693.0 million payable within 12 months. The amount payable within 12 months includes $293.1 million of debt redeemable at the option of the holder. The scheduled maturities of these bonds range between 2027 and 2028.
Each year, we make investments in new product development and new technology innovation as they are key factors in achieving our strategic objectives as a leader in the climate sector. In addition, we make investments in technology and business for our operational sustainability programs.
Each year, we make investments in new product development and new technology innovation as they are key factors in achieving our strategic objectives as a leader in the climate sector. In addition, we make investments in technology and business for our operational sustainability programs. Our research and development and sustaining costs account for approximately 2% of annual Net revenues.
Where necessary, we ensure that the total transaction price is then allocated to the distinct performance obligations based on the determination of their relative standalone selling price at the inception of the arrangement.
List prices are used if they are determined to be representative of standalone selling prices. Where necessary, we ensure that the total transaction price is then allocated to the distinct performance obligations based on the determination of their relative standalone selling price at the inception of the arrangement.
For more information, see "Non-GAAP Financial Measures." The increase in Net revenues was primarily driven by higher volumes as a result of stronger end-customer demand within our Americas and EMEA segments, realization of price increases and incremental revenue from acquisitions, partially offset by an unfavorable impact from foreign currency translation.
For more information, see "Non-GAAP Financial Measures." The increase in Net revenues was primarily driven by higher volumes as a result of stronger end-customer demand within our Americas and EMEA segments, realization of price increases and incremental revenue from acquisitions. Refer to "Results by Segment" below for a discussion of Net revenues by segment.
In millions 2024 2023 Net cash provided by continuing operating activities $ 3,177.7 $ 2,426.8 Net cash used in continuing investing activities (562.9) (1,172.2) Net cash used in continuing financing activities (2,020.6) (1,350.3) Operating Activities Net cash provided by continuing operating activities for the year ended December 31, 2024 was $3,177.7 million, of which net income provided $2,938.8 million after adjusting for non-cash transactions.
In millions 2025 2024 Net cash provided by continuing operating activities $ 3,220.4 $ 3,177.7 Net cash used in continuing investing activities (640.0) (562.9) Net cash used in continuing financing activities (2,495.8) (2,020.6) Operating Activities Net cash provided by continuing operating activities for the year ended December 31, 2025 was $3,220.4 million, of which net income provided $3,502.0 million after adjusting for non-cash transactions.
The components of the period change were as follows: Volume 11.6 % Pricing 2.7 % Organic revenue (1) 14.3 % Acquisitions 1.0 % Currency translation (0.3) % Total 15.0 % The increase in organic revenue was primarily driven by higher volumes led by strong demand within both our Commercial HVAC and Residential HVAC businesses and realization of price increases for both equipment and services within our Commercial HVAC business, partially offset by softer transport markets.
The components of the period change were as follows: Volume 3.6 % Pricing 3.8 % Organic revenue (1) 7.4 % Acquisitions 0.7 % Currency translation (0.1) % Total 8.0 % The increase in organic revenue was primarily driven by realization of price increases and higher volumes led by strong demand within our Commercial HVAC business, which was partially offset by weaker volume in our Residential business.
In 2024, we committed capital of approximately $470 million attributable to acquisitions and equity investments that were signed in 2024 and were closed in 2024 or in January 2025. We incur costs associated with restructuring initiatives intended to result in improved operating performance, profitability and working capital levels.
In 2025 and through January 2026, we committed capital of approximately $720 million attributable to acquisitions and equity investments that were closed in 2025 or are expected to close in the first quarter of 2026. We incur costs associated with restructuring initiatives intended to result in improved operating performance, profitability and working capital levels.
The results of the acquisitions will be included in our consolidated financial statements from the date of the acquisitions. Significant Matters Reorganization of Aldrich and Murray On June 18, 2020 (Petition Date), our indirect wholly-owned subsidiaries, Aldrich and Murray each filed a voluntary petition for reorganization under the Bankruptcy Code.
Significant Matters Reorganization of Aldrich and Murray On June 18, 2020 (Petition Date), our indirect wholly-owned subsidiaries, Aldrich and Murray each filed a voluntary petition for reorganization under the Bankruptcy Code.
Additionally, non-cash adjustments to contingent consideration reduced Selling and administrative expenses for the years ended December 31, 2024 and December 31, 2023 by $25.0 million and $49.3 million, respectively. Selling and administrative expenses as a percentage of Net revenues for the year ended December 31, 2024 increased 140 basis points from 16.7% to 18.1%.
Additionally, non-cash adjustments to contingent consideration reduced Selling and administrative expenses for the years ended December 31, 2025 and December 31, 2024 by $61.2 million and $25.0 million, respectively. Selling and administrative expenses as a percentage of Net revenues for the year ended December 31, 2025 decreased 50 basis points from 18.1% to 17.6%.
Net cash provided by continuing operating activities for the year ended December 31, 2023 was $2,426.8 million, of which net income provided $2,499.6 million after adjusting for non-cash transactions. The year-over-year increase in net cash from continuing operating activities was primarily due to higher net earnings and an improved cash conversion cycle.
Net cash provided by continuing operating activities for the year ended December 31, 2024 was $3,177.7 million, of which net income provided $2,938.8 million after adjusting for non-cash transactions. The year-over-year increase in net cash from continuing operating activities was primarily due to higher net earnings.
The components of the period change were as follows: Volume 4.9 % Pricing 0.9 % Organic revenue (1) 5.8 % Acquisitions 1.3 % Currency translation (0.6) % Total 6.5 % The increase in organic revenue was primarily driven by strong customer demand within our Commercial HVAC business and realization of price increases within both our Commercial HVAC and Transport Refrigeration businesses.
The components of the period change were as follows: Volume 3.7 % Pricing (0.3) % Organic revenue (1) 3.4 % Acquisitions 2.2 % Currency translation 4.0 % Total 9.6 % The increase in organic revenue was driven by higher volumes within our Commercial HVAC and Transport refrigeration businesses.
As of December 31, 2024, we had $1,590.1 million of cash and cash equivalents on hand, of which $1,423.0 million was held by non-U.S. subsidiaries.
As of December 31, 2025, we had $1,763.3 million of cash and cash equivalents on hand, of which $1,653.8 million was held by non-U.S. subsidiaries.
During the year ended December 31, 2024, we repurchased and canceled approximately $1.3 billion of ordinary shares, leaving $1.2 billion remaining under the 2022 Authorization and $5.0 billion remaining under the 2024 Authorization. Additionally, during the period after December 31, 2024 through January 31, 2025, we repurchased approximately $100 million of our ordinary shares under the 2022 Authorization.
During the year ended December 31, 2025, we repurchased and canceled $1.5 billion of ordinary shares, which exhausted the 2022 Authorization and left $4.8 billion remaining under the 2024 Authorization. Additionally, during the period after December 31, 2025 through January 30, 2026, we repurchased approximately $89 million of our ordinary shares under the 2024 Authorization.
Liquidity and Capital Resources We assess our liquidity in terms of our ability to generate cash to fund our operating, investing and financing activities. In doing so, we review and analyze our current cash on hand, the number of days our sales are outstanding, inventory turns, capital expenditure commitments and income tax payments.
In doing so, we review and analyze our current cash on hand, the number of days our sales are outstanding, inventory turns, capital expenditure commitments and income tax payments.
Selling and Administrative Expenses Selling and administrative expenses for the year ended December 31, 2024 increased by 20.8%, or $617.2 million, compared with the same period of 2023.
Selling and Administrative Expenses Selling and administrative expenses for the year ended December 31, 2025 increased by 4.5%, or $162.4 million, compared with the same period of 2024.
In addition, we received $699.1 million in proceeds from the issuance of 5.250% Senior Notes due March 2033 which was offset by the redemption of $700.0 million of Senior Notes due June 2023. 37 Table of Contents Free Cash Flow Free cash flow is a non-GAAP measure and defined as Net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring, legacy legal liability, transformation costs and merger and acquisition (M&A) related costs less insurance settlements on property claims and an adjustment for our special three-year Outperformance Incentive Program.
In addition, we received $498.5 million in proceeds from the issuance of 5.100% Senior Notes due March 2034, which was offset by the redemption of $500.0 million of 3.550% Senior Notes that matured in November 2024. 39 Table of Contents Free Cash Flow Free cash flow is a non-GAAP measure and defined as Net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring, legacy legal liability, merger and acquisition (M&A) transaction costs and proceeds from sale of corporate asset less an adjustment for our special three-year Outperformance Incentive Program.
Liquidity The following table contains several key measures of our financial condition and liquidity at the periods ended December 31: In millions 2024 2023 Cash and cash equivalents $ 1,590.1 $ 1,095.3 Short-term borrowings and current maturities of long-term debt 452.2 801.9 Long-term debt 4,318.1 3,977.9 Total debt 4,770.3 4,779.8 Total Trane Technologies plc shareholders' equity 7,457.4 6,995.2 Total equity 7,486.9 7,017.0 Debt-to-total capital ratio 38.9 % 40.5 % Debt and Credit Facilities As of December 31, 2024, our short-term obligations primarily consist of current maturities of $157.2 million that mature in June 2025 and $295.0 million of fixed rate debentures that contain a put feature that the holders may exercise on each anniversary of the issuance date.
On January 27, 2022, the Bankruptcy Court granted the request to fund the QSF, which was funded on March 2, 2022. 37 Table of Contents Liquidity The following table contains several key measures of our financial condition and liquidity at the periods ended December 31: In millions 2025 2024 Cash and cash equivalents $ 1,763.3 $ 1,590.1 Short-term borrowings and current maturities of long-term debt 693.0 452.2 Long-term debt 3,922.1 4,318.1 Total debt 4,615.1 4,770.3 Total Trane Technologies plc shareholders' equity 8,579.2 7,457.4 Total equity 8,600.9 7,486.9 Debt-to-total capital ratio 34.9 % 38.9 % Debt and Credit Facilities As of December 31, 2025, our short-term obligations of $693.0 million primarily consist of current maturities of $399.9 million that mature in March 2026 and $293.1 million of fixed rate debentures that contain a put feature that the holders may exercise on each anniversary of the issuance date.
Dollar amounts in millions 2024 2023 % Change Americas Net revenues $ 15,903.2 $ 13,832.0 15.0 % Segment Adjusted EBITDA 3,318.3 2,669.6 24.3 % Segment Adjusted EBITDA as a percentage of net revenues 20.9 % 19.3 % EMEA Net revenues $ 2,556.7 $ 2,401.2 6.5 % Segment Adjusted EBITDA 505.1 464.7 8.7 % Segment Adjusted EBITDA as a percentage of net revenues 19.8 % 19.4 % Asia Pacific Net revenues $ 1,378.3 $ 1,444.4 (4.6) % Segment Adjusted EBITDA 329.3 321.3 2.5 % Segment Adjusted EBITDA as a percentage of net revenues 23.9 % 22.2 % Total Net revenues $ 19,838.2 $ 17,677.6 12.2 % Total Segment Adjusted EBITDA 4,152.7 3,455.6 20.2 % Total Segment Adjusted EBITDA as a percentage of net revenues 20.9 % 19.5 % 33 Table of Contents Americas Net revenues for the year ended December 31, 2024 increased by 15.0% or $2,071.2 million, compared with the same period of 2023.
Dollar amounts in millions 2025 2024 % Change Americas Net revenues $ 17,168.8 $ 15,903.2 8.0 % Segment Adjusted EBITDA 3,713.4 3,318.3 11.9 % Segment Adjusted EBITDA as a percentage of net revenues 21.6 % 20.9 % EMEA Net revenues $ 2,802.1 $ 2,556.7 9.6 % Segment Adjusted EBITDA 512.7 505.1 1.5 % Segment Adjusted EBITDA as a percentage of net revenues 18.3 % 19.8 % Asia Pacific Net revenues $ 1,351.0 $ 1,378.3 (2.0) % Segment Adjusted EBITDA 323.5 329.3 (1.8) % Segment Adjusted EBITDA as a percentage of net revenues 23.9 % 23.9 % Total Net revenues $ 21,321.9 $ 19,838.2 7.5 % Total Segment Adjusted EBITDA 4,549.6 4,152.7 9.6 % Total Segment Adjusted EBITDA as a percentage of net revenues 21.3 % 20.9 % Americas Net revenues for the year ended December 31, 2025 increased by 8.0% or $1,265.6 million, compared with the same period of 2024.
The components of the period change were as follows: Volume (4.2) % Pricing 1.2 % Organic revenue (1) (3.0) % Currency translation (1.6) % Total (4.6) % 34 Table of Contents The decrease in organic revenue was primarily driven by lower volumes in China, partially offset by realization of price increases within our Commercial HVAC business and higher volumes in the rest of Asia.
The components of the period change were as follows: Volume (2.9) % Pricing 0.4 % Organic revenue (1) (2.5) % Currency translation 0.5 % Total (2.0) % The decrease in organic revenue was primarily driven by lower volumes in China, partially offset by higher volumes in the rest of Asia.
In 2021, Aldrich and Murray reached an agreement in principle with the court-appointed legal representative of future asbestos claimants (the FCR) and filed a motion to create a $270.0 million trust intended to constitute a "qualified settlement fund" within the meaning of the Treasury Regulations under Section 468B of the Internal Revenue Code (QSF).
The Plan is supported by and reflects the agreement in principle reached with the FCR. On the same date, in connection with the Plan, Aldrich and Murray filed a motion to create a $270.0 million trust intended to constitute a "qualified settlement fund" within the meaning of the Treasury Regulations under Section 468B of the Internal Revenue Code (QSF).
Asia Pacific Net revenues for the year ended December 31, 2024 decreased by 4.6% or $66.1 million, compared with the same period of 2023.
Asia Pacific Net revenues for the year ended December 31, 2025 decreased by 2.0% or $27.3 million, compared with the same period of 2024.
A reconciliation of Net cash provided by (used in) continuing operating activities to free cash flow the years ended December 31 is as follows: In millions 2024 2023 Net cash provided by (used in) continuing operating activities $ 3,177.7 $ 2,426.8 Capital expenditures (370.6) (300.7) Cash payments for restructuring 8.6 12.3 Legacy legal liability 2.7 — Transformation costs paid — 3.9 M&A transaction costs 1.7 18.9 Insurance settlements on property claims — (10.0) Adjustment for Outperformance Incentive Program (2) (31.1) — Free cash flow (1) $ 2,789.0 $ 2,151.2 (1) Represents a non-GAAP measure.
A reconciliation of Net cash provided by (used in) continuing operating activities to free cash flow the years ended December 31 is as follows: In millions 2025 2024 Net cash provided by (used in) continuing operating activities $ 3,220.4 $ 3,177.7 Capital expenditures (383.0) (370.6) Cash payments for restructuring 22.5 8.6 Legacy legal liability 0.6 2.7 M&A transaction costs 6.2 1.7 Proceeds from sale of corporate asset 20.6 — Adjustment for Outperformance Incentive Program (2) — (31.1) Free cash flow (1) $ 2,887.3 $ 2,789.0 (1) Represents a non-GAAP measure.
Refer to "Results by Segment" below for a discussion of Net revenues by segment. Gross Profit Margin Gross profit margin for the year ended December 31, 2024 increased 260 basis points to 35.7% compared to 33.1% for the same period of 2023 primarily due to gross productivity and price realization, partially offset by inflation.
Gross Profit Margin Gross profit margin for the year ended December 31, 2025 increased 50 basis points to 36.2% compared to 35.7% for the same period of 2024 primarily due to gross productivity and price realization, partially offset by inflation.
Our obligor groups as of December 31, 2024 were as follows: Obligor group 1 consists of Plc, TT Holdings, TT Global II, TT International, TT Americas, TTFL, TTC HoldCo and TTC; Obligor group 2 consists of Plc, TTFL and TTC. 40 Table of Contents Summarized Statements of Earnings Year ended December 31, 2024 In millions Obligor group 1 Obligor group 2 Net revenues $ — $ — Gross profit (loss) — — Intercompany interest and fees 1,232.3 2,956.9 Earnings (loss) from continuing operations 844.1 2,071.4 Discontinued operations, net of tax (20.9) (23.7) Net earnings (loss) 823.2 2,047.7 Less: Net earnings attributable to noncontrolling interests — — Net earnings (loss) attributable to Trane Technologies plc $ 823.2 $ 2,047.7 Summarized Balance Sheet December 31, 2024 In millions Obligor group 1 Obligor group 2 ASSETS Intercompany receivables $ 265.6 $ 4,363.2 Current assets 413.8 4,469.0 Intercompany notes receivable 500.0 4,900.0 Noncurrent assets 1,320.0 5,603.5 LIABILITIES Intercompany payables 5,290.2 2,530.3 Current liabilities 6,305.0 3,490.0 Intercompany notes payable 4,000.0 4,000.0 Noncurrent liabilities 9,014.6 7,650.2 Critical Accounting Estimates Management's Discussion and Analysis of Financial Condition and Results of Operations are based upon our Consolidated Financial Statements, which have been prepared in accordance with U.S.
Our obligor groups as of December 31, 2025 were as follows: Obligor group 1 consists of Plc, TT Holdings, TT Global II, TT International, TT Americas, TTFL, TTC HoldCo and TTC; Obligor group 2 consists of Plc, TTFL and TTC. 42 Table of Contents Summarized Statements of Earnings Year ended December 31, 2025 In millions Obligor group 1 Obligor group 2 Net revenues $ — $ — Gross profit (loss) — — Intercompany interest and fees 2,360.2 5,784.2 Earnings (loss) from continuing operations 2,080.4 5,410.8 Discontinued operations, net of tax (29.3) (40.8) Net earnings (loss) 2,051.1 5,370.0 Less: Net earnings attributable to noncontrolling interests — — Net earnings (loss) attributable to Trane Technologies plc $ 2,051.1 $ 5,370.0 Summarized Balance Sheet December 31, 2025 In millions Obligor group 1 Obligor group 2 ASSETS Intercompany receivables $ 935.3 $ 2,411.5 Current assets 1,029.2 2,460.3 Intercompany notes receivable 500.0 4,150.0 Noncurrent assets 1,019.3 4,586.5 LIABILITIES Intercompany payables 7,373.8 3,161.0 Current liabilities 8,482.5 4,241.8 Intercompany notes payable 1,600.0 1,600.0 Noncurrent liabilities 5,957.3 4,602.3 Critical Accounting Estimates Management's Discussion and Analysis of Financial Condition and Results of Operations are based upon our Consolidated Financial Statements, which have been prepared in accordance with GAAP.
Overall Commercial HVAC markets in Americas and EMEA remain strong due to demand for our differentiated customer driven solutions and the benefits of installing energy efficient products and decarbonizing the built environment. In Asia, markets are more dynamic, with weak macro-economic conditions driving soft demand in China and more stable macro-economic conditions driving modest demand in the rest of Asia.
Overall Commercial HVAC markets in Americas and EMEA remain strong due to demand for our differentiated customer driven solutions and the benefits of installing energy efficient products and decarbonizing the built environment. In Asia, markets remain dynamic with mixed macro-economic conditions across the region. Transport refrigeration markets continue to experience weaker demand, particularly in the United States.
Segment Adjusted EBITDA margin for the year ended December 31, 2024 increased by 160 basis points to 20.9% compared to 19.3% for the same period of 2023 primarily due to price realization, gross productivity and higher volumes, partially offset by inflation and continued business reinvestment.
Segment Adjusted EBITDA margin for the year ended December 31, 2025 increased by 70 basis points to 21.6% compared to 20.9% for the same period of 2024 primarily due to price realization and gross productivity, partially offset by inflation and continued business reinvestment. 35 Table of Contents EMEA Net revenues for the year ended December 31, 2025 increased by 9.6% or $245.4 million, compared with the same period of 2024.
We enter into sales arrangements that contain multiple goods and services. For these arrangements, each good or service is evaluated to determine whether it represents a distinct performance obligation and whether the sales price for each obligation is representative of standalone selling price.
For these arrangements, each good or service is evaluated to determine whether it represents a distinct performance obligation and whether the sales price for each obligation is representative of standalone selling price. If available, we utilize observable prices for goods or services sold separately to similar customers in similar circumstances to evaluate relative standalone selling price.
When comparing the results of multiple reporting periods, among other factors, the mix of earnings between U.S. and foreign jurisdictions can cause variability in our overall effective tax rate. The 2023 effective tax rate was 19.4% which was lower than the U.S.
Research and Development credit. When comparing the results of multiple reporting periods, among other factors, the mix of earnings among global jurisdictions can cause variability in our overall effective tax rate.
Segment Adjusted EBITDA margin for the year ended December 31, 2024 increased by 40 basis points to 19.8% compared to 19.4% for the same period of 2023 primarily due to favorable productivity and price, partially offset by inflation, continued business reinvestment and loss from a devaluation of the Egyptian pound.
Segment Adjusted EBITDA margin for the year ended December 31, 2025 decreased by 150 basis points to 18.3% compared to 19.8% for the same period of 2024 primarily due to integration costs related to acquisitions, continued business reinvestment and inflation, partially offset by favorable productivity.
During the year ended December 31, 2023, net cash used in investing activities from continuing operations was $1,172.2 million. The primary drivers of the usage was attributable to acquisition of businesses, which totaled $862.8 million, net of cash acquired, and capital expenditures of $300.7 million.
During the year ended December 31, 2025, net cash used in investing activities from continuing operations was $640.0 million. The primary drivers of the usage were attributable to capital expenditures of $383.0 million and acquisitions of businesses of $276.0 million, net of cash acquired.
Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 - Consolidated Results Dollar amounts in millions 2024 2023 Period Change 2024 % of revenues 2023 % of revenues Net revenues $ 19,838.2 $ 17,677.6 $ 2,160.6 Cost of goods sold (12,757.7) (11,820.4) (937.3) 64.3% 66.9% Gross profit 7,080.5 5,857.2 1,223.3 35.7% 33.1% Selling and administrative expenses (3,580.4) (2,963.2) (617.2) 18.1% 16.7% Operating income 3,500.1 2,894.0 606.1 17.6% 16.4% Interest expense (238.4) (234.5) (3.9) Other income/(expense), net (19.9) (92.2) 72.3 Earnings before income taxes 3,241.8 2,567.3 674.5 Provision for income taxes (627.6) (498.4) (129.2) Earnings from continuing operations 2,614.2 2,068.9 545.3 Discontinued operations, net of tax (24.7) (27.2) 2.5 Net earnings $ 2,589.5 $ 2,041.7 $ 547.8 31 Table of Contents Net Revenues Net revenues for the year ended December 31, 2024 increased by 12.2%, or $2,160.6 million, compared with the same period of 2023.
Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 - Consolidated Results Dollar amounts in millions 2025 2024 Period Change 2025 % of revenues 2024 % of revenues Net revenues $ 21,321.9 $ 19,838.2 $ 1,483.7 Cost of goods sold (13,611.7) (12,757.7) (854.0) 63.8% 64.3% Gross profit 7,710.2 7,080.5 629.7 36.2% 35.7% Selling and administrative expenses (3,742.8) (3,580.4) (162.4) 17.6% 18.1% Operating income 3,967.4 3,500.1 467.3 18.6% 17.6% Interest expense (226.7) (238.4) 11.7 Other income/(expense), net (62.1) (19.9) (42.2) Earnings before income taxes 3,678.6 3,241.8 436.8 Provision for income taxes (705.9) (627.6) (78.3) Earnings from continuing operations 2,972.7 2,614.2 358.5 Discontinued operations, net of tax (37.0) (24.7) (12.3) Net earnings $ 2,935.7 $ 2,589.5 $ 346.2 33 Table of Contents Net Revenues Net revenues for the year ended December 31, 2025 increased by 7.5%, or $1,483.7 million, compared with the same period of 2024.
However, a portion of our revenues are recognized over time as the customer simultaneously receives control as we perform work under a contract. For these arrangements, the cost-to-cost input method is used as it best depicts the transfer of control to the customer that occurs as we incur costs.
However, a portion of our revenues are recognized over time as the customer simultaneously receives control as we perform work under a contract.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeTherefore, our reported results will be higher or lower depending on the weakening or strengthening of the U.S. dollar against the respective foreign currency. Our largest concentration of revenues from non-U.S. operations as of December 31, 2024 are in Euros and Chinese Yuan.
Biggest changeMany of our non-U.S. operations have a functional currency other than the U.S. dollar, and their results are translated into U.S. dollars for reporting purposes. Therefore, our reported results will be higher or lower depending on the weakening or strengthening of the U.S. dollar against the respective foreign currency.
These amounts, when realized, would be offset by changes in the fair value of the underlying commodity purchases. Interest Rate Exposure Our debt portfolio mainly consists of fixed-rate instruments, and therefore any fluctuation in market interest rates is not expected to have a material effect on our results of operations. 44 Table of Contents
These amounts, when realized, would be offset by changes in the fair value of the underlying commodity purchases. Interest Rate Exposure Our debt portfolio mainly consists of fixed-rate instruments, and therefore any fluctuation in market interest rates is not expected to have a material effect on our results of operations.
The instruments utilized are viewed as risk management tools, primarily involve little complexity and are not used for trading or speculative purposes. To minimize the risk of counterparty non-performance, derivative instrument agreements are made only through major financial institutions with significant experience in such derivative instruments.
The instruments utilized are viewed as risk management tools and are not used for trading or speculative purposes. To minimize the risk of counterparty non-performance, derivative instrument agreements are made only through major financial institutions with significant experience in such derivative instruments.
A hypothetical 10% unfavorable change in the average exchange rate used to translate Net revenues for the year ended December 31, 2024 from either Euros or Chinese Yuan-based operations into U.S. dollars would result in a decline of approximately $170 million and $60 million, respectively. We use derivative instruments to partially hedge those material exposures that cannot be naturally offset.
A hypothetical 10% unfavorable change in the average exchange rate used to translate Net revenues for the year ended December 31, 2025 from either Euros or Chinese Yuan-based operations into U.S. dollars would result in a decline of approximately $180 million and $50 million, respectively. We use derivative instruments to partially hedge those material exposures that cannot be naturally offset.
Based on the currency derivative instruments in place at December 31, 2024, a hypothetical change in fair value of those derivative instruments assuming a 10% adverse change in exchange rates would result in an unrealized loss of $15.5 million, as compared with $6.5 million at December 31, 2023.
Based on the currency derivative instruments in place at December 31, 2025, a hypothetical change in fair value of those derivative instruments assuming a 10% adverse change in exchange rates would result in an unrealized loss of $18.4 million, as compared with $15.5 million at December 31, 2024.
Based on the commodity derivative instruments in place at December 31, 2024, a hypothetical change in fair value of those derivative instruments assuming a 10% decrease in commodity prices would result in an unrealized loss of $12.7 million, as compared with $8.2 million at December 31, 2023.
Based on the commodity derivative instruments in place at December 31, 2025, a hypothetical change in fair value of those derivative instruments assuming a 10% decrease in commodity prices would result in an unrealized loss of $18.4 million, as compared with $12.7 million at December 31, 2024.
As a result, we are exposed to movements in exchange rates of various currencies against the U.S. dollar as well as against other currencies throughout the world. Many of our non-U.S. operations have a functional currency other than the U.S. dollar, and their results are translated into U.S. dollars for reporting purposes.
We also have investments in our subsidiaries located in foreign countries. As a result, we are exposed to movements in exchange rates of various currencies against the U.S. dollar as well as against other currencies throughout the world.
Added
Our largest concentration of revenues from non-U.S. operations as of December 31, 2025 are in Euros and Chinese Yuan.

Other TT 10-K year-over-year comparisons