Trane Technologies Earnings: Full-Year 2023 Guidance Raised After Strong Performance

We’ve raised our fair value estimate for Trane Technologies approximately 1.5% to $142 per share following the narrow-moat-rated firm’s first-quarter results. We made minor tweaks to our five-year forecast, but our fair value increase was primarily due to the time value of money. Trane reported strong results driven by continued robust demand for its commercial heating, ventilation, and air-conditioning products and solutions. First-quarter revenue increased 9% year over year to $3.7 billion, adjusted operating margin expanded 140 basis points to 12.9%, and adjusted EPS rose 26% to $1.41.