Letter to Stakeholders

Another year of accelerated growth

Dear Stakeholders,


In 2023, Trane Technologies achieved yet another year of very strong financial performance while delivering on our bold sustainability commitments. The urgent need for climate action is clear – and so is our purpose to boldly challenge what’s possible for a sustainable world.

Leading financial performance

Our strong results in 2023 build on our track record of leading financial performance, with another year of record bookings, 9% organic revenue growth* and our third consecutive year of more than 20% adjusted earnings per share (EPS) growth*. Customer demand is exceptional and growing, as reflected in our Commercial HVAC backlog, which has nearly tripled in the past three years. Finally, we generated powerful free cash flow* of $2.2 billion in 2023, or 103% of adjusted net earnings, supporting our balanced capital allocation strategy.

Accelerating innovation

We are relentlessly investing in sustainable innovation to reduce energy use and carbon emissions.

Examples include our Trane® thermal management systems, which can simultaneously heat and cool and are three to four times more efficient than traditional methods. Our custom, high-efficiency chillers are reducing energy use in data centers and high-tech industrials. Our high-efficiency residential air conditioners and heat pumps offer industry-leading variable speed technology and Trane® Link connected systems that make installation, maintenance and service smarter.

In transport, our new Thermo King® all-electric Advancer trailer refrigeration unit can adapt to a variety of power sources, including axle power, and operates with zero direct emissions.

We are also reducing the carbon footprint of our own operations – from installing our own HVAC technology to powering our facilities with renewable energy and reducing embodied carbon in our supply chain.

Culture drives growth

Our strong performance is made possible by our people and our uplifting culture. We continue to perform in the top quartile in employee engagement across all industries according to our external benchmark. We are investing in innovative ways to recruit, develop and retain talent for the future, such as our Technician Apprenticeship Program accredited by the U.S. Department of Labor. We continue to cultivate diversity and inclusion across our enterprise, including with our Board of Directors, where we have reached gender parity.

Building a sustainable future

We are uniquely positioned to lead. With our purpose-driven strategy, relentless innovation and uplifting culture, we are well positioned to continue to deliver differentiated shareholder returns over the long-term. The end result is strong value creation across the board – for our customers, our shareholders, our people and the planet.

Dave Regnery

Chair and CEO

Trane Technologies

*These are non-GAAP financial measures. Reconciliation of non-GAAP financial measures can be found preceding the 2024 Notice and Proxy Statement.