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

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

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

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

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

As of March 31, 2025:

Operating cash flow from continuing operating activities reached $346 million, and free cash flow was $230 million through March 31, 2025.

Cash and cash equivalents stood at $860.5 million.

The Swords, Ireland-based company deployed or committed $1.1 billion in capital.

The deployment includes $210 million for dividends and $650 million for share repurchases.

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

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

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

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

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

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

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

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