08:57 AM EDT, 07/30/2025 (MT Newswires) -- Trane Technologies ( TT ) lifted its full-year outlook on Wednesday as the climate control product maker's second-quarter earnings topped market expectations, although revenue fell short of estimates amid declines in its Asia Pacific operations.

The company now anticipates adjusted earnings of about $13.05 per share for 2025, up from its previous guidance range of $12.70 to $12.90. Revenue is projected to grow by roughly 9% on a reported basis, compared with its prior forecast for a rise of 7.5% to 8.5%. The current consensus on FactSet is for non-GAAP EPS of $12.96 and sales of $21.58 billion.

The revised outlook includes about $140 million of costs related to tariffs and pricing, Trane ( TT ) said in an earnings presentation. At the end of April, the company estimated costs for all implemented tariffs to be in between $250 million and $275 million.

"With our leading innovation, elevated backlog and strong financial position, we are confident in raising our full-year revenue and EPS guidance and are well positioned to deliver differentiated shareholder value over the long term," Chief Executive Dave Regnery said in a statement.

The firm's adjusted EPS climbed 18% to $3.88 for the June quarter, exceeding the Street's view for $3.79. Revenue rose to $5.75 billion from $5.31 billion in the prior-year period, but was just shy of the average analyst estimate on FactSet of $5.77 billion. The stock fell 6.4% in the most recent premarket activity.

Sales increased 9% in the Americas as volume gains, price hikes and productivity more than offset inflation. Revenue inclined 10% in Europe, the Middle East and Africa, but decreased 7% in Asia Pacific amid high business reinvestment levels, lower volumes and inflation, according to the company.

Bookings advanced 5% to $5.63 billion led by commercial heating, ventilation and air conditioning, which was up by mid-teens, Trane ( TT ) said. Bookings were up in the Americas and Europe, the Middle East and Africa, helping offset a 16% drop in Asia Pacific.

"Our performance continues to be led by Americas commercial (heating, ventilation and air conditioning), with strong demand for our sustainable solutions across a broad base of highly complex projects," according to Regnery. "In the second quarter, orders for our bespoke applied solutions were up over 60%, adding to our backlog and our visibility to future equipment and services revenues."

For the ongoing quarter, the company expects adjusted EPS of about $3.80, including a $0.03 headwind related to mergers and acquisitions, the presentation showed. The Street is looking for non-GAAP EPS of $3.82. Organic revenue is pegged to grow by roughly 6%, compared with the 7% gain logged in the second quarter.