Financial Analysis

Acquisitions On February 17, 2026, the Company acquired Stellar Energy Americas, Inc. (Stellar Energy), a leading provider of turnkey data center cooling solutions. The gross purchase consideration was $553.4 million, excluding cash acquired of $185.4 million. The purchase price is subject to customary post-closing adjustments. The acquisition enhances the Company's position in data center thermal management solutions through Stellar Energy's capabilities in modular and scalable cooling system design. The results of this acquisition are reported within the Americas segment as of the date of acquisition. The consideration was allocated to tangible and intangible identifiable assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The preliminary allocation of the purchase price resulted in the recognition of identifiable intangible assets of $315.0 million, primarily related to customer relationships, developed technology and backlog. Net tangible liabilities assumed, inclusive of deferred taxes, totaled $140.8 million. The excess of the purchase price over the fair value of identifiable net assets acquired resulted in goodwill of $379.2 million, which is attributable primarily to anticipated synergies, assembled workforce, and the expansion of Stellar Energys data center solutions portfolio. The goodwill for this acquisition is not deductible for tax purposes. Additionally, during the first half of 2026, the Company acquired all r …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"Commitments and Contingencies The Company is involved in various litigation, claims and administrative proceedings, including those related to the bankruptcy proceedings for Aldrich Pump LLC (Aldrich) and Murray and environmental and product liability matters. The Company records accruals for loss contingencies when it is both probable that a liability will be incurred and the amount of the loss can be reasonably estimated. Amounts recorded for identified contingent liabilities are estimates, which are reviewed periodically and adjusted to reflect additional information when it becomes available. Subject to the uncertainties inherent in estimating future costs for contingent liabilities, except as expressly set forth in this note, management believes that any liability which may result from these legal matters would not have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company. Asbestos-Related Matters Certain indirect wholly-owned subsidiaries and former companies of the Company have been named as defendants in asbestos-related lawsuits in state and federal courts. In virtually all of the suits, a large number of other companies have also been named as defendants. The vast majority of those claims were filed against predecessors of Aldrich and Murray and generally allege injury caused by exposure to asbestos contained in certain historical products sold by predecessors of Aldrich or Murray, primarily pumps, boil …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Net revenues by geography and major type of good or service for the three and six months ended June 30 were as follows: Three months ended Six months ended In millions 2026 2025 2026 2025 Americas Equipment $ 3,565.3 $ 3,125.8 $ 6,162.0 $ 5,687.6 Services 1,706.0 1,566.5 3,107.7 2,805.4 Total Americas $ 5,271.3 $ 4,692.3 $ 9,269.7 $ 8,493.0 EMEA Equipment $ 459.4 $ 486.4 $ 885.4 $ 882.5 Services 238.2 221.5 451.7 398.9 Total EMEA $ 697.6 $ 707.9 $ 1,337.1 $ 1,281.4 Asia Pacific Equipment $ 256.9 $ 222.1 $ 476.0 $ 435.7 Services 127.7 124.1 240.1 224.8 Total Asia Pacific $ 384.6 $ 346.2 $ 716.1 $ 660.5 Total Net revenues $ 6,353.5 $ 5,746.4 $ 11,322.9 $ 10,434.9

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"Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability is as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions. Observable market data is required to be used in making fair value measurements when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The following table presents the Company's fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of June 30, 2026: In millions Fair Value Fair value measurements Level 1 Level 2 Level 3 Assets: Derivative instruments $ 19.0 $ $ 19.0 $ Liabilities: Derivative instruments 8.9 8.9 Contingent consideration (1) 60.6 60.6 (1) Refer to Note 15, ""Acquisitions"" for more information regarding contingent consideration. The following table presents the Company's fair v …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Income Taxes The Company accounts for its Provision for income taxes by applying an estimate of the annual effective income tax rate for the full year to the respective interim period, taking into account year-to-date amounts and projected results for the full year. For the six months ended June 30, 2026 and 2025, the Company's effective income tax rate was 18.7% and 19.1%, respectively. The effective tax rate for the six months ended June 30, 2026 was higher than the Irish statutory rate of 12.5% primarily due to earnings that in the aggregate have a higher statutory tax rate, U.S. federal, state and local income taxes, partially offset by excess tax benefits from employee share-based payments, and U.S. federal research and development tax credits. The effective tax rate for the six months ended June 30, 2025 was higher than the Irish statutory rate of 12.5% primarily due to earnings that in the aggregate have a higher statutory tax rate, U.S. federal, state and local income taxes, partially offset by excess tax benefits from employee share-based payments and a non-taxable adjustment for contingent consideration. Total unrecognized tax benefits for June 30, 2026 and December 31, 2025 were $78.3 million and $62.4 million, respectively. Although management believes its tax positions and related provisions reflected in the Condensed Consolidated Financial Statements are fully supportable, it recognizes that these tax positions and related provisions may be challenged by variou …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Pensions and Postretirement Benefits Other than Pensions The Company sponsors several U.S. defined benefit and defined contribution plans covering substantially all of the Company's U.S. employees. Additionally, the Company has many non-U.S. defined benefit and defined contribution plans covering eligible current and retired non-U.S. employees. Postretirement benefits other than pensions (OPEB) provide healthcare benefits and, in some instances, life insurance benefits for certain eligible current and retired employees. Pension Plans The non-contributory defined benefit pension plans covering non-collectively bargained U.S. employees provide benefits on a final average pay formula while plans for most collectively bargained U.S. employees provide benefits on a flat dollar benefit formula or a percentage of pay formula. The non-U.S. pension plans generally provide benefits based on earnings and years of service. The Company also maintains additional other supplemental plans for officers and other key or highly compensated employees. The components of the Company's net periodic pension benefit cost for the three and six months ended June 30 were as follows: Three months ended Six months ended In millions 2026 2025 2026 2025 Service cost $ 5.6 $ 7.5 $ 11.5 $ 14.8 Interest cost 23.0 28.0 46.2 55.6 Expected return on plan assets (25.4) (27.0) (51.1) (53.6) Net amortization of: Prior service costs (benefits) 0.4 0.7 0.8 1.4 Net actuarial (gains) losses 3.3 4.0 6.5 7.9 Net periodic …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Disaggregated Revenue Net revenues by geography and major type of good or service for the three and six months ended June 30 were as follows: Three months ended Six months ended In millions 2026 2025 2026 2025 Americas Equipment $ 3,565.3 $ 3,125.8 $ 6,162.0 $ 5,687.6 Services 1,706.0 1,566.5 3,107.7 2,805.4 Total Americas $ 5,271.3 $ 4,692.3 $ 9,269.7 $ 8,493.0 EMEA Equipment $ 459.4 $ 486.4 $ 885.4 $ 882.5 Services 238.2 221.5 451.7 398.9 Total EMEA $ 697.6 $ 707.9 $ 1,337.1 $ 1,281.4 Asia Pacific Equipment $ 256.9 $ 222.1 $ 476.0 $ 435.7 Services 127.7 124.1 240.1 224.8 Total Asia Pacific $ 384.6 $ 346.2 $ 716.1 $ 660.5 Total Net revenues $ 6,353.5 $ 5,746.4 $ 11,322.9 $ 10,434.9 Revenue from goods and services transferred to customers at a point in time accounted for approximately 79% and 80%of the Company's revenue for the six months ended June 30, 2026 and 2025, respectively. Contract Balances The opening and closing balances of contract assets and contract liabilities arising from contracts with customers for the period ended June 30, 2026 and December 31, 2025 were as follows: In millions Location on Condensed Consolidated Balance Sheets June 30, 2026 December 31, 2025 Contract assets - current Other current assets $ 673.1 $ 465.0 Contract liabilities - current Accrued expenses and other current liabilities 2,179.4 1,374.1 Contract liabilities - noncurrent Other noncurrent liabilities 562.2 350.5 The timing of revenue recognition, billings and cash collections …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Business Segment Information The Company operates under three reportable segments designed to create deep customer focus and relevance in markets around the world. Intercompany sales between segments are immaterial. The Company's Americas segment innovates for customers in North America and Latin America. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions. The Company's 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, building controls, and transport refrigeration systems and solutions. The Company's 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 Company's chief operating decision maker (CODM), the Chief Executive Officer, uses two profitability measures, Segment Adjusted EBITDA and Segment Adjusted Operating Income , in assessing segment performance and deciding how to allocate resources: Segment Adjusted EBITDA represents net earnings excluding interest expense, income taxes, depreciation and amortization, restructuring, merger and …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Equity The authorized share capital of Trane Technologies plc is 1,185,040,000 shares, consisting of (1) 1,175,000,000 ordinary shares, par value $1.00 per share, (2) 40,000 ordinary shares, par value EUR 1.00 and (3) 10,000,000 preference shares, par value $0.001 per share. There were no Euro-denominated ordinary shares or preference shares outstanding at June 30, 2026 or December 31, 2025. Changes in ordinary shares and treasury shares for the six months ended June 30, 2026 were as follows: In millions Ordinary shares issued Ordinary shares held in treasury December 31, 2025 245.0 23.5 Shares issued under incentive plans, net 0.5 Repurchase of ordinary shares (1.7) June 30, 2026 243.8 23.5 Share repurchases are made from time to time in accordance with management's capital allocation strategy, subject to market conditions and regulatory requirements. Shares acquired and canceled upon repurchase are accounted for as a reduction of Ordinary shares and Capital in excess of par value , or Retained earnings to the extent Capital in excess of par value is exhausted. Shares acquired and held in treasury are presented separately on the balance sheet as a reduction to Equity and recognized at cost. In December 2024, the Board of Directors authorized a share repurchase program of up to $5.0 billion of the Company's ordinary shares. During the six months ended June 30, 2026, the Company repurchased and canceled $756.4 million of its ordinary shares, which left $4.0 billion remaining u …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing