Trane Technologies, a global climate innovator, has reported strong fourth-quarter and full-year results for 2025. In the fourth quarter of 2025, the company's organic bookings were up 22%, with reported revenues increasing by 6% and organic revenues up by 4%. The GAAP operating income for the same period was $819 million, representing a 1% increase from the fourth quarter of 2024. Adjusted operating income was $837 million, up 5% from the previous year. Adjusted EBITDA was $923 million, a 3% increase from the fourth quarter of 2024.
For the full year 2025, Trane Technologies saw organic bookings up 11%, with reported revenues increasing by 7% and organic revenues up by 6%. The GAAP operating margin was up by 100 basis points, and the adjusted operating margin increased by 90 basis points. Adjusted EBITDA margin was up by 70 basis points. The company achieved a strong free cash flow conversion of 98% for the full year.
In the Americas segment, which includes commercial heating, cooling, and ventilation systems, the company reported strong bookings of $4.7 billion, up 27% from the fourth quarter of 2024. The segment's reported revenues were up 6%, with organic revenues up by 5%. The GAAP operating margin for this segment was down by 90 basis points. In the Europe, Middle East, and Africa (EMEA) segment, bookings were up 19%, with reported revenues up by 12% and organic revenues up by 2%. The GAAP operating margin for this segment decreased by 160 basis points. In the Asia Pacific segment, reported revenues were down by 5%, with organic revenues down by 6%. However, the GAAP operating margin for this segment increased by 100 basis points.
Trane Technologies reported a record backlog of $7.8 billion, up 15% versus year-end 2024, providing strong visibility entering 2026. The company's full-year 2026 guidance includes an expected reported revenue growth of approximately 8.5% to 9.5% and organic revenue growth of approximately 6% to 7% compared to full-year 2025. Additionally, the company expects GAAP and adjusted continuing EPS for full-year 2026 of $14.65 to $14.85.
In terms of cash flow, Trane Technologies reported that its free cash flow for the full year 2025 was $2.9 billion, representing 98% of adjusted net earnings. The company deployed or committed $3.2 billion in 2025, including approximately $840 million for dividends, approximately $720 million for mergers and acquisitions, $1.5 billion for share repurchases, and $150 million for debt retirement.
Trane Technologies remains confident in its ability to deliver differentiated results in the future, citing significant opportunities ahead, record backlog levels, and strong customer demand. Today the company's shares have moved 0.58% to a price of $389.53. If you want to know more, read the company's complete 8-K report here.
