TT Stock Forecast & Price Target

Trane Technologies has demonstrated substantial growth in orders for its Commercial HVAC applied equipment, with a notable increase of 60% in the second quarter of 2025 and a remarkable 120% growth on a two-year basis, which is expected to lead to significant aftermarket revenue in the coming years. The company's adjusted operating margin has expanded by 90 basis points year-over-year to reach 20.3%, surpassing consensus expectations and showcasing efficient cost management, particularly with a robust 130 basis points rise in the Americas region. Additionally, Trane Technologies has achieved organic growth of 9% in the Americas, aligning with projections, while maintaining solid performance in other regions, further enhancing its financial stability and growth prospects.

Trane Technologies has revised its outlook for the Americas Residential segment, now expecting flat year-over-year performance instead of prior growth forecasts, largely due to a canister shortage and elevated channel inventory. The company’s forecasts align with broader industry trends indicating a decline in new and existing home sales, which could further hinder demand for HVAC systems. Given these factors, along with a significant portion of revenue derived from the challenging North American market, a negative outlook emerges regarding Trane’s future financial performance.