Reasons to Retain Trane Technologies Stock in Your Portfolio Now

Trane Technologies plc TT stock has had an impressive run over the past year. Shares have appreciated 8.9%, outperforming the 0.9% growth of the industry but underperforming the 13.3% rise of the S&P 500.

The company’s earnings for 2025 and 2026 are expected to improve 16.3% and 11.4%, respectively, year over year. Revenues for 2025 and 2026 are anticipated to increase 8.7% and 7.2%, respectively.

Factors That Bode Well for TT

Trane Technologies’ launch of AI Control and ARIA represents a major leap forward in smart building innovation, addressing both energy efficiency and workforce challenges in commercial facilities. By integrating AI-driven optimization directly into its control architecture, Trane enables building owners to reduce energy costs and emissions without additional infrastructure, while ARIA’s multilingual, conversational interface empowers facility teams to make data-driven decisions and streamline maintenance. This dual approach not only helps tackle inefficiencies, estimated at 30% in many commercial buildings, but also mitigates the impact of aging infrastructure and labor shortages, aligning with broader goals of sustainability, cost savings and future-ready operations.

The company’s recognition by Forbes as one of America’s Best Employers for Women 2025 underscores its commitment to diversity, equity and inclusion. This is supported by gender-balanced leadership initiatives, comprehensive employee benefits and robust career development programs. This accolade reinforces the company’s reputation as a top global employer and reflects its focus on empowering employees to thrive both personally and professionally.

TT’s launch of the BrainBox AI Lab marks a bold step in redefining building energy management, combining advanced AI research, real-world testing and ethical innovation to drive smarter, more sustainable HVAC solutions. By focusing on autonomous controls, predictive modeling and emerging fields like agentic AI, the lab positions Trane at the forefront of digital transformation in the built environment while supporting its 2030 Sustainability Commitments and delivering measurable value to customers.

Commitment to shareholder returns makes TT reliable for investors seeking to compound wealth over the long term. In 2022, 2023 and 2024, the company repurchased shares worth $1.2 billion, $669.3 million and $1.3 billion, respectively. It paid $620.2 million, $683.7 million and $757.5 million in dividends in 2022, 2023 and 2024, respectively. In the first half of 2025, the company paid $420 million in dividends.

Trane Technologies' current ratio (a measure of liquidity) in the second quarter of 2025 was 1.10. The company has an impressive record of robust liquidity. A current ratio of more than 1 is significant as it indicates that the company has sufficient cash to repay the short-term obligations. In 2022, 2023 and 2024, TT’s current ratio was pegged at 1.54, 2.48 and 1.27 respectively.

TT: Key Risks to Watch

Trane Technologies operates in a highly competitive HVAC market dominated by major players like Honeywell International, Siemens, Carrier and Daikin Industries. This intense competition puts constant pressure on the company to innovate and differentiate its offerings while staying cost-effective. As a result, the need to invest heavily in advanced technology and top talent becomes critical, making it increasingly challenging to strike a balance between driving growth and maintaining profitability.

Zacks Rank & Stocks to consider

TT currently carries a Zacks Rank of #3 (Hold).

Some better ranked stocks to consider from the broader Zacks Business Services sector are Maximus MMS and AppLovin APP.

Maximus sports a Zacks Rank of #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

MMS has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missing once. The average beat is 29.3%.

AppLovin also sports a Zacks Rank #1.

APP has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 22.36%.

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This article originally published on Zacks Investment Research (zacks.com).

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