Trane Backlog Reaches $12.5 Billion as Bookings Climb 21 Percent
Bookings totaled $7.25 billion and revenue $6.76 billion, up 18 percent. Trane raised its 2026 organic growth forecast to about 11 percent and held adjusted EPS guidance at $15.20 to $15.30.
More than $8 billion of Trane Technologies' $12.5 billion backlog is scheduled for 2027 and beyond, CFO Chris Kuehn said on the company's Oct. 29 earnings call, and over $1 billion of that could fall in 2028. The total rose 73 percent from a year earlier and covers equipment only, with services excluded. Americas Commercial HVAC backlog gained about 80 percent.
- Total: $7.25 billion, up 21 percent, 20 percent organic, book-to-bill 107 percent
- Americas: $5.68 billion, up 18 percent, book-to-bill 101 percent
- Europe, Middle East and Africa: $1.11 billion, up 40 percent, book-to-bill 147 percent
- Asia Pacific: $457 million, up 22 percent, book-to-bill 128 percent
Global applied bookings rose more than 40 percent, CEO Dave Regnery said. Revenue reached $6.76 billion, with 16 percent organic growth, and adjusted earnings rose 25 percent to $4.86 a share. Trane now expects about 11 percent organic growth for the year.
Analysts Press on Americas Orders
The Americas book-to-bill of 101 percent drew questions, with Citi's Andy Kaplowitz noting a slowdown from the second quarter. "We're not concerned about orders slowing," Regnery said, calling large data center orders lumpy. Trane is now tracking 1,700 large projects, up from 1,400 in the second quarter. The company gave no data center bookings figure.
Its modular chiller plant business, Stellar, remains on course for about $500 million in revenue this year, roughly neutral to earnings. Kuehn said Trane is investing in factories in Florida and Texas to make it a $1 billion business in a couple of years.
A Capacitor Supplier Stops the Line
The quarter also took a hit from a regulatory change. The Department of Homeland Security added 43 companies to the Uyghur Forced Labor Prevention Act Entity List effective Aug. 3, the largest single expansion since the law passed. Regnery said the listing hit a tier-four or tier-five maker of capacitors sold to Trane's motor and drive vendors. That left three or four plants running products down the line without all their components for about two weeks, then pulling them back for rework. He called it "a relatively large disruption" and said it is now fully behind the company. Companywide adjusted operating margin fell 40 basis points to 20.2 percent.
Trane is also moving to own part of its coil supply. It agreed in October to buy Cancoil Thermal, an Ontario manufacturer with more than 450 employees and a plant in Jacksonville, Texas, in a deal its 10-Q says should close no later than the first quarter of 2027. Trane already accounts for about 40 percent of Cancoil's volume, COO Donny Simmons said. "Think of these as very large coils that go into large air handlers and large air-cooled chillers," he said.
Residential Runs at 20 Percent, With an Accounting Asterisk
Residential bookings and organic revenue each rose about 20 percent against an easy comparison, beating Trane's own forecast. Part of that gain is price. Kuehn said the high-single-digit premium on R-454B equipment is still booked as volume, and that treatment normalizes next year. Reported price ran only 0.5 percent companywide and 0.6 percent in the Americas, according to the 10-Q, partly because stronger residential volume triggered more distributor incentives. Trane's residential business has announced two increases this year, effective in early April and early July.
Regnery said the fourth quarter shows no pull-forward. Kuehn expects residential growth there in the high single digits, and Trane will watch interest rates heading into 2027.
Why This Matters to Contractors
Regnery's timeline for fans, coils and heat exchangers has suppliers stretched through the fourth quarter, with relief coming over the first half of 2027. Trane is forecasting mid-teens organic growth for the fourth quarter, which adds load on those vendors before any relief arrives. Kuehn also expects price to approach 2 points in the Americas in the same quarter, about three times the third-quarter rate, so higher prices and tight component supply arrive together.
Sources
- Trane Technologies, "Trane Technologies Reports Strong Third-Quarter Results; Raises Full-Year Revenue Guidance, Reaffirms Full-Year EPS Guidance," Oct. 29, 2026 (SEC Exhibit 99.1). sec.gov
- Trane Technologies, Form 10-Q for the quarter ended Sept. 30, 2026. sec.gov
- Earnings Whispers, Trane Technologies Q3 2026 earnings call transcript, Oct. 29, 2026. earningswhispers.com
- Troutman Pepper Locke, "DHS Adds 43 Companies to UFLPA Entity List in Largest-Ever Single Expansion," Aug. 3, 2026. troutman.com
- ACHR News, "Trane to Acquire Heat-Transfer Products Manufacturer." achrnews.com