UnitedHealth Group reports mixed second quarter earnings, highest MLR ever
The company reported revenues of $111.6 billion, compared to Wall Street expectations of $111.53 billion, and adjusted earnings per share (EPS) of $4.08, compared to $4.59 expected by the Street.
The company also updated its guidance for the full year, after pulling it last quarter. It now expects revenues between $445.5 to $448.0 billion, and adjust earnings at least $16 per share.
UnitedHealth's stock was falling in premarket trading on Tuesday, more than 3% after the earnings report released.
Industry pressure
More patients seeking care means more premiums being paid out and less revenue for health insurers. Typically, insurers aim to be on the lower end of between 80%-85% of the premiums they receive, known as the medical expense ratio.
UnitedHealth reported 89.4% this quarter, compared to 84.8% in the first. That number is the highest in the company's history, breaking its 2024 record of 85.5% — which was attributed to higher utilization of care by seniors.
Other insurers have reported 90% or more in the second quarter this year — a significant jump from prior quarters, and it's all related to Medicare or Medicaid programs. The marks a continuing trend, which has been plaguing the industry since last year and has taken several stocks for a ride every quarter.
Notably, CVS (CVS) saw a hit to its stock after its Aetna Medicare costs came in higher than expected, but then its stock was boosted last quarter as fears of costs were allayed. This quarter, Centene (CNC) and Elevance (ELV) have faced higher-than-expected costs. The hit to UnitedHealth Tuesday appears to be a delayed part of that trend — and the company has acknowledged it, like other big insurers, is surprised by the hit. Especially with the company's focus on revenue management, owning and acquiring companies over the years that would rely on technology to streamline and increase profits.
'UnitedHealth Group has embarked on a rigorous path back to being a high-performing company fully serving the health needs of individuals and society broadly,' said CEO Stephen Hemsley, in a statement. 'As we strengthen operating disciplines, positioning us for growth in 2026 and beyond, the people at UnitedHealth Group will continue to support the millions of patients, physicians and customers who rely on us, guided by a culture of service and longstanding values.'
Industry change
In addition to the insurance market woes, UnitedHealth has faced internal struggles. Former CEO Andrew Witty was ousted in May, and former CEO and board chair Stephen Hemsley then took the helm.
The executive shakeup came after a year of turmoil for the company, including the largest ever cyberattack on its Change Healthcare subsidiary. Meanwhile, the company is still reeling from the death of insurance executive Brian Thompson, who was shot and killed in New York City last year.
The incident prompted an awakening in the insurance industry, which faced a backlash for its system of prior authorization requirements that result in denials of care. Several companies, and the Trump administration, have pledged to fix the problems and relax prior authorization burdens for patients.
Humana executives said last week during an earnings call that the company would reduce prior authorizations by one-third of the current volume. United Health previously said that it only sees prior authorizations for 2% of total claims and that it will further reduce that amount.
UnitedHealth said Tuesday the company is focused on greater transparency with Hemsley leading, and expects to continue offering greater insight into its operations as it rebuilds the company.
Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem.
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Trane Technologies Reports Strong Second Quarter Results; Raises Full-Year Revenue and EPS Guidance
Highlights (second-quarter 2025 versus second-quarter 2024, unless otherwise noted): Record enterprise bookings of $5.6 billion, up 5 percent; organic bookings up 4 percent Bookings strength led by Americas Commercial HVAC applied solutions up over 60 percent GAAP continuing EPS of $3.87; adjusted continuing EPS* of $3.88, up 18 percent Enterprise backlog of $7.1 billion, up 6 percent versus year-end 2024 *This news release contains non-GAAP financial measures. Definitions of the non-GAAP financial measures can be found in the footnotes of this news release. See attached tables for additional details and reconciliations. SWORDS, Ireland, July 30, 2025--(BUSINESS WIRE)--Trane Technologies plc (NYSE:TT), a global climate innovator, today reported diluted earnings per share (EPS) from continuing operations of $3.87 for the second quarter of 2025. Adjusted continuing EPS was $3.88, up 18 percent. Second-Quarter 2025 Results Financial Comparisons - Second-Quarter Continuing Operations $, millions except EPS Q2 2025 Q2 2024 Y-O-Y Change Organic Y-O-Y Change Bookings $5,626 $5,340 5% 4% Net Revenues $5,746 $5,307 8% 7% GAAP Operating Income $1,164 $1,034 13% GAAP Operating Margin 20.3% 19.5% 80 bps Adjusted Operating Income* $1,166 $1,027 14% Adjusted Operating Margin* 20.3% 19.4% 90 bps Adjusted EBITDA* $1,250 $1,119 12% Adjusted EBITDA Margin* 21.8% 21.1% 70 bps GAAP Continuing EPS $3.87 $3.33 16% Adjusted Continuing EPS $3.88 $3.30 18% Pre-Tax Non-GAAP Adjustments, net** $2.0 $(7.1) $9.1 **For details see table 2 and 3 of the news release. "In the second quarter, we continued our consistent track record of leading financial results with record enterprise bookings and revenue and 18 percent earnings per share growth," said Dave Regnery, chair and CEO, Trane Technologies. "Our performance continues to be led by Americas Commercial HVAC, with strong demand for our sustainable solutions across a broad base of highly complex projects. In the second quarter, orders for our bespoke applied solutions were up over 60 percent, adding to our backlog and our visibility to future equipment and services revenues. With our leading innovation, elevated backlog and strong financial position, we are confident in raising our full year revenue and EPS guidance and are well positioned to deliver differentiated shareholder value over the long term." Highlights from the Second Quarter of 2025 (all comparisons against second-quarter 2024 unless otherwise noted) Delivered strong revenue, operating income, EBITDA and EPS growth. Strong bookings of $5.6 billion, up 5 percent; organic bookings up 4 percent. Bookings strength led by Commercial HVAC up mid-teens, with a book-to bill greater than 100 percent in Commercial HVAC in all regions. Backlog of $7.1 billion was up 6 percent versus year-end 2024 and down approximately $125 million sequentially as growth in Commercial HVAC backlog was offset by declines in Residential and Transport. Enterprise reported revenues were up 8 percent; organic revenues were up 7 percent. GAAP operating margin was up 80 basis points, adjusted operating margin was up 90 basis points and adjusted EBITDA margin was up 70 basis points. Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment. Second-Quarter Business Review (all comparisons against second-quarter 2024 unless otherwise noted) Americas Segment: innovates for customers in the North America and Latin America regions. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, energy services and solutions, residential heating and cooling; and transport refrigeration systems and solutions. $, millions Q2 2025 Q2 2024 Y-O-Y Change Organic Y-O-Y Change Bookings $4,543.5 $4,221.9 8% 7% Net Revenues $4,692.3 $4,290.9 9% 9% GAAP Operating Income $1,052.5 $912.1 15% GAAP Operating Margin 22.4% 21.3% 110 bps Adjusted Operating Income $1,052.8 $903.9 16% Adjusted Operating Margin 22.4% 21.1% 130 bps Adjusted EBITDA $1,125.3 $978.2 15% Adjusted EBITDA Margin 24.0% 22.8% 120 bps Strong bookings of $4.5 billion, up 8 percent; organic bookings up 7 percent. Bookings strength led by Americas Commercial HVAC, up over 20 percent. Reported and organic revenues were both up 9 percent. GAAP operating margin was up 110 basis points, adjusted operating margin was up 130 basis points and adjusted EBITDA margin was up 120 basis points. Strong volume growth, positive price realization and productivity more than offset inflation. The Company also continued high levels of business reinvestment. Europe, Middle East and Africa (EMEA) Segment: innovates for customers in the Europe, Middle East and Africa region. The EMEA segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions. $, millions Q2 2025 Q2 2024 Y-O-Y Change Organic Y-O-Y Change Bookings $704.7 $669.4 5% (2)% Net Revenues $707.9 $645.3 10% 3% GAAP Operating Income $122.7 $120.7 2% GAAP Operating Margin 17.3% 18.7% (140) bps Adjusted Operating Income $122.7 $121.0 1% Adjusted Operating Margin 17.3% 18.8% (150) bps Adjusted EBITDA $129.5 $131.0 (1)% Adjusted EBITDA Margin 18.3% 20.3% (200) bps Bookings were up 5 percent; organic bookings were down 2 percent. Reported revenues were up 10 percent including approximately 5 percentage points of positive foreign exchange impact and 2 percentage points related to acquisitions. Organic revenues were up 3 percent. GAAP operating margin was down 140 basis points; adjusted operating margin was down 150 basis points and adjusted EBITDA margin was down 200 basis points. Continued high levels of business reinvestment and inflation offset volume growth and productivity. 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. $, millions Q2 2025 Q2 2024 Y-O-Y Change Organic Y-O-Y Change Bookings $377.7 $448.8 (16)% (17)% Net Revenues $346.2 $371.2 (7)% (8)% GAAP Operating Income $73.7 $89.3 (17)% GAAP Operating Margin 21.3% 24.1% (280) bps Adjusted Operating Income $74.7 $89.3 (16)% Adjusted Operating Margin 21.6% 24.1% (250) bps Adjusted EBITDA $80.8 $94.8 (15)% Adjusted EBITDA Margin 23.3% 25.5% (220) bps Bookings were down 16 percent. Organic bookings were down 17 percent. Reported revenues were down 7 percent including approximately 1 percentage point of positive foreign exchange impact. Organic revenues were down 8 percent. GAAP operating margin was down 280 basis points, adjusted operating margin was down 250 basis points and adjusted EBITDA margin was down 220 basis points. Continued high levels of business reinvestment, lower volumes and inflation offset productivity. Balance Sheet and Cash Flow $, millions Q2 2025 Q2 2024 Y-O-Y Change Cash From Continuing Operating Activities Y-T-D $1,044 $959 $85 Free Cash Flow Y-T-D* $841 $810 $31 Working Capital/Revenue* 3.7% 4.2% (50 bps) Cash Balance June 30 $774 $1,326 ($552) Debt Balance June 30 $4,615 $5,268 ($653) Through June 30, 2025, cash flow from continuing operating activities was approximately $1 billion and free cash flow was $841 million. Year-to-date through July, the Company deployed or committed approximately $1.8 billion of capital including approximately $420 million for dividends, $275 million for M&A, $1 billion for share repurchases and $150 million for debt retirement. The Company expects to pay a competitive and growing dividend and to deploy 100 percent of excess cash to shareholders over time. Company Raises Full-Year 2025 Guidance The Company expects full-year 2025 reported revenue growth of approximately 9 percent, including 100 basis points related to acquisitions, and organic revenue growth of approximately 8 percent versus full-year 2024. The Company expects GAAP continuing EPS for full-year 2025 of approximately $13.30, including $0.25 for non-GAAP adjustments. The Company expects adjusted continuing EPS for full-year 2025 of approximately $13.05. Additional information regarding the Company's 2025 guidance is included in the Company's second-quarter earnings presentation found at in the Investor Relations section. This news release includes "forward-looking" statements within the meaning of securities laws, which are statements that are not historical facts, including statements that relate to our future financial performance and targets, including revenue, EPS, and earnings; our business operations; demand for our products and services, including bookings and backlog; capital deployment, including the amount and timing of our dividends, our share repurchase program, anticipated capital commitments for M&A activity, and our capital allocation strategy; our available liquidity; our anticipated revenue growth, and the performance of the markets in which we operate. These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, global economic conditions, including recessions and economic downturns, inflation, volatility in interest rates and foreign exchange; trade protection measures such as import or export restrictions, tariffs, or quotas; changing energy prices; worldwide geopolitical conflict; financial institution disruptions; climate change and our sustainability strategies and goals; future health care emergencies on our business, our suppliers and our customers; commodity shortages; price increases; government regulation; restructurings activity and cost savings associated with such activity; secular trends toward decarbonization, energy efficiency and internal air quality, the outcome of any litigation, including the risks and uncertainties associated with the Chapter 11 proceedings for our deconsolidated subsidiaries Aldrich Pump LLC and Murray Boiler LLC; cybersecurity risks; and tax audits and tax law changes and interpretations. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2024, as well as our subsequent reports on Form 10-Q and other SEC filings. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events and how they may affect the Company. We assume no obligation to update these forward-looking statements. This news release also includes non-GAAP financial information, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The definitions of our non-GAAP financial information and reconciliation to GAAP are attached to this news release. All amounts reported within the earnings release above related to net earnings (loss), earnings (loss) from continuing operations, earnings (loss) from discontinued operations, adjusted EBITDA and per share amounts are attributed to Trane Technologies' ordinary shareholders. Trane Technologies (NYSE:TT) is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more information, visit # # # 7/30/2025 (See Accompanying Tables) Table 1: Condensed Consolidated Income Statement Tables 2 - 5: Reconciliation of GAAP to Non-GAAP Table 6: Condensed Consolidated Balance Sheets Table 7: Condensed Consolidated Statement of Cash Flows Table 8: Balance Sheet Metrics and Free Cash Flow *Q2 and Year-to-Date Non-GAAP measures definitions Adjusted operating income in 2025 is defined as GAAP operating income adjusted for restructuring costs, merger and acquisition transaction costs, and a non-cash adjustment for contingent consideration. Adjusted operating income in 2024 is defined as GAAP operating income adjusted for restructuring costs, merger and acquisition transaction costs, legacy legal liability, and a non-cash adjustment for contingent consideration. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2, 3 and 4 of the news release. Adjusted operating margin is defined as the ratio of adjusted operating income divided by net revenues. Adjusted earnings from continuing operations attributable to Trane Technologies plc (Adjusted net earnings) in 2025 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, merger and acquisition transaction costs, and a non-cash adjustment for contingent consideration. Adjusted net earnings in 2024 is defined as GAAP earnings from continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, merger and acquisition transaction costs, legacy legal liability, and a non-cash adjustment for contingent consideration. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release. Adjusted continuing EPS in 2025 is defined as GAAP continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, merger and acquisition transaction costs, and a non-cash adjustment for contingent consideration. Adjusted continuing EPS in 2024 is defined as GAAP continuing operations attributable to Trane Technologies plc adjusted for net of tax impacts of restructuring costs, merger and acquisition transaction costs, legacy legal liability, and a non-cash adjustment for contingent consideration. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 2 and 3 of the news release. Adjusted EBITDA in 2025 is defined as adjusted operating income adjusted to exclude depreciation and amortization expense and include other income / (expense), net. Adjusted EBITDA in 2024 is defined as adjusted operating income adjusted to exclude depreciation and amortization expense and include other income / (expense), net. Other income / (expense), net mainly comprises interest income, foreign currency exchange gains and losses and certain components pension and postretirement benefit costs. Please refer to the reconciliation of GAAP to non-GAAP measures on tables 4 and 5 of the news release. Adjusted EBITDA margin is defined as the ratio of adjusted EBITDA divided by net revenues. Adjusted effective tax rate for 2025 is defined as the ratio of income tax expense adjusted for the net tax effect of adjustments for restructuring costs and merger and acquisition transaction costs divided by adjusted net earnings. Adjusted effective tax rate for 2024 is defined as the ratio of income tax expense adjusted for the net tax effect of adjustments for restructuring costs, merger and acquisition transaction costs, and legacy legal liability divided by adjusted net earnings. This measure allows for a direct comparison of the effective tax rate between periods. Free cash flow in 2025 is defined as net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs, legacy legal liability, and merger and acquisition transaction costs. Free cash flow in 2024 is defined as net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring costs, legacy legal liability, and merger and acquisition transaction costs. Please refer to the free cash flow reconciliation on table 8 of the news release. Operating leverage is defined as the ratio of the change in adjusted operating income for the current period (e.g. Q2 2025) less the prior period (e.g. Q2 2024), divided by the change in net revenues for the current period less the prior period. Organic revenue is defined as GAAP net revenues adjusted for the impact of currency and acquisitions. Organic bookings is defined as reported orders in the current period adjusted for the impact of currency and acquisitions. Working capital measures a firm's operating liquidity position and its overall effectiveness in managing the enterprise's current accounts. Working capital is calculated by adding net accounts and notes receivables and inventories and subtracting total current liabilities that exclude short-term debt, dividend payable and income tax payables. Working capital as a percent of revenue is calculated by dividing the working capital balance (e.g. as of June 30) by the annualized revenue for the period (e.g. reported revenues for the three months ended June 30 multiplied by 4 to annualize for a full year). The Company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP). The following schedules provide non-GAAP financial information and a quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP. The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to, financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may not be comparable to non-GAAP financial measures reported by other companies. We believe the non-GAAP financial information provides important supplemental information to both management and investors regarding financial and business trends used in assessing our financial condition and results of operations. Non-GAAP financial measures assist investors with analyzing our business results as well as with predicting future performance. In addition, these non-GAAP financial measures are also reviewed by management in order to evaluate the financial performance of each segment. Presentation of these non-GAAP financial measures helps investors and management to assess the operating performance of the Company. As a result, one should not consider these measures in isolation or as a substitute for our results reported under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results. Table 1 TRANE TECHNOLOGIES PLC Condensed Consolidated Income Statement (In millions, except per share amounts) UNAUDITED For the quarter For the six months ended June 30, ended June 30, 2025 2024 2025 2024 Net revenues $ 5,746.4 $ 5,307.4 $ 10,434.9 $ 9,523.0 Cost of goods sold (3,585.8 ) (3,371.9 ) (6,596.8 ) (6,127.6 ) Selling and administrative expenses (996.4 ) (901.3 ) (1,855.0 ) (1,727.4 ) Operating income 1,164.2 1,034.2 1,983.1 1,668.0 Interest expense (57.4 ) (57.5 ) (115.5 ) (115.5 ) Other income/(expense), net (14.1 ) (4.1 ) (22.0 ) (29.2 ) Earnings before income taxes 1,092.7 972.6 1,845.6 1,523.3 Provision for income taxes (216.7 ) (205.8 ) (351.6 ) (311.3 ) Earnings from continuing operations 876.0 766.8 1,494.0 1,212.0 Discontinued operations, net of tax 2.9 (6.9 ) (6.0 ) (12.3 ) Net earnings 878.9 759.9 1,488.0 1,199.7 Less: Net earnings from continuing operations attributable to noncontrolling interests (4.1 ) (4.6 ) (8.3 ) (8.1 ) Net earnings attributable to Trane Technologies plc $ 874.8 $ 755.3 $ 1,479.7 $ 1,191.6 Amounts attributable to Trane Technologies plc ordinary shareholders: Continuing operations $ 871.9 $ 762.2 $ 1,485.7 $ 1,203.9 Discontinued operations 2.9 (6.9 ) (6.0 ) (12.3 ) Net earnings $ 874.8 $ 755.3 $ 1,479.7 $ 1,191.6 Diluted earnings (loss) per share attributable to Trane Technologies plc ordinary shareholders: Continuing operations $ 3.87 $ 3.33 $ 6.58 $ 5.25 Discontinued operations 0.02 (0.03 ) (0.03 ) (0.05 ) Net earnings $ 3.89 $ 3.30 $ 6.55 $ 5.20 Weighted-average number of common shares outstanding: Diluted 225.1 228.7 225.8 229.1 Table 2 TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions, except per share amounts) UNAUDITED For the quarter ended June 30, 2025 For the six months ended June 30, 2025 As As As As Reported Adjustments Adjusted Reported Adjustments Adjusted Net revenues $ 5,746.4 $ — $ 5,746.4 $ 10,434.9 $ — $ 10,434.9 Operating income 1,164.2 2.0 (a,b) 1,166.2 1,983.1 (57.2 ) (a,b,c) 1,925.9 Operating margin 20.3 % 20.3 % 19.0 % 18.5 % Earnings from continuing operations before income taxes 1,092.7 2.0 (a,b) 1,094.7 1,845.6 (57.2 ) (a,b,c) 1,788.4 Provision for income taxes (216.7 ) (0.5 ) (d) (217.2 ) (351.6 ) (1.0 ) (d) (352.6 ) Tax rate 19.8 % 19.8 % 19.1 % 19.7 % Earnings from continuing operations attributable to Trane Technologies plc $ 871.9 $ 1.5 (e) $ 873.4 $ 1,485.7 $ (58.2 ) (e) $ 1,427.5 Diluted earnings per common share Continuing operations $ 3.87 $ 0.01 $ 3.88 $ 6.58 $ (0.26 ) $ 6.32 Weighted-average number of common shares outstanding: Diluted 225.1 — 225.1 225.8 — 225.8 Detail of Adjustments: (a) Restructuring costs (COGS & SG&A) $ 1.3 $ 1.3 (b) M&A transaction costs (SG&A) 0.7 2.7 (c) Non-cash adjustment for contingent consideration (SG&A) — (61.2 ) (d) Tax impact of adjustments (a,b) (0.5 ) (1.0 ) (e) Impact of adjustments on earnings from continuing operations attributable to Trane Technologies plc $ 1.5 $ (58.2 ) Pre-tax impact of adjustments on cost of goods sold $ 0.2 $ 0.2 Pre-tax impact of adjustments on selling & administrative expenses 1.8 (57.4 ) Pre-tax impact of adjustments on operating income $ 2.0 $ (57.2 ) Table 3 TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions, except per share amounts) UNAUDITED For the quarter ended June 30, 2024 For the six months ended June 30, 2024 As As As As Reported Adjustments Adjusted Reported Adjustments Adjusted Net revenues $ 5,307.4 $ — $ 5,307.4 $ 9,523.0 $ — $ 9,523.0 Operating income 1,034.2 (7.1 ) (a,b,c,d) 1,027.1 1,668.0 (1.3 ) (a,b,c,d) 1,666.7 Operating margin 19.5 % 19.4 % 17.5 % 17.5 % Earnings from continuing operations before income taxes 972.6 (7.1 ) (a,b,c,d) 965.5 1,523.3 (1.3 ) (a,b,c,d) 1,522.0 Provision for income taxes (205.8 ) (0.3 ) (e) (206.1 ) (311.3 ) (1.7 ) (e) (313.0 ) Tax rate 21.2 % 21.3 % 20.4 % 20.6 % Earnings from continuing operations attributable to Trane Technologies plc $ 762.2 $ (7.4 ) (f) $ 754.8 $ 1,203.9 $ (3.0 ) (f) $ 1,200.9 Diluted earnings per common share Continuing operations $ 3.33 $ (0.03 ) $ 3.30 $ 5.25 $ (0.01 ) $ 5.24 Weighted-average number of common shares outstanding: Diluted 228.7 — 228.7 229.1 — 229.1 Detail of Adjustments: (a) Restructuring costs (COGS and SG&A) $ 0.8 $ 5.5 (b) Legacy legal liability (SG&A) 0.6 1.7 (c) M&A transaction costs (SG&A) 0.4 0.4 (d) Non-cash adjustment for contingent consideration (SG&A) (8.9 ) (8.9 ) (e) Tax impact of adjustments (a,b,c) (0.3 ) (1.7 ) (f) Impact of adjustments on earnings from continuing operations attributable to Trane Technologies plc $ (7.4 ) $ (3.0 ) Pre-tax impact of adjustments on cost of goods sold $ 0.6 $ 0.6 Pre-tax impact of adjustments on selling & administrative expenses (7.7 ) (1.9 ) Pre-tax impact of adjustments on operating income $ (7.1 ) $ (1.3 ) Table 4 TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions) UNAUDITED For the quarter ended June 30, 2025 For the quarter ended June 30, 2024 As Reported Margin As Reported Margin Americas Net revenues $ 4,692.3 $ 4,290.9 Segment operating income $ 1,052.5 22.4 % $ 912.1 21.3 % Restructuring/Other (a) 0.3 — % (8.2 ) (0.2 )% Adjusted operating income * 1,052.8 22.4 % 903.9 21.1 % Depreciation and amortization 76.3 1.7 % 76.5 1.8 % Other income/(expense), net (3.8 ) (0.1 )% (2.2 ) (0.1 )% Adjusted EBITDA * $ 1,125.3 24.0 % $ 978.2 22.8 % Europe, Middle East & Africa Net revenues $ 707.9 $ 645.3 Segment operating income $ 122.7 17.3 % $ 120.7 18.7 % Restructuring/Other (a) — — % 0.3 0.1 % Adjusted operating income * 122.7 17.3 % 121.0 18.8 % Depreciation and amortization 12.0 1.7 % 10.7 1.7 % Other income/(expense), net (5.2 ) (0.7 )% (0.7 ) (0.2 )% Adjusted EBITDA * $ 129.5 18.3 % $ 131.0 20.3 % Asia Pacific Net revenues $ 346.2 $ 371.2 Segment operating income $ 73.7 21.3 % $ 89.3 24.1 % Restructuring/Other (a) 1.0 0.3 % — — % Adjusted operating income * 74.7 21.6 % 89.3 24.1 % Depreciation and amortization 4.6 1.3 % 4.4 1.1 % Other income/(expense), net 1.5 0.4 % 1.1 0.3 % Adjusted EBITDA * $ 80.8 23.3 % $ 94.8 25.5 % Corporate Unallocated corporate expense $ (84.7 ) $ (87.9 ) Restructuring/Other (b) 0.7 0.8 Adjusted corporate expense * (84.0 ) (87.1 ) Depreciation and amortization 5.2 4.6 Other income/(expense), net (6.6 ) (2.3 ) Adjusted EBITDA * $ (85.4 ) $ (84.8 ) Total Company Net revenues $ 5,746.4 $ 5,307.4 Operating income $ 1,164.2 20.3 % $ 1,034.2 19.5 % Restructuring/Other (a,b) 2.0 — % (7.1 ) (0.1 )% Adjusted operating income * 1,166.2 20.3 % 1,027.1 19.4 % Depreciation and amortization 98.1 1.7 % 96.2 1.8 % Other income/(expense), net (14.1 ) (0.2 )% (4.1 ) (0.1 )% Adjusted EBITDA * $ 1,250.2 21.8 % $ 1,119.2 21.1 % *Represents a non-GAAP measure, refer to pages 5-6 in the Earnings Release for definitions. (a) Restructuring/Other in 2025 and 2024 includes restructuring amounts unless specified otherwise. Restructuring/Other within Americas in 2024 includes ($8.9) million of a non-cash adjustment for contingent consideration. (b) Restructuring/Other within Corporate in 2025 includes $0.7 million of M&A transaction costs. Restructuring/Other within Corporate in 2024 includes $0.6 million and $0.4 million of legacy legal liability and M&A transaction costs, respectively. Table 5 TRANE TECHNOLOGIES PLC Reconciliation of GAAP to non-GAAP (In millions) UNAUDITED For the quarter ended June 30, 2025 2024 Total Company Adjusted EBITDA * $ 1,250.2 $ 1,119.2 Less: items to reconcile adjusted EBITDA to net earnings attributable to Trane Technologies plc Depreciation and amortization (98.1 ) (96.2 ) Interest expense (57.4 ) (57.5 ) Provision for income taxes (216.7 ) (205.8 ) Restructuring costs (1.3 ) (0.8 ) M&A transaction costs (0.7 ) (0.4 ) Legacy legal liability — (0.6 ) Non-cash adjustment for contingent consideration — 8.9 Discontinued operations, net of tax 2.9 (6.9 ) Net earnings from continuing operations attributable to noncontrolling interests (4.1 ) (4.6 ) Net earnings attributable to Trane Technologies plc $ 874.8 $ 755.3 *Represents a non-GAAP measure, refer to pages 5-6 in the Earnings Release for definitions. Table 6 TRANE TECHNOLOGIES PLC Condensed Consolidated Balance Sheets (In millions) UNAUDITED June 30, December 31, 2025 2024 ASSETS Cash and cash equivalents $ 774.2 $ 1,590.1 Accounts and notes receivable, net 3,607.1 3,090.2 Inventories 2,361.0 1,971.5 Other current assets 763.9 686.0 Total current assets 7,506.2 7,337.8 Property, plant and equipment, net 2,177.5 2,024.5 Goodwill 6,446.1 6,127.9 Intangible assets, net 3,308.9 3,308.2 Other noncurrent assets 1,551.8 1,348.3 Total assets $ 20,990.5 $ 20,146.7 LIABILITIES AND EQUITY Accounts payable $ 2,528.6 $ 2,148.0 Accrued expenses and other current liabilities 3,576.1 3,468.7 Short-term borrowings and current maturities of long-term debt 694.6 452.2 Total current liabilities 6,799.3 6,068.9 Long-term debt 3,920.4 4,318.1 Other noncurrent liabilities 2,415.6 2,272.8 Total equity 7,855.2 7,486.9 Total liabilities and equity $ 20,990.5 $ 20,146.7 Table 7 TRANE TECHNOLOGIES PLC Condensed Consolidated Statement of Cash Flows (In millions) UNAUDITED For the six months ended June 30, 2025 2024 Operating Activities Earnings from continuing operations $ 1,494.0 $ 1,212.0 Depreciation and amortization 197.2 187.7 Changes in assets and liabilities and other non-cash items (647.7 ) (441.1 ) Net cash provided by (used in) continuing operating activities 1,043.5 958.6 Net cash provided by (used in) discontinued operating activities (11.9 ) (15.5 ) Net cash provided by (used in) operating activities 1,031.6 943.1 Investing Activities Capital expenditures, net (208.8 ) (156.7 ) Acquisition of businesses, net of cash acquired (275.5 ) (5.2 ) Purchases of short-term investments, net — (450.0 ) Other investing activities, net (1.7 ) (14.7 ) Net cash provided by (used in) investing activities (486.0 ) (626.6 ) Financing Activities Net proceeds from (payments of) debt (157.3 ) 491.0 Dividends paid to ordinary shareholders (420.0 ) (379.4 ) Repurchase of ordinary shares (879.6 ) (624.4 ) Other financing activities, net (24.0 ) 8.5 Net cash provided by (used in) financing activities (1,480.9 ) (504.3 ) Effect of exchange rate changes on cash and cash equivalents 119.4 (32.9 ) Net increase (decrease) in cash and cash equivalents (815.9 ) (220.7 ) Cash and cash equivalents - beginning of period 1,590.1 1,095.3 Cash and cash equivalents - end of period $ 774.2 $ 874.6 Table 8 TRANE TECHNOLOGIES PLC Balance Sheet Metrics and Free Cash Flow ($ in millions) UNAUDITED June 30, June 30, December 31, 2025 2024 2024 Net Receivables $ 3,607.1 $ 3,433.3 $ 3,090.2 Days Sales Outstanding 57.3 59.0 57.9 Net Inventory $ 2,361.0 $ 2,203.5 $ 1,971.5 Inventory Turns 6.1 6.1 6.4 Accounts Payable $ 2,528.6 $ 2,180.1 $ 2,148.0 Days Payable Outstanding 64.3 59.0 62.0 ------------------------------------------------------------------------------------------------------------------------------------------------------- Six months ended Six months ended June 30, 2025 June 30, 2024 Net cash flow provided by continuing operating activities $ 1,043.5 $ 958.6 Capital expenditures (208.8 ) (156.7 ) Cash payments for restructuring 2.0 5.9 Legacy legal liability 0.6 1.7 M&A transaction costs 4.1 0.6 Free cash flow * $ 841.4 $ 810.1 *Represents a non-GAAP measure, refer to pages 5-6 in the Earnings Release for definitions. 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September S&P 500 E-Mini futures (ESU25) are up +0.04%, and September Nasdaq 100 E-Mini futures (NQU25) are up +0.10% this morning, pointing to a cautious open on Wall Street as investors await the Federal Reserve's policy decision, a fresh batch of U.S. economic data, including the ADP employment report and the first estimate of second-quarter GDP, as well as earnings reports from 'Magnificent Seven' companies Microsoft and Meta. In yesterday's trading session, Wall Street's major indexes ended in the red. United Parcel Service (UPS) slumped over -10% and was among the top percentage losers on the S&P 500 after the delivery company reported weaker-than-expected Q2 adjusted EPS and said it would not provide full-year revenue or operating profit guidance due to macroeconomic uncertainty. Also, Brown & Brown (BRO) plunged more than -10% after the company posted weaker-than-expected Q2 organic revenue growth. In addition, UnitedHealth Group (UNH) fell over -7% and was the top percentage loser on the Dow after the company reported weaker-than-expected Q2 adjusted EPS and provided below-consensus FY25 guidance. On the bullish side, Corning (GLW) surged more than +11% and was the top percentage gainer on the S&P 500 after the maker of specialty glass and ceramics reported better-than-expected Q2 results and issued above-consensus Q3 core EPS guidance. More News from Barchart Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold Earnings Will Be 'Worse Than Expected' for UnitedHealth. How Should You Play UNH Stock Here? As SoFi Raises 2025 Guidance, Should You Buy, Sell, or Hold SOFI Stock Here? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! A Labor Department report released on Tuesday showed that U.S. JOLTs job openings fell to 7.437 million in June, weaker than expectations of 7.510 million. At the same time, the U.S. Conference Board's consumer confidence index rose to 97.2 in July, stronger than expectations of 95.9. In addition, the U.S. May S&P/CS HPI Composite - 20 n.s.a. eased to +2.8% y/y from +3.4% y/y in April, weaker than expectations of +2.9% y/y. 'Overall, it was a mixed round of data that has done little to materially challenge the price action or macro narrative,' said Ian Lyngen at BMO Capital Markets. Today, all eyes are focused on the Federal Reserve's monetary policy decision. The Federal Open Market Committee is widely expected to keep the Fed funds rate unchanged in a range of 4.25% to 4.50%. The decision comes amid intense political pressure, evolving trade policy, and economic cross-currents. Market watchers will follow Chair Jerome Powell's post-policy meeting press conference for any indication of a greater openness from the central bank to ease policy when it next meets in September. Second-quarter corporate earnings season continues in full force. Investors will be closely monitoring earnings reports today from 'Magnificent Seven' companies Microsoft (MSFT) and Meta Platforms (META). Prominent companies like Qualcomm (QCOM), Arm (ARM), Lam Research (LRCX), and Altria (MO) are also scheduled to release their quarterly results today. According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +4.5% increase in quarterly earnings for Q2 compared to the previous year, exceeding the pre-season estimate of +2.8%. On the economic data front, investors will focus on the Commerce Department's first estimate of gross domestic product, set to be released in a couple of hours. Economists, on average, forecast that U.S. GDP growth will stand at +2.5% q/q in the second quarter, compared to the first-quarter figure of -0.5% q/q. The U.S. ADP Nonfarm Employment Change data will also be closely monitored today. Economists expect the July figure to come in at 77K, compared to the June figure of -33K. U.S. Pending Home Sales data will be reported today. Economists forecast the June figure at +0.2% m/m, compared to the previous figure of +1.8% m/m. U.S. Crude Oil Inventories data will be released today as well. Economists expect this figure to be -2.300M, compared to last week's value of -3.169M. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.326%, down -0.21%. The Euro Stoxx 50 Index is up +0.28% this morning as investors digest key economic data from the region and fresh corporate earnings reports, while also awaiting the Federal Reserve's interest rate decision. Energy stocks led the gains on Wednesday, while chemical and automobile stocks lost ground. Preliminary data from Eurostat released on Wednesday showed that the Eurozone economy slowed in the second quarter but demonstrated resilience, signaling a potential rebound in the coming months despite higher U.S. tariffs on its exports. Separately, a survey showed that the Eurozone business sentiment indicator rose to a 5-month high in July. In addition, the European Central Bank's wage tracker showed on Wednesday that wage growth in the Eurozone will slow significantly this year, reinforcing the bank's view that excessive inflation has now been brought under control. Meanwhile, earnings projections released on Tuesday showed that the outlook for European corporate health has brightened, following the EU's trade agreement with the U.S. In corporate news, HSBC Holdings Plc ( fell over -2% after the lender posted weaker-than-expected first-half pretax profit. Also, Adidas AG ( slumped more than -6% after cautioning that higher U.S. tariffs would tack on roughly 200 million euros ($231 million) to its costs in the second half. Germany's Retail Sales, Spain's CPI (preliminary), Eurozone's GDP (preliminary), Eurozone's Business and Consumer Survey, and Eurozone's Consumer Confidence data were released today. The German June Retail Sales rose +1.0% m/m, stronger than expectations of +0.5% m/m. The Spanish July CPI rose +2.7% y/y, stronger than expectations of +2.3% y/y. Eurozone's GDP has been reported at +0.1% q/q and +1.4% y/y in the second quarter, stronger than expectations of no change q/q and +1.2% y/y. Eurozone's July Business and Consumer Survey stood at 95.8, stronger than expectations of 94.5. Eurozone's July Consumer Confidence came in at -14.7, in line with expectations. Asian stock markets today settled mixed. China's Shanghai Composite Index (SHCOMP) closed up +0.17%, and Japan's Nikkei 225 Stock Index (NIK) closed down -0.05%. China's Shanghai Composite Index closed higher and hit a 9-month high today as investors found some relief from the prospects that the U.S.-China tariff truce will be extended. U.S. and Chinese officials agreed on Tuesday to seek an extension of their 90-day tariff truce, following two days of what both sides called constructive talks aimed at defusing a trade war that poses risks to global growth. U.S. President Donald Trump is set to make the final decision on extending the truce with China before it expires in two weeks, a move that would signal continued stabilization in relations between the world's two largest economies. U.S. Treasury Secretary Scott Bessent downplayed any expectations that Trump would reject the extension. Meanwhile, Chinese leaders signaled they would hold off on introducing additional major stimulus for now, as authorities shift their focus to tackling excess capacity in the economy. The ruling Communist Party's Politburo, China's top policymaking body, vowed on Wednesday to more effectively implement existing pro-growth measures, according to a readout by state-run Xinhua News Agency. Authorities will tackle excessive competition among enterprises and promote the regulation of overcapacity in major industries, while also tightening oversight of local government investment-attraction practices, according to the readout. The Politburo meeting maintained a cautious policy stance, reaffirming macroeconomic guidance issued in April. 'Macroeconomic policies must remain robust and be strengthened when necessary,' it said. In corporate news, Li Auto tumbled over -12% in Hong Kong as investors grew concerned over the pricing of its first all-electric SUV, the Li i8, and rising competition. Japan's Nikkei 225 Stock Index closed just below the flatline today as investors refrained from making big bets ahead of policy decisions from the Fed and Bank of Japan, along with U.S. President Donald Trump's tariff deadline. Retail and chip stocks underperformed on Wednesday, while real estate and bank stocks gained ground. On Friday, the majority of U.S. trading partners that have yet to finalize agreements with Washington will be subjected to higher reciprocal tariffs. Maki Sawada, an equities strategist at Nomura Securities, said, 'There are still a lot of uncertainties over tariffs, and that's going to limit the upside for stocks.' Meanwhile, BofA Global Research lifted its year-end forecast for the Nikkei 225 Index to 43,000 from 40,000. The new forecast reflects the U.S.-Japan trade deal, expectations for Japan's fiscal expansion, and a favorable supply-demand environment, according to strategists. Investor focus is now on the Bank of Japan's monetary policy decision. The central bank is widely expected to hold its policy rate steady at 0.5% at its two-day meeting concluding Thursday. Governor Kazuo Ueda's reaction to the U.S. trade deal will be in focus after his deputy stated that the agreement increased the chances of economic projections being met, a key condition for an additional rate hike. The central bank will also release its quarterly projections for growth and inflation. In other news, Japan's ruling coalition agreed on Wednesday with four major opposition parties to scrap a provisional gasoline tax as early as this year, yielding to opposition pressure after a major election loss. In corporate news, ANA Holdings slid over -4% after the airline reported a 7.1% drop in Q1 net income. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +1.45% to 23.04. Pre-Market U.S. Stock Movers LendingClub (LC) jumped over +23% in pre-market trading after the company posted upbeat Q2 results and issued strong Q3 guidance for loan originations and preprovision net revenue. Starbucks (SBUX) climbed more than +4% in pre-market trading after the coffee chain reported better-than-expected FQ3 revenue. Seagate Technology (STX) slumped over -6% in pre-market trading after the data storage company issued soft FQ1 guidance. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Wednesday - July 30th Microsoft (MSFT), Meta Platforms (META), Qualcomm (QCOM), Arm (ARM), Lam Research (LRCX), ADP (ADP), UBS Group (UBS), Trane Technologies (TT), Altria (MO), Robinhood Markets (HOOD), Equinix (EQIX), Illinois Tool Works (ITW), Carvana (CVNA), Canadian Pacific Kansas City (CP), Agnico Eagle Mines (AEM), American Electric Power (AEP), Vertiv Holdings Co (VRT), Public Storage (PSA), Fannie Mae (FNMA), Garmin (GRMN), Ford Motor (F), Kenvue (KVUE), Verisk (VRSK), Entergy (ETR), Hershey Co (HSY), Cognizant (CTSH), Fair Isaac (FICO), Prudential Financial (PRU), eBay (EBAY), DexCom (DXCM), VICI Properties (VICI), WEC Energy (WEC), Old Dominion Freight Line (ODFL), Kraft Heinz (KHC), Extra Space Storage (EXR), Tradeweb Markets (TW), Ventas (VTR), Banco Bradesco (BBD), AvalonBay (AVB), Humana (HUM), American Water Works (AWK), Smurfit Westrock (SW), Western Digital (WDC), PTC (PTC), FirstEnergy (FE), Tyler Technologies (TYL), Check Point Software (CHKP), CGI Inc (GIB), AerCap Holdings NV (AER), Invitation Homes (INVH), Kinross Gold (KGC), Carlisle (CSL), Mid-America Apartment (MAA), Gfl Environmental (GFL), Watsco (WSO), Fortive (FTV), F5 Networks (FFIV), Sun (SUI), Sprouts Farmers (SFM), Bunge (BG), Align (ALGN), Hologic (HOLX), UDR (UDR), Everest (EG), Entegris (ENTG), IDEX (IEX), United Therapeutics (UTHR), Neurocrine (NBIX), Clean Harbors (CLH), Evercore (EVR), Morningstar (MORN), CH Robinson (CHRW), Host Hotels Resorts (HST), Stifel (SF), Pilgrims Pride (PPC), Aurora Innovation (AUR), Penske Automotive (PAG), Alamos Gold (AGI), SCI (SCI), Antero Resources Corp (AR), MGM (MGM), Tetra Tech (TTEK), Confluent (CFLT), Generac (GNRC), OGE Energy (OGE), TIM Participacoes (TIMB), Hess Midstream Partners (HESM), Albemarle (ALB), Murphy USA Inc (MUSA), Antero Midstream (AM), Wingstop Inc (WING), National Fuel Gas (NFG), New Oriental Education&Tech (EDU), Virtu Financial Inc (VIRT), Ionis Pharma (IONS), Federal Signal (FSS), Gates Industrial Corp (GTES), Axalta Coating Systems (AXTA), Etsy Inc (ETSY), Comstock Resources (CRK), MGIC Investment (MTG), The Hanover Insurance (THG), Silgans (SLGN), Modine Manufacturing (MOD), Siteone Landscape Supply (SITE), Cognex (CGNX), Littelfuse (LFUS), Element Solutions (ESI), Q2 Holdings (QTWO), Timken (TKR), Guardant Health (GH), Glaukos Corp (GKOS), SPS Commerce (SPSC), Enact Holdings (ACT), FMC (FMC), Kite Realty (KRG), Bausch + Lomb (BLCO), Option Care Health (OPCH), TTM (TTMI), Merit (MMSI), Axos Financial (AX), VF (VFC), Magnolia Oil (MGY), Radian (RDN), Reynolds (REYN), EPR Properties (EPR), Independence Realty Trust Inc (IRT), Black Hills (BKH), Tenable (TENB), CBIZ (CBZ), Scotts Miracle-Gro (SMG), Cactus (WHD), Newmark Group (NMRK), Impinj (PI), TransMedics (TMDX), Rush Street Interactive (RSI), Hawkins (HWKN), Genworth (GNW), Blackstone Mortgage (BXMT), Hayward Holdings (HAYW), NorthWestern (NWE), Broadstone Net (BNL), MYR Group (MYRG), Blackbaud (BLKB), VSE Corporation (VSEC), Green Brick Partners Inc (GRBK), CVR Energy (CVI), Alkami Technology (ALKT), Harley-Davidson (HOG), FormFactor (FORM), Urban Edge Properties (UE), Methanex (MEOH), Silicon Motion (SIMO), Applied Digital (APLD), The Chefs Warehouse (CHEF). On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
