Trane Technologies plc - Ordinary Shares - Class A

Strong demand + record backlog driving visibility (key “good”): - Q2 enterprise organic bookings +37% YoY and record backlog of $12.1B (+70% YoY); organic revenue +9% YoY. - Commercial HVAC (Americas) standout: bookings +50% YoY, organic revenue low teens; pipeline remains “really, really strong” and still refilling (not just backlog building). - Applied bookings +130% YoY (4th straight quarter >100% growth); management says backlog is now ~90–95% commercial HVAC and ~$6B is slated for 2027 and beyond.

Guidance raised for 2026 (key forecast): - Full-year organic revenue growth ~9% (raised) and adjusted EPS guidance raised to $15.20–$15.30. - Q3 expectations: ~10% organic revenue growth and adjusted EPS ~ $4.70. - Management emphasized 2H acceleration supported by backlog/carry-through; incremental leverage improves after cost headwinds in earlier quarters.

Margins: improving after headwinds, but EMEA Middle East remains the main drag (good + bad): - Americas + Asia margins healthy, supported by operational excellence despite added investment for capacity/innovation/channel expansion. - EMEA affected by Middle East conflict; management took cost actions at end of June (rightsizing positions/infrastructure alignment). - They expect deleverage to be within gross margins into 2H and revenues down ~30% in EMEA (Middle East impact baked into the guide). - Margin trajectory guidance: management suggested ~50 bps YOY margin expansion in Q3 with >1.0 point margin expansion in Q4, led primarily by Americas; Asia small but improving.