Trane Technologies

“AI also presents emerging issues and the pace presents uncertainties, and we may experience competitive harm, harm to our reputation, or legal liability.”

Annual report 2025A · The company itself

“Our information technology systems, networks, connected services, and infrastructure and technology, including artificial intelligence (AI) technology, embedded in certain of our control products have been and are at risk to cyber attacks and unauthorized access.”

Annual report 2025A · The company itself

“In addition, the rapid evolution and increased adoption of AI technologies may intensify our cybersecurity risks, including risks from malicious or misuse of AI to craft increasingly sophisticated cybersecurity attacks against us, our business partners, or our third-party vendors.”

Annual report 2025A · The company itself

“Our growth is dependent, in part, on the timely development, commercialization and acceptance of new and enhanced products and services. We must efficiently and effectively innovate, develop and commercialize new and enhanced products and services in a rapidly changing technological and business environment in order to remain competitive in our current and future markets and in order to continue to grow our business.”

Annual report 2025A · The company itself

“•Our Americas segment innovates for customers in North America and Latin America. The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions. •Our EMEA segment innovates for customers in the Europe, Middle East and Africa region.”

Annual report 2025A · The company itself

“The EMEA segment encompasses heating, cooling and ventilation systems and services, energy services and solutions, and transport refrigeration systems and solutions. •Our Asia Pacific segment innovates for customers throughout the Asia Pacific region.”

Annual report 2025A · The company itself

“The Asia Pacific segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings and transport refrigeration systems and solutions.”

Annual report 2025A · The company itself

“There has been consolidation and new entrants (including non-traditional competitors) within our industries and there may be future consolidation and new entrants, either of which could result in increased competition and pricing pressures and significantly alter the dynamics of the competitive landscape in which we operate.”

Annual report 2025A · The company itself

“As we integrate acquisitions into our portfolio of solutions, we may face new competitors in our target markets and incur increased competition from alternative solutions, which could lead to decreased demand or reduced market share for our products and services.”

Annual report 2025A · The company itself

“In pursuing our business strategy, we routinely conduct discussions, evaluate targets and enter into agreements regarding possible acquisitions, divestitures, joint ventures and equity investments. We have acquired several businesses, entered into joint ventures and invested in companies that complement existing products and services further enhancing our product portfolio.”

Annual report 2025A · The company itself

“Our investments continue to improve manufacturing productivity, expand capacity, reduce costs, provide environmental enhancements, upgrade information technology infrastructure and security and advanced technologies for existing facilities.”

Annual report 2025A · The company itself

“The Americas segment encompasses commercial heating, cooling and ventilation systems, building controls and solutions, and energy services and solutions; residential heating and cooling; and transport refrigeration systems and solutions. •Our EMEA segment innovates for customers in the Europe, Middle East and Africa region.”

Annual report 2025A · The company itself

“The components of the period change were as follows: Volume 3.6 % Pricing 3.8 % Organic revenue (1) 7.4 % Acquisitions 0.7 % Currency translation (0.1) % Total 8.0 % The increase in organic revenue was primarily driven by realization of price increases and higher volumes led by strong demand within our Commercial HVAC business, which was partially offset by weaker volume in our Residential business.”

Annual report 2025A · The company itself

“Our growth is dependent, in part, on the timely development, commercialization and acceptance of new and enhanced products and services. We must efficiently and effectively innovate, develop and commercialize new and enhanced products and services in a rapidly changing technological and business environment in order to remain competitive in our current and future markets and in order to continue to grow our business.”

Annual report 2025A · The company itself

“In addition, we make investments in technology and business for our operational sustainability programs.”

Annual report 2025A · The company itself

“Volatility in the prices of commodities and third-party parts and components or the impact of inflationary increases could increase the costs of our products and services. We may not be able to pass on these costs to our customers and this could have a material adverse impact on our results of operations and cash flows.”

Annual report 2025A · The company itself

“Gross Profit Margin Gross profit margin for the year ended December 31, 2025 increased 50 basis points to 36.2% compared to 35.7% for the same period of 2024 primarily due to gross productivity and price realization, partially offset by inflation.”

Annual report 2025A · The company itself

“Segment Adjusted EBITDA margin for the year ended December 31, 2025 increased by 70 basis points to 21.6% compared to 20.9% for the same period of 2024 primarily due to price realization and gross productivity, partially offset by inflation and continued business reinvestment.”

Annual report 2025A · The company itself

“Segment Adjusted EBITDA margin for the year ended December 31, 2025 decreased by 150 basis points to 18.3% compared to 19.8% for the same period of 2024 primarily due to integration costs related to acquisitions, continued business reinvestment and inflation, partially offset by favorable productivity.”

Annual report 2025A · The company itself

“World geopolitical conflicts have created humanitarian crises, materially impacted economic activities, and may materially impact our global and regional operations.”

Annual report 2025A · The company itself

“We have no way to predict the progress or outcome of world geopolitical conflicts, including the situations in Ukraine and the Middle East. Although neither the Russia-Ukraine conflict nor the Middle East conflicts have, to date, caused any material adverse effect on our business or financial performance, until there are peaceful resolutions, these conflicts could have a material adverse effect on our operations, results of operations, financial condition, liquidity, growth prospects and business outlook.”

Annual report 2025A · The company itself

“The occurrence of one or more catastrophic events including hurricanes, fires, earthquakes, floods and other forms of severe weather, health epidemics or pandemics or other contagious outbreaks or other catastrophic events, including wars, conflicts, or terrorism in the U.S. or in other countries in which we operate or are located could adversely affect our operations and financial performance. Natural disasters, power outages, health epidemics or pandemics or other contagious outbreaks or other unexpected events, including wars, conflicts, or acts of terrorism, could result in physical damage to and complete or partial closure of one or more of our plants, temporary or long-term disruption of our operations by causing business interruptions, material scarcity, price volatility or supply chain disruptions.”

Annual report 2025A · The company itself

“Climate change presents immediate and long-term risks to our Company and to our customers, with the risks expected to increase over time, including, among others, acute physical risks (such as flooding, hurricanes, or wildfires) or chronic physical risks (such as droughts, heat waves, or sea level changes).”

Annual report 2025A · The company itself

“The occurrence of one or more catastrophic events including hurricanes, fires, earthquakes, floods and other forms of severe weather, health epidemics or pandemics or other contagious outbreaks or other catastrophic events, including wars, conflicts, or terrorism in the U.S. or in other countries in which we operate or are located could adversely affect our operations and financial performance. Natural disasters, power outages, health epidemics or pandemics or other contagious outbreaks or other unexpected events, including wars, conflicts, or acts of terrorism, could result in physical damage to and complete or partial closure of one or more of our plants, temporary or long-term disruption of our operations by causing business interruptions, material scarcity, price volatility or supply chain disruptions.”

Annual report 2025A · The company itself

“We rely on suppliers to secure commodities, particularly steel and non-ferrous metals, and third-party parts and components, including electronic components, required for the manufacture of our products.”

Annual report 2025A · The company itself

“We rely on suppliers to secure commodities, particularly steel and non-ferrous metals, and third-party parts and components, including electronic components, required for the manufacture of our products.”

Annual report 2025A · The company itself

“We rely on suppliers to secure commodities, particularly steel and non-ferrous metals, and third-party parts and components, including electronic components, required for the manufacture of our products.”

Annual report 2025A · The company itself

“The successful development and commercialization of products and services depends on attracting, retaining, and developing highly skilled talent in engineering, technology, and product management. Constraints in the labor market or increased competition for skilled professionals may delay innovation initiatives or increase costs, or require the company to accelerate automation.”

Annual report 2025A · The company itself

“Our business success depends on attracting, developing, and retaining highly qualified talent. The skills, experience, industry knowledge, and relationships built by our employees significantly benefit our operations and performance. The market for employees and leaders with certain skills and experiences is very competitive, and difficulty attracting, developing, and retaining members of our management team and key employees, or a failure to adequately ensure effective succession planning or knowledge transfer, could have a negative effect on our business, operating results, and financial condition.”

Annual report 2025A · The company itself

“Certain of our employees are covered by collective bargaining agreements or works councils. We experience from time-to-time temporary work stoppages, union negotiations, labor disputes and other matters associated with our labor force and some of these events could result in significant increases in our cost of labor, impact our productivity or damage our reputation.”

Annual report 2025A · The company itself

“Stoppages by employees of our customers could also result in reduced demand for our products.”

Annual report 2025A · The company itself

“Additionally, a work stoppage at one of our suppliers could materially and adversely affect our operations if an alternative source of supply were not readily available.”

Annual report 2025A · The company itself

“Our information technology systems, networks, connected services, and infrastructure and technology, including artificial intelligence (AI) technology, embedded in certain of our control products have been and are at risk to cyber attacks and unauthorized access.”

Annual report 2025A · The company itself

“In addition, the rapid evolution and increased adoption of AI technologies may intensify our cybersecurity risks, including risks from malicious or misuse of AI to craft increasingly sophisticated cybersecurity attacks against us, our business partners, or our third-party vendors.”

Annual report 2025A · The company itself

“Decreased strength of the U.S. dollar could also adversely affect the cost of raw materials, products, or services that we purchase from non-U.S. suppliers.”

Annual report 2025A · The company itself

“Our largest concentration of revenues from non-U.S. operations as of December 31, 2025 are in Euros and Chinese Yuan. A hypothetical 10% unfavorable change in the average exchange rate used to translate Net revenues for the year ended December 31, 2025 from either Euros or Chinese Yuan-based operations into U.S. dollars would result in a decline of approximately $180 million and $50 million, respectively.”

Annual report 2025A · The company itself

“As a result, we are exposed to movements in exchange rates of various currencies against the U.S. dollar as well as against other currencies throughout the world. Many of our non-U.S. operations have a functional currency other than the U.S. dollar, and their results are translated into U.S. dollars for reporting purposes. Therefore, our reported results will be higher or lower depending on the weakening or strengthening of the U.S. dollar against the respective foreign currency.”

Annual report 2025A · The company itself

“Instability in U.S. and global capital and credit markets, including market disruptions, limited liquidity and interest rate volatility, or reductions in the credit ratings assigned to us by independent rating agencies could reduce our access to capital markets or increase the cost of funding our short- and long-term credit requirements.”

Annual report 2025A · The company itself

“Instability in U.S. and global capital and credit markets, including market disruptions, limited liquidity and interest rate volatility, or reductions in the credit ratings assigned to us by independent rating agencies could reduce our access to capital markets or increase the cost of funding our short- and long-term credit requirements.”

Annual report 2025A · The company itself

“Approximately 75% of our net revenues in 2025 were derived inside the U.S., and we sold products in approximately 100 countries.”

Annual report 2025A · The company itself

“Dollar amounts in millions 2025 2024 % Change Americas Net revenues $ 17,168.8 $ 15,903.2 8.0 % Segment Adjusted EBITDA 3,713.4 3,318.3 11.9 % Segment Adjusted EBITDA as a percentage of net revenues 21.6 % 20.9 % EMEA Net revenues $ 2,802.1 $ 2,556.7 9.6 % Segment Adjusted EBITDA 512.7 505.1 1.5 % Segment Adjusted EBITDA as a percentage of net revenues 18.3 % 19.8 % Asia Pacific Net revenues $ 1,351.0 $ 1,378.3 (2.0) % Segment Adjusted EBITDA 323.5 329.3 (1.8) % Segment Adjusted EBITDA as a percentage of net revenues 23.9 % 23.9 % Total Net revenues $ 21,321.9 $ 19,838.2 7.5 % Total Segment Adjusted EBITDA 4,549.6 4,152.7 9.6 % Total Segment Adjusted EBITDA as a percentage of net revenues 21.3 % 20.9 % Americas Net revenues for the year ended December 31, 2025 increased by 8.0% or $1,265.6 million, compared with the same period of 2024.”

Annual report 2025A · The company itself

“Asia Pacific Net revenues for the year ended December 31, 2025 decreased by 2.0% or $27.3 million, compared with the same period of 2024.”

Annual report 2025A · The company itself

“Asia Pacific Net revenues for the year ended December 31, 2025 decreased by 2.0% or $27.3 million, compared with the same period of 2024.”

Annual report 2025A · The company itself

“Table of Contents EMEA Net revenues for the year ended December 31, 2025 increased by 9.6% or $245.4 million, compared with the same period of 2024.”

Annual report 2025A · The company itself