Aureus
AExcellent

Trane Technologies plc(TT)

A

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin13.2%Free Cash Flow / Revenue
Cash Conversion109.5%Operating CF / Net Income
Free Cash Flow$2.8B
Revenue$21.3B
Net Cash-$2.9BNet debt position
Debt / FCF1.6xManageable debt load
Current Ratio1.25Adequate short-term liquidity
YoY FCF Growth+36.0%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (13.2%, 1.6x)
→
+1Strong YoY FCF growth (36.0% YoY)
→
+1Very low debt-to-FCF ratio (1.6x)
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (13.2%)
  • Excellent cash conversion (109%)
  • Very low debt relative to cash flow (1.6x)
  • Strong YoY FCF growth (+36.0%)
  • FCF trend is improving

Concerns

  • Net debt position ($2.9B)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin13.2%
Net Margin13.7%
Operating CF Margin15.0%
CapEx Ratio1.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$2.9BNet debt position
Debt / FCF1.6xManageable debt load
Current Ratio1.25Adequate liquidity
Debt / Equity0.54Low leverage

Quarterly FCF Trend

+36.0% YoYImproving (+36.0%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameTrane Technologies plc
SectorIndustrials
Free Cash Flow$2.8B
Revenue$21.3B
Net Income$2.9B
Operating Cash Flow$3.2B
Capital Expenditure$383.0M
FCF Margin13.2%
Cash Conversion Rate109.5%
Net Margin13.7%
Total Debt$4.6B
Total Cash$1.8B
Net Cash-$2.9B
Current Ratio1.25
Debt / Equity0.54
Debt / FCF1.6x
YoY FCF Growth+36.0%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance