Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause a difference include, but are not limited to, those discussed under Part I, Item 1A – Risk Factors in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as updated by any disclosures under Part II, Item 1A - Risk Factors in our Quarterly Reports on Form 10-Q. The following section is qualified in its entirety by the more detailed information, including our financial statements and the notes thereto, which appears elsewhere in this Quarterly Report.

Overview

Organizational

Trane Technologies plc is a global climate innovator. We bring sustainable and efficient solutions to buildings, homes and transportation through our strategic brands, Trane® and Thermo King®, and our environmentally responsible portfolio of products, services and connected intelligent controls.

2030 Sustainability Commitments

Our commitment to sustainability extends to the environmental and social impacts of our people, operations, products and services. We have announced ambitious sustainability commitments with a goal of achieving these commitments by 2030 (2030 Sustainability Commitments), including our Gigaton Challenge to reduce customers' carbon emissions by a billion metric tons. We are one of a handful of companies whose emissions reductions targets have been validated three times by the Science Based Targets Initiative (SBTi), and one of the very few companies worldwide and first in our industry whose net-zero targets have also been validated. Our emissions reduction commitments align with the Paris Climate Accord net-zero targets, consistent with limiting global temperature rise to no more than 1.5 °C. Our 2030 Sustainability Commitments for scopes 1, 2, and 3 will guide our emissions reduction efforts through 2030, with an emphasis on reducing our largest source: the emissions generated from customer use of our products. We are Leading by Example as we make progress toward carbon-neutral operations and zero waste-to-landfill across our global footprint and net positive water use in water-stressed locations. Our Opportunity for All commitment focuses on gender parity in leadership, workforce diversity reflective of our communities, and a citizenship strategy that helps underserved communities through enhanced learning environments and pathways to green and Science, Technology, Engineering and Math (STEM) careers.

Issuance of Senior Notes

In June 2024, we issued $500 million aggregate principal amount of 5.100% Senior Notes due 2034. Together with cash on hand, the net proceeds from the offering will be used to repay at maturity the $500 million aggregate principal amount of the outstanding 3.550% Senior Notes due in November 2024, including payment of fees, expenses, and accrued interest in connection therewith, and any remaining proceeds for general corporate purposes.

Significant Events

Reorganization of Aldrich and Murray

On June 18, 2020 (Petition Date), our indirect wholly-owned subsidiaries, Aldrich Pump LLC (Aldrich) and Murray Boiler LLC (Murray) each filed a voluntary petition for reorganization under Chapter 11 of Title 11 of the United States Code (the Bankruptcy Code) in the United States Bankruptcy Court for the Western District of North Carolina in Charlotte (the Bankruptcy Court). As a result of the Chapter 11 filings, all asbestos-related lawsuits against Aldrich and Murray have been stayed due to the imposition of a statutory automatic stay applicable in Chapter 11 bankruptcy cases. Only Aldrich and Murray have filed for Chapter 11 relief. Neither Aldrich's wholly-owned subsidiary, 200 Park, Inc. (200 Park), Murray's wholly-owned subsidiary, ClimateLabs LLC (ClimateLabs), Trane Technologies plc nor its other subsidiaries (the Trane Companies) are part of the Chapter 11 filings.

The goal of these Chapter 11 filings is to resolve equitably and permanently all current and future asbestos-related claims in a manner beneficial to claimants, Aldrich and Murray through court approval of a plan of reorganization that would create a trust pursuant to section 524(g) of the Bankruptcy Code, establish claims resolution procedures for all current and future asbestos-related claims against Aldrich and Murray and channel such claims to the trust for resolution in accordance with those procedures.

Aldrich and its wholly-owned subsidiary 200 Park and Murray and its wholly-owned subsidiary ClimateLabs were deconsolidated as of the Petition Date and their respective assets and liabilities were derecognized from our Condensed Consolidated Financial Statements.

Table of Contents

On April 6, 2023, certain individual claimants filed a motion to dismiss the Chapter 11 cases. Subsequently, on May 15, 2023, the committee representing current asbestos claimants (the ACC) filed its own motion to dismiss the Chapter 11 cases. Aldrich, Murray and the FCR filed responses in opposition to each of these motions, and the Company filed papers joining in Aldrich and Murray's opposition. A hearing on the motions to dismiss was held on July 14, 2023. On December 28, 2023, the Bankruptcy Court entered an order denying the motions to dismiss the Chapter 11 cases. On January 11, 2024, the ACC and the individual claimants filed motions seeking leave to appeal the order denying the motions to dismiss (the Motions for Leave to Appeal) to the United States District Court for the Western District of North Carolina (the District Court) and to certify the appeals directly to the Court of Appeals for the Fourth Circuit (the Fourth Circuit). At a hearing on February 9, 2024, the Bankruptcy Court granted the motions to certify direct appeals to the Fourth Circuit. On April 17, 2024, the Fourth Circuit entered an order denying the petitions for direct appeal. On May 1, 2024, the ACC and the individual claimants filed petitions with the Fourth Circuit seeking rehearing en banc. Aldrich and Murray opposed the petitions and the Fourth Circuit denied the petitions by order dated May 15, 2024. On May 28, 2024, Aldrich and Murray filed their response in opposition to the Motions for Leave to Appeal. The FCR filed its response to the Motions for Leave to Appeal on May 29, 2024. The ACC and the individual claimants filed their replies in support of the Motions for Leave to Appeal on June 11, 2024. It is not possible to predict whether an appellate court will affirm or reverse the Bankruptcy Court order denying the motions to dismiss, whether the Bankruptcy Court will approve the terms of a plan of reorganization, what the extent of the asbestos liability will be or how long the Chapter 11 cases will last. The Chapter 11 cases remain pending as of July 31, 2024.

See also the discussion in Note 17, "Commitments and Contingencies," to the Condensed Consolidated Financial Statements.

Trends and Economic Events

We are a global corporation with worldwide operations. As a global business, our operations are affected by worldwide, regional and industry-specific economic factors as well as geopolitical and social factors wherever we operate or do business. Our geographic diversity and the breadth of our products and services portfolios have helped mitigate the impact of any one industry or the economy of any single country on our consolidated operating results.

Given our broad range of products manufactured and geographic markets served, management uses a variety of factors to predict the outlook for the Company. We monitor key competitors and customers in order to gauge relative performance and the outlook for the future. We regularly perform detailed evaluations of the different market segments we serve to proactively detect trends and to adapt our strategies accordingly, including potential triggers and actions to be taken under recessionary scenarios. In addition, we believe our backlog and order levels are indicative of future revenue and thus are a key measure of anticipated performance.

We expect conditions to remain mixed across our served end markets and geographies. Overall Commercial HVAC markets remain strong due to demand for our differentiated customer driven solutions and the benefits of installing energy efficient products and decarbonizing the built environment. Transport refrigeration markets are experiencing lower demand as freight rates remain low, particularly in the United States. Residential markets in the United States have improved, reflecting the normalization of channel inventory across the industry and a strong start to the cooling season, while uncertainties remain from economic risks and higher interest rates.

We continue to see material, wage and energy inflation impact our cost structure. Our performance may be impacted by future developments that are uncertain. Geopolitical risks and macroeconomic events could cause disruptions to operations, supply chains, end markets, financial markets and overall economic conditions which could negatively impact our business.

We believe we have a solid foundation of global brands that are highly differentiated in all of our major product lines. Our geographic mix, diversity of our portfolio, and our large installed product base, provide growth opportunities from replacement demand and within our service revenue streams. Additionally, we are investing substantial resources to innovate and develop new products and services which we expect to drive future growth.

Table of Contents

Results of Operations

Non-GAAP Financial Measures

Organic Revenue

We define organic revenue as net revenues adjusted to eliminate currency fluctuations and the impact of acquisitions and divestitures. Organic revenue is not defined under U.S. Generally Accepted Accounting Principles (GAAP) and may not be comparable to similarly-titled measures used by other companies and should not be considered a substitute for revenue as determined in accordance with GAAP. Selected references are made to revenue growth on an organic basis so that certain financial results can be viewed without the impact of fluctuations in foreign currency rates and without the impacts of acquisitions, thereby providing comparisons of operational performance from period to period of the business that we have owned during both periods presented. We believe organic revenue growth provides investors with useful supplemental information about our revenues in both periods presented.

Segment Adjusted EBITDA

Management measures segment operating performance based on net earnings excluding interest expense, income taxes, depreciation and amortization, restructuring, non-cash adjustment for contingent consideration, merger and acquisition-related costs, impairment of an equity investment, unallocated corporate expenses and discontinued operations (Segment Adjusted EBITDA). Segment Adjusted EBITDA is not defined under GAAP and may not be comparable to similarly-titled measures used by other companies and should not be considered a substitute for net earnings or other results reported in accordance with GAAP. We believe Segment Adjusted EBITDA provides the most relevant measure of profitability as well as earnings power and the ability to generate cash. This measure is a useful financial metric to assess our operating performance from period to period by excluding certain items that we believe are not representative of our core business and we use this measure for business planning purposes. Segment Adjusted EBITDA also provides a useful tool for assessing the comparability between periods and our ability to generate cash, service debt and undertake capital expenditures because it eliminates non-cash charges such as depreciation and amortization expense.

Three Months Ended June 30, 2024 Compared to the Three Months Ended June 30, 2023 - Consolidated Results

Dollar amounts in millions			2024						2023						Period Change						2024 % of revenues						2023 % of revenues
Net revenues			$	5,307.4					$	4,704.7					$	602.7
Cost of goods sold			(3,371.9)						(3,120.3)						(251.6)						63.5		%				66.3		%
Gross profit			1,935.5						1,584.4						351.1						36.5		%				33.7		%
Selling and administrative expenses			(901.3)						(699.0)						(202.3)						17.0		%				14.9		%
Operating income			1,034.2						885.4						148.8						19.5		%				18.8		%
Interest expense			(57.5)						(61.6)						4.1
Other income/(expense), net			(4.1)						(57.4)						53.3
Earnings before income taxes			972.6						766.4						206.2
Provision for income taxes			(205.8)						(169.6)						(36.2)
Earnings from continuing operations			766.8						596.8						170.0
Discontinued operations, net of tax			(6.9)						(6.1)						(0.8)
Net earnings			$	759.9					$	590.7					$	169.2

Table of Contents

Net Revenues

Net revenues for the three months ended June 30, 2024 increased by 12.8%, or $602.7 million, compared with the same period in 2023, which resulted from the following:

Volume			10.7		%
Pricing			2.1		%
Organic revenue (1)			12.8		%
Acquisitions			0.8		%
Currency translation			(0.8)		%
Total			12.8		%

(1) Represents a non-GAAP measure. For more information, see "Non-GAAP Financial Measures."

The increase in Net revenues was primarily driven by higher volumes as a result of stronger end-customer demand within our Americas and EMEA segments, realization of price increases and incremental revenue from acquisitions, partially offset by an unfavorable impact from foreign currency translation. Refer to the "Results by Segment" below for a discussion of Net revenues by segment.

Gross Profit Margin

Gross profit margin for the three months ended June 30, 2024 increased 280 basis points to 36.5% compared to 33.7% for the same period of 2023 primarily due to gross productivity and price realization, partially offset by inflation.

Selling and Administrative Expenses

Selling and administrative expenses for the three months ended June 30, 2024 increased by 28.9%, or $202.3 million compared with the same period of 2023. The increase in Selling and administrative expenses was primarily driven by an increase in human capital costs related to investing in our people, higher sales commissions, incremental selling and administrative expenses of businesses acquired in 2023 and higher levels of business reinvestment. Additionally, a non-cash adjustment to contingent consideration reduced Selling and administrative expenses for the three months ended June 30, 2023 by $52.0 million. Selling and administrative expenses as a percentage of Net revenues for the three months ended June 30, 2024 increased 210 basis points from 14.9% to 17.0%.

Interest Expense

Interest expense for the three months ended June 30, 2024 decreased by 6.7%, or $4.1 million, compared with the same period of 2023 primarily due to lower average balances of commercial paper outstanding in the second quarter of 2024. We had no commercial paper outstanding as of June 30, 2024.

Provision for Income Taxes

For the three months ended June 30, 2024 and June 30, 2023 our effective tax rate was 21.2% and 22.1%, respectively. The effective income tax rate for the three months ended June 30, 2024 was consistent with the U.S. statutory rate of 21.0% primarily due to U.S. state and local taxes, partially offset by excess tax benefits from employee share-based payments and earnings in non-U.S. jurisdictions, which, in aggregate have a lower effective tax rate and includes the impact of the Organisation for Economic Co-operation and Development (OECD) tax reform initiative (Pillar Two). The effective tax rate for the three months ended June 30, 2023 was higher than the U.S. statutory rate of 21.0% primarily due to U.S. state and local taxes and an impairment of an equity investment, which is currently non-deductible, partially offset by excess tax benefits from employee share-based payments and earnings in non-U.S. jurisdictions, which in aggregate have a lower effective tax rate.

Three Months Ended June 30, 2024 Compared to the Three Months Ended June 30, 2023 - Segment Results

We operate under three regional operating segments designed to create deep customer focus and relevance in markets around the world. Intercompany sales between segments are immaterial.

• 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. The EMEA segment encompasses heating, cooling and ventilation systems, services and solutions for commercial buildings, and transport refrigeration systems and solutions.

Table of Contents

• Our 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.

The following discussion compares our results for each of our three reportable segments for the three months ended June 30, 2024 compared to the three months ended June 30, 2023.

In millions			2024						2023						% change
Americas
Net revenues			$	4,290.9					$	3,692.5					16.2		%
Segment Adjusted EBITDA			978.2						791.3						23.6		%
Segment Adjusted EBITDA margin			22.8		%				21.4		%
EMEA
Net revenues			$	645.3					$	617.6					4.5		%
Segment Adjusted EBITDA			131.0						117.8						11.2		%
Segment Adjusted EBITDA margin			20.3		%				19.1		%
Asia Pacific
Net revenues			$	371.2					$	394.6					(5.9)		%
Segment Adjusted EBITDA			94.8						86.6						9.5		%
Segment Adjusted EBITDA margin			25.5		%				21.9		%
Total Net revenues			$	5,307.4					$	4,704.7					12.8		%
Total Segment Adjusted EBITDA			1,204.0						995.7						20.9		%
Total Segment Adjusted EBITDA margin			22.7		%				21.2		%

Americas

Net revenues for the three months ended June 30, 2024 increased by 16.2% or $598.4 million, compared with the same period of 2023.

The components of the period change were as follows:

Volume			13.5		%
Pricing			2.3		%
Organic revenue (1)			15.8		%
Acquisitions			0.7		%
Currency translation			(0.3)		%
Total			16.2		%

(1) Represents a non-GAAP measure. For more information, see "Non-GAAP Financial Measures."

The increase in organic revenue was primarily driven by higher volumes led by strong demand within both our Commercial HVAC and Residential HVAC businesses and realization of price increases for both equipment and services within our Commercial HVAC business, partially offset by the softening of transport markets.

The increase in revenue from acquisitions includes MTA S.p.A (MTA) and Helmer Scientific Inc (Helmer) acquired in May 2023 and Nuvolo Technologies Corporation (Nuvolo) acquired in November 2023.

Segment Adjusted EBITDA margin for the three months ended June 30, 2024 increased by 140 basis points to 22.8% compared to 21.4% for the same period in 2023 primarily due to price realization, gross productivity and higher volumes, partially offset by inflation and continued business reinvestment.

Table of Contents

EMEA

Net revenues for the three months ended June 30, 2024 increased by 4.5% or $27.7 million, compared with the same period of 2023.

The components of the period change were as follows:

Volume			3.5		%
Pricing			1.4		%
Organic revenue (1)			4.9		%
Acquisitions			1.4		%
Currency translation			(1.8)		%
Total			4.5		%

(1) Represents a non-GAAP measure. For more information, see "Non-GAAP Financial Measures."

The increase in organic revenue was primarily driven by higher volumes within our Commercial HVAC business and realization of price increases within both our Commercial HVAC and transport refrigeration businesses, partially offset by lower demand in our transport markets.

Segment Adjusted EBITDA margin for the three months ended June 30, 2024 increased by 120 basis points to 20.3% compared to 19.1% for the same period of 2023, primarily due to favorable productivity, volume and price, partially offset by inflation and continued business reinvestment.

Asia Pacific

Net revenues for the three months ended June 30, 2024 decreased by 5.9% or $23.4 million, compared with the same period of 2023.

The components of the period change were as follows:

Volume			(4.3)		%
Pricing			1.6		%
Organic revenue (1)			(2.7)		%
Currency translation			(3.2)		%
Total			(5.9)		%

(1) Represents a non-GAAP measure. For more information, see "Non-GAAP Financial Measures."

The decrease in organic revenue was primarily driven by lower volumes, partially offset by realization of price increases within our Commercial HVAC business.

Segment Adjusted EBITDA margin for the three months ended June 30, 2024 increased by 360 basis points to 25.5% compared to 21.9% for the same period of 2023 primarily due to gross productivity and price realization, partially offset by inflation and continued business reinvestment.

Table of Contents

Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023 - Consolidated Results

Dollar amounts in millions			2024						2023						Period Change						2024 % of revenues						2023 % of revenues
Net revenues			$	9,523.0					$	8,370.6					$	1,152.4
Cost of goods sold			(6,127.6)						(5,642.7)						(484.9)						64.4		%				67.4		%
Gross profit			3,395.4						2,727.9						667.5						35.6		%				32.6		%
Selling and administrative expenses			(1,727.4)						(1,385.7)						(341.7)						18.1		%				16.6		%
Operating income			1,668.0						1,342.2						325.8						17.5		%				16.0		%
Interest expense			(115.5)						(119.2)						3.7
Other income/(expense), net			(29.2)						(66.8)						37.6
Earnings before income taxes			1,523.3						1,156.2						367.1
Provision for income taxes			(311.3)						(242.8)						(68.5)
Earnings from continuing operations			1,212.0						913.4						298.6
Discontinued operations, net of tax			(12.3)						(11.6)						(0.7)
Net earnings			$	1,199.7					$	901.8					$	297.9

Net Revenues

Net revenues for the six months ended June 30, 2024 increased by 13.8%, or $1,152.4 million, compared with the same period in 2023, which resulted from the following:

Volume			10.7		%
Pricing			2.5		%
Organic revenue (1)			13.2		%
Acquisitions			1.3		%
Currency translation			(0.7)		%
Total			13.8		%

(1) Represents a non-GAAP measure. For more information, see "Non-GAAP Financial Measures."

The increase in Net revenues was primarily driven by higher volumes related to increased end-customer demand within our reportable segments, realization of price increases and incremental revenue from acquisitions, partially offset by an unfavorable impact from foreign currency translation. Refer to the "Results by Segment" below for a discussion of Net revenues by segment.

Gross Profit Margin

Gross profit margin for the six months ended June 30, 2024 increased 300 basis points to 35.6% compared to 32.6% for the same period of 2023 primarily due to gross productivity and price realization, partially offset by inflation.

Selling and Administrative Expenses

Selling and administrative expenses for the six months ended June 30, 2024 increased by 24.7%, or $341.7 million, compared with the same period of 2023. The increase in Selling and administrative expenses was primarily driven by an increase in human capital costs related to investing in our people, higher sales commissions, incremental selling and administrative expenses of businesses acquired in 2023 and higher levels of business reinvestment. Additionally, a non-cash adjustment to contingent consideration reduced Selling and administrative expenses for the six months ended June 30, 2023 by $49.3 million. Selling and administrative expenses as a percentage of Net revenues for the six months ended June 30, 2024 increased 150 basis points from 16.6% to 18.1%.

Interest Expense

Interest expense for the six months ended June 30, 2024 decreased by 3.1%, or $3.7 million, compared with the same period of 2023 primarily due to lower average balances of commercial paper outstanding in the first half of 2024. We had no commercial paper outstanding as of June 30, 2024.

Table of Contents

Provision for Income Taxes

For the six months ended June 30, 2024 and June 30, 2023 our effective tax rate was 20.4% and 21.0%, respectively. The effective income tax rate for the six months ended June 30, 2024 was lower than the U.S. statutory rate of 21.0% primarily due to excess tax benefits from employee share-based payments, which, in aggregate have a lower effective tax rate, and includes the impact of the Organisation for Economic Co-operation and Development (OECD) tax reform initiative (Pillar Two), partially offset by U.S. state and local taxes. The effective tax rate for the six months ended June 30, 2023 was consistent with the U.S. statutory rate of 21.0% and included U.S. state and local taxes and an impairment of an equity investment, which is currently non-deductible, partially offset by excess tax benefits from employee share-based payments and earnings in non-U.S. jurisdictions, which in aggregate have a lower effective tax rate.

Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023- Segment Results

The following discussion compares our results for each of our three reportable segments for the six months ended June 30, 2024, compared to the six months ended June 30, 2023.

In millions			2024						2023						% change
Americas
Net revenues			$	7,625.8					$	6,553.5					16.4		%
Segment Adjusted EBITDA			1,583.0						1,247.1						26.9		%
Segment Adjusted EBITDA as a percentage of net revenues			20.8		%				19.0		%
EMEA
Net revenues			$	1,198.7					$	1,128.2					6.2		%
Segment Adjusted EBITDA			230.4						212.2						8.6		%
Segment Adjusted EBITDA as a percentage of net revenues			19.2		%				18.8		%
Asia Pacific
Net revenues			$	698.5					$	688.9					1.4		%
Segment Adjusted EBITDA			165.7						143.9						15.1		%
Segment Adjusted EBITDA as a percentage of net revenues			23.7		%				20.9		%
Total net revenues			$	9,523.0					$	8,370.6					13.8		%
Total Segment Adjusted EBITDA			1,979.1						1,603.2						23.4		%
Total Segment Adjusted EBITDA margin			20.8		%				19.2		%

Table of Contents

Americas

Net revenues for the six months ended June 30, 2024 increased by 16.4% or $1,072.3 million, compared with the same period of 2023.

The components of the period change were as follows:

Volume			12.7		%
Pricing			2.9		%
Organic revenue (1)			15.6		%
Acquisitions			1.2		%
Currency translation			(0.4)		%
Total			16.4		%

(1) Represents a non-GAAP measure. For more information, see "Non-GAAP Financial Measures."

The increase in organic revenue was primarily driven by higher volumes led by strong demand within both our Commercial HVAC and Residential HVAC businesses and realization of price increases for both equipment and services within our Commercial HVAC business, partially offset by the softening of transport markets.

The increase in revenue from acquisitions includes MTA S.p.A (MTA) and Helmer Scientific Inc (Helmer) acquired in May 2023 and Nuvolo Technologies Corporation (Nuvolo) acquired in November 2023.

Segment Adjusted EBITDA margin for the six months ended June 30, 2024 increased by 180 basis points to 20.8% compared to 19.0% for the same period of 2023 primarily due to price realization, gross productivity and higher volumes, partially offset by inflation and continued business reinvestment.

EMEA

Net revenues for the six months ended June 30, 2024 increased by 6.2% or $70.5 million, compared with the same period of 2023.

The components of the period change were as follows:

Volume			3.3		%
Pricing			1.1		%
Organic revenue (1)			4.4		%
Acquisitions			2.6		%
Currency translation			(0.8)		%
Total			6.2		%

(1) Represents a non-GAAP measure. For more information, see "Non-GAAP Financial Measures."

The increase in organic revenue was primarily driven by strong customer demand within our Commercial HVAC business and realization of price increases within both our Commercial HVAC and transport refrigeration businesses.

Segment Adjusted EBITDA margin for the six months ended June 30, 2024 increased by 40 basis points to 19.2% compared to 18.8% for the same period of 2023 primarily due to favorable productivity, volume and price, partially offset by inflation, continued business reinvestment and loss from a devaluation of the Egyptian pound.

Asia Pacific

Net revenues for the six months ended June 30, 2024 increased by 1.4% or $9.6 million, compared with the same period of 2023.

Table of Contents

The components of the period change were as follows:

Volume			3.8		%
Pricing			1.4		%
Organic revenue (1)			5.2		%
Currency translation			(3.8)		%
Total			1.4		%

(1) Represents a non-GAAP measure. For more information, see "Non-GAAP Financial Measures."

The increase in organic revenue was primarily driven by increased customer demand and realization of price increases within our Commercial HVAC business.

Segment Adjusted EBITDA margin for the six months ended June 30, 2024 increased by 280 basis points to 23.7% compared to 20.9% for the same period of 2023 primarily due to gross productivity, higher volumes and price realization, partially offset by inflation and continued business reinvestment.

Liquidity and Capital Resources

We assess our liquidity in terms of our ability to generate cash to fund our operating, investing and financing activities. In doing so, we review and analyze our current cash on hand, the number of days our sales are outstanding, inventory turns, capital expenditure commitments and income tax payments. Our cash requirements primarily consist of the following:

• Funding of working capital

• Debt service requirements

• Funding of capital expenditures

• Dividend payments

*•*Funding of acquisitions, joint ventures and equity investments

• Share repurchases

Our primary sources of liquidity include cash balances on hand, cash flow from operations, short-term investments, proceeds from debt offerings, commercial paper, and borrowing availability under our existing credit facilities. We earn a significant amount of our operating income in jurisdictions where it is deemed to be permanently reinvested. Our most prominent jurisdiction of operation is the U.S. We expect existing cash and cash equivalents available to the U.S. operations, the cash generated by our U.S. operations, our committed credit lines as well as our expected ability to access the capital and debt markets will be sufficient to fund our U.S. operating and capital needs for at least the next twelve months and thereafter for the foreseeable future. In addition, we expect existing non-U.S. cash and cash equivalents and the cash generated by our non-U.S. operations will be sufficient to fund our non-U.S. operating and capital needs for at least the next twelve months and thereafter for the foreseeable future. The maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, under the commercial paper program is $2.0 billion, of which we had no outstanding balance as of June 30, 2024.

As of June 30, 2024, we had $874.6 million of cash and cash equivalents on hand, of which $668.1 million was held by non-U.S. subsidiaries. Cash and cash equivalents held by our non-U.S. subsidiaries are generally available for use in our U.S. operations via intercompany loans, equity infusions or via distributions from direct or indirectly owned non-U.S. subsidiaries for which we do not assert permanent reinvestment. As a result of the Tax Cuts and Jobs Act in 2017, additional repatriation opportunities to access cash and cash equivalents held by non-U.S. subsidiaries have been created. In general, repatriation of cash to the U.S. can be completed with no significant incremental U.S. tax. However, to the extent that we repatriate funds from non-U.S. subsidiaries for which we assert permanent reinvestment to fund our U.S. operations, we would be required to accrue and pay applicable non-U.S. taxes. As of June 30, 2024, we currently have no plans to repatriate funds from subsidiaries for which we assert permanent reinvestment.

We expect to pay a competitive and growing dividend. Since the launch of Trane Technologies in March 2020, we have increased our quarterly share dividend by 58%, from $0.53 to $0.84 per ordinary share, or $2.12 to $3.36 per share annualized. The first and second quarter 2024 dividends were declared and paid during the six months ended June 30, 2024, and the third quarter 2024 dividend was declared in June 2024 to be paid in September 2024.

Table of Contents

Share repurchases are made from time to time in accordance with management's capital allocation strategy, subject to market conditions and regulatory requirements. In February 2022, our Board of Directors authorized a share repurchase program of up to $3.0 billion of our ordinary shares (2022 Authorization). During the six months ended June 30, 2024, we repurchased and canceled approximately $624 million of our ordinary shares, leaving $1.9 billion remaining under the 2022 Authorization. Additionally, in July 2024, we repurchased approximately $107 million of our ordinary shares under the 2022 Authorization.

We continue to actively manage and strengthen our business portfolio to meet the current and future needs of our customers. We achieve this partly through engaging in research and development and sustaining activities and partly through acquisitions. Sustaining activities include costs incurred to reduce production costs, improve existing products, create custom solutions for customers and provide support to our manufacturing facilities. Our research and development and sustaining costs account for approximately two percent of annual net revenues. Each year, we make investments in new product development and new technology innovation as they are key factors in achieving our strategic objectives as a leader in the climate sector. In addition, we make investments in technology and business for our operational sustainability programs.

In pursuing our business strategy, we routinely conduct discussions, evaluate targets and enter into agreements regarding possible acquisitions, divestitures, joint ventures and equity investments. Since 2020, we have acquired several businesses, entered into joint ventures and invested in companies that complement existing products and services further enhancing our product portfolio.

We incur costs associated with restructuring initiatives intended to result in improved operating performance, profitability and working capital levels. Actions associated with these initiatives may include workforce reductions, improving manufacturing productivity, realignment of management structures and rationalizing certain assets. We believe that our existing cash balances, anticipated cash flow from operations, committed credit lines and access to the capital markets will be sufficient to fund share repurchases, dividends, research and development, sustaining activities, business portfolio changes and ongoing restructuring actions.

Certain of our subsidiaries entered into Funding Agreements with Aldrich and Murray pursuant to which those subsidiaries are obligated, among other things, to pay the costs and expenses of Aldrich and Murray during the pendency of the Chapter 11 cases to the extent distributions from their respective subsidiaries are insufficient to do so and to provide an amount for the funding for a trust established pursuant to section 524(g) of the Bankruptcy Code, to the extent that the other assets of Aldrich and Murray are insufficient to provide the requisite trust funding. During the third quarter of 2021, Aldrich and Murray filed a motion with the Bankruptcy Court to create a $270 million QSF. The funds held in the QSF would be available to provide funding for the Section 524(g) Trust upon effectiveness of the Plan. On January 27, 2022, the Bankruptcy Court granted the request to fund the QSF, which was funded on March 2, 2022.

Table of Contents

Liquidity

The following table contains several key measures of our financial condition and liquidity at the period ended:

In millions			June 30, 2024						December 31, 2023
Cash and cash equivalents			$	874.6					$	1,095.3
Short-term investments			451.2						—
Short-term borrowings and current maturities of long-term debt			952.0						801.9
Long-term debt			4,316.2						3,977.9
Total debt			5,268.2						4,779.8
Total Trane Technologies plc shareholders’ equity			6,947.3						6,995.2
Total equity			6,967.6						7,017.0
Debt-to-total capital ratio			43.1		%				40.5		%

Debt and Credit Facilities

As of June 30, 2024, our short-term obligations primarily consist of current maturities of $499.8 million and $149.7 million of long-term debt that matures in November 2024 and June 2025, respectively, and $295.0 million of fixed rate debentures that contain a put feature that the holders may exercise on each anniversary of the issuance date. If exercised, we are obligated to repay in whole or in part, at the holder’s option, the outstanding principal amount (plus accrued and unpaid interest) of the debentures held by the holder. Holders who had the option to exercise puts up to $37.2 million for settlement in February 2024 did not exercise such option. In the months of September and October 2024, in accordance with notice requirements as specified in the offering documents, holders will have the option to elect to exercise puts up to $257.8 million for settlement in November 2024. We also maintain a commercial paper program which is used for general corporate purposes. Under the program, the maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, is $2.0 billion. We had no outstanding balance under the commercial paper program at June 30, 2024 and December 31, 2023. See Note 6, "Debt and Credit Facilities," to the Condensed Consolidated Financial Statements for additional information regarding the terms of our short-term obligations.

Our long-term obligations primarily consist of long-term debt with final maturity dates ranging between 2025 and 2049. In addition, we maintain two $1.0 billion senior unsecured revolving credit facilities, one of which matures in June 2026 and the other which matures in April 2027. The facilities provide support for our commercial paper program and can be used for working capital and other general corporate purposes. Total commitments of $2.0 billion were unused at June 30, 2024 and December 31, 2023. See Note 6, "Debt and Credit Facilities," to the Condensed Consolidated Financial Statements and further below in Supplemental Guarantor Financial Information for additional information regarding the terms of our long-term obligations and their related guarantees.

Cash Flows

The following table reflects the major categories of cash flows for the six months ended June 30. For additional details, see the Condensed Consolidated Statements of Cash Flows in the Condensed Consolidated Financial Statements.

In millions			2024						2023
Net cash provided by (used in) continuing operating activities			$	958.6					$	548.1
Net cash provided by (used in) continuing investing activities			(626.6)						(647.0)
Net cash provided by (used in) continuing financing activities			(504.3)						(436.4)

Operating Activities

Net cash provided by continuing operating activities for the six months ended June 30, 2024 was $958.6 million, of which Net earnings provided $1,457.5 million after adjusting for non-cash transactions. Net cash provided by continuing operating activities for the six months ended June 30, 2023 was $548.1 million, of which Net earnings provided $1,143.1 million after adjusting for non-cash transactions. The year-over-year increase in net cash from continuing operating activities was primarily due to higher net earnings and an improved cash conversion cycle.

Table of Contents

Investing Activities

Cash flows from investing activities represent inflows and outflows regarding the purchase and sale of assets. Primary activities associated with these items include capital expenditures, proceeds from the sale of property, plant and equipment, acquisitions, funding of joint ventures and other equity investments and purchases and sales of short-term investments. During the six months ended June 30, 2024, net cash used in investing activities from continuing operations was $626.6 million. The primary driver of the usage was attributable to purchases of short-term investments of $450.0 million as a result of the issuance of 5.100% Senior Notes due 2034 and capital expenditures of $156.7 million. During the six months ended June 30, 2023, net cash used in investing activities from continuing operations was $647.0 million. The primary driver of the usage was attributable to the acquisition of businesses for $506.2 million, net of cash acquired and capital expenditures of $134.0 million.

Financing Activities

Cash flows from financing activities represent inflows and outflows that account for external activities affecting equity and debt. Primary activities associated with these actions include paying dividends to shareholders, repurchasing our own shares, issuing our stock and debt transactions. During the six months ended June 30, 2024, net cash used in financing activities from continuing operations was $504.3 million. The primary drivers of the outflow related to the repurchase of $624.4 million in ordinary shares and dividends paid to ordinary shareholders of $379.4 million, partially offset by proceeds from the issuance of 5.100% Senior Notes due 2034 during the period of $498.5 million, which were used to purchase short-term investments of $450.0 million. During the six months ended June 30, 2023, net cash used in financing activities from continuing operations was $436.4 million. The primary drivers of the outflow related to dividends paid to ordinary shareholders of $341.4 million and the repurchase of $300.0 million in ordinary shares, partially offset by borrowings from commercial paper during the period. In addition, we received $699.1 million in proceeds from the issuance of 5.250% Senior Notes due March 2033 which was offset by the redemption of $707.5 million of Senior Notes due June 2023.

Free Cash Flow

Free cash flow is a non-GAAP measure and defined as Net cash provided by (used in) continuing operating activities adjusted for capital expenditures, cash payments for restructuring, legacy legal liability, transformation costs and merger and acquisition (M&A) related costs. This measure is useful to management and investors because it is consistent with management's assessment of our operating cash flow performance. The most comparable GAAP measure to free cash flow is Net cash provided by (used in) continuing operating activities. Free cash flow may not be comparable to similarly-titled measures used by other companies and should not be considered a substitute for Net cash provided by (used in) continuing operating activities in accordance with GAAP.

A reconciliation of Net cash provided by (used in) continuing operating activities to free cash flow for the six months ended June 30 is as follows:

In millions			2024						2023
Net cash provided by continuing operating activities			$	958.6					$	548.1
Capital expenditures			(156.7)						(134.0)
Cash payments for restructuring			5.9						4.8
Legacy legal liability			1.7						—
Transformation costs paid			—						1.2
M&A transaction costs			0.6						6.8
Free cash flow (1)			$	810.1					$	426.9

(1) Represents a non-GAAP measure.

Pensions

Our investment objective in managing defined benefit plan assets is to ensure that all present and future benefit obligations are met as they come due. We seek to achieve this goal while trying to mitigate volatility in plan funded status, contribution and expense by better matching the characteristics of the plan assets to that of the plan liabilities. We use a dynamic approach to asset allocation to increase fixed income assets as the plan's funded status improves. We monitor plan funded status and asset allocation regularly in addition to investment manager performance.

In addition, we monitor the impact of market conditions on our defined benefit plans on a regular basis. None of our defined benefit pension plans have experienced a significant impact on their liquidity due to market volatility. The Company currently projects that it will contribute a total of approximately $59 million to our enterprise plans worldwide in 2024. For further details on pension plan activity, see Note 9, "Pensions and Postretirement Benefits Other than Pensions," to the Condensed Consolidated Financial Statements.

Table of Contents

Supplemental Guarantor Financial Information

Trane Technologies plc (Plc or Parent Company) and certain of its 100% directly or indirectly owned subsidiaries provide guarantees of public debt issued by other 100% directly or indirectly owned subsidiaries of Plc. The following table shows our guarantor relationships as of June 30, 2024:

Parent, issuer or guarantors			Notes issued			Notes guaranteed
Trane Technologies plc (Plc)			None			All registered notes and debentures
Trane Technologies Irish Holdings Unlimited Company (TT Holdings)			None			All notes issued by TTFL and TTC HoldCo
Trane Technologies Lux International Holding Company S.à.r.l. (TT International)			None			All notes issued by TTFL and TTC HoldCo
Trane Technologies Global Holding II Company (TT Global II)			None			All notes issued by TTFL and TTC HoldCo
Trane Technologies Americas Holding Corporation (TT Americas)			None			All notes issued by TTFL and TTC HoldCo
Trane Technologies Financing Limited (TTFL)			3.550% Senior Notes due 2024 3.500% Senior Notes due 2026 3.800% Senior Notes due 2029 5.250% Senior Notes due 2033 5.100% Senior Notes due 2034 4.650% Senior Notes due 2044 4.500% Senior Notes due 2049			All notes and debentures issued by TTC HoldCo and TTC
Trane Technologies HoldCo Inc. (TTC HoldCo)			3.750% Senior Notes due 2028 5.750% Senior Notes due 2043 4.300% Senior Notes due 2048			All notes issued by TTFL
Trane Technologies Company LLC (TTC)			7.200% Debentures due 2024-2025 6.480% Debentures due 2025 Puttable debentures due 2027-2028			All notes issued by TTFL and TTC HoldCo

Each subsidiary debt issuer and guarantor is owned 100% directly or indirectly by the Parent Company. Each guarantee is full and unconditional, and provided on a joint and several basis. There are no significant restrictions of the Parent Company, or any guarantor, to obtain funds from its subsidiaries, such as provisions in debt agreements that prohibit dividend payments, loans or advances to the parent by a subsidiary. The following tables present summarized financial information for the Parent Company and subsidiary debt issuers and guarantors on a combined basis (together, "obligor group") after elimination of intercompany transactions and balances based on the Company’s legal entity ownerships and guarantees outstanding at June 30, 2024. Our obligor groups as of June 30, 2024 were as follows: Obligor group 1 consists of Plc, TT Holdings, TT International, TT Global II, TT Americas, TTFL, TTC HoldCo and TTC; Obligor group 2 consists of Plc, TTFL and TTC.

Table of Contents

Summarized Statements of Earnings

			Six months ended June 30, 2024
In millions			Obligor group 1						Obligor group 2
Net revenues			$	—					$	—
Gross profit (loss)			—						—
Intercompany interest and fees			4.0						301.9
Earnings (loss) from continuing operations			(200.8)						47.2
Discontinued operations, net of tax			(10.2)						(10.4)
Net earnings (loss)			(211.0)						36.8
Less: Net earnings attributable to noncontrolling interests			—						—
Net earnings (loss) attributable to Trane Technologies plc			$	(211.0)					$	36.8

Summarized Balance Sheets

			June 30, 2024
In millions			Obligor group 1						Obligor group 2
ASSETS
Intercompany receivables			$	282.8					$	4,210.5
Current assets			722.9						4,618.6
Intercompany notes receivable			500.0						5,650.0
Noncurrent assets			1,213.0						6,246.4
LIABILITIES
Intercompany payables			4,980.8						3,010.2
Current liabilities			6,579.6						4,573.7
Intercompany notes payable			4,000.0						4,000.0
Noncurrent liabilities			8,970.3						7,608.1

			December 31, 2023
In millions			Obligor group 1						Obligor group 2
ASSETS
Intercompany receivables			$	1,517.3					$	3,302.6
Current assets			1,609.1						3,378.3
Intercompany notes receivable			1,837.1						7,687.1
Noncurrent assets			2,522.3						8,263.6
LIABILITIES
Intercompany payables			4,693.4						1,611.6
Current liabilities			5,979.0						2,856.4
Intercompany notes payable			4,000.0						4,000.0
Noncurrent liabilities			8,561.8						7,201.0

For a further discussion of Liquidity and Capital Resources, refer to the discussion under that heading herein and in Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," contained in our Annual Report on Form 10-K for the period ended December 31, 2023.

Commitments and Contingencies

We are involved in various litigation, claims and administrative proceedings, including those related to the bankruptcy proceedings for Aldrich and Murray and environmental and product liability matters. Amounts recorded for identified contingent liabilities are estimates, which are reviewed periodically and adjusted to reflect additional information when it becomes available. Subject to the uncertainties inherent in estimating future costs for contingent liabilities, except as expressly set forth in Note 17, "Commitments and Contingencies," to the Condensed Consolidated Financial Statements, management believes that the liability which may result from these legal matters would not have a material adverse effect on our financial condition, results of operations, liquidity or cash flows.

Table of Contents

Critical Accounting Estimates

Management’s Discussion and Analysis of Financial Condition and Results of Operations are based upon our Condensed Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of financial statements in conformity with those accounting principles requires management to use judgment in making estimates and assumptions based on the relevant information available at the end of each period. These estimates and assumptions have a significant effect on reported amounts of assets and liabilities, revenue and expenses, as well as the disclosure of contingent assets and liabilities because they result primarily from the need to make estimates and assumptions on matters that are inherently uncertain. Actual results may differ from these estimates. If updated information or actual amounts are different from previous estimates, the revisions are included in our results for the period in which they become known.

Management believes there have been no significant changes during the six months ended June 30, 2024, to the items that we disclosed as our critical accounting estimates in "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023.

Recent Accounting Pronouncements

See Note 2, "Recent Accounting Pronouncements," to the Condensed Consolidated Financial Statements for a discussion of recent accounting pronouncements.

Safe Harbor Statement

Certain statements in this report, other than purely historical information, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "forecast," "outlook," "intend," "strategy," "plan," "may," "might," "could," "should," "will," "would," "will be," "will continue," "will likely result," or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements.

Forward-looking statements may relate to such matters as projections of revenue, margins, expenses, tax provisions, earnings, cash flows, benefit obligations, share or debt repurchases or other financial items; any statements of the plans, strategies and objectives of management for future operations, including those relating to any statements concerning expected development, performance or market share relating to our products and services; any statements regarding future economic conditions or our performance; any statements regarding our sustainability and Environmental, Social, and Governance (ESG) commitments; any statements regarding pending litigation investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. These statements are based on currently available information and our current assumptions, expectations and projections about future events. While we believe that our assumptions, expectations and projections are reasonable in view of the currently available information, you are cautioned not to place undue reliance on our forward-looking statements. You are advised to review any further disclosures we make on related subjects in materials we file with or furnish to the SEC. Forward-looking statements speak only as of the date they are made and are not guarantees of future performance. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from our expectations and projections. We do not undertake to update any forward-looking statements.

Factors that might affect our forward-looking statements include, among other things:

• overall economic, political and business conditions in the markets in which we operate including recessions, economic downturns, price instability, slow economic growth and social and political instability;

• commodity and raw material shortages, supply chain risks and price increases;

• national and international conflict, including war, civil disturbances, terrorist acts, and other geopolitical hostilities and tensions;

• trade protection measures such as import or export restrictions and requirements, the imposition of tariffs and quotas or revocation or material modification of trade agreements;

• competitive factors in the markets in which we compete;

• the development, commercialization and acceptance of new and enhanced products and services;

• attracting and retaining talent;

• work stoppages, union negotiations, labor disputes and similar issues;

Table of Contents

• other capital market conditions, including availability of funding sources, interest rate fluctuations and other changes in borrowing costs;

• currency exchange rate fluctuations, exchange controls and currency devaluations;

• the outcome of any litigation, governmental investigations, claims or proceedings;

• risks and uncertainties associated with the asbestos-related bankruptcy for our deconsolidated subsidiaries Aldrich and Murray;

• the impact of potential information technology system failures, vulnerabilities, data security breaches or other cybersecurity issues;

• evolving data privacy and protection laws;

• intellectual property infringement claims and the inability to protect our intellectual property rights;

• changes in laws and regulations;

• climate change, changes in weather patterns, natural disasters and seasonal fluctuations;

• national, regional and international regulations and policies associated with climate change and the environment;

• the outcome of any tax audits or settlements;

• the strategic acquisition or divestiture of businesses, product lines and joint ventures;

• impairment of our goodwill, indefinite-lived intangible assets and/or our long-lived assets;

• changes in tax laws and requirements (including tax rate changes, new tax laws, new and/or revised tax law interpretations and any legislation that may limit or eliminate potential tax benefits resulting from our incorporation in a non-U.S. jurisdiction, such as Ireland); and

• impacts of global health crises, epidemics, pandemics, or other contagious outbreaks on our business operations, financial results and financial position and on the world economy.

Some of the significant risks and uncertainties that could cause actual results to differ materially from our expectations and projections are described more fully in the "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. There may also be other factors that have not been anticipated or that are not described in our periodic filings with the SEC, generally because we did not believe them to be significant at the time, which could cause results to differ materially from our expectations.

Available Information

We have used, and intend to continue to use, the homepage, the investor relations and the "News" section of our website (www.tranetechnologies.com), among other sources such as press releases, public conference calls and webcasts, as a means of disclosing additional information, which may include future developments regarding the Company and/or material non-public information. We encourage investors, the media, and others interested in our Company to review the information it makes public in these locations on its website.

Table of Contents