TT Abridged Wolfe Global Transportation & Industrials Conference Transcript

Research evidence excerpt

TT Abridged Wolfe Global Transportation & Industrials Conference Transcript

May 20, 2026

Investment Conclusion

Trane Technologies (TT): Peer Perform Rating - YE26 Fair Value Range of $362-572 \

Investment Thesis

260 Best in Class HVAC Exposure: Trane is the quality operator in HVAC

240 markets, with leading positions in commercial and transport. Trane has

been a consistent share gainer, with best in class margins.

CO2 Abatement Tailwinds: We see substantial tailwinds from energy 180

160 efficiency upgrades and electrification of heat across Trane's footprint.

140 This should drive an above-average growth outlook.

120 Significant Capital Deployment Optionality: Trane has maintained an

100 under-levered balance sheet and remains focused on buying back stock

80 since the separation of its industrial assets. We see potential for Trane to

60 increase its footprint in APAC, but there are no other large and obvious

PP Rating: Trane has remained one of the highest-quality companies in Jan-22 May-22 Sep-22 Jan-23 May-23 Sep-23 Jan-24 May-24 Sep-24 Jan-25 May-25 Sep-25 Jan-26 May-26 deals, in light of its consolidated end markets.

our coverage, but we think estiamtes are relatively well calibrated, and the

EE/MI S&P500 TT stock trades near historical levels and at a premium to our coverage

Source: Wolfe Research, FactSet despite overhands (price/cost and sluggish RHVAC and Transport

Fair Value Methodology markets).

Bull Case

Organic Growth (CAGR: '24-'27) 8% Potential Catalysts

OM Expansion ('24-'27) 250bps Secular Tailwinds: We think standalone Trane plays directly into GHG

reduction themes. There are also potential benefits from indoor air quality

EPS 2027e $18.44 requirements in a post-COVID world.

P/E 31x Continued Share Gains: Trane has outperformed its HVAC markets