Quick Take: Recap of our meeting with management (TT)

Research evidence excerpt

Quick Take: Recap of our meeting with management (TT)

15 June 2026

Varun Govindaraj

+1 917 344 8543

U.S. Multi Industry & Electrical Equipment varun.govindaraj@bernsteinsg.com

Specialist SalesTrane Technologies PLC

Rating Steve Song

+1 917 344 8401

steve.song@bernsteinsg.comOutperform

Price Target

TT 550.00 USD

We met Trane management earlier today to discuss key questions we have received from

Close Date 12 Jun 2026

investors. Paraphrased highlights are below; please reach out to your Bernstein sales

TT Close Price (USD) 458.25

contact / the authors if you’d like to discuss this in more detail.

Price Target (USD) 550.00

Rationale for not sizing data center business is to not give competitors visibility on where Upside/(Downside) 20%

they focus; of the direct sales team ~5% focuses on data centers today and management 52-Week Range 503.47/348.06

continued to emphasize the importance of other verticals. SPX 7,431.46

FYE Dec

Not seeing any data center orders being canceled, some delays from customers but Div Yield 0.9%

management is not worried (deferral of demand vs. destruction). Feels like build schedule Market Cap (USD) (M) 104,024

is too aggressive for some companies and that is now materializing as delays. But they re- EV (USD) (M) 107,588

iterated that there are no cancellations. Performance YTD 1M 6M 12M

Absolute (%) 20.9 0.9 19.2 11.7

On the data centers, mentioned there’s a focus on making chillers “smarter” which helps SPX (%) 8.6 0.4 8.8 22.9

create more value for customers (and we think will flow into pricing power and share for Relative (%) 12.4 0.4 10.3 (11.3)

Trane if true). Also felt they don’t get enough credit on the air handling side of the business Source: Bloomberg, Bernstein estimates and analysis.

(which still exists in liquid cooling configs).