In this Research Note, we examine the commercial HVAC business of Trane Technologies, which includes their building automation and energy services portfolio. It is based on their 2021 annual results, investor presentations and related activities throughout 2021. Trane Technologies was formed in 2020 following a spin-off from Ingersoll Rand’s Climate Division. As a vertically integrated enterprise, Trane offers commercial and residential HVAC equipment and aftermarket services as well as transport refrigeration solutions under the ThermoKing brand. Since becoming a public company, Trane Technologies has repositioned itself as a pure-play climate innovator, with an increased focus on energy efficiency, sustainability and decarbonization of buildings, homes and transportation, fuelling their growth. The enterprise reported strong financial performance in 2021 with $14.1 billion revenues, up 13% from the prior year. The GAAP operating margin of 14.3% was up 200 basis points from 2020. The Americas segment accounted for 78% of revenues, reporting net sales of $10.9 billion. The Commercial HVAC business unit provides heating and cooling […]