During 2024 and early 2025, Trane Technologies completed multiple acquisitions, including a Commercial HVAC distributor in the US, a technology-focused acquisition in Transport Refrigeration, and a building management platform using AI. These acquisitions are expected to contribute to future revenue growth and technological capabilities.

The company is committed to reducing carbon emissions and has made substantial investments in R&D to develop new products and services that align with its 2030 sustainability goals. This commitment reflects a proactive approach to addressing climate change and positioning the company for long-term growth.

The company is actively managing and strengthening its business portfolio to meet the current and future needs of customers. This is achieved partly through engaging in research and development and sustaining activities and partly through acquisitions.

The improvement in gross profit margin indicates effective cost management and pricing strategies. Management has successfully navigated inflationary pressures and supply chain challenges to maintain profitability.

While the company is committed to pursuing these sustainability objectives, its ability to achieve them is subject to numerous risks and uncertainties, including increased operation costs and future changes in regulation.

The skills, experience, and industry knowledge of our employees significantly benefit our operations and performance. The market for employees and leaders with certain skills and experiences is very competitive, and difficulty attracting, developing, and retaining members of our management team and key employees could have a negative effect on our business, operating results, and financial condition.

The company acknowledges that its global operations are subject to economic risks, including changes in local laws, trade protection measures, and sovereign debt crises. These risks could increase costs, disrupt operations, and limit the ability to sell products in certain markets.

The company relies on suppliers for commodities and third-party parts and components. Disruptions in deliveries or decreased availability could affect the ability to meet commitments to customers, impact pricing, increase operating costs, or impact timing and delivery of products and services.

The company relies extensively on information technology systems, which are at risk to cyber attacks and unauthorized access. Security breaches or disruptions could negatively impact business operations, compromise the security of proprietary information, and expose the company to litigation or penalties.

The markets that we serve are highly competitive. We compete worldwide with a number of other manufacturers and distributors that produce and sell similar products. There has been consolidation and new entrants (including non-traditional competitors) within our industries and there may be future consolidation and new entrants which could result in increased competition and significantly alter the dynamics of the competitive landscape in which we operate.

We must efficiently and effectively innovate, develop and commercialize new and enhanced products and services in a rapidly changing technological and business environment in order to remain competitive in our current and future markets and in order to continue to grow our business.

Climate change presents immediate and long-term risks to our Company and to our customers, with the risks expected to increase over time, including, among others, acute physical risks (such as flooding, hurricanes, or wildfires) or chronic physical risks (such as droughts, heat waves, or sea level changes).

The gross profit margin increased by 260 basis points, indicating improvements in operational efficiency and effective pricing strategies. This suggests better cost control and value capture.

As to the latter, the Company is currently engaged in site investigations and remediation activities to address environmental cleanup from past operations at current and former manufacturing facilities.

Our investments continue to improve manufacturing productivity, expand capacity, reduce costs, provide environmental enhancements, upgrade information technology infrastructure and security and advanced technologies for existing facilities.

The company spent $309.6 million on research and development, focused on product and system sustainability improvements. This indicates a commitment to innovation and maintaining a competitive edge.

New product development (NPD) programs complete a Design for Sustainability module within our NPD process to ensure that programs consider environmental impact.

Our intellectual property (IP) rights are important to our business and include numerous patents, trademarks, copyrights, trade secrets, proprietary technology, technical data, business processes, and other confidential information. Although in aggregate we consider our intellectual property rights to be valuable to our operations, we do not believe that our business is materially dependent on a single intellectual property right or any group of them.

The company repurchased approximately $1.3 billion of its ordinary shares during the year, and has authorized further repurchases, demonstrating confidence in its financial position and cash flow generation.

The company increased its quarterly share dividend by 12%, reflecting a commitment to returning value to shareholders.

The company has allocated capital for improvements in manufacturing productivity, capacity expansion, and environmental enhancements, indicating a strategic focus on long-term value creation.

We have announced ambitious 2030 Sustainability Commitments, including our Gigaton Challenge to reduce customers' carbon emissions by a billion metric tons through sustainable products and services.

We are also Leading by Example as we work toward carbon-neutral operations, zero waste-to-landfill and net positive water use in water-stressed locations. We also committed to reducing embodied carbon in our products by 40%, while also designing products for circularity.

Finally, our Opportunity for All commitment focuses on investing in our people and our uplifting and inclusive culture, and broadening access to Science, Technology, Engineering and Math (STEM) education and careers in our communities.

We expect conditions to remain mixed across our served end markets and geographies. Overall Commercial HVAC markets in Americas and EMEA remain strong due to demand for our differentiated customer driven solutions and the benefits of installing energy efficient products and decarbonizing the built environment.

In Asia, markets are more dynamic, with weak macro-economic conditions driving soft demand in China and more stable macro-economic conditions driving modest demand in the rest of Asia.

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.