(Reuters) – Trane Technologies on Wednesday beat Wall Street estimates for fourth-quarter revenue and profit, helped by rising demand for heating and air-conditioning for commercial buildings.
Shares of the company were up 2.5% in premarket trade.
Last year was the hottest on record, prompting homes and businesses to crank up their air conditioners. Scientists have linked climate change to greenhouse gas emissions, mainly from burning fossil fuels.
Trane also saw increased demand for heating and cooling systems due to the rapid growth of data centers driven by the AI boom.
The Ireland-based company, which owns transport refrigeration company Thermo King, saw a 12% rise in quarterly net revenue in its Americas segment and a 5% rise in its EMEA segment on the back of strong commercial demand for heating, ventilation and air conditioning.
The company posted a 10% rise in total quarterly net revenue to $4.87 billion, compared with analysts’ estimates of $4.79 billion, according to data compiled by LSEG.
On an adjusted basis, Trane Technologies earned $2.61 per share for the fourth quarter ended Dec. 31, compared with estimates of $2.54 per share.
Trane now expects revenue to grow between 6.5% and 7.5% in 2025. The company forecasts annual adjusted profit between $12.7 per share and $12.9 per share, compared with analysts’ expectation of $12.66 per share.
(Reporting by Aatreyee Dasgupta and Kannaki Deka in Bengaluru; Editing by Sahal Muhammed)
