TT · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

Trane Technologies plc · 2026-10-29 · Importance 37 · Surprise 32

Third-quarter 2026 gross profit margin decreased 160 basis points year over year to 35.3%, compared with 36.9%. For the first nine months, gross margin also declined 160 basis points to 35.2% from 36.8%. Inflation and investments pressured margins in both periods, partially offset by productivity and price realization.

Key facts

• Trane Technologies’ third-quarter 2026 gross profit margin decreased 160 basis points to 35.3% from 36.9%, primarily due to inflation and investments, partly offset by productivity and price realization. source
• Americas third-quarter 2026 Segment Adjusted EBITDA margin increased 40 basis points to 23.5% from 23.1%, primarily due to productivity and pricing, partly offset by inflation and investments. source
• EMEA third-quarter 2026 Segment Adjusted EBITDA margin declined 230 basis points to 18.7% from 21.0%, primarily due to inflation and lower volumes from the Middle East conflict. source
• Asia Pacific third-quarter 2026 Segment Adjusted EBITDA margin declined 360 basis points to 19.7% from 23.3%, primarily due to inflation, partly offset by gross productivity and higher volume. source
• Trane Technologies’ nine-month 2026 gross profit margin decreased 160 basis points to 35.2% from 36.8%, primarily due to inflation and investments, partly offset by productivity and price realization. source
• EMEA nine-month Segment Adjusted EBITDA margin declined 290 basis points to 15.8% from 18.7%, primarily due to inflation, acquisition integration costs, reinvestment and lower Middle East conflict-related volumes, partly offset by pricing. source
• Asia Pacific nine-month Segment Adjusted EBITDA margin declined 140 basis points to 21.7% from 23.1%, primarily due to inflation and continued reinvestment, partly offset by gross productivity. source
• Americas nine-month Segment Adjusted EBITDA margin remained flat at 22.5%. source