Should I buy Trane Technologies stock in 2025? Insights for NZ Investors

What is Trane Technologies?

EBITDA is estimated using EV/EBITDA (24.65) and EV/Revenue ratio (4.94) from latest available data.

How much is the Trane Technologies stock?

The price of Trane Technologies stock is falling this week. As of now, TT trades at $432.29 USD, reflecting a 0.15% decrease over the last 24 hours but still up by 1.75% for the week. The company holds a market capitalization of $96.55 billion, with an average 3-month volume of 1,587,696 shares. Its price-to-earnings ratio stands at 35.58, the current dividend yield is 0.87%, and the stock beta is 1.15. While recent upward momentum hints at resilience, the relatively high valuation and moderate volatility merit careful consideration for NZ investors.

Our complete analysis of the Trane Technologies stock

Having conducted a thorough review of Trane Technologies' most recent quarterly financials and assessed the stock’s robust trajectory over the last three years, our analysis employed a comprehensive framework combining quantitative indicators, technical momentum, institutional market flows, and competitive benchmarks. Synthesising these insights—augmented by proprietary multi-factor algorithms—we observe a confluence of signals that merit close attention. So, why might Trane Technologies once again represent a strategic entry point into the global building technology and energy solutions sector as we look ahead to 2025?

Recent Performance and Market Context

Trane Technologies (NYSE: TT) has exhibited exceptional strength, with its share price reaching US$432.29 as of 30 May 2025—hovering near the 52-week high of US$436.61 and substantially above its 52-week low of US$298.15. Over the past year, TT has delivered a total return of +34.22%, while its five-year cumulative appreciation stands at a notable +379.2%, underscoring exceptional shareholder value creation.

Recent weeks have seen TT gain +1.75%, driven by a sharply higher Q1 2025 result that beat analyst consensus. The company reported Q1 revenues of US$4.688bn (up +11% year-over-year) and an impressive adjusted EPS of US$2.71 (+26% YoY), buoyed by strong execution across all operating units. Orders (bookings) reached US$5.283bn, with a book-to-bill ratio of 113%, indicating robust forward demand visibility.

The macroeconomic backdrop is increasingly favourable. The global push for energy efficiency, climate-resilient infrastructure, and decarbonisation, particularly across the Asia-Pacific region, is catalysing sustained demand for advanced HVAC and refrigeration solutions. New Zealand’s commercial real estate, green building initiatives, and regulatory incentives for sustainable technology adoption further reinforce the sector’s secular tailwinds and TT’s strategic positioning.

Technical Analysis

• Moving Averages: The 5-, 20-, 50-, 100-, and 200-day moving averages all flash strong buy signals, with the current price (US$432.29) materially above every major MA, affirming bullish structure and positive relative strength.
• MACD (12,26): 18.58—confirming upward momentum and an active buy trigger.
• RSI (14d): 72.42—in overbought territory, which may imply a short-term cooling phase but, in the context of a powerful trend, often reflects structural demand.
• Support and Resistance: Immediate support is identified at US$429.22 (current lows), with resistance at US$436.61 (52-week highs). The proximity to resistance could precede a breakout, particularly if positive catalysts materialise over the next results cycle or from sector news.
• Global Technical Consensus: Remains firmly on ‘buy’ across most algorithmic signals, suggesting the momentum is both sustainable and broad-based.

Overall, the technical structure supports the thesis that Trane Technologies is transitioning into a new upward leg, with favourable medium- and long-term chart dynamics.

Fundamental Analysis

• Revenue Growth and Profitability: 2024 revenue hit US$19.84bn (+12.2% YoY), with Q1 2025 maintaining double-digit organic growth. Net income in 2024 reached US$2.57bn, complemented by a sector-leading profit margin of 13.47%.
• Valuation: Although TT trades at a premium (P/E TTM 35.58, P/S 4.84), this reflects both its industry leadership and premium earnings visibility. Importantly, free cash flow generation remains robust at US$2.44bn TTM—a key metric in justifying higher multiples, especially for global niche leaders.
• Returns: With ROE of 38.63% and ROA at 11.36%, TT consistently outperforms peers, highlighting superior capital efficiency and operational leverage.
• Structural Strengths:
• Market Share: As a dominant player in high-growth HVAC and commercial building solutions, TT benefits from entrenched industrial relationships and recurring revenue streams.
• Innovation: Ongoing leadership in energy optimisation, AI-enabled building management systems, and green refrigerant technology underpins a robust innovation pipeline.
• Brand: The Trane and Thermo King brands carry significant premium recognition, further supporting stickiness and pricing power globally.

Compared to competitors, TT’s blend of innovation, execution, and global scale strongly supports its premium valuation.

Volume and Liquidity

• Three-month average daily volume: ~1.59 million shares, indicating healthy institutional participation.
• Current daily volume: While slightly below average at 859,204 shares, such fluctuations around ex-dividend dates are common and do not indicate diminished liquidity.
• Market Cap and Float: With a market cap approaching US$96.6bn, TT’s liquidity facilitates both efficient large-scale allocations for institutional investors and tactical positioning for active traders.

This liquidity depth further enhances valuation resilience in volatile environments.

Catalysts and Positive Outlook

• Secular Demand Drivers:
• Escalating global urgency around building decarbonisation and energy efficiency
• Commitment to green infrastructure across the Asia-Pacific, especially in New Zealand’s commercial and governmental property sectors
• Heightened hygiene and indoor air quality standards post-pandemic, fuelling demand for advanced HVAC retrofits
• Product and Innovation Pipeline:
• Significant investments in next-gen sustainable refrigerants and AI-driven energy management
• Expansion into advanced refrigeration and heat pump markets, aligning with government and industry eco-standards
• ESG and Sustainability Leadership:
• Award-winning ‘Gigaton Challenge’ and sector-leading emissions reduction targets, enhancing the company’s profile among ESG-centric funds
• M&A and Strategic Expansion:
• Ongoing targeted acquisitions and global partnerships extend its competitive moat and addressable market
• Upcoming Catalysts:
• Q2 2025 results (late July/early August) could provide material upside surprises given the robust order book and margin trajectory.

Collectively, these drivers position TT at the intersection of economic imperatives and regulatory tailwinds, suggesting sustained revenue and earnings expansion potential.

Investment Strategies

• Short-Term: Opportunistic entries near the current support (~US$429), especially if a technical pullback emerges from overbought RSI readings, may offer a compelling risk-reward setup ahead of Q2 earnings or new product launches.
• Medium-Term: Averaging in at current or slightly retraced levels positions investors alongside structural demand and potential sector outperformance, with technical momentum signalling an extension above resistance.
• Long-Term: For investors focused on thematic megatrends (decarbonisation, smart infrastructure, sustainable cities), gradual accumulation on any market-wide volatility may allow participation in a differentiated growth story, backed by a consistent dividend and superior cash flow profile.

In all cases, Trane Technologies’ diversified revenue base and strong fundamentals support confidence in a range of investment horizons.

Is it the Right Time to Buy Trane Technologies?

Bringing the analysis together, Trane Technologies demonstrates an exceptional mix of secular growth, financial strength, and technical momentum—qualities that justify renewed and serious consideration from investors seeking long-term exposure to the smart infrastructure and clean technology sectors. The company’s leadership in innovation, robust order pipeline, continued revenue and margin growth, and proactive sustainability initiatives underpin a structurally bullish narrative, reinforced by a clear institutional appetite for the shares.

While a premium valuation signals high expectations, continued execution, strong volumes, and powerful macro drivers suggest TT may be entering a new bullish phase, potentially unlocking further upside as it consolidates its global leadership in sustainable building technologies. In an environment where market demand for energy efficiency, climate solutions, and resilient infrastructure is only intensifying, Trane Technologies stands out as a prime candidate for diversified portfolios—across both active traders and long-term growth investors.

In sum, Trane Technologies seems to represent an excellent opportunity for serious investors to capture ongoing structural growth, robust profitability, and sector-defining innovation, with multiple catalysts ahead that could further elevate its market position. As we approach a new earnings season and with powerful megatrends in its favour, the stock’s upside potential appears especially compelling for those seeking exposure to future-oriented industrial technology.

How to buy Trane Technologies stock in New Zealand?

Buying Trane Technologies (TT) shares online is straightforward and secure when you use a regulated broker in New Zealand. Investors can choose between two main methods: direct “spot buying” of Trane Technologies shares or trading via Contracts for Difference (CFDs). Each approach offers its own balance between ownership and flexibility. Below, we explain both methods and provide practical examples, so you can decide which best suits your objectives. For details on fees and features of the leading NZ brokers, see our broker comparison further down the page.

Spot buying

A cash (spot) purchase means you’re buying actual shares of Trane Technologies, so you become a shareholder and benefit from potential dividends and capital growth. Most NZ brokers charge a fixed commission per trade—typically around NZD $5–$15, depending on the platform.

Example

Suppose the Trane Technologies share price is USD $432.29, which is roughly NZD $700 (exchange rates vary). With NZD $1,000 and a brokerage fee of around $10, you could buy about 1 share, with some funds left over.
✔️ Gain scenario:
If the share price rises by 10% to USD $475.52 (about NZD $770), your investment is now worth NZD $1,100.
Result: That’s a NZD $100 gross gain, or +10% on your investment.

Trading via CFD

A CFD (Contract for Difference) allows you to speculate on Trane Technologies’ price movement without owning the underlying share. CFD trading is available through regulated online brokers, with core fees typically including the market “spread” (the difference between buy and sell prices) and possible overnight financing fees for leveraged positions.

Example

You invest NZD $1,000 in a CFD position on Trane Technologies, using 5x leverage. This means you control a position worth NZD $5,000.
✔️ Gain scenario:
If the TT share price rises by 8%, your position yields an 8% × 5 = 40% return.
Result: That’s a NZD $400 gain, on your original NZD $1,000 stake (excluding spreads and overnight fees).

Final advice

Before investing, it is essential to compare brokers’ fees, currency conversion costs, and terms—these can significantly impact your returns. Your choice between spot buying and CFD trading should be guided by your investment horizon, risk profile, and whether you value direct ownership. Explore our in-depth broker comparison further down the page to find the best fit for your investment needs in New Zealand.

Our 7 tips for buying Trane Technologies stock

The latest news about Trane Technologies

Trane Technologies reported robust first-quarter 2025 results with organic revenue and adjusted EPS both exceeding analyst expectations. For Q1 2025, the company delivered revenues of $4.688 billion, reflecting a strong 11% year-over-year organic growth, and reported an adjusted earnings per share of $2.71, up 26% from the previous year. The bookings, a key indicator of future revenue, reached $5.283 billion, and the book-to-bill ratio stood at 113%, underscoring continued strong demand for Trane’s solutions. These results reinforced management’s outlook for sustained momentum headed into the remainder of the year and have been positively received by equity analysts.

The stock has shown solid recent performance, nearing all-time highs and delivering exceptional annual returns, which is notable for New Zealand institutional investors with global diversification strategies. Over the past week, Trane Technologies’ share price has increased by 1.75%, reaching US$432.29 and approaching its record 52-week high of US$436.61. With a 34.22% surge over the past twelve months and a remarkable five-year gain of over 379%, the stock stands out during a period when cyclicals and defensives have performed unevenly. This outperformance can be attractive for Kiwi investment funds seeking exposure to established global leaders in industrial decarbonization and HVAC, aspects highly relevant in New Zealand’s transition toward more energy-efficient infrastructure.

Technical signals remain primarily positive, with multiple moving averages supporting a buy consensus despite overbought warnings. Trane’s short- and long-term moving averages (5, 20, 50, 100, and 200 days) are all trending upwards and signaling buy, which strengthens its technical profile for active traders, including those following US industrials from New Zealand. However, the 14-day RSI sits at an elevated 72.42, indicating the stock is technically overbought and may experience some near-term correction, a point of caution for momentum investors but not currently undermining the overall positive technical consensus.

Trane Technologies’ strategic positioning in HVAC and decarbonization is increasingly relevant amid New Zealand’s focus on energy transition and green building practices. The company is recognized globally—notably in the Asia-Pacific region, including Oceania—for delivering advanced heating, ventilation, air conditioning, and refrigeration (HVACR) solutions aligned with sustainability and decarbonization goals. These technology areas have direct resonance in New Zealand, where government policy and corporate initiatives increasingly prioritize carbon neutrality and climate-resilient infrastructure. While Trane does not disclose segment revenues specific to New Zealand, its global and regional product distribution makes it a relevant solution partner for local building modernization and energy efficiency upgrades, in sectors such as commercial real estate, healthcare, and transportation.

The upcoming ex-dividend date (June 6, 2025) and a modest but consistent dividend yield may interest yield-seeking NZ investors watching for foreign income opportunities. Trane Technologies maintains a current dividend yield of 0.87% (US$3.76 annualized), and the next ex-dividend date is June 6, 2025. For New Zealand residents, dividends from US-listed, Ireland-domiciled companies are subject to cross-border tax arrangements, and such global dividend streams may form part of a well-rounded global income strategy. The company’s strong free cash flow ($2.44 billion) and disciplined balance sheet further support both ongoing payouts and continued investment in innovation.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.