Trane forecasts annual profit above Wall Street estimates on AI data center cooling demand
Trane forecasts annual profit above Wall Street estimates on AI data center cooling demand July 30 (Reuters) - Trane Technologies 2IS.F forecast annual profit above Wall Street estimates on Thursday, benefiting from rising demand for cooling equipment driven by expanding AI-powered data center infrastructure.
Rising global temperatures linked to climate change have also boosted demand for air-conditioning systems, benefiting companies such as Trane as consumers and businesses rely more on cooling to deal with the heat.
Strong commercial HVAC demand and a recovery in residential and transport markets are helping drive momentum into the second half of the year, CEO Dave Regnery said.
Excluding items, Trane Technologies expects 2026 adjusted profit of $15.20 to $15.30 per share, the midpoint of which is above analysts' average estimates of $14.91 per share.
Trane saw a 44% rise in quarterly bookings in its Americas segment and a 7% rise in its EMEA segment.
The Ireland-based company, which makes heating, ventilation and air-conditioning systems, posted adjusted profit of $4.31 per share in the quarter ended June 30, compared with $3.88 a year ago.
The company's quarterly revenue rose 11% to $6.35 billion, from $5.63 billion a year ago.
Analysts on average expected second-quarter revenue of $6.2 billion, according to data compiled by LSEG.
(Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Tasim Zahid)
((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com;))
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