Trane Technologies Celebrates the Company’s 5 Year Anniversary at the NYSE Bell Ringing

Trane Technologies ringing the opening bell at the NYSE today, marking five years since its launch. Trane builds the climate systems that keep buildings, factories, trucks, and data centers efficiently cooled or heated, and it's on TIME's list of most sustainable companies for 2025. And with me right now is David Regnery, Trane Technologies CEO. Dave, thank you for joining us here today. Looks like a lot of fun down there at the New York Stock Exchange. I want to ask five years, you rewind the clock, and I was PE in the beginning of this at about March of 2020, a very auspicious time to kind of launch a new venture. What did you learn over the pandemic and then how did you make it work? I'm noting that your stock is up about 330% from those pandemic lows.

First of all, thanks for having me on your show. Glad to be back. Look, we just rang the opening bell, you showed the clip. It's always exciting at the New York Stock Exchange, first of all, just because there's so much history there that you can just absorb as you walk through the halls. But I was giving an opening presentation to our investors and many of our employees and we were talking about where we were five years ago? And you think about it, five years ago our revenue was $12.5 billion. Our stock price was under $100, just under $100. Our market cap was like 35 billion. We had 35,000 employees. And then you look today, five years later, in five years, it sounds like a long time, but it's really a short time. I mean, here it is, 46,000 employees. Our revenue this year will be about over 21 billion. Our market cap now is over 90 billion. Our stock price is over $400, and it's been a great ride. But what I told our employees was, "Look, we've had a great ride over the last five years, and we should all be very proud of that. I'm certainly proud of that as the CEO, but I would tell you that the future is very bright and our best days are yet to come as Trane Technologies."

I like to think that as well. I'm an optimist here. I want to ask you about AI and how your company fits into that trade data centers, they generate a lot of heat, and you are in the HVAC, which includes the cooling business. How do you fit into this AI trade, which as utilities have seen tremendous interest from investors recently?

We've been strong on the data center vertical for decades, not just the last two years. And yes, they do generate a lot of heat, and we remove a lot of heat from these data centers. We work very closely with hyperscalers. They're in our labs a lot talking about what's next. And in the data 2 center vertical technology moves very, very fast. So, solutions we had just three years ago have now changed and we're constantly inventing better ways of cooling, better ways of making sure that the data center can operate very efficiently. So, look, we love the data center vertical, but we're also very, very strong in all of our verticals. We track like 14 different verticals. And during the second quarter we had strong results in the majority of our vertical where a lot of companies are just running after data centers. We've been there, okay, we're strong today. We'll be very strong in the future. Look at the core markets too. And we're very focused on that as well. And with our direct sales force, we're able to really capitalize on that.

Thinking ahead, throughout the end of the year, at 2025, even next year, what are some of the key risks and opportunities that you're seeing?

Look, I think that we always talk about our culture at Trane Technologies and how we don't like to think about problems. We like to solve problems. So, we're always a little bit more optimistic than many companies are, but obviously we're coming over the tariffs. Okay, understanding the impact there. We're trying to mitigate that. I think I was talking to up in Washington and it was like, "We're the model company, right? We're in region for region, right? We're the company that the administration is really looking for. We manufacture in the region where we sell our products on a global basis. We've created, over that five-year period, we created over 3,600 jobs right here in the United States." So, look, we think that it'll be short term as far as how we get through it. People will start to understand it. It's more important about what the future looks like. And we have such great solutions where we're able to save our customers a lot of dollars. And that's because most buildings operate very inefficiently, about 30% inefficiently. And we're able to help them reduce that significantly. So, you think about it, we have great paybacks for our products and it has a reduction in carbon footprint.

We got about 30 seconds left. Any final words here for your investors?

My investors, I would tell you that Trane Technologies, our best days are in front of us and we've had a great run for the last five years, but I'm very, very confident in our future and we have such great solutions, such great innovation as Trane Technologies that I'll be back in five years and then hopefully we have the same accretion that we've seen in the past.

All right, we'll save a seat for you right here.

Thank you for that. All right, sounds good.