Carrier Global vs Trane Technologies
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The short version
- Carrier Global is the larger business, with $21.7B of revenue in fiscal 2025 against $21.3B for Trane Technologies.
- Trane Technologies grew revenue faster (7.5%, against −3.3%).
- Trane Technologies kept more of each dollar of sales as operating profit (18.6% operating margin, against 10.0%).
- Trane Technologies turned more of its sales into free cash flow (13.2% FCF margin, against 9.8%).
- Trane Technologies earned a higher return on the capital invested in it (29.0%, against 8.0%).
- Investors pay more for each dollar of Carrier Global’s earnings: a P/E of 36.8x against 33.7x for Trane Technologies.
| Latest fiscal year | CARR · FY25 | TT · FY25 |
|---|---|---|
| Size | ||
| Market cap | $47.4B | $99.0B |
| Revenue | $21.7B | $21.3B |
| Free cash flow | $2.1B | $2.8B |
| Net income | $1.5B | $2.9B |
| Growth | ||
| Revenue growth | −3.3% | 7.5% |
| 5-year growth | 4.5% | 11.4% |
| Share count change | −5.4% | −1.5% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 10.0% | 18.6% |
| Net margin | 6.8% | 13.7% |
| FCF margin | 9.8% | 13.2% |
| Return on capital | 8.0% | 29.0% |
| Return on equity | 10.4% | 36.4% |
| Balance sheet | ||
| Net debt | $10.2B | $2.9B |
| Net debt / EBITDA | 3.0x | 0.7x |
| Dividends and buybacks | $3.7B | $2.3B |
| Valuation & quality | ||
| P/E | 36.8x | 33.7x |
| Piotroski F-score | 5 | 8 |
Revenue
FY16
CARR —
TT $13.5B
FY17
CARR —
TT $14.2B
FY18
CARR $18.9B
TT $12.3B
FY19
CARR $18.6B
TT $13.1B
FY20
CARR $17.5B
TT $12.5B
FY21
CARR $20.6B
TT $14.1B
FY22
CARR $17.3B
TT $16.0B
FY23
CARR $19.0B
TT $17.7B
FY24
CARR $22.5B
TT $19.8B
FY25
CARR $21.7B
TT $21.3B
CARR
TT
Operating margin
FY16
CARR —
TT 11.9%
FY17
CARR —
TT 11.7%
FY18
CARR 19.2%
TT 12.3%
FY19
CARR 13.4%
TT 12.8%
FY20
CARR 17.7%
TT 12.3%
FY21
CARR 12.8%
TT 14.3%
FY22
CARR 23.0%
TT 15.1%
FY23
CARR 11.4%
TT 16.4%
FY24
CARR 11.8%
TT 17.6%
FY25
CARR 10.0%
TT 18.6%
CARR
TT
Free cash flow
FY16
CARR —
TT $1.3B
FY17
CARR —
TT $1.3B
FY18
CARR $1.8B
TT $1.1B
FY19
CARR $1.8B
TT $1.7B
FY20
CARR $1.4B
TT $1.3B
FY21
CARR $1.9B
TT $1.4B
FY22
CARR $1.4B
TT $1.2B
FY23
CARR $2.2B
TT $2.1B
FY24
CARR $44.0M
TT $2.8B
FY25
CARR $2.1B
TT $2.8B
CARR
TT
Return on capital
FY16
CARR —
TT 14.5%
FY17
CARR —
TT 16.6%
FY18
CARR —
TT 12.3%
FY19
CARR —
TT 12.7%
FY20
CARR 15.8%
TT 11.8%
FY21
CARR 13.6%
TT 19.0%
FY22
CARR 24.4%
TT 21.4%
FY23
CARR 11.8%
TT 22.8%
FY24
CARR 7.8%
TT 26.4%
FY25
CARR 8.0%
TT 29.0%
CARR
TT
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.