Name: Trane Technologies plc (NYSE:TT) | Analysis of Revenues
Creator: Stock Analysis on Net

Analysis of Revenues

Revenues as Reported

Revenues as Reported

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Trane Technologies plc, income statement, revenues

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Equipment	8,575,100)	7,319,800)	6,479,000)	6,880,400)	6,236,600)
Services	4,065,700)	3,637,300)	3,206,900)	3,179,100)	2,982,800)
Americas	12,640,800)	10,957,100)	9,685,900)	10,059,500)	9,219,400)
Equipment	1,420,900)	1,328,000)	1,119,900)	1,208,000)	1,271,700)
Services	613,600)	616,900)	528,200)	554,600)	559,400)
EMEA	2,034,500)	1,944,900)	1,648,100)	1,762,600)	1,831,100)
Equipment	934,800)	851,000)	773,600)	879,700)	917,300)
Services	381,600)	383,400)	347,100)	374,100)	376,000)
Asia Pacific	1,316,400)	1,234,400)	1,120,700)	1,253,800)	1,293,300)
Net revenues	15,991,700)	14,136,400)	12,454,700)	13,075,900)	12,343,800)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Net revenues exhibited a general upward trajectory between 2018 and 2022, growing from 12.34 billion USD to 15.99 billion USD. A temporary contraction occurred in 2020, where revenues declined to 12.45 billion USD from the 13.08 billion USD reported in 2019, before rebounding strongly in 2021 and 2022.

Revenue Stream Analysis: Equipment sales serve as the primary driver of total revenue, increasing from 6.24 billion USD in 2018 to 8.58 billion USD in 2022. This segment experienced a notable dip in 2020 but recovered with significant acceleration in the subsequent two years. In contrast, Services revenue demonstrated greater stability and consistent growth, rising from 2.98 billion USD in 2018 to 4.07 billion USD in 2022. During the 2020 downturn, Services revenue remained resilient, actually increasing slightly, which suggests that the service component provides a stabilizing effect on the overall revenue base during periods of volatility in equipment demand.
Geographic Revenue Distribution: The Americas region represents the dominant share of total revenue and the primary source of growth, increasing from 9.22 billion USD in 2018 to 12.64 billion USD in 2022. Growth in this region was particularly aggressive between 2021 and 2022. The EMEA region showed modest growth, starting at 1.83 billion USD in 2018 and ending at 2.03 billion USD in 2022, despite a period of decline between 2019 and 2020. The Asia Pacific region remained relatively stagnant over the five-year period, with revenues moving from 1.29 billion USD in 2018 to 1.32 billion USD in 2022, indicating a lower growth rate compared to the Western markets.
Regional Segment Performance: Within the Americas, both equipment and services components grew, with equipment increasing from 1.27 billion USD in 2018 to 1.42 billion USD in 2022. In the EMEA region, equipment revenues fluctuated, dipping to 773.6 million USD in 2020 before recovering to 934.8 million USD by 2022. Services in EMEA remained nearly flat, ending the period at 381.6 million USD compared to 376 million USD in 2018.

The overall financial pattern indicates a company heavily reliant on the Americas market and the Equipment segment for growth, while the Services segment provides a consistent and less volatile revenue stream across all reporting periods.

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