“We’re cautiously optimistic,” Trane CEO says about residential business
Trane reported Q2 earnings and shared its residential outlook
Trane this week shared its residential outlook during its Q2 earnings call.
Details: The company reported $5.3 billion in revenue during the quarter, up 13% year-over-year.
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Residential revenue in its Americas segment was up “low-teens,” and bookings grew by over 30%.
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By comparison, Carrier and Lennox’s residential revenue in Q2 was similar and slightly worse, respectively.
What’s happening: “Our Americas residential business delivered stronger-than-expected growth… in part driven by three factors. The EPA clarification on the refrigerant transition, the normalization of channel inventories, and a strong start to the cooling season,” said CEO Dave Regnery.
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On channel inventories: Regnery’s referring to the end of destocking, when distributors paused buying new equipment to sell excess inventory — a trend also noted by Carrier and Lennox last week.
What’s next: Trane raised its full-year residential revenue expectations but remains a bit skeptical.
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“[For] residential, I’ll leave it within the Americas, [we have a] mid-single-digit growth plan for the second half of the year. Could it be better? Yeah, maybe.. but we’re cautiously optimistic about that space,” Regnery said.
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“We’re very much in the middle of the cooling season right now. We want to really see where it plays out,” he added.
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Trane didn’t respond to Homepros’ request for elaboration.
Of note: U.S. cooling demand in June, measured by Cooling Degree Days (CDDs), rose 32% year-over-year, according to the EIA.
The bottom line: Despite some hiccups, all three OEMs signaled confidence in the residential business moving forward.