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"We're cautiously optimistic," Trane CEO says about residential business
Trane reported Q2 earnings and shared its residential outlook
Image: Dave Regnery, Trane
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.
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.
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.
“[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.
“We’re very much in the middle of the cooling season right now. We want to really see where it plays out,” he added.
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.
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