Trane Technologies

Capital allocation has been disciplined: 2024 deployment or commitments totaled about 2.5 billion dollars, including roughly 470 million for M&A, 760 million for dividends, and 1.3 billion for buybacks, with a new 5 billion repurchase authorization added in late 2024. The dividend was raised 12% in February 2025 to 0.94 dollars per quarter, and management targets returning 100% of excess cash to shareholders over time.

Organic reinvestment remains priority with R&D of about 310 million and capex around 1.9% of revenue. The BrainBox AI acquisition adds high‑return software capabilities with modest capital at risk. Stock‑based compensation is modest relative to earnings.

We view the record as strong, with a preference for continued organic investments and selective bolt‑ons over large deals.