Trane Technologies

Balance sheet strength is a notable differentiator. As of September 30, 2025, debt was about 4.6 billion dollars with cash of about 1.1 billion, implying net debt near 3.5 billion. Against mid‑to‑high‑3 billions of EBITDA, net leverage is comfortably below 1x.

Free cash flow was 2.8 billion dollars in 2024 with 109% conversion, and year‑to‑date 2025 free cash flow stood near 1.8 billion through Q3 despite timing effects. Moody’s affirmed A3 and revised the outlook to positive in 2025. Liquidity includes undrawn revolvers and consistent free cash flow, and there are no customer concentration risks.

Risks include asbestos‑related proceedings at deconsolidated subsidiaries, which remain ring‑fenced but still a legal overhang.