Trane Technologies reported strong Q2 earnings driven by revenue growth, margin expansion, and strong performance in its commercial HVAC (CHVAC) segment. The company achieved double-digit organic revenue growth in the Americas and commercial segments, with applied solutions bookings growing over 60% and service revenue growing in the low teens. Trane raised its full-year guidance, projecting 8% organic revenue growth and an adjusted EPS of $13.05, supporting a forecast of $2.94 billion in free cash flow. The company's durable competitive moat, built on high switching costs, scale, pricing power, and a data-driven virtuous cycle, is positioned to benefit from secular trends such as data center growth, building electrification, and climate resilience. Despite weakness in residential and transport segments, Trane maintains a strong backlog of $7.1 billion in CHVAC, with an 8-10x service revenue tail per installed system. The stock trades at a 34x FCF multiple, which the author believes is justified by long-term growth potential and durable fundamentals, though it remains a buy with moderate near-term conviction.

Tom Gayner, Co-Chief Executive Officer of Markel Corporation, submitted the 13F filing for Q2 2025, detailing his investment activities. He added shares in Adobe Inc, Applied Materials Inc, and CSX Corp, increased positions in Franco-Nevada Corp and Novo Nordisk AS, sold all shares of Cable One Inc, and reduced holdings in 3M Co and Watsco Inc. His portfolio includes major holdings in Berkshire Hathaway, Alphabet, and Amazon.

The article compares Watsco and Carrier Global, two large-cap construction companies, based on financial metrics including dividends, profitability, analyst ratings, ownership, volatility, and valuation. Carrier Global outperforms Watsco on 12 of 17 factors, including higher profitability, stronger analyst ratings, and lower price-to-earnings ratios.

The article compares Trane Technologies and Watsco based on financial metrics, including revenue, earnings, valuation, analyst ratings, profitability, institutional ownership, volatility, and dividends. Trane Technologies outperforms Watsco in most factors, including higher revenue, net income, price-to-earnings ratio, profitability, and dividend history, while Watsco has a higher dividend payout ratio but lower institutional ownership and volatility.

Watsco, Inc. (NYSE: WSO) faces challenges in its mature HVAC/R market while leveraging the global energy transition. The company's Q2 2025 earnings, scheduled for July 30, 2025, will highlight its strategic alignment with long-term trends like the A2L refrigerant transition and energy efficiency. Despite Q1 2025 earnings below estimates, Watsco's strong cash flow, dividend growth, and environmental impact position it as a key player in the energy transition, with a trailing P/E of 33.41 and a forward P/E of 32.69.