Trane Technologies plc stock research
FY2024 Q1
Trane Technologies (TT) Gross Margin — Quarter Ended Mar 31, 2024
Revenue for the current quarter was higher than the same quarter last year, with gross profit and gross margin also improving. Cost of revenue increased, but at a slower pace than revenue, resulting in a higher gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue for the current quarter was higher than the same quarter last year, with gross profit and gross margin also improving. Cost of revenue increased, but at a slower pace than revenue, resulting in a higher gross margin.
- The strongest observable margin driver is the improvement in gross margin compared to the same quarter last year, supported by revenue growth outpacing cost of revenue growth.
- Revenue was lower than the immediately preceding quarter but higher than the year-ago quarter. Gross profit and gross margin were higher than the year-ago quarter; the previous quarter's gross profit and margin are not available for comparison.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.6%
Gross profit
$1.5B
Revenue
$4.2B
Cost of revenue
$2.8B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+3.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $3.7B | $1.1B | $2.5B | 31.2% |
| Jun 30, 2023 | $4.7B | $1.6B | $3.1B | 33.7% |
| Sep 30, 2023 | $4.9B | $1.7B | $3.2B | 34.0% |
| Mar 31, 2024 | $4.2B | $1.5B | $2.8B | 34.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.7 pts
Year-over-year change
Mar 31, 2023
+3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin compared to the same quarter last year, supported by revenue growth outpacing cost of revenue growth.
Revenue was lower than the immediately preceding quarter but higher than the year-ago quarter. Gross profit and gross margin were higher than the year-ago quarter; the previous quarter's gross profit and margin are not available for comparison.
Monitor the trend in selling and administrative expenses, which are a significant cost component as disclosed in the filing.