Trane Technologies plc stock research
FY2025 Q2
Trane Technologies (TT) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit increased compared with both the prior quarter and the same quarter last year. Cost of revenue also rose, but gross margin improved, indicating a greater proportion of revenue was retained as gross profit.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit increased compared with both the prior quarter and the same quarter last year. Cost of revenue also rose, but gross margin improved, indicating a greater proportion of revenue was retained as gross profit.
- The improvement in gross margin, which rose from the prior quarter and from the same quarter last year, is the strongest observable driver of the quarter's gross profit growth.
- Sequentially, revenue, gross profit, and cost of revenue were all higher, with gross margin strengthening. Compared with the same quarter last year, revenue and gross profit were also higher, while cost of revenue increased and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.6%
Gross profit
$2.2B
Revenue
$5.7B
Cost of revenue
$3.6B
Quarter-over-quarter change
+1.8 pts
Year-over-year change
+1.1 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $5.3B | $1.9B | $3.4B | 36.5% |
| Sep 30, 2024 | $5.4B | $2.0B | $3.5B | 36.3% |
| Mar 31, 2025 | $4.7B | $1.7B | $3.0B | 35.8% |
| Jun 30, 2025 | $5.7B | $2.2B | $3.6B | 37.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.8 pts
Year-over-year change
Jun 30, 2024
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin, which rose from the prior quarter and from the same quarter last year, is the strongest observable driver of the quarter's gross profit growth.
Sequentially, revenue, gross profit, and cost of revenue were all higher, with gross margin strengthening. Compared with the same quarter last year, revenue and gross profit were also higher, while cost of revenue increased and gross margin improved.
Monitor inventory turnover and days sales outstanding, as these working capital metrics can influence cost of revenue trends.