Trane Technologies and Garrett Motion have entered a strategic partnership to develop and deploy oil‑free, high‑speed centrifugal compressors in Trane’s commercial HVAC portfolio. The collaboration will integrate Garrett’s breakthrough compressor platform into unitary rooftop units, modular chillers, and large‑capacity chillers, with field testing slated to begin in 2026 and production to follow shortly thereafter.
The new compressors are designed to operate without oil, reducing maintenance and enabling the use of ultra‑low global‑warming‑potential refrigerants. By combining Trane’s applied‑solutions expertise with Garrett’s proven automotive‑grade technology, the companies aim to deliver HVAC systems that achieve higher energy‑efficiency gains, lower operating costs, and a smaller environmental footprint for customers.
Trane’s recent Q4 2025 earnings beat—adjusted earnings per share of $2.86 versus the consensus of $2.82 and revenue of $5.15 billion versus the expected $5.09 billion—underscores the company’s strong execution and provides a solid foundation for the partnership. The collaboration is expected to reinforce Trane’s competitive advantage in the applied‑systems market, where it already commands a leading share, and to support the company’s goal of generating higher‑margin, technology‑enabled products.
Mauro Atalla, Chief Technology and Sustainability Officer at Trane, said the partnership “advances our commitment to lead the industry with high‑performing, energy‑efficient solutions that support our customers’ decarbonization goals.” Olivier Rabiller, President and CEO of Garrett Motion, added that the alliance “expands the use of our oil‑free high‑speed compressor technology beyond automotive into the commercial HVAC space, delivering customers a more efficient and cost‑effective system while advancing sustainability.”
Investors welcomed the announcement, noting that it builds on Trane’s strong earnings performance and guidance for 2026, which includes a 6%–7% organic revenue growth outlook and adjusted EPS of $14.65–$14.85. The partnership is viewed as a strategic move that could drive future revenue growth and enhance Trane’s technology moat in a market increasingly focused on energy efficiency and low‑GWP refrigerants.
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