Trane Technologies plc (NYSE:TT) Q3 2023 Earnings Call Transcript

David Regnery: And we really like our mix and service.

Andrew Obin: So services was driving high gross margins as well?

Christopher Kuehn: It’s a contributor, right?

David Regnery: It was a contributor. It was a system of things that does it, but we really like the mix we have with our service business.

Andrew Obin: Great. And just a follow-up question on Nuvolo, right? I think JCI also bought a workplace management software company. Fortive has a presence. Can you just talk about what excites you about this vertical and maybe also remind us how big is software as a business for you at this point?

David Regnery: Yes. Nuvolo is a cloud-based connected workplace and enterprise asset management company, and it’s leveraging the ServiceNow platform. Look, we look at this as a way to augment our current digital capabilities. Just to remind everyone, we have over 36,000 connected buildings. We have well over 1 million connected assets. So we think this is a great company, great leadership, great technology, and we’re excited to get this closed and have it be part of the Trane Technologies portfolio, and it’s going to really help us grow our digital business at a nice clip.

Andrew Obin: And how big is the digital business now?

David Regnery: I won’t be specific on that. I would say that this acquisition is less than 1% of the enterprise revenue.

Operator: We have completed the allotted time for questions. I will now turn the call over to Zac Nagle for closing remarks.

Zachary Nagle: Thanks, operator. I’d like to thank everyone for joining on today’s call. As always, we’ll be available in the coming days and weeks to answer any questions that you may have, so please don’t hesitate to reach out. Stay safe, and we look forward to seeing everyone soon.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.