Market and Supply Chain

Trane's backlog reaches $12.5 billion as Madison Air and Daikin report data center demand

Trane said its Americas Commercial HVAC backlog rose about 80% in the third quarter. Madison Air more than doubled its backlog, and Daikin posted record first-half sales.

By The Gradient Report Staff

Key points

  • Trane Technologies reported a third-quarter backlog of $12.5 billion, up 73%, with Americas Commercial HVAC backlog up about 80%. Revenue rose 18% to $6.8 billion.
  • Trane raised its 2026 outlook to reported revenue growth of about 13.5%, and about 11% organic.
  • Madison Air said third-quarter net sales rose 25.4% to $1,126.7 million and backlog rose 119.3% to $3,187.2 million, as it kept growing its data center cooling business.
  • Daikin reported record first-half net sales of 2,910.8 billion yen, up 17.4%, and said its Americas sales grew on "robust demand for data centers."

Trane Technologies ended the third quarter with a backlog of $12.5 billion, up 73% from a year earlier, the company said Oct. 29. Backlog in its Americas Commercial HVAC business rose about 80%. Reported revenue rose 18% to $6.8 billion, and organic revenue, which excludes acquisitions and currency effects, rose 16%. Organic bookings rose 20%.

"Our focus on sustainability and energy efficiency continues to resonate with customers, driving bookings growth of 20 percent in the quarter and elevating our backlog to $12.5 billion," Dave Regnery, Trane's chair and CEO, said in the release.

Bookings in Trane's Americas segment rose 18% to $5.7 billion, or 16% organic. Americas revenue rose 21%, including about 2 percentage points from acquisitions, and 19% organic. Bookings in Europe, the Middle East and Africa rose 40%, and in Asia Pacific 22%.

Trane now expects 2026 reported revenue growth of about 13.5% and organic growth of about 11%. It reaffirmed its earnings-per-share guidance "even as we navigate supply chain and inflationary headwinds," Regnery said. The release does not mention data centers or give a figure for Americas Commercial HVAC bookings.

Backlog and sales growth at Trane, Madison Air and DaikinPercent change from a year earlier, latest reported periodBacklog and sales growth at Trane, Madison Air and DaikinPercent change from a year earlier, latest reported periodBacklog, change from a year earlierTrane, total backlog ($12.5B)Trane, total backlog ($12.5B): 73%+73%Trane, Americas Commercial HVAC backlogTrane, Americas Commercial HVAC backlog: about 80%about +80%Madison Air, backlog ($3,187.2M)Madison Air, backlog ($3,187.2M): 119.3%+119.3%Sales, change from a year earlierTrane, Q3 revenue ($6.8B)Trane, Q3 revenue ($6.8B): 18%+18%Madison Air, Q3 net sales ($1,126.7M)Madison Air, Q3 net sales ($1,126.7M): 25.4%+25.4%Daikin, first-half net sales (¥2,910.8B)Daikin, first-half net sales (¥2,910.8B): 17.4%+17.4%Trane: quarter ended Sept. 30. Madison Air: quarter ended Sept. 30. Daikin: six months ended Sept. 30, in yen.Sources: Trane Technologies release, Oct. 29, 2026; Madison Air release and Form 10-Q, Nov. 5, 2026;Daikin first-half results presentation, Nov. 5, 2026. Chart: The Gradient Report.

Madison Air

Madison Air, which listed on the New York Stock Exchange in April, reported third-quarter net sales of $1,126.7 million, up 25.4%, in its Nov. 5 results. Orders rose 25.9%. Backlog rose 119.3% to $3,187.2 million, and the company's quarterly report shows $3,109.1 million of that in its Commercial segment.

Commercial segment sales rose 39.3% to $771.9 million. Residential segment sales rose 3.2% to $355.5 million. The company's brands include Nortek Air Solutions, Nortek Data Center Cooling, Reznor, Big Ass Fans, AprilAire, Broan-NuTone and Addison.

Madison Air said it "continued growing our data center cooling business to meet significant customer demand." It said Commercial segment earnings growth was "partially offset by success-based data center business mix," along with production ramp costs and inflation. The release does not give data center sales.

"We grew orders 26%, net sales 25% and adjusted EBITDA 19%, and ended the quarter with a record $3.2 billion backlog," said Jill Wyant, Madison Air's president and CEO. The company raised its 2026 net sales outlook to $4,050 million to $4,125 million, from $3,825 million to $3,925 million.

Madison Air said its Commercial segment, which includes Nortek Data Center Cooling, held $3,109.1 million of its $3,187.2 million backlog at the end of September.
Madison Air said its Commercial segment, which includes Nortek Data Center Cooling, held $3,109.1 million of its $3,187.2 million backlog at the end of September.AI-generated illustration

Daikin

Daikin Industries reported net sales of 2,910.8 billion yen for the six months ended Sept. 30, up 17.4%, and operating profit of 270.8 billion yen, up 9.8%, in its first-half results published Nov. 5. "Daikin achieved record highs in both net sales and operating profit," the company said.

Air conditioning sales in the Americas were 1,145.9 billion yen, up 17% in yen and 7% in local currency. Daikin said its applied business in the Americas grew 23% and its residential business 14%. "Sales expanded by capturing robust demand for data centers through strengthened supply and proposal capabilities," the company said of the Americas, adding that orders rose for custom air handling units.

In Europe, the Middle East and Africa, Daikin said it "expanded sales of chillers for data centers." Its plans for the Americas include "full-scale production of Applied equipment at our factory in Mexico" to meet data center demand.

Daikin raised its forecast for the fiscal year ending March 2027 to net sales of 5,440.0 billion yen and operating profit of 455.0 billion yen, from 5,150.0 billion yen and 436.0 billion yen in May.

Sources

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