What is a cash flow waterfall?

A cash flow waterfall is a bar chart that walks from operating cash flow through capital expenditure to free cash flow, then shows how the remaining cash is allocated — acquisitions, buybacks, dividends, debt, and other financing — ending at the net change in cash. Each step is colour-coded: green bars add to the running total, red bars subtract.

How does Trane Technologies (TT) spend its free cash flow?

For TTM through Q1 2026, Trane Technologies generated $3.5B of operating cash flow and $3.16B of free cash flow — a free cash flow margin of 90.2% of operating cash flow. The waterfall breaks down how the remaining cash was allocated across investing and financing activities.

How much did Trane Technologies (TT) return via buybacks and dividends?

The waterfall shows buybacks (share repurchases) and dividends paid as separate steps in the financing section. Together these represent Trane Technologies's shareholder returns for TTM through Q1 2026. You can compare these against free cash flow to assess the capital-return payout ratio.

Trane Technologies (TT) Cash Flow Waterfall

Operating CF

$3.5B

Capex

-$343M

Free Cash Flow

$3.16B

FCF Margin

+90.2%

Cash flow waterfall for Trane Technologies (TT) — TTM through Q1 2026

Free cash flow: $3.16B

Cash flow breakdown for Trane Technologies (TT) — TTM through Q1 2026

Line item	Amount	Running total
Operating Cash Flow	$3.5B	$3.5B
Capital Expenditure	-$343M	$3.16B
Free Cash Flow	$3.16B	$3.16B
Acquisitions	-$675M	$2.49B
Other Investing	$12.8M	$2.5B
Dividends Paid	-$860M	$1.64B
Net Debt Change	-$167M	$1.47B
Other Financing & FX	-$1.27B	$206M
Net Cash Increase	$206M	$206M

Operating Cash Flow$3.5B
Capital Expenditure-$343M
Free Cash Flow$3.16B
Acquisitions-$675M
Other Investing$12.8M
Dividends Paid-$860M
Net Debt Change-$167M
Other Financing & FX-$1.27B
Net Cash Increase$206M

Want to see what drove the FCF change?Free Cash Flow Bridge

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