Dave Regnery
Chair and Chief Executive Officer at Trane Technologies
Thanks, Zach and everyone, for joining today's call. As we begin, I'd like to spend a few minutes on our purpose-driven strategy, which drives our differentiated financial results over time. Our strategy is aligned to powerful mega trends like energy efficiency, decarbonization and digital transformation. These trends continue to intensify and increase the demand for our sustainable solutions. The year 2023 was recently confirmed as the warmest on record and caused many extreme weather events around the world. Urgent action is needed to reduce emissions and mitigate the effects of climate change on people's lives. That's where Trane Technologies is uniquely positioned to lead.
We are the partner of choice to help our customers advance their own sustainability goals, while driving broad impact through our Gigaton Challenge, a pledge to reduce customers' emissions by 1 billion metric tons by 2030. Our purpose-driven strategy, relentless innovation and proven business operating system, enable us to consistently deliver a superior growth profile, strong margins and powerful free cash flow. The end result is strong value creation across the board for our customers, our shareholders, our employees, and for the planet. Please turn to slide number four. We expect to deliver top quartile financial performance over the long-term, consistently and reliably on behalf of our shareholders.
This is core to our culture and central to how we set our targets and execute our strategy across our global portfolio. I'm proud of how our global teams rose to the challenge in 2023 and met or exceeded our targets top to bottom. We track top quartile performance against our core peer group closely. And while the results are not yet in, we believe we'll hit top quartile on organic revenue growth up 9% and adjusted EPS growth up 23%. We also delivered free cash flow of $2.2 billion or 103% free cash flow conversion, enabling us to make key strategic M&A investments, while raising our dividend and returning significant cash to shareholders through share repurchases.
Please turn to slide number five. Relentless investment in innovation and growth, people and culture and our business operating system are hallmarks of Trane Technologies. And over time, we see clear benefits accruing as evidenced by our strong track record. Since 2020, we have delivered a revenue compound annual growth rate of 12%, 260 basis points of EBITDA margin expansion, and free cash flow conversion of approximately 100%, enabling us to execute a balanced capital deployment strategy. We believe we're well positioned to continue to drive strong performance for shareholders over the long-term.
Please turn to slide number six. Q4 was another strong quarter. Despite challenges in our transport and residential businesses, we leveraged the strength of our diversified and resilient global portfolio in our best-in-class business operating system to deliver strong financial performance as an enterprise. In the Americas, we expected the residential markets to continue to normalize and for the transport refrigeration markets to move into a moderate down cycle in Q4. While the markets were down more than anticipated, each business delivered strong bookings growth in the quarter, strengthening our position entering 2024.
Global Commercial HVAC markets continue to be robust, and we're leveraging the power of our direct sales force to identify and pivot to the highest growth opportunities. We're thriving in key verticals such as data centers and high-tech industrial, working alongside these highly sophisticated customers to solve their most pressing challenges with ultra-efficient bespoke solutions. This is one of the things that Trane Technologies does best, and our commercial HVAC bookings, backlog and revenue reflect our success. To put this into context, our Americas Commercial HVAC bookings are up more than 50% on a three-year stack.
Our applied bookings, where we estimate an 8 to 10 times multiplier of higher-margin services for every dollar of equipment sold, are up over 100% on a three-year stack. As we look at our Commercial HVAC end markets over the next several years, we see a strong pipeline of projects increasingly playing to our unique strengths. We entered 2024 with a backlog of $6.9 billion, with the composition shifting increasingly towards Commercial HVAC, including a large percentage of long-cycle applied systems. For 2023, backlog in Commercial HVAC is up approximately $700 million. Over the past three years, our Commercial HVAC backlog has nearly tripled.
Turning to guidance. We expect another year of strong financial performance, with organic revenue growth of 6% to 7% and adjusted EPS of $10 to $10.30. Chris will discuss some of the key dynamics later in the presentation. Please go to slide number seven. Demand for our innovative products and services, continues to be broad-based across our segments. During the fourth quarter, organic bookings were up 12%, led by our commercial HVAC businesses. In the Americas segment, Commercial HVAC bookings were up mid-teens and revenues were even stronger, up mid-20s. Revenues were up more than 30% in equipment, with particular strength in applied.
Services growth was also outstanding, up mid-teens as our service business continues to compound at a rapid rate. Our residential business continues to normalize, as expected, but the market declined at a faster rate than anticipated entering the quarter. We expect the normalization process to continue in the near term but to return to a GDP plus growth over the medium to long-term. Bookings were healthy, up 8%. Our transport businesses, was the tale of two halves. The first half of the year, revenues were up about 20% and the back half of the year down 20%. Q4 marked the beginning of a modest market down cycle, which is expected to snap back in 2025.
Our fourth quarter was down approximately 20%, against a tough prior year growth comp of up 30%. For full year 2023, we modestly outperformed end markets, which were down 5%. Our EMEA segment delivered strong performance in the quarter. Commercial HVAC bookings were robust, up mid-teens. Revenues were up high-single-digits in Q4 and up more than 50% on a two-year stack. Transport bookings were flat as expected, and revenues were up mid-single-digits for Q4. In 2023, revenues were up low-single-digits, outperforming end markets, which were down mid-single-digits.
Our Asia Pacific segment performed in line with our expectations. Revenues were flat in Commercial HVAC due to a tough prior year comp, which was up low 20s. China bookings were down low-single-digits but up high-single-digits on a two-year stack. Revenues were down mid-single digits against and up low-teens prior year comp.
Now, I'd like to turn the call over to Chris. Chris?
