Trane Technologies plc or Cummins Inc.: Who Manages SG&A Costs Better?

A Tale of Two Giants: SG&A Efficiency in Focus

In the competitive landscape of industrial manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Trane Technologies plc and Cummins Inc., two industry titans, have shown distinct approaches over the past decade. From 2014 to 2023, Trane Technologies consistently reported higher SG&A expenses, peaking at approximately $3.13 billion in 2019. However, Cummins Inc. demonstrated a more stable trajectory, with a notable increase of around 53% from 2014 to 2023, reaching $3.21 billion. This suggests a strategic expansion or investment in operational capabilities. While Trane's expenses fluctuated, Cummins maintained a steadier growth, potentially indicating more efficient cost management. As these companies continue to evolve, their ability to control SG&A costs will remain a key indicator of their financial health and competitive edge.