Ingersoll Rand Declares Regular Quarterly Cash Dividend, Announces Increased Share Repurchase Authorization

Rhea-AI Summary

Ingersoll Rand Inc. (NYSE: IR) declares a regular quarterly cash dividend of $0.02 per share and increases share repurchase authorization by $1 billion. The dividend is payable on June 6, 2024, to shareholders of record on May 16, 2024. The company plans to utilize the existing repurchase authorization by the end of fiscal year 2024. The additional authorization aligns with Ingersoll Rand's capital allocation strategy and focus on creating shareholder value.

Positive

• Ingersoll Rand declares a regular quarterly cash dividend of $0.02 per share.
• The company increases its share repurchase authorization by $1 billion.
• The dividend is payable on June 6, 2024, to shareholders of record on May 16, 2024.
• Ingersoll Rand plans to fully utilize the remaining $750 million repurchase authorization by the end of fiscal year 2024.
• The additional share repurchase authorization aligns with the company's capital allocation strategy and focus on shareholder value creation.

Negative

• None.

Insights

Market Analyst

The increase in share repurchase authorization by Ingersoll Rand signals a confident stance by the company's management regarding its financial stability and future prospects. Typically, a share buyback is enacted by companies who believe that their stock is undervalued, looking to invest in themselves by reducing the number of outstanding shares, which can potentially increase the earnings per share and, consequently, raise the stock price. For investors, this can be perceived as a positive move, suggesting that the company has sufficient cash reserves to return value to shareholders rather than reinvesting it back into growth or acquisitions.

Financial Analyst

The declaration of a regular quarterly cash dividend, albeit modest at $0.02 per share, provides a steady income stream for shareholders and reinforces the company's commitment to returning capital to its investors. Dividends are often viewed as a sign of a company's financial health, reflecting a predictable and solid earnings outlook. It's important for investors to consider the dividend yield in relation to the industry average and the overall stability of the dividend payout ratio when evaluating the attractiveness of the dividend in relation to the company's stock.

DAVIDSON, N.C.--(BUSINESS WIRE)-- The Board of Directors of Ingersoll Rand Inc. (NYSE: IR), a global provider of mission-critical flow creation and industrial solutions, declared today a regular quarterly cash dividend of $0.02 (two cents) per share of common stock, payable on June 6, 2024, to stockholders of record on May 16, 2024.

Ingersoll Rand’s Board of Directors also approved an incremental $1 billion increase to the share repurchase authorization. Aligned with the company’s previously communicated capital allocation strategy, Ingersoll Rand estimates it will fully utilize the remainder of the existing $750 million repurchase authorization by the end of fiscal year 2024. The additional share repurchase authorization is consistent with the company’s holistic capital allocation philosophy and focus on shareholder value creation.

Under the repurchase program, Ingersoll Rand may from time to time repurchase shares of its common stock in the open market at prevailing market prices (including through Rule 10b5-1 plans), in privately negotiated transactions, a combination thereof, or through other transactions. The actual timing, number, manner, and value of any shares repurchased will depend on several factors, including the market price of Ingersoll Rand’s stock, general market and economic conditions, the company’s liquidity requirements, applicable legal requirements, and other business considerations.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to Ingersoll Rand’s expectations regarding the performance of its business, its financial results, its liquidity and capital resources and other non-historical statements. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “target,” “endeavor,” “seek,” “predict,” “intend,” “strategy,” “plan,” “may,” “could,” “should,” “will,” “would,” “will be,” “on track to” “will continue,” “will likely result,” “guidance” or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements. All statements other than historical facts are forward-looking statements.

These forward-looking statements are based on Ingersoll Rand’s current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from these current expectations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) adverse impact on our operations and financial performance due to natural disaster, catastrophe, global pandemics, geopolitical tensions, cyber events, or other events outside of our control; (2) unexpected costs, charges or expenses resulting from completed and proposed business combinations; (3) uncertainty of the expected financial performance of the Company; (4) failure to realize the anticipated benefits of completed and proposed business combinations; (5) the ability of the Company to implement its business strategy; (6) difficulties and delays in achieving revenue and cost synergies; (7) inability of the Company to retain and hire key personnel; (8) evolving legal, regulatory and tax regimes; (9) changes in general economic and/or industry specific conditions; (10) actions by third parties, including government agencies; and (11) other risk factors detailed in Ingersoll Rand’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), as such factors may be updated from time to time in its periodic filings with the SEC, which are available on the SEC’s website at http://www.sec.gov. The foregoing list of important factors is not exclusive.

Any forward-looking statements speak only as of the date of this release. Ingersoll Rand undertakes no obligation to update any forward-looking statements, whether as a result of new information or developments, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

About Ingersoll Rand Inc.

Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to Making Life Better for our employees, customers, shareholders, and planet. Customers lean on us for exceptional performance and durability in mission-critical flow creation and industrial solutions. Supported by over 80+ respected brands, our products and services excel in the most complex and harsh conditions. Our employees develop customers for life through their daily commitment to expertise, productivity, and efficiency. For more information, visit www.IRCO.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240425291523/en/

Investors:

Matthew Fort

Matthew.Fort@irco.com



Media:

Sara Hassell

Sara.Hassell@irco.com

Source: Ingersoll Rand Inc.

FAQ

What is the amount of Ingersoll Rand's regular quarterly cash dividend per share?

Ingersoll Rand's regular quarterly cash dividend is $0.02 per share.

When is the dividend payable to shareholders of Ingersoll Rand?

The dividend is payable on June 6, 2024, to shareholders of record on May 16, 2024.

By how much did Ingersoll Rand increase its share repurchase authorization?

Ingersoll Rand increased its share repurchase authorization by $1 billion.

What is the company's plan regarding the remaining repurchase authorization by the end of fiscal year 2024?

Ingersoll Rand plans to fully utilize the remaining $750 million repurchase authorization by the end of fiscal year 2024.

Why did Ingersoll Rand approve an additional share repurchase authorization?

The additional share repurchase authorization aligns with the company's capital allocation strategy and focus on shareholder value creation.