Ingersoll Rand Reports Record Third Quarter 2024 Results
Ingersoll Rand (NYSE: IR) reported strong third quarter 2024 results with record orders of $1,799 million (up 10%) and revenues of $1,861 million (up 7%). The company achieved net income of $222 million, or $0.54 per share, with adjusted net income of $345 million ($0.84 per share). Adjusted EBITDA increased 15% to $533 million, with a margin improvement of 210 basis points to 28.6%. The company maintained strong liquidity of $4.0 billion and updated its 2024 guidance, projecting total revenue growth of 5-7% and adjusted EPS of $3.28-$3.34.
Ingersoll Rand (NYSE: IR) ha riportato risultati solidi per il terzo trimestre del 2024, con ordini record di $1.799 milioni (in aumento del 10%) e ricavi di $1.861 milioni (in aumento del 7%). L'azienda ha registrato un utile netto di $222 milioni, pari a $0,54 per azione, con un utile netto rettificato di $345 milioni ($0,84 per azione). L'EBITDA rettificato è aumentato del 15%, raggiungendo $533 milioni, con un miglioramento del margine di 210 punti base al 28,6%. L'azienda ha mantenuto una forte liquidità di $4,0 miliardi e ha aggiornato le previsioni per il 2024, prevedendo una crescita totale dei ricavi del 5-7% e un utile per azione rettificato di $3,28-$3,34.
Ingersoll Rand (NYSE: IR) reportó sólidos resultados en el tercer trimestre de 2024, con pedidos récord de $1.799 millones (un aumento del 10%) y ingresos de $1.861 millones (un aumento del 7%). La compañía logró un ingreso neto de $222 millones, o $0,54 por acción, con un ingreso neto ajustado de $345 millones ($0,84 por acción). El EBITDA ajustado aumentó un 15% a $533 millones, con una mejora en el margen de 210 puntos base al 28,6%. La compañía mantuvo una fuerte liquidez de $4,0 mil millones y actualizó sus previsiones para 2024, proyectando un crecimiento total de ingresos del 5-7% y un EPS ajustado de $3,28-$3,34.
인거솔 랜드 (NYSE: IR)는 2024년 3분기 실적을 발표하며, 179억 9천만 달러의 기록적인 수주(10% 증가)와 186억 1천만 달러의 수익(7% 증가)을 보고했습니다. 이 회사는 2억 2천2백만 달러의 순이익, 즉 주당 0.54 달러를 달성했으며, 조정된 순이익은 3억 4천5백만 달러(주당 0.84 달러)였습니다. 조정된 EBITDA는 15% 증가하여 5억 3천3백만 달러에 도달했으며, 마진이 210 베이시스 포인트 향상되어 28.6%에 도달했습니다. 회사는 40억 달러의 강력한 유동성을 유지했으며, 2024년 가이던스를 업데이트하여 총 매출 성장률을 5-7%로, 조정된 EPS를 3.28-3.34 달러로 예측했습니다.
Ingersoll Rand (NYSE: IR) a publié de solides résultats pour le troisième trimestre de 2024, avec des commandes records de 1 799 millions de dollars (en hausse de 10 %) et des revenus de 1 861 millions de dollars (en hausse de 7 %). La société a réalisé un bénéfice net de 222 millions de dollars, soit 0,54 dollar par action, avec un bénéfice net ajusté de 345 millions de dollars (0,84 dollar par action). Le EBITDA ajusté a augmenté de 15 % pour atteindre 533 millions de dollars, avec une amélioration de la marge de 210 points de base à 28,6 %. L'entreprise a maintenu une forte liquidité de 4,0 milliards de dollars et a mis à jour ses prévisions pour 2024, projetant une croissance des revenus totaux de 5 à 7 % et un BPA ajusté de 3,28 à 3,34 dollars.
Ingersoll Rand (NYSE: IR) berichtete über starke Ergebnisse im dritten Quartal 2024 mit Rekordbestellungen in Höhe von 1.799 Millionen Dollar (ein Plus von 10%) und Einnahmen von 1.861 Millionen Dollar (ein Plus von 7%). Das Unternehmen erzielte einen Nettogewinn von 222 Millionen Dollar oder 0,54 Dollar pro Aktie, mit einem adjustierten Nettogewinn von 345 Millionen Dollar (0,84 Dollar pro Aktie). Das adjustierte EBITDA stieg um 15% auf 533 Millionen Dollar, mit einer Margenverbesserung von 210 Basispunkten auf 28,6%. Das Unternehmen hielt eine starke Liquidität von 4,0 Milliarden Dollar und aktualisierte seine Prognose für 2024, wobei ein Umsatzwachstum von 5-7% sowie ein adjustiertes EPS von 3,28-3,34 Dollar projiziert wird.
- Record Q3 orders of $1,799M, up 10% year-over-year
- Revenue increased 7% to $1,861M
- Adjusted EBITDA grew 15% to $533M with margin expansion of 210 basis points
- Strong free cash flow of $374M with 20% margin
- Gross margin improved 130 basis points
- Completed multiple strategic acquisitions in October
- Organic revenue declined 2% in Industrial Technologies & Services segment
- Organic revenue decreased 3% in Precision & Science Technologies segment
- Net debt to Adjusted EBITDA leverage increased 0.8x to 1.7x due to acquisition
- Lowered full-year revenue growth guidance from 6-8% to 5-7%
Insights
Ingersoll Rand delivered a robust Q3 2024 with notable financial achievements. Orders increased by
- Adjusted EBITDA margin expansion of 210 basis points to
28.6% - Strong free cash flow of
$374 million with20% margin - Healthy liquidity position of
$4.0 billion
The company's strategic M&A activities, including four recent acquisitions, demonstrate commitment to growth. However, organic growth guidance has been revised downward to
The execution of Ingersoll Rand's segment strategy shows mixed results. The IT&S segment, despite flat organic orders, maintained strong profitability with
Delivered Record Third Quarter Orders and Revenue with Strong Gross Margin Expansion, Adj. EPS growth, and Free Cash Flow Margin
Third Quarter 2024 Highlights
(All comparisons against the third quarter of 2023 unless otherwise noted.)
Strong performance driven by its competitive differentiator - Ingersoll Rand Execution Excellence (IRX):
-
Third quarter orders of
$1,799 million 10% -
Reported third quarter revenues of
$1,861 million 7% -
Reported net income attributable to Ingersoll Rand Inc. of
$222 million $0.54 -
Adjusted net income1 of
$345 million $0.84
-
Adjusted net income1 of
-
Adjusted EBITDA1 of
$533 million 15% , with a margin of28.6% , up 210 basis points year over year- Gross margin improvement of 130 basis points
-
Reported operating cash flow of
$404 million $374 million 2% -
Free cash flow margin1 of
20%
-
Free cash flow margin1 of
-
Liquidity of
$4.0 billion $1.4 billion $2.6 billion
2024 Guidance
-
Total revenue growth guidance range of
5% to7% for the full year -
Adjusted EBITDA1 guidance range of
$2,010 $2,040 million 12% to14% over prior year -
Full-year 2024 Adjusted EPS1 guidance range of
$3.28 $3.34 11% to13% over prior year
“Our Economic Growth Engine remains on track to deliver our long-term Investor Day targets of double-digit Adjusted EPS growth and strong free cash flow generation,” said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand. “We plan on continuing to deploy capital to M&A and drive innovation all while showcasing our ability to deliver sustainable and long-term value as a premier growth compounder.”
Third Quarter 2024 Segment Review
(All comparisons against the third quarter of 2023 unless otherwise noted.)
Industrial Technologies and Services Segment (IT&S): Broad range of compressor, vacuum, blower, and air treatment solutions as well as industrial technologies including power tools and lifting equipment
-
Reported Orders of
$1,421 million 5% , or flat organic -
Reported Revenues of
$1,467 million 3% , or down2% organic1 -
Reported Segment Adjusted EBITDA of
$450 million 9% -
Reported Segment Adjusted EBITDA Margin of
30.7% , up 190 basis points, due to IRX enabling strong operational execution driving gross margin expansion. - IT&S saw positive organic order growth, finishing largely in line with expectations. Book to bill remains on track and consistent with the previous guidance.
__________________________________________
1 Non-GAAP measure (definitions and/or reconciliations in tables below)
Precision and Science Technologies Segment (P&ST): Mission-critical precision liquid, gas, air, and powder handling technologies for life sciences and industrial applications as well as aerospace and defense applications.
-
Reported Orders of
$378 million 30% , or up3% organic -
Reported Revenues of
$394 million 27% , or down3% organic1 -
Reported Segment Adjusted EBITDA of
$118 million 25% -
Reported Segment Adjusted EBITDA Margin of
30.0% , down 30 basis points, driven largely by the Life Sciences businesses - Organic order growth of low single-digits was driven through demand generation activities and the use of IRX. The performance of the Industrial businesses remains strong with mid-single digit organic orders growth year over year.
Balance Sheet and Cash Flow
Ingersoll Rand remains in a strong financial position with ample liquidity of
Consistent with our comprehensive capital allocation strategy led by M&A, in the third quarter of 2024 Ingersoll Rand deployed
- Air Power Systems Co., LLC, a leader in the design and manufacturing of fluid power systems for mobile transport equipment expanding Ingersoll Rand’s leading position in the dry and liquid blower and vacuum markets.
- Blutek s.r.l., is a leader in the design and manufacturing of oil-free and lubricated screw-scroll compressors and complete skids for instrument air and nitrogen generation.
- UT Pumps & Systems Private Limited, a leading Indian manufacturer of screw pumps and triplex plunger pumps primarily focused on high-growth, sustainable end markets.
- Penn Valley Pump, a leading manufacturer of unique positive displacement pumps with its Double Disc Pump™ technology for use in the municipal, industrial, chemical and food industries.
We believe that the execution of the Company’s bolt-on acquisition strategy continues to enhance its durable financial profile by serving high-growth, sustainable end markets.
The Company also returned approximately
__________________________________________
2 Calculated as Net Debt to LTM Adjusted EBITDA
2024 Guidance
Ingersoll Rand is updating its guidance for full-year 2024 Revenue, Adjusted EBITDA, and Adjusted EPS ranges.
|
Key Metrics |
|
|
Previous Guidance as of 7/31/24 |
Revised Guidance as of 10/31/24 |
Revenue - Total Ingersoll Rand2 |
6 |
5 |
Ingersoll Rand (Organic)1 |
0 |
(2)- |
Industrial Technologies & Services (Organic)1 |
0 |
(2)- |
Precision & Science Technologies (Organic)1 |
0 |
(2)- |
FX Impact3 |
(~ |
~Flat |
M&A4 |
|
|
Corporate Costs |
( |
( |
Adjusted EBITDA1 |
(+ |
(+ |
Adjusted EPS1 |
(+ |
(+ |
Reconciliations of non-GAAP measures related to full-year 2024 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations, including net income (loss) and adjustments that could be made for acquisitions-related expenses, restructuring and other business transformation costs, gains or losses on foreign currency exchange and the timing and magnitude of other amounts in the reconciliation of historic numbers. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
__________________________________________
1 Non-GAAP measure (definitions and/or reconciliations in tables below)
2 All revenue outlook commentary expressed in percentages and based on growth as compared to 2023
3 Based on September 2024 FX rates; does not include impact of FX on M&A
4 Reflects all completed and closed M&A as of October 31, 2024
Conference Call
Ingersoll Rand will host a live earnings conference call to discuss the third quarter results on Friday, November 1, 2024 at 8:00 a.m. (Eastern Time). To participate in the call, please dial 1-888-330-3073, domestically, or 1-646-960-0683, internationally, and use access Code 8970061. A real-time audio webcast of the presentation can be accessed via the Events and Presentations section of the Ingersoll Rand Investor Relations website (https://investors.irco.com), where related materials will be posted prior to the conference call. A replay of the webcast will be available after conclusion of the conference and can be accessed on the Ingersoll Rand Investor Relations website.
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 Inc.’s (the “Company” or “Ingersoll Rand”) 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 life sciences 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.
Non-
In addition to consolidated GAAP financial measures, Ingersoll Rand reviews various non-GAAP financial measures, including “Organic Revenue Growth/(Decline),” “Adjusted EBITDA,” “Adjusted EBITDA margin,” “Adjusted Net Income,” “Adjusted Diluted EPS,” “Free Cash Flow” and “Free Cash Flow Margin.”
Ingersoll Rand believes Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted EPS are helpful supplemental measures to assist management and investors in evaluating the Company’s operating results as they exclude certain items that are unusual in nature or whose fluctuation from period to period do not necessarily correspond to changes in the operations of Ingersoll Rand’s business. Ingersoll Rand believes Organic Revenue Growth/(Decline) is helpful supplemental measure to assist management and investors in evaluating the Company’s operating results as it excludes the impact of foreign currency and acquisitions on revenue growth. Adjusted EBITDA represents net income before interest, taxes, depreciation, amortization and certain non-cash, non-recurring and other adjustment items. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenue. Adjusted Net Income is defined as net income including interest, depreciation and amortization of non-acquisition related intangible assets and excluding other items used to calculate Adjusted EBITDA and further adjusted for the tax effect of these exclusions. Organic Revenue Growth/(Decline) is defined as As Reported Revenue growth less the impacts of Foreign Currency and Acquisitions. Ingersoll Rand believes that the adjustments applied in presenting Adjusted EBITDA and Adjusted Net Income are appropriate to provide additional information to investors about certain material non-cash items and about non-recurring items that the Company does not expect to continue at the same level in the future. Adjusted Diluted EPS is defined as Adjusted Net Income divided by Adjusted Diluted Average Shares Outstanding. Incrementals/Decrementals are defined as the change in Adjusted EBITDA versus the prior year period divided by the change in revenue versus the prior year period.
Ingersoll Rand uses Free Cash Flow and Free Cash Flow Margin to review the liquidity of its operations. Ingersoll Rand measures Free Cash Flow as cash flows from operating activities less capital expenditures. Free Cash Flow Margin is defined as Free Cash Flow divided by Revenue. Ingersoll Rand believes Free Cash Flow and Free Cash Flow Margin are useful supplemental financial measures for management and investors in assessing the Company’s ability to pursue business opportunities and investments and to service its debt. Free Cash Flow is not a measure of our liquidity under GAAP and should not be considered as an alternative to cash flows from operating activities.
Management and Ingersoll Rand’s board of directors regularly use these measures as tools in evaluating the Company’s operating and financial performance and in establishing discretionary annual compensation. Such measures are provided in addition to and should not be considered to be a substitute for, or superior to, the comparable measures under GAAP. In addition, Ingersoll Rand believes that Organic Revenue Growth/(Decline), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Incrementals/Decrementals, Free Cash Flow and Free Cash Flow Margin are frequently used by investors and other interested parties in the evaluation of issuers, many of which also present Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow and Free Cash Flow Margin when reporting their results in an effort to facilitate an understanding of their operating and financial results and liquidity.
Organic Revenue Growth/(Decline), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow and Free Cash Flow Margin should not be considered as alternatives to revenue growth, net income, diluted earnings per share or any other performance measure derived in accordance with GAAP, or as alternatives to cash flow from operating activities as a measure of our liquidity. Organic Revenue Growth/(Decline), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow and Free Cash Flow Margin have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing Ingersoll Rand’s results as reported under GAAP.
Reconciliations of Organic Revenue Growth/(Decline), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow and Free Cash Flow Margin to their most comparable
Reconciliations of non-GAAP measures related to full-year 2024 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations, including net income (loss) and adjustments that could be made for acquisitions-related expenses, restructuring and other business transformation costs, gains or losses on foreign currency exchange and the timing and magnitude of other amounts in the reconciliation of historic numbers. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
INGERSOLL RAND INC. AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(Unaudited; in millions, except per share amounts) |
|||||||||||||||
|
For the Three Month Period Ended September 30, |
|
For the Nine Month Period Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues |
$ |
1,861.0 |
|
|
$ |
1,738.9 |
|
|
$ |
5,336.4 |
|
|
$ |
5,054.7 |
|
Cost of sales |
|
1,046.0 |
|
|
|
999.6 |
|
|
|
2,981.8 |
|
|
|
2,953.7 |
|
Gross Profit |
|
815.0 |
|
|
|
739.3 |
|
|
|
2,354.6 |
|
|
|
2,101.0 |
|
Selling and administrative expenses |
|
334.3 |
|
|
|
315.2 |
|
|
|
1,012.7 |
|
|
|
941.9 |
|
Amortization of intangible assets |
|
95.0 |
|
|
|
92.2 |
|
|
|
277.8 |
|
|
|
274.3 |
|
Other operating expense, net |
|
29.4 |
|
|
|
13.5 |
|
|
|
142.8 |
|
|
|
53.7 |
|
Operating Income |
|
356.3 |
|
|
|
318.4 |
|
|
|
921.3 |
|
|
|
831.1 |
|
Interest expense |
|
63.8 |
|
|
|
39.6 |
|
|
|
151.4 |
|
|
|
119.3 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
12.6 |
|
|
|
3.0 |
|
|
|
13.5 |
|
Other income, net |
|
(9.5 |
) |
|
|
(7.6 |
) |
|
|
(40.8 |
) |
|
|
(25.4 |
) |
Income Before Income Taxes |
|
302.0 |
|
|
|
273.8 |
|
|
|
807.7 |
|
|
|
723.7 |
|
Provision for income taxes |
|
73.8 |
|
|
|
60.3 |
|
|
|
174.3 |
|
|
|
168.9 |
|
Loss on equity method investments |
|
(4.8 |
) |
|
|
(3.9 |
) |
|
|
(19.0 |
) |
|
|
(1.2 |
) |
Net Income |
|
223.4 |
|
|
|
209.6 |
|
|
|
614.4 |
|
|
|
553.6 |
|
Less: Net income attributable to noncontrolling interests |
|
1.8 |
|
|
|
1.3 |
|
|
|
5.6 |
|
|
|
4.7 |
|
Net Income Attributable to Ingersoll Rand Inc. |
$ |
221.6 |
|
|
$ |
208.3 |
|
|
$ |
608.8 |
|
|
$ |
548.9 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
|
0.55 |
|
|
|
0.51 |
|
|
|
1.51 |
|
|
|
1.36 |
|
Diluted earnings per share |
|
0.54 |
|
|
|
0.51 |
|
|
|
1.49 |
|
|
|
1.34 |
|
INGERSOLL RAND INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited; in millions, except share amounts) |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,376.9 |
|
|
$ |
1,595.5 |
|
Accounts receivable, net of allowance for credit losses of |
|
1,342.2 |
|
|
|
1,234.2 |
|
Inventories |
|
1,162.5 |
|
|
|
1,001.1 |
|
Other current assets |
|
309.6 |
|
|
|
219.6 |
|
Total current assets |
|
4,191.2 |
|
|
|
4,050.4 |
|
Property, plant and equipment, net of accumulated depreciation of |
|
853.1 |
|
|
|
711.4 |
|
Goodwill |
|
8,206.2 |
|
|
|
6,609.7 |
|
Other intangible assets, net |
|
4,445.8 |
|
|
|
3,611.1 |
|
Deferred tax assets |
|
30.3 |
|
|
|
31.5 |
|
Other assets |
|
479.6 |
|
|
|
549.4 |
|
Total assets |
$ |
18,206.2 |
|
|
$ |
15,563.5 |
|
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Short-term borrowings and current maturities of long-term debt |
$ |
2.9 |
|
|
$ |
30.6 |
|
Accounts payable |
|
743.8 |
|
|
|
801.2 |
|
Accrued liabilities |
|
1,028.9 |
|
|
|
995.5 |
|
Total current liabilities |
|
1,775.6 |
|
|
|
1,827.3 |
|
Long-term debt, less current maturities |
|
4,782.5 |
|
|
|
2,693.0 |
|
Pensions and other postretirement benefits |
|
153.1 |
|
|
|
150.0 |
|
Deferred income tax liabilities |
|
802.7 |
|
|
|
612.6 |
|
Other liabilities |
|
358.1 |
|
|
|
433.9 |
|
Total liabilities |
$ |
7,872.0 |
|
|
$ |
5,716.8 |
|
Stockholders' equity: |
|
|
|
||||
Common stock, |
|
4.3 |
|
|
|
4.3 |
|
Capital in excess of par value |
|
9,614.9 |
|
|
|
9,550.8 |
|
Retained earnings |
|
2,281.8 |
|
|
|
1,697.2 |
|
Accumulated other comprehensive loss |
|
(202.1 |
) |
|
|
(227.6 |
) |
Treasury stock at cost; 27,252,719 and 25,241,667 shares as of September 30, 2024 and December 31, 2023, respectively |
|
(1,431.3 |
) |
|
|
(1,240.9 |
) |
Total Ingersoll Rand stockholders' equity |
$ |
10,267.6 |
|
|
$ |
9,783.8 |
|
Noncontrolling interests |
|
66.6 |
|
|
|
62.9 |
|
Total stockholders' equity |
$ |
10,334.2 |
|
|
$ |
9,846.7 |
|
Total liabilities and stockholders' equity |
$ |
18,206.2 |
|
|
$ |
15,563.5 |
|
INGERSOLL RAND INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited; in millions) |
|||||||
|
Nine Month Period Ended September 30, |
||||||
|
2024 |
|
2023 |
||||
Cash Flows From Operating Activities: |
|
|
|||||
Net income |
$ |
614.4 |
|
|
$ |
553.6 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Amortization of intangible assets |
|
277.8 |
|
|
|
274.3 |
|
Depreciation |
|
80.6 |
|
|
|
67.2 |
|
Non-cash restructuring charges |
|
1.6 |
|
|
|
2.1 |
|
Stock-based compensation expense |
|
43.6 |
|
|
|
35.2 |
|
Loss on equity method investments |
|
19.0 |
|
|
|
1.2 |
|
Foreign currency transaction losses, net |
|
9.2 |
|
|
|
1.0 |
|
Non-cash adjustments to carrying value of LIFO inventories |
|
7.2 |
|
|
|
14.0 |
|
Loss on extinguishment of debt |
|
3.0 |
|
|
|
13.5 |
|
Loss on sale of asbestos-related assets and liabilities |
|
33.7 |
|
|
|
— |
|
Other non-cash adjustments |
|
5.2 |
|
|
|
7.4 |
|
Changes in assets and liabilities: |
|
|
|
||||
Receivables |
|
(17.9 |
) |
|
|
(62.2 |
) |
Inventories |
|
(40.1 |
) |
|
|
10.0 |
|
Accounts payable |
|
(95.6 |
) |
|
|
(140.8 |
) |
Accrued liabilities |
|
5.0 |
|
|
|
82.1 |
|
Other assets and liabilities, net |
|
(76.2 |
) |
|
|
(62.6 |
) |
Net cash provided by operating activities |
|
870.5 |
|
|
|
796.0 |
|
Cash Flows Used In Investing Activities: |
|
|
|
||||
Capital expenditures |
|
(113.8 |
) |
|
|
(75.8 |
) |
Net cash paid in acquisitions |
|
(2,759.1 |
) |
|
|
(923.8 |
) |
Disposals of property, plant and equipment |
|
6.1 |
|
|
|
7.6 |
|
Other investing |
|
(6.0 |
) |
|
|
0.3 |
|
Net cash used in investing activities |
|
(2,872.8 |
) |
|
|
(991.7 |
) |
Cash Flows From (Used In) Financing Activities: |
|
|
|
||||
Principal payments on long-term debt |
|
(1,241.8 |
) |
|
|
(1,510.8 |
) |
Proceeds from long-term debt |
|
3,296.9 |
|
|
|
1,490.4 |
|
Purchases of treasury stock |
|
(198.2 |
) |
|
|
(132.9 |
) |
Cash dividends on common shares |
|
(24.2 |
) |
|
|
(24.3 |
) |
Proceeds from stock option exercises |
|
28.3 |
|
|
|
21.9 |
|
Payments to settle cross-currency swaps |
|
(19.9 |
) |
|
|
— |
|
Payments of deferred and contingent acquisition consideration |
|
(22.6 |
) |
|
|
(17.4 |
) |
Payments of debt issuance costs |
|
(32.3 |
) |
|
|
(17.3 |
) |
Other financing |
|
(3.5 |
) |
|
|
(3.4 |
) |
Net cash provided by (used in) financing activities |
|
1,782.7 |
|
|
|
(193.8 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
1.0 |
|
|
|
(26.0 |
) |
Net decrease in cash and cash equivalents |
|
(218.6 |
) |
|
|
(415.5 |
) |
Cash and cash equivalents, beginning of period |
|
1,595.5 |
|
|
|
1,613.0 |
|
Cash and cash equivalents, end of period |
$ |
1,376.9 |
|
|
$ |
1,197.5 |
|
INGERSOLL RAND INC. AND SUBSIDIARIES |
|||||||||||||||
UNAUDITED ADJUSTED FINANCIAL INFORMATION |
|||||||||||||||
(Dollars in millions) |
|||||||||||||||
|
For the Three Month Period Ended September 30, |
|
For the Nine Month Period Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues |
$ |
1,861.0 |
|
|
$ |
1,738.9 |
|
|
$ |
5,336.4 |
|
|
$ |
5,054.7 |
|
Adjusted EBITDA |
$ |
532.7 |
|
|
$ |
461.5 |
|
|
$ |
1,485.8 |
|
|
$ |
1,286.3 |
|
Adjusted EBITDA Margin |
|
28.6 |
% |
|
|
26.5 |
% |
|
|
27.8 |
% |
|
|
25.4 |
% |
Free Cash Flow |
$ |
374.3 |
|
|
$ |
368.7 |
|
|
$ |
756.7 |
|
|
$ |
720.2 |
|
Free Cash Flow Margin |
|
20.1 |
% |
|
|
21.2 |
% |
|
|
14.2 |
% |
|
|
14.2 |
% |
INGERSOLL RAND INC. AND SUBSIDIARIES |
|||||||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME ATTRIBUTABLE TO INGERSOLL RAND AND ADJUSTED DILUTED EARNINGS PER SHARE |
|||||||||||||
(Unaudited; in millions) |
|||||||||||||
|
For the Three Month Period Ended September 30, |
|
For the Nine Month Period Ended September 30, |
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Net Income |
$ |
223.4 |
|
$ |
209.6 |
|
|
$ |
614.4 |
|
$ |
553.6 |
|
Plus: |
|
|
|
|
|
|
|
||||||
Provision for income taxes |
|
73.8 |
|
|
60.3 |
|
|
|
174.3 |
|
|
168.9 |
|
Amortization of acquisition related intangible assets |
|
92.7 |
|
|
89.8 |
|
|
|
271.3 |
|
|
266.7 |
|
Restructuring and related business transformation costs |
|
9.7 |
|
|
2.2 |
|
|
|
24.3 |
|
|
12.4 |
|
Acquisition and other transaction related expenses and non-cash charges |
|
16.5 |
|
|
14.8 |
|
|
|
59.5 |
|
|
46.6 |
|
Stock-based compensation |
|
15.0 |
|
|
11.2 |
|
|
|
43.6 |
|
|
35.2 |
|
Foreign currency transaction losses, net |
|
9.9 |
|
|
1.1 |
|
|
|
9.2 |
|
|
1.0 |
|
Loss on equity method investments |
|
4.8 |
|
|
3.9 |
|
|
|
19.0 |
|
|
1.2 |
|
Loss on extinguishment of debt |
|
— |
|
|
12.6 |
|
|
|
3.0 |
|
|
13.5 |
|
Adjustments to LIFO inventories |
|
— |
|
|
(0.3 |
) |
|
|
7.2 |
|
|
14.0 |
|
Cybersecurity incident costs |
|
— |
|
|
0.1 |
|
|
|
0.5 |
|
|
2.3 |
|
Loss on asbestos sale |
|
— |
|
|
— |
|
|
|
58.8 |
|
|
— |
|
Other adjustments |
|
0.6 |
|
|
(0.3 |
) |
|
|
1.0 |
|
|
(1.7 |
) |
Minus: |
|
|
|
|
|
|
|
||||||
Income tax provision, as adjusted |
|
101.7 |
|
|
89.0 |
|
|
|
280.4 |
|
|
252.5 |
|
Adjusted Net Income |
|
344.7 |
|
|
316.0 |
|
|
|
1,005.7 |
|
|
861.2 |
|
Less: Net income attributable to noncontrolling interest |
|
1.8 |
|
|
1.3 |
|
|
|
5.6 |
|
|
4.7 |
|
Adjusted Net Income Attributable to Ingersoll Rand Inc. |
$ |
342.9 |
|
$ |
314.7 |
|
|
$ |
1,000.1 |
|
$ |
856.5 |
|
|
|
|
|
|
|
|
|
||||||
Adjusted Basic Earnings Per Share1 |
$ |
0.85 |
|
$ |
0.78 |
|
|
$ |
2.48 |
|
$ |
2.12 |
|
Adjusted Diluted Earnings Per Share2 |
$ |
0.84 |
|
$ |
0.77 |
|
|
$ |
2.45 |
|
$ |
2.09 |
|
|
|
|
|
|
|
|
|
||||||
Average shares outstanding: |
|
|
|
|
|
|
|
||||||
Basic, as reported |
|
403.4 |
|
|
404.5 |
|
|
|
403.5 |
|
|
404.8 |
|
Diluted, as reported |
|
406.9 |
|
|
408.6 |
|
|
|
407.4 |
|
|
408.9 |
|
Adjusted diluted2 |
|
406.9 |
|
|
408.6 |
|
|
|
407.4 |
|
|
408.9 |
|
1 Basic and diluted earnings per share (as reported) are calculated by dividing net income attributable to Ingersoll Rand Inc. by the basic and diluted average shares outstanding for the respective periods. |
|||||||||||||
2 Adjusted diluted share count and adjusted diluted earnings per share include incremental dilutive shares, using the treasury stock method, which are added to average shares outstanding. |
|||||||||||||
INGERSOLL RAND INC. AND SUBSIDIARIES |
|||||||||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA AND ADJUSTED NET INCOME AND CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW |
|||||||||||||||
(Unaudited; in millions) |
|||||||||||||||
|
For the Three Month Period Ended September 30, |
|
For the Nine Month Period Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net Income |
$ |
223.4 |
|
|
$ |
209.6 |
|
|
$ |
614.4 |
|
|
$ |
553.6 |
|
Plus: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
63.8 |
|
|
|
39.6 |
|
|
|
151.4 |
|
|
|
119.3 |
|
Provision for income taxes |
|
73.8 |
|
|
|
60.3 |
|
|
|
174.3 |
|
|
|
168.9 |
|
Depreciation expense |
|
28.2 |
|
|
|
22.4 |
|
|
|
77.5 |
|
|
|
64.4 |
|
Amortization expense |
|
95.0 |
|
|
|
92.2 |
|
|
|
277.8 |
|
|
|
274.3 |
|
Restructuring and related business transformation costs |
|
9.7 |
|
|
|
2.2 |
|
|
|
24.3 |
|
|
|
12.4 |
|
Acquisition and other transaction related expenses and non-cash charges |
|
16.5 |
|
|
|
14.8 |
|
|
|
59.5 |
|
|
|
46.6 |
|
Stock-based compensation |
|
15.0 |
|
|
|
11.2 |
|
|
|
43.6 |
|
|
|
35.2 |
|
Foreign currency transaction losses, net |
|
9.9 |
|
|
|
1.1 |
|
|
|
9.2 |
|
|
|
1.0 |
|
Loss on equity method investments |
|
4.8 |
|
|
|
3.9 |
|
|
|
19.0 |
|
|
|
1.2 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
12.6 |
|
|
|
3.0 |
|
|
|
13.5 |
|
Adjustments to LIFO inventories |
|
— |
|
|
|
(0.3 |
) |
|
|
7.2 |
|
|
|
14.0 |
|
Cybersecurity incident costs |
|
— |
|
|
|
0.1 |
|
|
|
0.5 |
|
|
|
2.3 |
|
Loss on asbestos sale |
|
— |
|
|
|
— |
|
|
|
58.8 |
|
|
|
— |
|
Interest income on cash and cash equivalents |
|
(8.0 |
) |
|
|
(7.9 |
) |
|
|
(35.7 |
) |
|
|
(18.7 |
) |
Other adjustments |
|
0.6 |
|
|
|
(0.3 |
) |
|
|
1.0 |
|
|
|
(1.7 |
) |
Adjusted EBITDA |
$ |
532.7 |
|
|
$ |
461.5 |
|
|
$ |
1,485.8 |
|
|
$ |
1,286.3 |
|
Minus: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
63.8 |
|
|
|
39.6 |
|
|
|
151.4 |
|
|
|
119.3 |
|
Income tax provision, as adjusted |
|
101.7 |
|
|
|
89.0 |
|
|
|
280.4 |
|
|
|
252.5 |
|
Depreciation expense |
|
28.2 |
|
|
|
22.4 |
|
|
|
77.5 |
|
|
|
64.4 |
|
Amortization of non-acquisition related intangible assets |
|
2.3 |
|
|
|
2.4 |
|
|
|
6.5 |
|
|
|
7.6 |
|
Interest income on cash and cash equivalents |
|
(8.0 |
) |
|
|
(7.9 |
) |
|
|
(35.7 |
) |
|
|
(18.7 |
) |
Adjusted Net Income |
$ |
344.7 |
|
|
$ |
316.0 |
|
|
$ |
1,005.7 |
|
|
$ |
861.2 |
|
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow: |
|
|
|
|
|
|
|
||||||||
Cash flows from operating activities |
$ |
404.0 |
|
|
$ |
397.3 |
|
|
$ |
870.5 |
|
|
$ |
796.0 |
|
Minus: |
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
29.7 |
|
|
|
28.6 |
|
|
|
113.8 |
|
|
|
75.8 |
|
Free Cash Flow |
$ |
374.3 |
|
|
$ |
368.7 |
|
|
$ |
756.7 |
|
|
$ |
720.2 |
|
INGERSOLL RAND INC. AND SUBSIDIARIES |
|||||||||||||||
RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET INCOME |
|||||||||||||||
(Unaudited; in millions) |
|||||||||||||||
|
For the Three Month Period Ended September 30, |
|
For the Nine Month Period Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Orders |
|
|
|
|
|
|
|
||||||||
Industrial Technologies and Services |
$ |
1,420.6 |
|
|
$ |
1,346.9 |
|
|
$ |
4,284.4 |
|
|
$ |
4,241.5 |
|
Precision and Science Technologies |
|
378.1 |
|
|
|
290.9 |
|
|
|
1,021.1 |
|
|
|
910.5 |
|
Total Orders |
$ |
1,798.7 |
|
|
$ |
1,637.8 |
|
|
$ |
5,305.5 |
|
|
$ |
5,152.0 |
|
Revenue |
|
|
|
|
|
|
|
||||||||
Industrial Technologies and Services |
$ |
1,467.2 |
|
|
$ |
1,428.4 |
|
|
$ |
4,307.1 |
|
|
$ |
4,124.0 |
|
Precision and Science Technologies |
|
393.8 |
|
|
|
310.5 |
|
|
|
1,029.3 |
|
|
|
930.7 |
|
Total Revenue |
$ |
1,861.0 |
|
|
$ |
1,738.9 |
|
|
$ |
5,336.4 |
|
|
$ |
5,054.7 |
|
Segment Adjusted EBITDA |
|
|
|
|
|
|
|
||||||||
Industrial Technologies and Services |
$ |
449.9 |
|
|
$ |
410.9 |
|
|
$ |
1,297.2 |
|
|
$ |
1,134.0 |
|
Precision and Science Technologies |
|
118.1 |
|
|
|
94.2 |
|
|
|
312.0 |
|
|
|
278.7 |
|
Total Segment Adjusted EBITDA |
$ |
568.0 |
|
|
$ |
505.1 |
|
|
$ |
1,609.2 |
|
|
$ |
1,412.7 |
|
Less items to reconcile Segment Adjusted EBITDA to Income Before Income Taxes: |
|
|
|
|
|
|
|
||||||||
Corporate expenses not allocated to segments |
$ |
35.3 |
|
|
$ |
43.6 |
|
|
$ |
123.4 |
|
|
$ |
126.4 |
|
Interest expense |
|
63.8 |
|
|
|
39.6 |
|
|
|
151.4 |
|
|
|
119.3 |
|
Depreciation and amortization expense |
|
123.2 |
|
|
|
114.6 |
|
|
|
355.3 |
|
|
|
338.7 |
|
Restructuring and related business transformation costs |
|
9.7 |
|
|
|
2.2 |
|
|
|
24.3 |
|
|
|
12.4 |
|
Acquisition and other transaction related expenses and non-cash charges |
|
16.5 |
|
|
|
14.8 |
|
|
|
59.5 |
|
|
|
46.6 |
|
Stock-based compensation |
|
15.0 |
|
|
|
11.2 |
|
|
|
43.6 |
|
|
|
35.2 |
|
Foreign currency transaction losses, net |
|
9.9 |
|
|
|
1.1 |
|
|
|
9.2 |
|
|
|
1.0 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
12.6 |
|
|
|
3.0 |
|
|
|
13.5 |
|
Adjustments to LIFO inventories |
|
— |
|
|
|
(0.3 |
) |
|
|
7.2 |
|
|
|
14.0 |
|
Cybersecurity incident costs |
|
— |
|
|
|
0.1 |
|
|
|
0.5 |
|
|
|
2.3 |
|
Loss on asbestos sale |
|
— |
|
|
|
— |
|
|
|
58.8 |
|
|
|
— |
|
Interest income on cash and cash equivalents |
|
(8.0 |
) |
|
|
(7.9 |
) |
|
|
(35.7 |
) |
|
|
(18.7 |
) |
Other adjustments |
|
0.6 |
|
|
|
(0.3 |
) |
|
|
1.0 |
|
|
|
(1.7 |
) |
Income Before Income Taxes |
|
302.0 |
|
|
|
273.8 |
|
|
|
807.7 |
|
|
|
723.7 |
|
Provision for income taxes |
|
73.8 |
|
|
|
60.3 |
|
|
|
174.3 |
|
|
|
168.9 |
|
Loss on equity method investments |
|
(4.8 |
) |
|
|
(3.9 |
) |
|
|
(19.0 |
) |
|
|
(1.2 |
) |
Net Income |
$ |
223.4 |
|
|
$ |
209.6 |
|
|
$ |
614.4 |
|
|
$ |
553.6 |
|
INGERSOLL RAND INC. AND SUBSIDIARIES |
|||||
ORDERS AND REVENUE GROWTH (DECLINE) BY SEGMENT1 |
|||||
|
For the Three Month Period Ended September 30, 2024 |
||||
|
Orders |
|
Revenue |
||
Ingersoll Rand |
|
|
|
||
Organic growth (decline) |
0.8 |
% |
|
(2.4 |
%) |
Impact of foreign currency |
0.3 |
% |
|
0.5 |
% |
Impact of acquisitions |
8.7 |
% |
|
8.9 |
% |
Total orders and revenue growth |
9.8 |
% |
|
7.0 |
% |
|
|
|
|
||
Industrial Technologies & Services |
|
|
|
||
Organic growth (decline) |
0.4 |
% |
|
(2.2 |
%) |
Impact of foreign currency |
0.3 |
% |
|
0.4 |
% |
Impact of acquisitions |
4.8 |
% |
|
4.5 |
% |
Total orders and revenue growth |
5.5 |
% |
|
2.7 |
% |
|
|
|
|
||
Precision & Science Technologies |
|
|
|
||
Organic growth (decline) |
2.6 |
% |
|
(3.2 |
%) |
Impact of foreign currency |
1.0 |
% |
|
0.9 |
% |
Impact of acquisitions |
26.4 |
% |
|
29.1 |
% |
Total orders and revenue growth |
30.0 |
% |
|
26.8 |
% |
1 Organic growth/(decline), impact of foreign currency, and impact of acquisitions are non-GAAP measures. References to “impact of acquisitions” refer to GAAP sales from acquired businesses recorded prior to the first anniversary of the acquisition. The portion of GAAP revenue attributable to currency translation is calculated as the difference between (a) the period-to-period change in revenue (excluding acquisition sales) and (b) the period-to-period change in revenue (excluding acquisition sales) after applying prior year foreign exchange rates to the current year period. |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031346025/en/
Investor Relations:
Matthew Fort
Matthew.Fort@irco.com
Media:
Sara Hassell
Sara.Hassell@irco.com
Source: Ingersoll Rand Inc.
FAQ
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