Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q1 2024 Earnings Presentation
25 slides from Ingersoll Rand's earnings presentation, May 3, 2024
Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation Making Life Better
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation by Ingersoll Rand Inc. (the “Company” or “Ingersoll Rand”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related the Company’s expectations regarding the performance
Slide 3: Solid Q1 Performance; Raising Guidance
Solid Q1 Performance; Raising Guidance We are a 1 Our results in Q1 provide conviction about our Premier growth ability to deliver our 2024 commitments compounder with iconic brands and Remaining Nimble and Focused market-leading 2 Concentrating on controlling what we can control and focusing demand
Slide 4: Our Economic Growth Engine is the set of actions and priorities to compound value
Our Economic Growth Engine is the set of actions and priorities to compound value High Performance Premier Growth Megatrends Sustainability Digitalization Quality of Life Execution Process Compounder Ownership Double-Digit Mindset Earnings Growth Organic Growth Product Enablers Demand IIoT and Servi
Slide 5: Inorganic growth already expected to exceed initial targets in 2024
Inorganic growth already expected to exceed initial targets in 2024 Closed M&A Closed M&A Funnel Update 5 Ethafilter S.r.l. (“Ethafilter”) Controlled Fluidics >5x Description: Produces filters and filter elements Description: Specializes in thermoplastic, high- 4 Weighted funnel size vs Q2 2020 that
Slide 6: ILC Dover portfolio overview
ILC Dover portfolio overview 1 End Market Business Illustrative Product Long-Term CAGR Core Competencies Revenue Synergy Opportunities • Pull-through of Ingersoll Rand BioPharma HSD+ Powder and liquid handling pumps & compressors ~60% • New customer/channel access Life Sciences Powder Containment ~7
Slide 7: ILC Dover fits seamlessly within our M&A strategy
ILC Dover fits seamlessly within our M&A strategy Meaningful opportunities to expand our TAM by making disciplined acquisitions that improve the quality of our portfolio Adjacent Technology example: Aligned 50%+ • ILC Dover consumables in the powder and liquid handling process within biopharma o Sin
Slide 8: Throughout Q1 we saw increased MQL activity and organic orders acceleration
Throughout Q1 we saw increased Marketing Qualified Lead (MQL) activity and organic orders acceleration Continued organic orders acceleration throughout Q1 Demand Generation driving increased MQL Activity 5 Q1‘24 Monthly Sequential Organic Orders Q1’24 YoY MQL growth rate by week Sequential orders gr
Slide 9: Q1 highlights
Q1 highlights IRX is our Competitive Differentiator Continued backlog build • Organic orders down 7% due primarily to large project order timing; Orders and two-year stack up 1% Revenue • Organic revenue down 1%; two-year stack1 up 20% • Book to bill of 1.02x • Ended Q1’24 with backlog up ~2% YoY $4
Slide 10: Q1 2024 financial performance vs. Q1 2023 financial information
Q1 2024 financial performance vs. Q1 2023 financial information ($M, excl. EPS) Orders Revenue Adj. EBITDA & Margin1 Adj. Diluted EPS1,2 Down 4% (As reported and ex-FX) Up 3% (As reported and ex-FX) Up 15% 5 Up 20% 4 Adj. EBITDA Margin Change Industrial Technologies and Services 370 bps Precision an
Slide 11: Q1 2024 financial performance
Q1 2024 financial performance ($M, excl. EPS) Free Cash Flow1 Leverage Liquidity and Leverage Cash Flows from Operations less Capex (Net Debt / LTM Adjusted EBITDA) • Board authorized $1B increase to the existing share repurchase authorization 4 • Existing $750M share repurchase authorization is exp
Slide 12: Industrial Technologies and Services
Industrial Technologies and Services Broad Range of Compressor, Vacuum, Blower, and Air Treatment Solutions as well as Industrial Technologies Including Power Tools and Lifting Equipment Q1 2024 vs. Q1 2023 ($M) Q1 2024 vs. Q1 2023 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Orga
Slide 13: Precision and Science Technologies
Precision and Science Technologies Highly Specialized Fluid Management Solutions Including Precision Liquid and Gas Pumps and Niche Compression Technologies Q1 2024 vs. Q1 2023 ($M) Q1 2024 vs. Q1 2023 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ 5 Revenue $29
Slide 14: 2024 Full Year Guidance
2024 Full Year Guidance1 Full Year 2024 Assumptions Key Metrics2 ✓ Incremental margins of ~50% Initial guidance Revised guidance as Change at Midpoint vs. ✓ Gross Interest Expense: ~$155M; Net Interest Expense: as of 2/15/24 of 5/2/24 Previous Guidance ~$130M • Adj. Tax Rate: ~23% Revenue - Total In
Slide 15: Key Takeaways
Strong results for Q1 2024, against tough comps: • Ongoing backlog momentum provides confidence in updated guidance 01 • M&A funnel remains strong; poised for record annualized inorganic growth • Nimble and prepared to pivot with constantly changing market conditions Key Takeaways Continuing to diff
Slide 16: Appendix
am) Ingersoll Rand. Appendix Making Life Better @ | | a8 os a7 pllocate Ca s VALUES EXECUTION EXCELLENCE Wa y 8 hink and acr\ike om
Slide 17: Non-GAAP measures of financial performance
Non-GAAP measures of financial performance In addition to consolidated GAAP financial measures, Ingersoll Rand reviews various non-GAAP financial measures, including “Organic Revenue Growth/(Decline),” “Two-Year Stack (for Organic Revenue Growth/(Decline)),” “Adjusted EBITDA,” “Adjusted Net Income,”
Slide 18: Industrial Technologies and Services product line results
Industrial Technologies and Services product line results Segment Mix Orders Performance1,2,4 Revenue Performance1,2,4 Product3 Q1’24 Q1’23 YoY Q1’24 YoY 2-Year Stack Q1’23 YoY Q1’24 YoY 2-Year Stack Compressors ~70% ↑ Low 20s ↓ High Single Digits ↑ Low Double Digits ↑ Low 30's ↑ Low Single Digits ↑
Slide 19: Q1 2024 financial performance – as reported
Q1 2024 financial performance – as reported ($M, excl. EPS) Net Income1 Diluted EPS2 Up 26% Up $0.11 19 1 Net Income as reported defined as Net Income (Loss) Attributable to Ingersoll Rand Inc. 2 Diluted EPS defined as (Net Income (Loss) Attributable to Ingersoll Rand Inc.) / (Diluted Average Shares
Slide 20: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income (Unaudited; in millions) For the Three Month Period Ended March 31, 2024 2023 Net Income $ 204.5 $ 163.2 Plus: Provision for income taxes 54.4 48.1 Amortization of acquisition related intangible assets 89.5 89.8 Restructuring and related business t
Slide 21: Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS
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, except per share amounts) For the Three Month Period Ended March 31, 2024 2023 Net Income $ 204.5 $ 163.2 Plus: Provision for in
Slide 22: Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income to Adjusted EBITDA and Adjusted Income from Continuing Operations, net of tax and cash flows from operating activities from continuing operations to Free Cash Flow For the Three Month Period Ended (Unaudited; in millions) March 31, 2024 2023 Net Income $ 204.5 $ 163.2 Pl
Slide 23: Orders and revenue by segment and reconciliation of segment Adjusted EBITDA
Orders and revenue by segment and reconciliation of segment Adjusted EBITDA to Net Income (Unaudited; in millions) For the Three Month Period Ended March 31, 2024 2023 Orders Industrial Technologies and Services $ 1,398.4 $ 1,450.3 Precision and Science Technologies 309.0 326.5 Total Orders $ 1,707.
Slide 24: Orders growth/(decline) by segment
1 Orders growth/(decline) by segment (Unaudited) For the Three Month Period Ended March 31, Two-Year 2024 2023 Stack2 Ingersoll Rand Organic growth (decline) (6.9%) 7.6% 0.7% Impact of foreign currency (0.1%) (3.8%) (3.9%) Impact of acquisitions 3.1% 5.2% 8.3% Total orders growth (decline) (3.9%) 9.
Slide 25: Revenue growth/(decline) by segment
1 Revenue growth/(decline) by segment (Unaudited) For the Three Month Period Ended March 31, Two-Year 2024 2023 Stack2 Ingersoll Rand Organic growth (decline) (0.8%) 20.4% 19.6% Impact of foreign currency (0.1%) (4.3%) (4.4%) Impact of acquisitions 3.4% 5.8% 9.2% Total revenue growth 2.5% 21.9% 24.4