Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q2 2024 Earnings Presentation
25 slides from Ingersoll Rand's earnings presentation, Aug 1, 2024
Slide 1: Q2 2024 Earnings Presentation
Q2 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: Record Q2 Performance; Raising Guidance
Record Q2 Performance; Raising Guidance We are a 1 Raising guidance on Revenue, Adjusted EBITDA1, Premier growth and Adjusted EPS1 compounder with iconic brands and Remaining Nimble and Focused market-leading 2 Concentrating on controlling what we can control and focusing demand generation positions
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 continues to outperform our long-term targets
Inorganic growth continues to outperform our long-term targets Recently closed M&A transactions Complete Air & Power Solutions (“CAPS”) Fruvac Ltd. (“Fruitland Manufacturing”) Del PD Pumps & Gear Pvt Ltd. (“Del Pumps”) 5 4 Description: A provider of compressed air and Description: A leading manufact
Slide 6: ILC Dover biopharma well-positioned to deliver double-digit growth in 2024 and beyond
ILC Dover biopharma well-positioned to deliver double-digit growth in 2024 and beyond High growth therapy exposure Positioned for market outperformance Industry leading technology GLP-1 Glucagon-like peptide-1 (GLP-1) has a projected Proprietary single-use technology already annual market growth of
Slide 7: Q2 Highlights
Q2 Highlights IRX is our Competitive Differentiator Positive organic revenue growth against strong PY comps Orders and • Sequential orders growth of 5% (5% IT&S, 8% PST) Revenue • Organic revenue1 up 1%; two-year stack up 13% • Book to bill of 1.0x; 1.01 for 1H $495M with margin of 27.4% • Up $70M Y
Slide 8: Q2 2024 financial performance vs Q2 2023
Q2 2024 financial performance vs Q2 2023 financial information ($M, excl. EPS) Orders Revenue Adj. EBITDA & Margin1 Adj. Diluted EPS1,2 Up 4%; Up 5% ex-FX Up 7%; Up 8% ex-FX1 Up 16% 5 Up $0.15 4 Adj. EBITDA Margin Change Industrial Technologies and Services 230 bps Precision and Science Technologies
Slide 9: Q2 2024 financial performance
Q2 2024 financial performance ($M, excl. EPS) Free Cash Flow1 Leverage Cash Flows from Operations less Capex (Net Debt / LTM Adjusted EBITDA) Liquidity and Leverage 4 • Total available liquidity of $3.7B including: • Cash and cash equivalents: $1.1B ($62) • Available revolving credit facility balanc
Slide 10: Our debt portfolio has been transformed to full investment grade
Our debt portfolio has been transformed to full investment grade Upgraded one notch by all three credit rating agencies while securing an additional $2B of capital Q1 2024 Q2 2024 Key metrics Q1 2024 Q2 2024 Debt instrument1 Rate Maturity Balance Balance Fixed/Floating Ratio2 74% / 26% 84% / 16% USD
Slide 11: Industrial Technologies and Services
Industrial Technologies and Services Broad range of Compressor, Vacuum, Blower, and Air Treatment Solutions as well as Industrial Technologies Including Power Tools and Lifting Equipment Q2 2024 vs. Q2 2023 ($M) Q2 2024 vs. Q2 2023 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Orga
Slide 12: Precision and Science Technologies
Precision and Science Technologies Mission-critical precision liquid, gas, air and powder handling technologies for life sciences, industrial, and aerospace and defense applications Q2 2024 vs. Q2 2023 ($M) Q2 2024 vs. Q2 2023 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic F
Slide 13: 2024 market trends
2024 market trends Leading indicators Current market conditions Short/medium cycle: MQL to order timing: • Marketing qualified leads, or MQLs, are a key indicator and activity • Decision making process has become elongated continues to accelerate • Time from MQL to order is prolonged due primarily t
Slide 14: 2024 Full Year Guidance
2024 Full Year Guidance1 Full Year 2024 Assumptions Key Metrics • Incremental margins of ~50% Previous guidance Revised guidance as Change at midpoint vs. • Gross Interest Expense: ~$215M; Net Interest Expense: as of 5/2/24 of 7/31/24 previous guidance ~$170M • Adj. Tax Rate: ~22% - 23% Revenue - To
Slide 15: Key Takeaways
Strong results for 1H 2024 against tough comps and an increasingly challenged market: 01 • M&A funnel remains strong; poised for record annualized inorganic growth • Nimble and prepared to pivot with changing market conditions Key Takeaways Continuing to differentiate Ingersoll Rand as an investment
Slide 16: Appendix
Appendix Making Life Better 16
Slide 17: Non-GAAP Measures of Financial Performance
Non-GAAP Measures of Financial Performance Ingersoll Rand believes Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted EPS are helpful supplemental measures to assist management and investors in evaluating the Company’s operating results as they exclude certain items t
Slide 18: Industrial Technologies and Services Product Line Results
Industrial Technologies and Services Product Line Results Segment Mix Orders Performance1,2,4 Revenue Performance1,2,4 Product3 Q2’24 Q2’23 YoY Q2’24 YoY 2-Year Stack Q2’23 YoY Q2’24 YoY 2-Year Stack Compressors ~70% ↑ Low Double Digits ↑ Low Single Digits ↑ Low Double Digits ↑ Mid Teens ↑ Mid Singl
Slide 19: Q2 2024 Financial Performance – As Reported
Q2 2024 Financial Performance – As Reported ($M, excl. EPS) Net Income1 Diluted EPS2 Up 3% Up $0.01 19 1 Net Income as reported defined as Net Income Attributable to Ingersoll Rand Inc. 2 Diluted EPS defined as Net Income Attributable to Ingersoll Rand Inc. / Diluted Average Shares Outstanding.
Slide 20: Adjusted Financial Information
Adjusted Financial Information (Unaudited; in millions) For the Three Month Period For the Six Month Period Ended June 30, Ended June 30, 2024 2023 2024 2023 Revenues $ 1,805.3 $ 1,686.5 $ 3,475.4 $ 3,315.8 Adjusted EBITDA $ 494.6 $ 424.7 $ 953.1 $ 824.8 Adjusted EBITDA Margin 27.4 % 25.2 % 27.4 % 2
Slide 21: Reconciliation of Net Income to Adjusted Net Income to Adjusted Diluted Earnings per Share
Reconciliation of Net Income to Adjusted Net Income to Adjusted Diluted Earnings per Share (Unaudited; in millions, except per share amounts) For the Three Month Period For the Six Month Period Ended June 30, Ended June 30, 2024 2023 2024 2023 Net Income $ 186.5 $ 180.8 $ 391.0 $ 344.0 Plus: Provisi
Slide 22: Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income to Adjusted EBITDA and Adjusted Net Income and Cash Flow from Operating Activities to Free Cash Flow For the Three Month Period For the Six Month Period Ended (Unaudited; in millions) Ended June 30, June 30, 2024 2023 2024 2023 Net Income $ 186.5 $ 180.8 $ 391.0 $ 344.0
Slide 23: Orders & Revenue by Segment and Reconciliation of Segment Adjusted EBITDA to Net Income
Orders & Revenue by Segment and Reconciliation of Segment Adjusted EBITDA to Net Income (Unaudited; in millions) For the Three Month Period For the Six Month Period Ended June 30, Ended June 30, 2024 2023 2024 2023 Orders Industrial Technologies and Services $ 1,465.4 $ 1,444.3 $ 2,863.8 $ 2,894.6 P
Slide 24: Orders Growth/Decline by Segment
1 Orders Growth/Decline by Segment (Unaudited) For the Three Month Period Ended June 30, Two-Year 2024 2023 Stack 2 Ingersoll Rand Organic growth (decline) (1.2%) 4.6% 3.4% Impact of foreign currency (0.9%) (1.3%) (2.2%) Impact of acquisitions 5.7% 5.4% 11.1% Total orders growth 3.6% 8.7% 12.3% Indu
Slide 25: Revenue Growth/Decline by Segment
1 Revenue Growth/Decline by Segment (Unaudited) For the Three Month Period Ended June 30, Two-Year 2024 2023 Stack 2 Ingersoll Rand Organic growth 1.0% 12.4% 13.4% Impact of foreign currency (0.9%) (1.2%) (2.1%) Impact of acquisitions 6.9% 5.9% 12.8% Total revenue growth 7.0% 17.1% 24.1% Industrial