Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q4 2024 Earnings Presentation
33 slides from Ingersoll Rand's earnings presentation, Feb 14, 2025
Slide 1: Q4 and full-year 2024 earnings presentation
Q4 and full- year 2024 earnings presentation Making Life Better
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to expectations of Ingersoll Rand Inc. (the “Company” or “Ingersoll Rand”) regarding the performance of its busi
Slide 3: Premier growth compounder with iconic brands and market-leading positions
Economic Growth Engine is the key to our We are a financial durability 1 Premier growth Delivered double-digit Adj. EPS1 growth and strong free cash flow margin1 in 2024 in a compounder with dynamic global market environment iconic brands and Continued runway for inorganic growth in 2025 market-lead
Slide 4: Continuing to differentiate Ingersoll Rand as an investment
Continuing to differentiate Ingersoll Rand as an investment Megatrends Sustainability Digitalization Quality of Life 4-year Target CAGR1 High Performance Premier Growth Total Revenue Growth LDD Growth 14% Execution Process Compounder Organic Organic Revenue Ownership Double-Digit Growth Demand IIoT
Slide 5: We are a leader in sustainability
We are a leader in sustainability1 Recognized for our sustainability performance while Making Life Better for our people S&P Dow Jones Indices Fortune Sector Leader 2024 Value of All Employee Equity Grants5,6 #1 Ingersoll Rand ranked as the top Named to inaugural list of top performer in the IEQ Mac
Slide 6: We expect strong growth through M&A in the near term
We expect strong growth through M&A in the near term Remaining disciplined in our approach to M&A; creating shareholder value while increasing our position in attractive end markets Significantly expanded our TAM Long-term M&A strategy remains unchanged • Nealy doubled our TAM through both new produ
Slide 7: Inorganic growth continues to outperform our long-term targets
Inorganic growth continues to outperform our long-term targets 2024 year in review Acquisition update ~$3B 7 Invested in inorganic growth Additional transactions at LOI stage1 18 200+ Acquisitions Companies currently in the funnel ~$625M ~90% Annualized revenue acquired2 Deals internally sourced <14
Slide 8: We continue to execute our M&A strategy
We continue to execute our M&A strategy; acquiring market leading products and technologies Recently closed M&A transactions SSI Aeration Excelsior Blower Systems Toshniwal Industries Pvt. Ltd. 5 4 Description: A leading global manufacturer Description: A key provider and packager of Description: A
Slide 9: Q4 earnings highlights
Q4 earnings highlights IRX is our competitive differentiator Sequential growth of both orders and revenue • Orders and revenue both increased LSD sequentially from Orders and Q3 to Q4 Revenue • Aftermarket revenue growth of HSD • Full year organic orders and revenue in underpenetrated markets1 grew
Slide 10: Q4 2024 vs. Q4 2023 financial performance
Q4 2024 vs. Q4 2023 financial performance ($M, excl. EPS) Orders Revenue Adj. EBITDA & Margin1 Adj. Diluted EPS1,2 Up 8% Up 4% Up 6% 5 Down (2%) Adj. EBITDA Margin Change Industrial Technologies and Services 30 bps Precision and Science Technologies (250) bps Total Ingersoll Rand 50 bps 10 1 Non-GAA
Slide 11: FY 2024 vs. FY 2023 financial performance
FY 2024 vs. FY 2023 financial performance ($M, excl. EPS) Orders Revenue Adj. EBITDA & Margin1 Adj. Diluted EPS1,2 Up 4% Up 5% Up 13% 5 Up 11% Adj. EBITDA Margin Change Industrial Technologies and Services 200 bps Precision and Science Technologies (40) bps Total Ingersoll Rand 190 bps 11 1 Non-GAAP
Slide 12: Q4 2024 financial performance
Q4 2024 financial performance Free Cash Flow1 ($M) Leverage Cash Flows from Operations less Capex (Net Debt / LTM Adjusted EBITDA) Liquidity and Leverage 4 • Total available liquidity of $4.1B including: ($35) • Cash and cash equivalents: $1.5B ($62) • Available revolving credit facility balance: $2
Slide 13: Industrial Technologies and Services
Industrial Technologies and Services Broad range of compressor, vacuum, blower, and air treatment solutions as well as industrial technologies including power tools and lifting equipment Q4 2024 vs. Q4 2023 ($M) Q4 2024 vs. Q4 2023 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Orga
Slide 14: Precision and Science Technologies
Precision and Science Technologies Mission-critical precision liquid, gas, air, and powder handling technologies for life sciences and industrial applications as well as aerospace and defense applications Q4 2024 vs. Q4 2023 ($M) Q4 2024 vs. Q4 2023 Revenue/Orders Bridge Current Year Prior Year YoY
Slide 15: 2025 full-year guidance
2025 full-year guidance1 Full-year 2025 assumptions • Phasing of revenue and Adj. EBITDA consistent with prior years (see slide 16 for additional details) • Incremental margin of 45-50% Key Metrics • Gross interest expense: ~$250M; Net interest expense: ~$220M • Adj. tax rate: ~23% Revenue - Total I
Slide 16: 2025 full-year guidance phasing
2025 full-year guidance phasing Full-year 2025 phasing assumptions 2025 • Total revenue growth of 3-5% expected in both the first and 2021 2022 2023 2024 Guidance1 second half of the year Revenue Phasing • Phasing of revenue and Adjusted EBITDA consistent with prior years H1 47% 47% 48% 48% 48% • FX
Slide 17: Key Takeaways
Well-positioned for strong operational performance in 2025 • We remain nimble and prepared to pivot in what continues to be a 01 dynamic global environment • Firmly committed to delivering our long-term investor day targets Key Takeaways Continuing to differentiate Ingersoll Rand as an investment: I
Slide 18: Appendix
A p ) e n d ix GR Ingersoll Rand.
Slide 19: Non-GAAP measures of financial performance
Non-GAAP measures of financial performance In addition to consolidated GAAP financial measures, Ingersoll Rand reviews various non-GAAP financial measures, including “Organic Revenue Growth/(Decline),” “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Adjusted Net Income,” “Adjusted Net Income Attributa
Slide 20: Q4 2024 financial performance – As Reported
Q4 2024 financial performance – As Reported ($M, excl. EPS) Net Income1 Diluted EPS2 Flat Up $0.01 20 1 Net Income as reported defined as Net Income (Loss) Attributable to Ingersoll Rand Inc. 2 Diluted EPS defined as (Net Income (Loss) Attributable to Ingersoll Rand Inc.) / (Diluted Average Shares O
Slide 21: FY 2024 financial performance – As Reported
FY 2024 financial performance – As Reported ($M, excl. EPS) Net Income1 Diluted EPS2 Up 8% Up $0.16 21 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 22: Combined financial information by Segment
Combined financial information by Segment For the Three Months For the Twelve Months Ended December 31, 2024 Ended December 31, 2024 Ingersoll Rand Orders $ 1,800.0 $ 7,105.5 Revenue $ 1,898.6 $ 7,235.0 Adjusted EBITDA (non-GAAP) $ 532.3 $ 2,018.1 Adjusted EBITDA Margin (non-GAAP) 28.0% 27.9% Adjust
Slide 23: Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS
Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted Earnings per Share (Unaudited; in millions) For the Three Month Period For the Twelve Month Period Ended December 31, Ended December 31, 2024 2023 2024 2023 Net Income $ 231.9 $ 231.5 $ 846.3 $ 785.1 Plus: Provision for income
Slide 24: Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow
Reconciliation of Net Income to Adjusted EBITDA and Adjusted Net Income and Cash Flows from Operating Activities to Free Cash Flow For the Three Month Period For the Twelve Month (Unaudited; in millions) Ended December 31, Period Ended December 31, 2024 2023 2024 2023 Net Income $ 231.9 $ 231.5 $ 84
Slide 25: Reconciliation of Segment Adjusted EBITDA to Net Income
Reconciliation of Segment Adjusted EBITDA to Net Income (Unaudited; in millions) For the Three Month Period For the Twelve Month Period Ended December 31, Ended December 31, 2024 2023 2024 2023 Orders Industrial Technologies and Services $ 1,422.2 $ 1,377.4 $ 5,706.6 $ 5,618.9 Precision and Science
Slide 26: Orders and revenue growth/(decline) by Segment
Orders and revenue growth/(decline) by Segment1 (Unaudited) For the Three Month Period Ended December 31, 2024 Orders Revenue Ingersoll Rand Organic decline (0.3%) (2.8%) Impact of foreign currency (0.7%) (0.8%) Impact of acquisitions 8.8% 7.8% Total adjusted orders and revenue growth 7.8% 4.2% Indu
Slide 27: Historical revenue growth/(decline)
Historical revenue growth/(decline) (Unaudited) For the Twelve Month Period Ended December 31, 2024 2023 2022 20212 Organic growth (decline) (1.3%) 10.3% 16.1% 12.3% Impact of foreign currency (0.4%) (0.4%) (5.7%) 2.6% Impact of acquisitions 6.9% 6.3% 4.4% 3.7% Total revenue growth 5.2% 16.2% 14.8%
Slide 28: Supplemental footnote disclosures to slide 5
Supplemental footnote disclosures to slide 5 2 Receipt of an S&P Global ESG Score does not represent a sponsorship, endorsement or recommendation on the part of S&P Global to buy, sell or hold any security and a decision to invest in any subject company should not be made based on the receipt of any
Slide 29: Unaudited supplemental adjusted combined financial information
Unaudited supplemental adjusted combined financial information Ingersoll Rand is providing the below unaudited supplemental historical financial information of the Company on a non-GAAP adjusted basis for the fiscal years ended December 31, 2020 and 2019 as if the Merger was completed on January 1,
Slide 30: Table 1: Supplemental adjusted combined financial information by Segment
Table 1: Unaudited supplemental adjusted combined financial information by Segment For the Twelve Month Period Ended (Unaudited; in millions) December 31, 2020 2019 Ingersoll Rand Supplemental Adjusted Orders $ 4,410.4 $ 4,829.9 Supplemental Adjusted Revenue (non-GAAP) 4,344.4 4,907.8 Supplemental F
Slide 31: Table 2: Reconciliation of GAAP revenue to supplemental adjusted revenue
Table 2: Reconciliation of GAAP revenue to supplemental adjusted revenue by Segment and for the Company and Segment Adjusted EBITDA to supplemental Segment Adjusted EBITDA For the Twelve Month Period Ended For the Twelve Month Period Ended December 31, 2020 December 31, 2019 GAAP Adjustments Supplem
Slide 32: Table 3: Reconciliation of Net Loss to Adjusted EBITDA
Table 3: Reconciliation of Net Loss to Adjusted EBITDA, supplemental Adjusted EBITDA and supplemental further Adjusted EBITDA For the Twelve Month Period (Unaudited; in millions) Ended December 31, 2020 2019 Net Loss (GAAP) $ (32.3) $ 159.1 Plus (1): Interest expense 111.1 88.9 Provision for income
Slide 33: Table 4: Reconciliation of GAAP Diluted EPS to supplemental further Adjusted Diluted EPS
Table 4: Reconciliation of GAAP Diluted EPS to supplemental further Adjusted Diluted EPS (Shares in millions, per share amounts in whole dollars) For the Year Ended December 31, 2020 Diluted Loss Per Share (GAAP) $ (0.09) Diluted Earnings Per Share from Discontinued Operations (GAAP) 0.06 Diluted Lo