Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q3 2024 Earnings Presentation
24 slides from Ingersoll Rand's earnings presentation, Nov 1, 2024
Slide 1: Q3 2024 Earnings Presentation
Q3 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: Premier growth compounder with iconic brands and market-leading positions
Continued execution through our We are a competitive differentiator, IRX 1 Premier growth Expect to deliver in 2024 on our long-term commitments of double-digit Adj. EPS1 growth compounder with and strong free cash flow generation1 despite the challenging macro conditions iconic brands and Strong ex
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 – recently closed M&A transactions
Inorganic growth – recently closed M&A transactions Air Power Systems Co., LLC (“APSCO”) Blutek s.r.l. (“Blutek”) 5 4 Description: A leader in the design and Description: A leader in the design and manufacturing of fluid power systems for mobile manufacturing of oil-free and lubricated screw- transp
Slide 6: Inorganic growth continues to outperform our long-term targets
Inorganic growth continues to outperform our long-term targets Recently closed M&A transactions UT Pumps & Systems Private Limited (“UT Pumps”) Penn Valley Pump Acquisition funnel update 5 >5x 4 Weighted funnel size vs Q2 2020 Description: A leading Indian manufacturer of Description: A leading manu
Slide 7: Organic growth - Code-a-thon 2024
Organic growth - Code-a-thon 2024 Inaugural agile sprint to develop novel software and digital connectivity solutions for customers Code-a-thon overview Opportunities identified1 Outcome 45+ employee participants Insight: Energy utilization 40+ insights Subject matter experts, consisting of hardware
Slide 8: Q3 Highlights
Q3 Highlights IRX is our Competitive Differentiator Solid orders and revenue growth Orders and • Orders up 10%; Organic up 1% Revenue • Revenue up 7%; Organic1 down 2% • Book to bill of 0.97x; 0.99x YTD $533M with Margin of 28.6% • Up $71M YoY, an increase of 15% Adj. EBITDA1 • 210 bps improvement Y
Slide 9: Q3 2024 vs. Q3 2023 financial performance
Q3 2024 vs. Q3 2023 financial performance ($M, excl. EPS) Orders Revenue Adj. EBITDA & Margin1 Adj. Diluted EPS1,2 Up 10%; Up 10% ex-FX Up 7%; Up 7% ex-FX1 Up 15% 5 Up 9% 4 Adj. EBITDA Margin Change Industrial Technologies and Services 190 bps Precision and Science Technologies (30) bps Total Ingers
Slide 10: Q3 2024 financial performance
Q3 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 $4.0B including: • Cash and cash equivalents: ($30) $1.4B ($62) • Available revolving credit facility
Slide 11: Industrial Technologies and Services
Industrial Technologies and Services Broad range of Compressor, Vacuum, Blower, and Air Treatment Solutions as well as Industrial Technologies Including Power Tools and Lifting Equipment Q3 2024 vs. Q3 2023 ($M) Q3 2024 vs. Q3 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 and industrial applications as well as aerospace and defense applications Q3 2024 vs. Q3 2023 ($M) Q3 2024 vs. Q3 2023 Revenue/Orders Bridge Current Year Prior Year YoY
Slide 13: 2024 market trends
2024 market trends Short/medium-cycle leading indicators Long-cycle leading indicators Marketing qualified leads, or MQLs, are a key indicator and activity Compressor project funnel activity remains very active with the long-cycle continues to accelerate, up 12% year over year in Q3 2024 funnel up 2
Slide 14: 2024 Full Year Guidance
2024 Full Year Guidance1 Full Year 2024 Assumptions Key Metrics • Incremental margins of ~50-60% Revised guidance Revised guidance as Change at midpoint vs. • Gross Interest Expense: ~$215M; Net Interest Expense: as of 7/31/24 of 10/31/24 previous guidance ~$170M Revenue - Total Ingersoll Rand2 6-8%
Slide 15: Key Takeaways
Economic Growth Engine continues to deliver on our long-term commitments • Expected to deliver double-digit Adj. EPS growth primarily through gross 01 margin expansion • Strong FCF generation despite a challenging macro environment • Delivering record annualized inorganic growth in 2024 Key Takeaway
Slide 16: Appendix
Appendix Making Life Better 16
Slide 17: Non-GAAP Measures of Financial Performance
Non-GAAP Measures of Financial Performance Ingersoll Rand believes Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted EPS are helpful supplemental measures to assist management and investors in evaluating the Company’s operating results as they exclude certain items t
Slide 18: Industrial Technologies and Services Product Line Results
Industrial Technologies and Services Product Line Results Segment Mix Orders Performance1,2,4 Revenue Performance1,2,4 Product3 Q3’24 Q3’23 YoY Q3’24 YoY 2-Year Stack Q3’23 YoY Q3’24 YoY 2-Year Stack Compressors ~70% ↓ High Single Digits ↑ Mid Single Digits ↓ Low Single Digits ↑ Low Double Digits ↑
Slide 19: Q3 2024 Financial Performance – As Reported
Q3 2024 Financial Performance – As Reported ($M, excl. EPS) Net Income1 Diluted EPS2 Up 6% Up $0.03 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: Adjusted Financial Information
Adjusted Financial Information (Unaudited; in millions) For the Three Month Period For the Nine Month Period Ended September 30, 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 %
Slide 21: 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, except per share amounts) For the Three Month Period For the Nine Month Period Ended September 30, Ended September 30, 2024 2023 2024 2023 Net Income $ 223.4 $ 209.6 $ 614.4 $ 553.6 P
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 Nine Month Period (Unaudited; in millions) Ended September 30, Ended September 30, 2024 2023 2024 2023 Net Income $ 223.4 $ 209.6 $ 614
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 Nine Month Period Ended September 30, Ended September 30, 2024 2023 2024 2023 Orders Industrial Technologies and Services $ 1,420.6 $ 1,346.9 $ 4,284.4
Slide 24: Orders and Revenue Growth/Decline by Segment
Orders and Revenue Growth/Decline by Segment1 (Unaudited) 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