Ingersoll Rand Inc. · NYSE:IR
Ingersoll Rand — Q3 2023 Earnings Presentation
27 slides from Ingersoll Rand's earnings presentation, Nov 2, 2023
Slide 1: Q3 2023 Earnings Presentation
Q3 2023 Earnings Presentation
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 company with iconic brands and market-leading positions
Our Economic Growth Engine Continues to We are a Deliver Compounding Results 1 Premier Double-digit growth in Revenue, Adjusted EBITDA1, Adjusted EPS1, and Free Cash Flow1 company with iconic brands and Remaining Nimble and Focused market-leading 2 Concentrating on controlling what we can control an
Slide 4: Our Economic Growth Engine Continues to Deliver Compounding Annual Results
Our Economic Growth Engine Continues to Deliver Compounding Annual Results High Performance Premier Growth Megatrends Sustainability Digitization Quality of Life Execution Process Compounder Ownership Double Digit Organic Mindset Earnings Growth Growth Product and Demand IIoT Service Enablers Genera
Slide 5: Economic Growth Engine in Action: Organic Growth
Economic Growth Engine in Action: Organic Growth Examples of leveraging previous M&A to deliver organic growth and margin expansion LeROI Air Dimensions Description: LeROI is a leading manufacturer of innovative reciprocating and rotary gas Description: Air Dimensions is a market leader in diaphragm
Slide 6: On Track to Deliver Our Inorganic Growth Commitment
On Track to Deliver Our Inorganic Growth Commitment Closed M&A Funnel Update Oxywise s.r.o. Fraserwoods Fabrication and Machining Ltd. • Description: Expands our technology ecosystem with a • Description: Leading provider of aftermarket services for >5x product offering complimentary to the compress
Slide 7: Delivering Results in ESG Through IRX
Delivering Results in ESG Through IRX1 Recognized for Achieving Corporate Responsibility and Pioneering Employee Ownership Industry Leading Results Achieving Corporate Responsibility Pioneer in Employee Ownership #1 in North America #5 in Capital Goods Industry Member of DJSI World and member of DJS
Slide 8: Q3 Highlights
IRX is our Competitive Differentiator Q3 Highlights1 Continued momentum • Organic Revenue: up 6% YoY Revenue • Incremental margin of 38% • Q3’23 ending backlog up ~6% YoY • Book to Bill 0.94x $462M with margin of 26.5% Adj. EBITDA2 • Up $85M YoY, an increase of 23% • 170 bps improvement YoY Adjusted
Slide 9: Q3 2023 vs. Q3 2022 Financial Performance
Q3 2023 vs. Q3 2022 Financial Performance ($M, Excluding EPS) • Adj. Diluted EPS1,2 growth of 24% Book to Bill of 0.94x including ($0.03) of interest expense Backlog up ~6% YoY and down ~1% QoQ headwinds 9 1 Non-GAAP measure (definitions and/or reconciliations in appendix). 2 Adjusted Diluted EPS de
Slide 10: Q3 2023 Financial Performance
Q3 2023 Financial Performance ($M, Excluding Leverage) Liquidity & Leverage • Total available liquidity of $3.2B including: • Cash and cash equivalents: $1.2B • Available credit facilities: $2.0B • Leverage improvement of 0.1x vs prior year • Q3 Cash outflows primarily driven by: • $308M deployed to
Slide 11: Transforming our Debt Portfolio to Investment Grade
Transforming our Debt Portfolio to Investment Grade Investment grade rated across all three ratings agencies Key Metrics Credit Ratings Q3 2022 Q3 2023 Key Metrics Q2 2023 Q3 2023 Moody’s Ba2 (Stable) Baa3 (Positive) Annualized Interest Expense2 ~$165M ~$145M S&P BB+ (Positive) BBB- (Positive) Fixed
Slide 12: Industrial Technologies and Services
Industrial Technologies and Services Broad Range of Compressor, Vacuum and Blower Solutions as well as Industrial Technologies Including Power Tools and Lifting Equipment Q3 2023 vs. Q3 2022 ($M) Q3 2023 vs. Q3 2022 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆
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 Q3 2023 vs. Q3 2022 ($M) Q3 2023 vs. Q3 2022 Revenue/Orders Bridge Current Year Prior Year YoY ∆ Ex-FX YoY ∆ Organic FX M&A YoY ∆ Revenue $310.
Slide 14: Raising 2023 Guidance
Raising 2023 Guidance1 Key Metrics2 Change at Revised Previous Guidance Previous Guidance Midpoint vs. Guidance as of as of 5/3/23 as of 8/2/23 Previous 11/1/23 Guidance Full Year 2023 Assumptions • Book to bill ~1x Revenue - Total Ingersoll Rand 10-12% 12-14% 14-16% +200 bps • 2023 incremental marg
Slide 15: Key Takeaways
Continued robust performance in Q3 2023: • Delivering record results while navigating ongoing macro challenges 01 • Ongoing backlog momentum provides confidence in updated guidance • Prepared and nimble in the event of a downturn Key Takeaways Continuing to differentiate Ingersoll Rand as an investm
Slide 16: Appendix
peploy Talent IX Append fm 8 § 4 8 8 IR. Ingersoll Rand.
Slide 17: Industrial Technologies and Services Product Line Results
Industrial Technologies and Services Product Line Results Orders Performance1,2,4 Revenue Performance1,2,4 Product3 Segment Mix2 Q3’22 YoY Q3’23 YoY 2-Year Stack Q3’22 YoY Q3’23 YoY 2-Year Stack Compressors ~65% ↑ High Teens ↓ High Single Digits ↑ Low Double Digits ↑ Low 20s ↑ Low Double Digits ↑ Mi
Slide 18: Non-U.S. GAAP Measures of Financial Performance
Non-U.S. GAAP Measures of Financial Performance In addition to consolidated GAAP financial measures, Ingersoll Rand reviews various non-GAAP financial measures, including “Organic Revenue Growth,” “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Diluted EPS” and “Free Cash Flow.” Ingersoll Rand b
Slide 19: Q3 2023 Financial Performance – As Reported
Q3 2023 Financial Performance – As Reported ($M, excl. EPS) 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 20
Slide 21: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income 21
Slide 22: Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Income Per Share
Reconciliation of Diluted Net Income Per Share to Adjusted Diluted Net Income Per Share from Continuing Operations 22
Slide 23: Reconciliation of Net Income to Adjusted Earnings per Share
Reconciliation of Net Income to Adjusted Earnings per Share 23
Slide 24: 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 24
Slide 25: 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 25
Slide 26: Orders and Revenue Growth by Segment
Orders and Revenue Growth by Segment1 26
Slide 27: Supplemental Footnote Disclosures to Slide 7
Supplemental Footnote Disclosures to Slide 7 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