01—Abstract
Summary
Summary of the 10-K filed February 19, 2025. Cited figures are marked; the original filing is the authoritative source.
Ingersoll Rand Inc. (NYSE: IR) reported 2024 revenues of $7,235.0 milliona, up from $6,876.1 million in 2023, an increase of $358.9 million or 5.2%.
The growth was driven primarily by acquisitions of $471.2 millionb and higher pricing of $153.3 million, partially offset by lower organic volumes of $241.9 million. Gross profit rose to $3,170.0 million (43.8% of revenues versus 41.9% in 2023), and operating income increased to $1,300.1 million from $1,164.3 million. Net income attributable to Ingersoll Rand Inc. was $838.6 million, compared with $778.7 million in 2023.
Adjusted EBITDA reached $2,018.1 millionc, or 27.9% of revenues, up from 26.0% in 2023. Free cash flow was $1,247.6 million, slightly below $1,272.0 million in 2023. The year was defined by major acquisitions, most notably ILC Dover, acquired in June 2024 for initial cash consideration of $2,349.7 million.
Net cash paid in acquisitions totaled $2,958.7 milliond, funded substantially by $3,300.0 million of new senior notes issued in May 2024 and a new $2,600 million unsecured revolving credit facility. Total debt rose to $4,757.5 million at year-end from $2,723.6 million, and interest expense increased to $213.2 million from $156.7 million. Cash and cash equivalents were $1,541.2 million at December 31, 2024.
The company also repurchased $260.7 million of common stock and paid $32.3 million in dividends. Investors should note that goodwill and other intangible assets represented $12.5 billion, or 70%, of total assets, and two Precision and Science Technologies reporting units, which include the ILC Dover goodwill, had limited impairment cushions of 5% to 16%.
The company also divested its asbestos liabilities in June 2024 for a pre-tax loss of $58.8 million. Management reported that 57% of revenues came from customers outside the United States and that aftermarket revenue represented 36.4% of total revenue.
02—Key points
Key Highlights
- Revenue grew 5.2% to $7,235.0 million, driven by $471.2 million from acquisitions and $153.3 million from higher pricing, partly offset by $241.9 million of lower organic volumes.
- Operating income rose to $1,300.1 million from $1,164.3 million, and gross margin expanded to 43.8% from 41.9% of revenues.
- Adjusted EBITDA increased to $2,018.1 million, or 27.9% of revenues, compared with 26.0% in 2023; Adjusted Net Income rose to $1,349.3 million.
- The ILC Dover acquisition for $2,349.7 million in initial cash consideration, plus other 2024 acquisitions, drove net cash paid in acquisitions of $2,958.7 million.
- Total debt increased to $4,757.5 million from $2,723.6 million, with interest expense rising to $213.2 million; the company reports $2,600.0 million of unused revolver and commercial paper availability.
- Goodwill and other intangible assets totaled $12.5 billion, or 70% of total assets, and two Precision and Science Technologies reporting units had limited impairment cushions of 5% to 16%.
- Capital returns included $260.7 million of share repurchases and $32.3 million of dividends; free cash flow was $1,247.6 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Ingersoll Rand kept $0.12.
- Revenue$7.24B100.0%
- Cost of revenue−$4.07B56.2%
- Gross profit$3.17B43.8%
- Operating costs−$1.87B25.8%
- Operating income$1.30B18.0%
- Interest, other & tax−$461.5M6.4%
- Net income$838.6M11.6%
Where FY2024 revenue went
$7.24B- Cost of revenue: $4.07B, 56% of revenue
- SG&A: $1.34B, 19% of revenue
- Net income: $838.6M, 12% of revenue
- R&D: $116.6M, 1.6% of revenue
- Other operating costs: $408.9M, 5.7% of revenue
- Interest, other & tax: $461.5M, 6.4% of revenue
Kept 12% as net incomeR&D $116.6M · 1.6%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 19, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $7.24B$6.88B | +5.2% |
| Cost of Revenue | $4.07B$3.99B | +1.8% |
| Gross Profit | $3.17B$2.88B | +10.0% |
| R&D Expenses | $116.60M$108.20M | +7.8% |
| SG&A Expenses | $1.34B$1.27B | +5.6% |
| Operating Income | $1.30B$1.16B | +11.7% |
| Net Income | $838.60M$778.70M | +7.7% |
| EPS (Basic) | $2.08$1.92 | +8.3% |
| EPS (Diluted) | $2.06$1.90 | +8.4% |
| Shares Outstanding (Basic) | 403.40M404.80M | −0.3% |
| Shares Outstanding (Diluted) | 407.20M409.00M | −0.4% |
05—Questions
Frequently Asked Questions
How did Ingersoll Rand's revenue and profitability change in 2024?
Revenues were $7,235.0 million in 2024, up $358.9 million or 5.2% from $6,876.1 million in 2023. Net income attributable to Ingersoll Rand Inc. rose to $838.6 million from $778.7 million, and diluted EPS from continuing operations was $2.06 versus $1.90. Gross profit increased to $3,170.0 million, and operating income increased to $1,300.1 million.
What acquisitions did Ingersoll Rand complete in 2024?
The largest was ILC Dover, acquired June 3, 2024 for initial cash consideration of $2,349.7 million plus contingent consideration of up to $75.0 million, which is reported in the Precision and Science Technologies segment. Other 2024 acquisitions included Friulair ($143.3 million), APSCO ($113.2 million), and CAPS ($99.3 million), among others. The filing reports that acquisitions contributed $471.2 million to revenue growth.
How did the company finance its 2024 acquisitions and what is its debt position?
In May 2024 the company issued $3,300.0 million of senior unsecured notes across five tranches maturing from 2027 to 2054, and it entered into a new $2,600 million senior unsecured revolving credit facility. Total debt was $4,757.5 million at December 31, 2024, compared with $2,723.6 million a year earlier. The company stated it was in compliance with all debt covenants at year-end.
What risks related to goodwill and intangible assets should investors watch?
Goodwill and other intangible assets were $12.5 billion, or 70% of total assets. The company reported no goodwill impairments in 2024, but two Precision and Science Technologies reporting units with goodwill totaling approximately $1.1 billion had cushions ranging from 5% to 16%, due to fair values assigned in the ILC Dover acquisition. An indefinite-lived intangible of about $208 million from ILC Dover had a cushion of approximately 6%.
How much of Ingersoll Rand's revenue comes from outside the United States and from aftermarket sales?
The filing states that 57% of 2024 revenues came from customers in countries outside the United States. Aftermarket parts and services represented 36.4% of total company revenue in 2024, compared with 35.8% in 2023. The company also reported 55% of revenues were denominated in currencies other than the U.S. dollar.
06—Continue