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Ingersoll Rand 8-K Report, Financial Results (Feb 15, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 15, 2024
Period End
February 15, 2024
Security
IR
In the record · 2017–202610-K910-Q298-K113

IR filed 9 annual reports (10-K), 29 quarterly reports (10-Q) and 113 current reports (8-K) between 2017 and 2026.

  1. Leadership change8-K · Dec ’18Dec ’18
  2. Material agreement8-K · May ’21May ’21
  3. Material agreement8-K · Apr ’23Apr ’23
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed February 15, 2024. Cited figures are marked; the original filing is the authoritative source.

Ingersoll Rand Inc. furnished a press release (Exhibit 99.1) reporting results for the fourth quarter and full year ended December 31, 2023, which the company describes as record results.

For full-year 2023, reported orders were $6,822 milliona, up 7% (up 2% organic), and reported revenues were $6,876 million, up 16% (up 10% organic). Net income attributable to Ingersoll Rand Inc. was $779 million, or $1.90 per share, and Adjusted EBITDA was $1,787 million, up 25%, with a 26.0% margin. Operating cash flow from continuing operations was $1,377 million, and free cash flow from continuing operations was $1,272 million, up 65%.

The company returned $295 millionb to shareholders through share repurchases and dividends during the year. For the fourth quarter, reported revenues were $1,821 million, up 12% (up 4% organic), and Adjusted EBITDA was $501 million, up 19%, with a 27.5% margin. Liquidity was $3.6 billion at December 31, 2023, including $1.6 billion of cash on hand and $2.0 billion of undrawn credit facility capacity.

Backlog was up 8% and remained near historically high levels. Net debt to Adjusted EBITDA leverage was 0.6x for the quarter. For 2024, the company guided to full-year revenue growth of 5% to 7%, Adjusted EBITDA of $1,915 million to $1,975 millionc (up 7% to 11%), and Adjusted EPS of $3.14 to $3.24 (up 6% to 9%).

The guidance assumes an FX impact of about 1% and approximately $160 milliond of M&A contribution, with corporate costs of about $160 million. Management did not provide reconciliations of 2024 non-GAAP guidance to GAAP measures.

02—Key points

Key Highlights

  1. Full-year 2023 reported revenues of $6,876 million, up 16% (up 10% organic), and reported orders of $6,822 million, up 7% (up 2% organic).
  2. Full-year 2023 net income attributable to Ingersoll Rand Inc. of $779 million, or $1.90 per share; Adjusted Net Income from continuing operations of $1,216 million, or $2.96 per share.
  3. Fourth-quarter 2023 reported revenues of $1,821 million, up 12% (up 4% organic), and Adjusted EBITDA of $501 million, up 19%, with a 27.5% margin.
  4. Full-year 2023 operating cash flow from continuing operations of $1,377 million and free cash flow from continuing operations of $1,272 million, up 65%.
  5. Liquidity of $3.6 billion at December 31, 2023, including $1.6 billion of cash and $2.0 billion of undrawn credit facility capacity; backlog up 8%.
  6. 2024 guidance calls for revenue growth of 5% to 7%, Adjusted EBITDA of $1,915 million to $1,975 million, and Adjusted EPS of $3.14 to $3.24.
  7. Returned $295 million to shareholders in 2023 through share repurchases and dividends; deployed $39 million to M&A in the fourth quarter and closed the acquisition of Friulair S.r.l.

03—Questions

Frequently Asked Questions

  1. How did Ingersoll Rand perform in full-year 2023?

    Reported revenues were $6,876 million, up 16% (up 10% organic), and reported orders were $6,822 million, up 7% (up 2% organic). Net income attributable to Ingersoll Rand Inc. was $779 million, or $1.90 per share, and Adjusted EBITDA was $1,787 million, up 25%.

  2. What is the company's 2024 outlook?

    Full-year 2024 guidance calls for revenue growth of 5% to 7% (organic growth of 2% to 4%), Adjusted EBITDA of $1,915 million to $1,975 million (up 7% to 11%), and Adjusted EPS of $3.14 to $3.24 (up 6% to 9%). Guidance includes an FX impact of about 1% and approximately $160 million of M&A contribution.

  3. How strong is the company's cash generation and liquidity?

    Operating cash flow from continuing operations was $1,377 million for 2023, and free cash flow from continuing operations was $1,272 million, up 65%. Liquidity was $3.6 billion at December 31, 2023, including $1.6 billion of cash and $2.0 billion of undrawn credit facility capacity. Net debt to Adjusted EBITDA leverage was 0.6x for the fourth quarter.

  4. How did the company return capital to shareholders?

    Ingersoll Rand returned $295 million to shareholders in 2023 through share repurchases and dividends. In the fourth quarter alone, it returned $138 million, including $130 million in share repurchases and $8 million in quarterly dividend payments.

  5. Where can investors find more detail on the results?

    The company will host a live earnings conference call on Friday, February 16, 2024, at 8:00 a.m. Eastern Time, with a replay available afterward on its Investor Relations website. The full press release, including non-GAAP reconciliations for historical periods, is furnished as Exhibit 99.1.

04—Continue

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