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Ingersoll Rand 8-K Report, Financial Results (May 2, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 2, 2024
Period End
May 2, 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 May 2, 2024. Cited figures are marked; the original filing is the authoritative source.

Ingersoll Rand Inc. (NYSE: IR) reported record first-quarter 2024 revenue, Adjusted EBITDA and Adjusted EPS, with reported revenues of $1,670 milliona (up 3%, or down 1% organic), reported orders of $1,707 million (down 4%, or down 7% organic), and a book-to-bill of 1.02x.

Reported net income attributable to Ingersoll Rand was $202 millionb, or $0.50 per share, and Adjusted EBITDA was $459 million with a 27.5% margin, up 290 basis points. Operating cash flow was $162 million and free cash flow was $99 million, down 33% on the prior year's cash flow data as reported in the filing's commentary. The company cited the timing of about $40 million of capital expenditures and about $20 million of interest payments on recently issued bonds as drivers of the decline.

The Industrial Technologies and Services segment drove results, with revenues of $1,373 millionc (up 4%, flat organic) and segment Adjusted EBITDA of $411 million, a 29.9% margin. The Precision and Science Technologies segment saw orders decline 5% organically on tough comparisons and Life Sciences weakness, though revenue held at $297 million with a 30.8% segment margin. Liquidity stood at $3.5 billion, including $1.5 billion of cash, and net debt to Adjusted EBITDA leverage was 0.7x.

Management raised full-year 2024 Adjusted EBITDA guidance to $1,940 to $2,000 milliond and Adjusted EPS guidance to $3.20 to $3.30, while maintaining 2% to 4% organic revenue growth guidance. The Board authorized a $1 billion increase to the share repurchase program, incremental to the $750 million existing authorization that is expected to be exhausted by the end of 2024. During the quarter the company deployed $143 million to M&A, including the Controlled Fluidics and Ethafilter acquisitions.

02—Key points

Key Highlights

  1. Reported revenues of $1,670 million, up 3% (down 1% organic), with a two-year stack of up 24% (up 20% organic)
  2. Adjusted EBITDA of $459 million, up 15%, with a 27.5% margin, up 290 basis points year over year
  3. Reported net income attributable to Ingersoll Rand of $202 million, or $0.50 per share; Adjusted EPS of $0.78
  4. Orders of $1,707 million, down 4% (down 7% organic), with a book-to-bill of 1.02x and backlog up 2%
  5. 2024 guidance raised: Adjusted EBITDA to $1,940 to $2,000 million and Adjusted EPS to $3.20 to $3.30; organic revenue growth maintained at 2% to 4%
  6. Board authorized a $1 billion increase to the share repurchase program, incremental to the remaining $750 million authorization; $73 million repurchased in Q1
  7. Liquidity of $3.5 billion, including $1.5 billion of cash and $2.0 billion of undrawn credit capacity; leverage of 0.7x

03—Questions

Frequently Asked Questions

  1. Why did free cash flow decline in the first quarter?

    Free cash flow was $99 million versus $148 million a year earlier. The company attributed the decline primarily to the timing of approximately $40 million of capital expenditures and approximately $20 million of interest payments on recently issued bonds, which require semi-annual interest payments unlike its prior debt structure.

  2. How did the Industrial Technologies and Services segment perform?

    IT&S reported revenues of $1,373 million, up 4% (flat organic), and segment Adjusted EBITDA of $411 million, up 19%, with a 29.9% margin. Orders fell 4% (down 7% organic), which management attributed mainly to tough comparisons with large, long-cycle orders in the prior year; book-to-bill remained on track with guidance of above 1.0x in the first half.

  3. What changed in the 2024 guidance?

    Adjusted EBITDA guidance was raised to $1,940 to $2,000 million from $1,915 to $1,975 million, and Adjusted EPS guidance was raised to $3.20 to $3.30 from $3.14 to $3.24. Total revenue growth guidance was lowered to 4% to 6% from 5% to 7%, while organic growth guidance was maintained at 2% to 4%.

  4. How much capital did the company return to shareholders and deploy to acquisitions in the quarter?

    The company returned $81 million to shareholders, comprising $73 million in share repurchases and $8 million in dividends, and deployed $143 million to M&A, closing the Controlled Fluidics and Ethafilter acquisitions.

04—Continue

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