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Ingersoll Rand 8-K Report, Financial Results (Oct 31, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 31, 2024
Period End
October 31, 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 October 31, 2024. Cited figures are marked; the original filing is the authoritative source.

Ingersoll Rand Inc. (NYSE: IR) furnished an 8-K on October 31, 2024 under Item 2.02 containing its press release reporting results for the quarter ended September 30, 2024.

Third-quarter orders were $1,799 milliona, up 10%, and reported revenues were $1,861 million, up 7%. Reported net income attributable to Ingersoll Rand Inc. was $222 million, or $0.54 per diluted share, while adjusted net income was $345 million, or $0.84 per share. Adjusted EBITDA was $533 million, up 15%, with a margin of 28.6%, up 210 basis points.

Reported operating cash flow was $404 millionb and free cash flow was $374 million, up 2%. Liquidity stood at $4.0 billion, including $1.4 billion of cash and $2.6 billion of undrawn credit capacity. The company updated its full-year 2024 guidance.

Total revenue growth is now expected at 5% to 7%, down from the prior 6% to 8%. Adjusted EBITDA guidance was narrowed to $2,010 million to $2,040 millionc, from $2,010 million to $2,060 million. Adjusted EPS guidance was narrowed to $3.28 to $3.34, from $3.27 to $3.37.

Organic revenue guidance was lowered to (2)% to 0% for the company and for each segment, from 0% to 2%. M&A contribution was raised to approximately $455 milliond from approximately $440 million. Net debt to Adjusted EBITDA leverage was 1.7x, up 0.8x year over year, driven mainly by the ILC Dover acquisition closed in the second quarter of 2024.

The company deployed $15 million to M&A in the quarter and closed four acquisitions in October 2024. It also returned about $71 million to shareholders through $63 million of share repurchases and $8 million of dividends. Management said the company remains on track toward its long-term Investor Day targets of double-digit Adjusted EPS growth and strong free cash flow generation.

02—Key points

Key Highlights

  1. Third-quarter orders rose 10% to $1,799 million and reported revenues rose 7% to $1,861 million.
  2. Reported EPS was $0.54 per diluted share; adjusted EPS was $0.84, versus $0.77 in the prior-year quarter.
  3. Adjusted EBITDA was $533 million, up 15%, with a margin of 28.6%, up 210 basis points year over year.
  4. Free cash flow was $374 million, up 2%, with a free cash flow margin of 20%.
  5. Full-year 2024 revenue growth guidance was lowered to 5% to 7% from 6% to 8%, while Adjusted EBITDA guidance was narrowed to $2,010 million to $2,040 million.
  6. Net debt to Adjusted EBITDA leverage rose to 1.7x, up 0.8x, mainly due to the ILC Dover acquisition.
  7. The company closed four acquisitions in October 2024 and returned about $71 million to shareholders in the third quarter.

03—Questions

Frequently Asked Questions

  1. How did Ingersoll Rand perform in the third quarter of 2024?

    Orders were $1,799 million, up 10%, and reported revenues were $1,861 million, up 7%. Adjusted EBITDA was $533 million, up 15%, and reported net income attributable to the company was $222 million, or $0.54 per diluted share.

  2. Did the company change its 2024 guidance?

    Yes. Total revenue growth guidance was lowered to 5% to 7% from 6% to 8%, and organic growth guidance was lowered to (2)% to 0% from 0% to 2%. Adjusted EBITDA guidance was narrowed to $2,010 million to $2,040 million, and Adjusted EPS guidance was narrowed to $3.28 to $3.34. M&A contribution was raised to about $455 million.

  3. How did the two segments perform?

    Industrial Technologies and Services reported orders of $1,421 million, up 5% (flat organic), and revenues of $1,467 million, up 3% (down 2% organic). Its segment Adjusted EBITDA margin was 30.7%, up 190 basis points. Precision and Science Technologies reported orders of $378 million, up 30% (up 3% organic), and revenues of $394 million, up 27% (down 3% organic). Its segment Adjusted EBITDA margin was 30.0%, down 30 basis points.

  4. How strong is the company's balance sheet and liquidity?

    Liquidity was $4.0 billion as of September 30, 2024, including $1.4 billion of cash on hand and $2.6 billion of undrawn credit facility capacity. Net debt to Adjusted EBITDA leverage was 1.7x, up 0.8x from the prior year, driven mainly by the ILC Dover acquisition.

  5. How is the company allocating capital?

    In the third quarter the company deployed $15 million to M&A and closed four acquisitions in October 2024: Air Power Systems, Blutek, UT Pumps & Systems, and Penn Valley Pump. It returned about $71 million to shareholders through $63 million in share repurchases and $8 million in dividends.

04—Continue

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