On November 1, 2023, Ingersoll Rand Inc (IR, Financial) released its third-quarter 2023 earnings, reporting record revenues and strong performance driven by its competitive differentiator - Ingersoll Rand Execution Excellence (IRX).
Financial Highlights
The company reported third-quarter revenues of $1,739 million, up 15%, or up 6% organically. Net income attributable to Ingersoll Rand Inc. was $208 million, or earnings of $0.51 per share. Adjusted net income from continuing operations, net of tax, was $316 million, or $0.77 per share. Adjusted EBITDA was $462 million, up 23%, with a margin of 26.5%, up 170 basis points year over year.
Operating cash flow from continuing operations was $397 million and free cash flow from continuing operations was $369 million, up 46%. The company reported liquidity of $3.2 billion as of September 30, 2023, including $1.2 billion of cash on hand and undrawn capacity of $2.0 billion under available credit facilities.
Segment Review
The Industrial Technologies and Services Segment (IT&S) reported revenues of $1,428 million, up 19%, or 10% organically, and Adjusted EBITDA of $411 million, up 31%. The Precision and Science Technologies Segment (P&ST) reported revenues of $311 million, down 2%, or 5% organically, and Adjusted EBITDA of $94 million, up 2%.
Raising 2023 Guidance
Ingersoll Rand is raising its guidance for full-year 2023 total revenue growth to a range of 14% to 16% and organic revenue growth range expectation by 100 bps to 9% to 11%. Adjusted EBITDA guidance is raised to a range of $1,730 to $1,770 million, up 21% to 23% over the prior year. Full-year 2023 Adjusted EPS guidance is raised to a range of $2.81 to $2.89, up 19% to 22% over the prior year.
Company's Outlook
"We remain committed to delivering differentiated, profitable growth and are again raising our full year guidance on total revenue growth, organic revenue growth, Adjusted EBITDA, and Adjusted EPS,” said Vicente Reynal, chairman and chief executive officer. “In addition, we continue to stay nimble and pivot towards high-growth, sustainable end markets. Our inorganic growth strategy continues to deliver value-enhancing acquisitions, and we believe that our IRX model enables us to better capitalize on those efforts and strengthen our core capabilities to unlock further growth.”
Explore the complete 8-K earnings release (here) from Ingersoll Rand Inc for further details.
