On July 31, 2024, Ingersoll Rand Inc (IR, Financial) released its 8-K filing reporting record second quarter 2024 revenue, adjusted EBITDA, and adjusted EPS. Ingersoll Rand, formed through the merger of Gardner Denver and Ingersoll Rand's industrial segment, operates in two main business lines: industrial technologies and services, and precision and science technologies. The company serves diverse markets including industrial, medical, and energy, with a broad portfolio of products such as compression, blower and vacuum, and fluid management solutions.
Performance Highlights
Ingersoll Rand Inc (IR, Financial) reported second quarter revenues of $1,805 million, a 7% increase compared to the same period last year, surpassing the estimated revenue of $1,796.98 million. The company also reported net income attributable to Ingersoll Rand Inc. of $185 million, or earnings of $0.45 per share. Adjusted net income was $341 million, or $0.83 per share, significantly exceeding the estimated earnings per share of $0.59.
Adjusted EBITDA for the quarter was $495 million, up 16% year-over-year, with a margin of 27.4%, reflecting a 220 basis point improvement. The company also reported a gross margin improvement of 250 basis points. Operating cash flow was $305 million, and free cash flow was $283 million, a 39% increase from the previous year.
Segment Performance
In the Industrial Technologies and Services (IT&S) segment, orders were $1,465 million, up 1%, with revenues of $1,467 million, a 6% increase. The segment's adjusted EBITDA was $436 million, up 16%, with a margin of 29.7%, driven by pricing strength and operational execution.
The Precision and Science Technologies (P&ST) segment reported orders of $334 million, up 14%, with revenues of $339 million, a 10% increase. The segment's adjusted EBITDA was $103 million, up 14%, with a margin of 30.3%, driven by pricing improvements and strong operational execution.
Financial Position and Cash Flow
Ingersoll Rand Inc (IR, Financial) maintains a strong financial position with liquidity of $3.7 billion, including $1.1 billion in cash and $2.6 billion in undrawn credit facilities. The company generated $305 million in operating cash flow and invested $22 million in capital expenditures, resulting in free cash flow of $283 million. The net debt to adjusted EBITDA leverage was 2.0x, primarily due to the acquisition of ILC Dover.
Guidance and Outlook
Ingersoll Rand Inc (IR, Financial) raised its full-year 2024 guidance, now expecting total revenue growth of 6% to 8%, adjusted EBITDA of $2,010 to $2,060 million (up 12% to 15% year-over-year), and adjusted EPS of $3.27 to $3.37 (up 10% to 14% year-over-year). This increase is driven by recent M&A activity and strong performance in the first half of the year.
| Metric | Previous Guidance | Revised Guidance |
|---|---|---|
| Total Revenue Growth | 4-6% | 6-8% |
| Adjusted EBITDA | $1,940M - $2,000M | $2,010M - $2,060M |
| Adjusted EPS | $3.20 - $3.30 | $3.27 - $3.37 |
“Our results demonstrate that Ingersoll Rand continues to expand into durable, high-growth, sustainable end markets,” said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand. “Despite the headwinds in the macroeconomic environment, we are raising our guidance on revenue, Adjusted EBITDA, and Adjusted EPS following a solid performance this quarter. We remain confident that our IRX execution model will continue to drive long-term value creation.”
Conclusion
Ingersoll Rand Inc (IR, Financial) has delivered a strong second quarter performance, exceeding analyst estimates and raising its full-year guidance. The company's robust financial position, strategic acquisitions, and operational excellence position it well for continued growth and value creation in the industrial products sector.
Explore the complete 8-K earnings release (here) from Ingersoll Rand Inc for further details.
