Q3 2024 Ingersoll Rand Inc Earnings Call Transcript
Key Points
- Ingersoll Rand Inc (IR) reported a strong quarter with record orders and revenue, highlighting over 200 basis points of adjusted EBITDA margin expansion.
- The company achieved a 9% growth in adjusted EPS and a 20% free cash flow margin, demonstrating robust financial performance.
- Ingersoll Rand Inc (IR) closed four strategic acquisitions in the past month, expected to achieve a mid-teens ROIC by year three, enhancing their market position.
- The company has a strong pipeline with 10 additional transactions under LOI, indicating continued momentum in M&A activities.
- Ingersoll Rand Inc (IR) is leveraging data from digitally connected assets to unlock new revenue opportunities, potentially translating to over $25 million in incremental revenue.
- The company experienced a 2% organic decline in total revenue, attributed to customer order pushouts due to site readiness and local approvals.
- Book to bill ratio was below 1 in the second half, indicating potential challenges in converting orders to revenue.
- The PST segment saw a decrease in margin by 30 basis points year over year, despite remaining above 30%.
- There are concerns about elongated decision-making processes impacting order conversions, attributed to factors like customer site readiness and election uncertainties.
- China remains a challenging market with continued negative impacts on organic order growth, affecting overall performance.
Good day, and welcome to the Ingersoll Rand Q3 2024 earnings call. (Operator Instructions) And finally, I would like to advise all participants that this call is being recorded. Thank you.
I'd now like to welcome Matthew Fort, Vice President of Investor Relations, to begin the conference. Matthew, over to you.
Good morning, and welcome to the Ingersoll Rand 2024 third-quarter earnings call. I'm Matthew Fort, Vice President of Investor Relations. And joining me this morning are Vicente Reynal, Chairman and CEO; and Vik Kini, Chief Financial Officer.
We issued our earnings release and presentation yesterday, and we will reference these during the call. Both are available on the Investor Relations section of our website. In addition, a replay of this conference call will be available later today.
Before we start, I want to remind everyone that certain statements on this call are forward-looking in nature and are subject to the risks and
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