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Mar 31, 2022

Ingersoll Rand Q1 2022 Earnings Report

Ingersoll Rand reported strong first-quarter results with double-digit growth in orders and revenue, leading to an increase in 2022 guidance.

Key Takeaways

Ingersoll Rand reported record first-quarter orders and revenue, driven by its competitive differentiator, Ingersoll Rand Execution Excellence (IRX). The company is raising its full-year 2022 organic revenue growth expectation and Adjusted EBITDA range.

Record orders of $1,630 million, up 25%, or 21% organic.

Record first-quarter revenues of $1,337 million, up 18%, or 14% organic.

Adjusted EBITDA of $304 million, up 24%, with a margin of 22.7%.

Liquidity of $3.1 billion as of March 31, 2022, including $2.0 billion of cash on hand.

Total Revenue
$1.34B
Previous year: $1.37B
-2.4%
EPS
$0.49
Previous year: $0.45
+8.9%
Adjusted EBITDA
$304M
Previous year: $293M
+3.8%
Adjusted EBITDA margin
22.7%
Previous year: 21.4%
+6.1%
Industrial Orders
$1.63B
Previous year: $1.7B
-4.1%
Gross Profit
$526M
Previous year: $515M
+2.1%
Cash and Equivalents
$1.99B
Previous year: $1.64B
+21.4%
Free Cash Flow
$32M
Previous year: $108M
-70.4%
Total Assets
$15.1B
Previous year: $15.9B
-4.8%

Ingersoll Rand

Ingersoll Rand

Ingersoll Rand Revenue by Segment

Forward Guidance

Ingersoll Rand is raising 2022 guidance based on expected continued strong demand trends and operational execution in 2022.

Positive Outlook

  • Total revenue growth of 11% to 13%.
  • Organic revenue growth of 8% to 10%.
  • Adjusted EBITDA range to $1,385 to $1,425 million.
  • ITS Organic Growth 8-10%
  • PST Organic Growth 9-11%

Challenges Ahead

  • FX Impact (~2%)
  • Corporate (~$135M)
  • H2 Revenue Growth 9-11%
  • H1 FX Impact (~2%)
  • H2 FX Impact (~1%)

Revenue & Expenses

Visualization of income flow from segment revenue to net income