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Mar 31, 2023
Ingersoll Rand Q1 2023 Earnings Report
Ingersoll Rand reported record orders and revenue, exceeding expectations despite macroeconomic volatility, and raised guidance for organic growth, adjusted EBITDA, and adjusted EPS.
Key Takeaways
Ingersoll Rand reported a strong start to 2023 with record first-quarter orders and revenue, driven by solid execution and its economic growth engine. The company raised its full-year guidance for organic revenue growth, adjusted EBITDA, and adjusted EPS ranges based on robust Q1 performance. The company remains guided by its five strategic imperatives, which enable Ingersoll Rand to be a premier earnings compounder.
Reported first quarter orders increased by 9% to $1,777 million, with organic orders up by 8%.
First quarter revenues increased by 22% to $1,629 million, with organic revenue up by 20%.
Adjusted EBITDA increased by 32% to $400 million, with a margin of 24.6%, up 190 basis points year over year.
Free cash flow from continuing operations increased by 359% to $148 million.
Revenue by Segment
Forward Guidance
Ingersoll Rand raised its guidance for full year 2023 organic revenue growth, Adjusted EBITDA and Adjusted EPS ranges based on robust Q1 performance and its expectations of strong commercial and operational performance for the remainder of the year
Positive Outlook
- Raising full-year 2023 organic revenue growth range expectation by 300 bps to 6% to 8%, and raising total revenue growth to a range of 10% to 12%
- Raising Adjusted EBITDA guidance to a range of $1,660 to $1,710 million, up 16% to 19% over prior year
- Raising full-year 2023 Adjusted EPS guidance to a range of $2.64 to $2.74, up 11% to 16% over prior year
- Industrial Technologies & Services (Organic) 6-8%
- Precision & Science Technologies (Organic) 5-7%
Challenges Ahead
- FX Impact ~ Flat
- M&A ~$270M
- Corporate Costs (~$160M)
- Initial 2023 Guidance Revenue - Total Ingersoll Rand 7-9%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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