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Ingersoll Rand
🇺🇸 NYSE:IR
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Jun 30, 2023

Ingersoll Rand Q2 2023 Earnings Report

Ingersoll Rand's Q2 2023 performance was marked by record orders and revenue, driven by strong organic growth across business segments and successful inorganic growth initiatives, leading to raised full-year guidance.

Key Takeaways

Ingersoll Rand reported a strong second quarter in 2023, achieving record orders and revenue. The company raised its full-year guidance for total revenue growth, organic revenue growth, Adjusted EBITDA, and Adjusted EPS due to the outstanding performance.

Reported second quarter orders increased by 9% to $1,737 million, with a 5% organic growth.

Second quarter revenues reached $1,687 million, up 17%, including 12% organic growth.

Adjusted EBITDA increased by 27% to $425 million, with a margin of 25.2%, a 190 basis points increase year over year.

Free cash flow from continuing operations rose by 24% to $204 million.

Total Revenue
$1.69B
Previous year: $1.44B
+17.2%
EPS
$0.68
Previous year: $0.54
+25.9%
Adjusted EBITDA
$425M
Previous year: $335M
+26.9%
Adjusted EBITDA margin
25.2%
Previous year: 23.3%
+8.2%
Industrial Orders
$1.74B
Previous year: $1.6B
+8.6%
Gross Profit
$698M
Previous year: $570M
+22.4%
Cash and Equivalents
$1.18B
Previous year: $1.31B
-10.0%
Free Cash Flow
$204M
Previous year: $165M
+23.6%
Total Assets
$15B
Previous year: $14.2B
+5.7%

Ingersoll Rand

Ingersoll Rand

Ingersoll Rand Revenue by Segment

Forward Guidance

Ingersoll Rand raised its full year 2023 guidance for total revenue growth, organic revenue growth, Adjusted EBITDA and Adjusted EPS ranges based on robust Q2 performance and its expectations of continued strong commercial and operational performance for the balance of the year.

Positive Outlook

  • Raising full-year 2023 organic revenue growth range expectation by 200 bps to 8% to 10%.
  • Raising total revenue growth to a range of 12% to 14%.
  • Raising Adjusted EBITDA guidance to a range of $1,690 to $1,740 million, up 18% to 21% over prior year.
  • Raising full-year 2023 Adjusted EPS guidance to a range of $2.70 to $2.80, up 14% to 19% over prior year.
  • M&A is expected to contribute ~$300M.

Challenges Ahead

  • FX impact is expected to be ~ Flat.
  • Corporate Costs are expected to be (~$165M).
  • Reconciliations of non-GAAP measures related to full-year 2023 guidance have not been provided.
  • The company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
  • Guidance is based on June 2023 FX rates and reflects all completed and closed M&A as of August 1, 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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