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Jun 30, 2024

Ingersoll Rand Q2 2024 Earnings Report

Ingersoll Rand reported record revenue, adjusted EBITDA, and adjusted EPS performance, driven by strong operational execution and strategic expansion into high-growth markets.

Key Takeaways

Ingersoll Rand reported strong Q2 2024 results, with revenue up 7% to $1.805 billion and adjusted EPS at $0.83. The company is raising full-year guidance for revenue, Adjusted EBITDA, and Adjusted EPS based on this performance and expectations for continued strength.

Second quarter orders increased by 4% to $1,799 million.

Reported revenue increased by 7% to $1,805 million.

Adjusted EBITDA increased by 16% to $495 million, with a margin of 27.4%.

Free cash flow increased by 39% to $283 million.

Total Revenue
$1.81B
Previous year: $1.69B
+7.0%
EPS
$0.83
Previous year: $0.68
+22.1%
Total Orders
$1.8B
Previous year: $1.74B
+3.6%
Adjusted EBITDA
$495M
Previous year: $425M
+16.5%
Adj. EBITDA Margin
27.4%
Previous year: 25.2%
+8.7%
Gross Profit
$702M
Previous year: $698M
+0.7%
Cash and Equivalents
$1.06B
Previous year: $1.18B
-9.8%
Free Cash Flow
$283M
Previous year: $204M
+38.7%
Total Assets
$17.8B
Previous year: $15B
+18.7%

Ingersoll Rand

Ingersoll Rand

Ingersoll Rand Revenue by Segment

Forward Guidance

Ingersoll Rand is raising its full-year 2024 guidance for Revenue, Adjusted EBITDA, and Adjusted EPS ranges based on the strong performance in the first half and expectations of continued strong commercial and operational performance for the balance of the year.

Positive Outlook

  • Total revenue growth guidance raised to a range of 6% to 8% for the full year.
  • Adjusted EBITDA guidance raised to a range of $2,010 to $2,060 million, up 12% to 15% over prior year.
  • Full-year 2024 Adjusted EPS guidance raised to a range of $3.27 to $3.37, up 10% to 14% over prior year.
  • Revenue - Total Ingersoll Rand 6-8%
  • Adjusted EBITDA $2,010M - $2,060M (+12% - +15% YoY)

Challenges Ahead

  • Organic growth expectations reduced, largely driven by China.
  • FX Impact (~1%)
  • Revenue - Total Ingersoll Rand (Organic) 0-2%
  • Industrial Technologies & Services (Organic) 0-2%
  • Precision & Science Technologies (Organic) 0-2%

Revenue & Expenses

Visualization of income flow from segment revenue to net income