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Sep 30, 2023

Ingersoll Rand Q3 2023 Earnings Report

Ingersoll Rand's Q3 2023 results were marked by record revenues and raised full year guidance.

Key Takeaways

Ingersoll Rand reported a strong third quarter with a 15% increase in revenue to $1.739 billion and a 23% increase in adjusted EBITDA to $462 million. The company raised its full-year guidance for total revenue growth, organic revenue growth, Adjusted EBITDA, and Adjusted EPS.

Orders were $1,638 million, a decrease of 1% (8% organic decrease).

Revenue was $1,739 million, a 15% increase (6% organic increase).

Net income attributable to Ingersoll Rand Inc. was $208 million, or $0.51 per share.

Adjusted EBITDA was $462 million, a 23% increase, with a margin of 26.5%.

Total Revenue
$1.74B
Previous year: $1.52B
+14.7%
EPS
$0.77
Previous year: $0.62
+24.2%
Adjusted EBITDA
$462M
Previous year: $376M
+22.9%
Adjusted EBITDA margin
26.5%
Previous year: 24.8%
+6.9%
Free cash flow conversion
21.22%
Gross Profit
$739M
Previous year: $575M
+28.5%
Cash and Equivalents
$1.2B
Previous year: $1.46B
-18.0%
Free Cash Flow
$369M
Previous year: $253M
+45.8%
Total Assets
$15.2B
Previous year: $14.2B
+6.5%

Ingersoll Rand

Ingersoll Rand

Ingersoll Rand Revenue by Segment

Forward Guidance

Ingersoll Rand raised its full-year 2023 guidance for total revenue growth to a range of 14% to 16%, organic revenue growth to a range of 9% to 11%, Adjusted EBITDA to a range of $1,730 to $1,770 million, and Adjusted EPS to a range of $2.81 to $2.89.

Positive Outlook

  • Total revenue growth raised to 14-16%.
  • Organic revenue growth raised to 9-11%.
  • Adjusted EBITDA raised to $1,730-$1,770 million.
  • Adjusted EPS raised to $2.81-$2.89.
  • Continued strong commercial and operational performance expected.

Challenges Ahead

  • Reconciliations of non-GAAP measures related to full-year 2023 guidance have not been provided.
  • High variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations.
  • Unable to address the probable significance of the unavailable information.
  • Impact of foreign currency is not included in the guidance.
  • Guidance is based on current expectations and subject to risks and uncertainties.

Revenue & Expenses

Visualization of income flow from segment revenue to net income