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Dec 31, 2019
Ingersoll Rand Q4 2019 Earnings Report
Reported a decrease in revenue due to the softness in the Upstream Energy business, while adjusted EBITDA margin remained strong.
Key Takeaways
Gardner Denver reported Q4 2019 results with revenues of $606 million, a decrease of 15% compared to the prior year. Net income was $26 million, or $0.12 per share. Adjusted EBITDA was $135 million with a margin of 22.3%. The company generated $90 million in free cash flow.
Revenues were $606 million, down 14% from the prior year excluding the impact of FX.
Net income was $26 million and adjusted net income was $77 million.
Adjusted EBITDA was $135 million with a margin of 22.3%.
Free cash flow was $90 million.
Ingersoll Rand
Ingersoll Rand
Ingersoll Rand Revenue by Segment
Revenue by Segment
Industrial Technologies & Services Revenue
CapyFin.comPrecision & Science Technologies Revenue
CapyFin.com Forward Guidance
Gardner Denver expects low single digit revenue declines with FX expected to be relatively flat to prior year levels. Adjusted EBITDA is expected to be $540 million to $570 million and free cash flow to be within a range of $280 million to $300 million.
Positive Outlook
- Industrial segment growth is expected to be flat to down low single digits.
- Mid and downstream Energy and Medical businesses are expected to perform comparatively better.
- Free cash flow to reported net income conversion in excess of 100%.
- Focus on operational efficiencies, such as i2V and cost control.
- Launch of new consumable offerings continues to see strong traction in the market.
Challenges Ahead
- Upstream Energy is expected to be down approximately 20%.
- Guidance does not include any anticipated total year impact from the Coronavirus outbreak.
- Shipment deferrals are expected in the first quarter.
- General industrial market is expected to remain soft.
- Customers are taking longer to convert quotes to order in the mid- and downstream businesses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income