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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.
Revenue by Segment
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.
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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