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Dec 31, 2021

Ingersoll Rand Q4 2021 Earnings Report

Ingersoll Rand reported strong Q4 2021 results, driven by record orders and revenue.

Key Takeaways

Ingersoll Rand reported a strong fourth quarter in 2021, with record orders and revenue. The company's performance was driven by its strategic imperatives and the successful navigation of supply chain and inflationary challenges. Looking ahead, Ingersoll Rand is well-positioned for continued success in 2022.

Reported orders increased by 24% to $1,507 million, with organic growth of 18%.

Revenue reached $1,419 million, a 16% increase, including 11% organic growth.

Net income attributable to Ingersoll Rand Inc. was $293 million, or $0.71 per share.

Adjusted EBITDA was $342 million, up 15%, with a margin of 24.1%.

Total Revenue
$1.42B
Previous year: $1.51B
-6.1%
EPS
$0.68
Previous year: $0.53
+28.3%
Adjusted EBITDA
$342M
Previous year: $344M
-0.6%
Adjusted EBITDA margin
24.1%
Previous year: 22.8%
+5.7%
Industrial Orders
$1.51B
Previous year: $1.53B
-1.5%
Gross Profit
$509M
Previous year: $527M
-3.3%
Cash and Equivalents
$2.11B
Previous year: $1.75B
+20.5%
Free Cash Flow
$224M
Previous year: $397M
-43.6%
Total Assets
$15.2B
Previous year: $16.1B
-5.6%

Ingersoll Rand

Ingersoll Rand

Ingersoll Rand Revenue by Segment

Forward Guidance

Ingersoll Rand is establishing full-year 2022 guidance based on expected continued strong demand trends and operational execution in 2022.

Positive Outlook

  • Revenue growth is expected to be 11% to 13%.
  • Organic revenue growth is projected at 7% to 9%.
  • Adjusted EBITDA is expected to be between $1,375 million and $1,415 million.
  • Growth in Industrial Technologies and Services (ITS) is anticipated to be 7% to 9%.
  • Precision and Science Technologies (PST) growth is projected at 8% to 10%.

Challenges Ahead

  • Foreign exchange impact is expected to be a headwind of approximately (1%).
  • Corporate expenses are estimated at (~$135M), evenly per quarter.
  • Revenue growth in H2 is expected to be 9-11% compared to 12-14% in H1.
  • No other negatives were explicitly mentioned in the provided text.
  • No other negatives were explicitly mentioned in the provided text.

Revenue & Expenses

Visualization of income flow from segment revenue to net income