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Dec 31, 2022

Ingersoll Rand Q4 2022 Earnings Report

Ingersoll Rand had a strong performance driven by its competitive differentiator - Ingersoll Rand Execution Excellence (IRX).

Key Takeaways

Ingersoll Rand reported record fourth quarter and full year 2022 results. The company's Q4 revenue was $1,624 million, up 14%, and adjusted EBITDA was $420 million, up 23%.

Reported fourth quarter orders of $1,484 million, down 1%, or up 2% organic

Reported fourth quarter revenues of $1,624 million, up 14%, or 19% organic

Adjusted EBITDA of $420 million, up 23%, with a margin of 25.9%, up 180 basis points year over year, and incremental margin of 38%

Reported operating cash flow from continuing operations of $355 million and free cash flow from continuing operations of $321 million

Total Revenue
$1.62B
Previous year: $1.42B
+14.4%
EPS
$0.72
Previous year: $0.68
+5.9%
Total Orders
$1.48B
Previous year: $1.51B
-1.5%
Adjusted EBITDA
$420M
Previous year: $342M
+22.9%
Adj. EBITDA Margin
25.9%
Previous year: 24.1%
+7.5%
Gross Profit
$654M
Previous year: $509M
+28.5%
Cash and Equivalents
$1.61B
Previous year: $2.11B
-23.5%
Free Cash Flow
$321M
Previous year: $224M
+43.3%
Total Assets
$14.8B
Previous year: $15.2B
-2.6%

Ingersoll Rand

Ingersoll Rand

Ingersoll Rand Revenue by Segment

Forward Guidance

Ingersoll Rand is establishing full-year 2023 guidance based on expected continued strong demand trends and operational execution in 2023.

Positive Outlook

  • Full-year 2023 revenue growth expected to be 7% to 9%
  • H1 2023 Revenue Growth: 9-11%
  • H2 2023 Revenue Growth: 4-6%
  • 2023 Adjusted EBITDA of $1,570 to $1,630 million, up 9% to 14% over prior year
  • 2023 Adjusted EPS expected to be in a range of $2.48 to $2.58, up 5% to 9% over prior year

Challenges Ahead

  • FX Impact: (~1%)
  • H1 2023 FX Impact: (2-4%)
  • H2 2023 FX Impact: +1-3%
  • Corporate Costs: (~$140M)
  • Reconciliations of non-GAAP measures related to full-year 2023 guidance have not been provided

Revenue & Expenses

Visualization of income flow from segment revenue to net income