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Dec 31, 2023

Ingersoll Rand Q4 2023 Earnings Report

Ingersoll Rand reported record fourth quarter results, driven by strong orders and revenue growth.

Key Takeaways

Ingersoll Rand reported a strong fourth quarter in 2023, with revenue up 12% and adjusted EBITDA up 19%. The company's performance was driven by its competitive differentiator, Ingersoll Rand Execution Excellence (IRX).

Reported orders increased by 13%, with organic orders up 3%.

Reported revenues increased by 12%, with organic revenues up 4%.

Adjusted EBITDA increased by 19%, with a margin of 27.5%, up 160 basis points year over year.

Free cash flow from continuing operations increased by 72%.

Total Revenue
$1.82B
Previous year: $1.62B
+12.2%
EPS
$0.86
Previous year: $0.72
+19.4%
Adjusted EBITDA
$501M
Previous year: $420M
+19.2%
Adjusted EBITDA margin
27.5%
Previous year: 25.9%
+6.2%
Free cash flow conversion
30.31%
Previous year: 19.8%
+53.1%
Gross Profit
$688M
Previous year: $654M
+5.1%
Cash and Equivalents
$1.6B
Previous year: $1.61B
-1.1%
Free Cash Flow
$552M
Previous year: $321M
+72.0%
Total Assets
$15.6B
Previous year: $14.8B
+5.4%

Ingersoll Rand

Ingersoll Rand

Ingersoll Rand Revenue by Segment

Forward Guidance

Ingersoll Rand expects full-year 2024 revenue growth of 5% to 7% and Adjusted EBITDA of $1,915 to $1,975 million, up 7% to 11% over prior year. 2024 Adjusted EPS is expected to be in a range of $3.14 to $3.24, up 6% to 9% over prior year.

Positive Outlook

  • Full-year 2024 revenue growth of 5% to 7%.
  • Adjusted EBITDA of $1,915 to $1,975 million, up 7% to 11% over prior year.
  • 2024 Adjusted EPS expected to be in a range of $3.14 to $3.24, up 6% to 9% over prior year.
  • Expected continued strong demand trends.
  • Operational execution in 2024.

Revenue & Expenses

Visualization of income flow from segment revenue to net income