Ingersoll Rand, a global provider of essential flow creation and industrial solutions, has announced strong financial performance for the third quarter of 2024, with notable increases in revenue, Adjusted EBITDA, and Adjusted EPS. Vicente Reynal, chairman and CEO, emphasized the company’s commitment to meeting long-term goals, highlighting sustained double-digit Adjusted EPS growth and robust free cash flow. “We will continue deploying capital strategically, focusing on mergers and acquisitions (M&A) and driving innovation while delivering sustainable, long-term value,” Reynal said.
Third Quarter 2024 Segment Highlights
Industrial Technologies & Services (IT&S): The segment, which encompasses a wide array of compressors, blowers, and industrial tools, reported:
- Orders totaling $1.421 billion, up 5% (flat organically)
- Revenues of $1.467 billion, up 3% (down 2% organically)
- Adjusted EBITDA of $450 million, marking a 9% increase
- EBITDA margin of 30.7%, an improvement of 190 basis points driven by efficient operational execution and margin expansion
The IT&S segment experienced stable order growth, consistent with expectations, and maintained a strong book-to-bill ratio.
Precision & Science Technologies (P&ST): This segment focuses on precision handling solutions across life sciences and industrial sectors, achieving:
- Orders of $378 million, up 30% (3% organic increase)
- Revenues of $394 million, up 27% (down 3% organically)
- Adjusted EBITDA of $118 million, up 25%
- EBITDA margin at 30.0%, a slight decrease of 30 basis points, affected primarily by the Life Sciences division
Organic order growth remained solid, supported by targeted demand generation initiatives and continued strength in the industrial businesses.
Financial Position and Cash Flow
Ingersoll Rand maintains a strong balance sheet with $4.0 billion in liquidity. The company generated $404 million in operating cash flow, investing $30 million in capital expenditures, resulting in free cash flow of $374 million. Compared to the prior year, net debt to Adjusted EBITDA leverage stood at 1.7x, reflecting impacts from the acquisition of ILC Dover in Q2 2024.
The company invested $15 million in M&A in Q3, closing several acquisitions in October, such as:
- Air Power Systems Co., LLC: Expanding market leadership in fluid power systems for mobile transport.
- Blutek s.r.l.: Adding expertise in oil-free and lubricated compressor technology.
- UT Pumps & Systems Private Limited: Enhancing product offerings in sustainable, high-growth end markets.
- Penn Valley Pump: Strengthening capabilities in positive displacement pump technology for various sectors.
Ingersoll Rand returned $71 million to shareholders through share repurchases and dividend payments during the quarter.
Updated 2024 Guidance
The company adjusted its 2024 full-year guidance:
- Revenue Growth: Revised to 5-7%, down from 6-8%
- Organic Revenue: Adjusted to -2% to 0%
- Adjusted EBITDA: Narrowed to $2.010B – $2.040B, reflecting 12-14% year-over-year growth
- Adjusted EPS: Increased slightly to $3.28 – $3.34, an 11-13% improvement from the previous year
Ingersoll Rand will hold a live earnings call on November 1, 2024, to discuss the results. Further details and a webcast replay will be available on the company’s Investor Relations website.
