NYSE$IR

Ingersoll Rand Inc. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported record double-digit organic orders and organic revenue growth.

Ingersoll Rand reported a strong first-quarter performance in 2021, driven by the transformative power of IRX. The company saw a 17% increase in revenues and a 29% increase in orders, with organic growth of 12% and 24% respectively. The company is raising its 2021 full year guidance.

  • Reported revenues of $1.4 billion, up 95%, and up 17% (12% organically) as compared to prior year supplemental adjusted revenues
  • Reported orders of $1.7 billion, up 124%, and up 29% (24% organically) as compared to prior year supplemental adjusted orders
  • Adjusted EBITDA of $293 million, up 57% from prior year supplemental adjusted EBITDA of $186 million, with a margin of 21.4%
  • Reported operating cash flow from continuing operations of $123 million and free cash flow from continuing operations of $108 million

Headline financials

Total Revenue

$1.37B

Previous: $800M+71.2%
EPS (adj)

$0.45

Previous: $0.25+80.0%
Orders

$1.7B

No prior period
Adjusted EBITDA

$293M

Previous: $148M+98.2%
Adjusted EBITDA Margin

21.4%

Previous: 0.2%+12948.8%
Free Cash Flow

-$90.4M

Previous: -$36.8M-145.7%
Net Income

-$90.4M

Previous: -$36.8M-145.7%
Operating Income

$150M

Previous: -$66.8M+324.1%
Gross Profit

$515M

Previous: $245M+110.8%
Cash & Equivalents

$1.64B

Previous: $556M+195.1%
Total Assets

$15.9B

Previous: $15.4B+3.3%
Stock-Based Comp

$21.6M

Previous: $3.4M+535.3%

Revenue & EPS history

Ingersoll Rand · Revenue · Quarterly

$1.37B

Q1 2021+71.2%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Ingersoll Rand · $1.13B total across 2 segments · Q1 2021

  • Industrial Technologies & Services
    $914M+81.3%
  • Precision & Science Technologies
    $216M+91.1%

Forward guidance

Ingersoll Rand is raising its full-year 2021 revenue growth and Adjusted EBITDA guidance, excluding SVT.

Tailwinds

  • Raising full-year 2021 revenue growth expectation, excluding SVT, to low double digits (up approximately 200 bps of organic growth from initial guidance)
  • Raising adjusted EBITDA guidance, excluding SVT, to $1.12 billion to $1.15 billion (up approximately $45 million from initial guidance midpoint)
  • Continued strong performance in 2021
  • Strong orders momentum, driven by record demand for consumer vehicles as well as growth in golf, commercial and aftermarket product offerings
  • Core industrial end markets saw continued strong demand with orders up 17% as compared to prior year supplemental adjusted orders, including positive momentum across all major regions

Headwinds

  • Impact on the Company’s business, suppliers and customers and global economic conditions of the COVID-19 pandemic
  • Unexpected costs, charges or expenses resulting from the Transaction
  • Uncertainty of the expected financial performance of the combined company following completion of the Transaction
  • Failure to realize the anticipated benefits of the Transaction, including as a result of delay in integrating the businesses of Gardner Denver and Ingersoll Rand Industrial
  • The ability of the combined company to implement its business strategy

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.6%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.9%

Avg return

30 days after

65%

26 / 40 earnings

Positive

+11.7%

Q3 2018

Best reaction

-10.9%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%-6.9%-11.7%
Q4 2025+4.6%+3.2%-12.8%
Q3 2025-3.4%-0.4%+2.0%
Q1 2025+0.5%+2.2%+7.1%
Q4 2024-7.4%-7.4%-11.5%
Q3 2024-3.4%+0.4%+7.1%
Q2 2024-7.7%-12.0%-7.5%
Q1 2024-6.8%-3.4%+0.1%
Q4 2023+3.4%+0.3%+4.6%
Q3 2023+8.1%+7.5%+19.1%
Q2 2023+1.7%+2.9%+6.0%
Q1 2023-0.0%+3.2%+7.5%
Q4 2022-0.2%+0.2%-4.6%
Q3 2022+2.1%+5.8%+8.4%
Q2 2022+2.2%+2.7%-2.0%
Q1 2022+0.7%-4.3%+8.1%
Q4 2021-5.2%-4.8%-5.9%
Q3 2021+1.6%+3.0%+4.0%
Q2 2021-0.1%+0.3%+9.6%
Q1 2021+0.1%-5.7%-3.1%
Q4 2020+3.9%+5.6%+10.1%
Q3 2020+10.9%+15.2%+26.9%
Q2 2020+3.4%+7.3%+14.3%
Q1 2020-10.9%-9.2%+5.7%
Q4 2019+2.0%-5.1%-47.9%
Q3 2019+0.7%+0.2%+4.1%
Q2 2019-6.0%-9.1%-13.6%
Q1 2019+6.3%+6.6%+6.7%
Q4 2018+1.8%+2.4%+7.2%
Q3 2018+11.7%+13.8%+3.5%
Q2 2018-3.1%+1.9%-2.3%
Q1 2017+2.5%+1.7%+6.5%
Q1 2018+0.5%-1.6%+3.8%
Q4 2015-8.1%-8.0%-4.5%
Q4 2017-2.0%-5.3%-1.6%
Q3 2016+0.1%-0.5%+7.0%
Q3 2017+9.4%+9.5%+17.1%
Q4 2016+3.4%+1.5%+1.9%
Q2 2016+3.4%+1.5%+1.9%
Q2 2017+3.4%+6.8%+5.3%
Q1 2016
Q3 2015
Q3 2014
Q1 2013
Q4 2012
Q3 2012
Q2 2012

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