NYSE$IR

Ingersoll Rand Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Ingersoll Rand reported record orders and revenue, exceeding expectations despite macroeconomic volatility, and raised guidance for organic growth, adjusted EBITDA, and adjusted EPS.

Ingersoll Rand reported a strong start to 2023 with record first-quarter orders and revenue, driven by solid execution and its economic growth engine. The company raised its full-year guidance for organic revenue growth, adjusted EBITDA, and adjusted EPS ranges based on robust Q1 performance. The company remains guided by its five strategic imperatives, which enable Ingersoll Rand to be a premier earnings compounder.

  • Reported first quarter orders increased by 9% to $1,777 million, with organic orders up by 8%.
  • First quarter revenues increased by 22% to $1,629 million, with organic revenue up by 20%.
  • Adjusted EBITDA increased by 32% to $400 million, with a margin of 24.6%, up 190 basis points year over year.
  • Free cash flow from continuing operations increased by 359% to $148 million.

Headline financials

Total Revenue

$1.63B

Previous: $1.34B+21.9%
EPS (adj)

$0.65

Previous: $0.49+32.7%
Orders

$1.78B

Previous: $1.63B+9.0%
Adjusted EBITDA

$400M

Previous: $304M+31.6%
Adjusted EBITDA Margin

24.6%

Previous: 22.7%+8.4%
Free Cash Flow Margin

9.1%

No prior period
Free Cash Flow

$161M

Previous: $104M+55.4%
Net Income

$161M

Previous: $104M+55.4%
Operating Income

$240M

Previous: $157M+53.1%
Gross Profit

$664M

Previous: $526M+26.2%
Cash & Equivalents

$1.12B

Previous: $1.99B-43.8%
Total Assets

$15B

Previous: $15.1B-0.7%
Stock-Based Comp

$12.1M

Previous: $19.8M-38.9%

Revenue & EPS history

Ingersoll Rand · Revenue · Quarterly

$1.63B

Q1 2023+21.9%vs Q1 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Ingersoll Rand · $1.63B total across 2 segments · Q1 2023

  • Industrial Technologies & Services
    $1.32B+26.6%
  • Precision & Science Technologies
    $312M+5.1%

Forward guidance

Ingersoll Rand raised its guidance for full year 2023 organic revenue growth, Adjusted EBITDA and Adjusted EPS ranges based on robust Q1 performance and its expectations of strong commercial and operational performance for the remainder of the year

Tailwinds

  • Raising full-year 2023 organic revenue growth range expectation by 300 bps to 6% to 8%, and raising total revenue growth to a range of 10% to 12%
  • Raising Adjusted EBITDA guidance to a range of $1,660 to $1,710 million, up 16% to 19% over prior year
  • Raising full-year 2023 Adjusted EPS guidance to a range of $2.64 to $2.74, up 11% to 16% over prior year
  • Industrial Technologies & Services (Organic) 6-8%
  • Precision & Science Technologies (Organic) 5-7%

Headwinds

  • FX Impact ~ Flat
  • M&A ~$270M
  • Corporate Costs (~$160M)
  • Initial 2023 Guidance Revenue - Total Ingersoll Rand 7-9%
  • Ingersoll Rand (Organic) 3-5%

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 2023

Historical avgQ1 2023

+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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