NYSE$IR

Ingersoll Rand Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Ingersoll Rand's Q2 2023 performance was marked by record orders and revenue, driven by strong organic growth across business segments and successful inorganic growth initiatives, leading to raised full-year guidance.

Ingersoll Rand reported a strong second quarter in 2023, achieving record orders and revenue. The company raised its full-year guidance for total revenue growth, organic revenue growth, Adjusted EBITDA, and Adjusted EPS due to the outstanding performance.

  • Reported second quarter orders increased by 9% to $1,737 million, with a 5% organic growth.
  • Second quarter revenues reached $1,687 million, up 17%, including 12% organic growth.
  • Adjusted EBITDA increased by 27% to $425 million, with a margin of 25.2%, a 190 basis points increase year over year.
  • Free cash flow from continuing operations rose by 24% to $204 million.

Headline financials

Total Revenue

$1.69B

Previous: $1.44B+17.1%
EPS (adj)

$0.68

Previous: $0.54+25.9%
Orders

$1.74B

Previous: $1.6B+8.6%
Adjusted EBITDA

$425M

Previous: $335M+26.9%
Adjusted EBITDA Margin

25.2%

Previous: 23.3%+8.2%
Free Cash Flow

$180M

Previous: $139M+29.6%
Net Income

$180M

Previous: $139M+29.6%
Operating Income

$272M

Previous: $197M+38.0%
Gross Profit

$698M

Previous: $570M+22.4%
Cash & Equivalents

$1.18B

Previous: $1.31B-10.0%
Total Assets

$15B

Previous: $14.2B+5.7%
Stock-Based Comp

$11.9M

Previous: $22.4M-46.9%

Revenue & EPS history

Ingersoll Rand · Revenue · Quarterly

$1.69B

Q2 2023+17.1%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Ingersoll Rand · $1.69B total across 2 segments · Q2 2023

  • Industrial Technologies & Services
    $1.38B+19.7%
  • Precision & Science Technologies
    $308M+6.4%

Forward guidance

Ingersoll Rand raised its full year 2023 guidance for total revenue growth, organic revenue growth, Adjusted EBITDA and Adjusted EPS ranges based on robust Q2 performance and its expectations of continued strong commercial and operational performance for the balance of the year.

Tailwinds

  • Raising full-year 2023 organic revenue growth range expectation by 200 bps to 8% to 10%.
  • Raising total revenue growth to a range of 12% to 14%.
  • Raising Adjusted EBITDA guidance to a range of $1,690 to $1,740 million, up 18% to 21% over prior year.
  • Raising full-year 2023 Adjusted EPS guidance to a range of $2.70 to $2.80, up 14% to 19% over prior year.
  • M&A is expected to contribute ~$300M.

Headwinds

  • FX impact is expected to be ~ Flat.
  • Corporate Costs are expected to be (~$165M).
  • Reconciliations of non-GAAP measures related to full-year 2023 guidance have not been provided.
  • The company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
  • Guidance is based on June 2023 FX rates and reflects all completed and closed M&A as of August 1, 2023.

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 Q2 2023

Historical avgQ2 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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