NYSE$IR

Ingersoll Rand Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Ingersoll Rand's Q3 2023 results were marked by record revenues and raised full year guidance.

Ingersoll Rand reported a strong third quarter with a 15% increase in revenue to $1.739 billion and a 23% increase in adjusted EBITDA to $462 million. The company raised its full-year guidance for total revenue growth, organic revenue growth, Adjusted EBITDA, and Adjusted EPS.

  • Orders were $1,638 million, a decrease of 1% (8% organic decrease).
  • Revenue was $1,739 million, a 15% increase (6% organic increase).
  • Net income attributable to Ingersoll Rand Inc. was $208 million, or $0.51 per share.
  • Adjusted EBITDA was $462 million, a 23% increase, with a margin of 26.5%.

Headline financials

Total Revenue

$1.74B

Previous: $1.52B+14.7%
EPS (adj)

$0.77

Previous: $0.62+24.2%
Orders

$1.64B

Previous: $1.66B-1.0%
Adjusted EBITDA

$462M

Previous: $376M+22.9%
Adjusted EBITDA Margin

26.5%

Previous: 24.8%+6.9%
Free Cash Flow Margin

21.2%

No prior period
Capital Expenditures

-$28.6M

No prior period
Free Cash Flow

$208M

Previous: $145M+43.6%
Net Income

$208M

Previous: $145M+43.6%
Operating Income

$318M

Previous: $190M+67.6%
Gross Profit

$739M

Previous: $575M+28.5%
Cash & Equivalents

$1.2B

Previous: $1.46B-18.0%
Total Assets

$15.2B

Previous: $14.2B+6.5%
Stock-Based Comp

$11.2M

Previous: $20.1M-44.3%

Revenue & EPS history

Ingersoll Rand · Revenue · Quarterly

$1.74B

Q3 2023+14.7%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Ingersoll Rand · $1.74B total across 2 segments · Q3 2023

  • Industrial Technologies & Services
    $1.43B+19.0%
  • Precision & Science Technologies
    $311M-1.7%

Forward guidance

Ingersoll Rand raised its full-year 2023 guidance for total revenue growth to a range of 14% to 16%, organic revenue growth to a range of 9% to 11%, Adjusted EBITDA to a range of $1,730 to $1,770 million, and Adjusted EPS to a range of $2.81 to $2.89.

Tailwinds

  • Total revenue growth raised to 14-16%.
  • Organic revenue growth raised to 9-11%.
  • Adjusted EBITDA raised to $1,730-$1,770 million.
  • Adjusted EPS raised to $2.81-$2.89.
  • Continued strong commercial and operational performance expected.

Headwinds

  • Reconciliations of non-GAAP measures related to full-year 2023 guidance have not been provided.
  • High variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations.
  • Unable to address the probable significance of the unavailable information.
  • Impact of foreign currency is not included in the guidance.
  • Guidance is based on current expectations and subject to risks and uncertainties.

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 Q3 2023

Historical avgQ3 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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