Ingersoll Rand says '22 results were 'robust' despite inflation, rising interest rates
On February 21, Ingersoll Rand Inc., a global provider of mission-critical flow creation and industrial solutions, reported a strong finish in the fourth quarter of 2022.
Fourth Quarter 2022 Highlights
(All comparisons against the fourth quarter of 2021 unless otherwise noted)
- Reported fourth quarter orders of $1,484 million, down 1%, or up 2% organic
- Reported fourth quarter revenues of $1,624 million, up 14%, or 19% organic
- Reported net income attributable to Ingersoll Rand Inc. of $217 million, or earnings of $0.53 per share
- Adjusted net income from continuing operations, net of tax1 of $295 million, or $0.72 per share
- Adjusted EBITDA1 of $420 million, up 23%, with a margin of 25.9%, up 180 basis points year over year, and incremental margin of 38%
- Reported operating cash flow from continuing operations of $355 million and free cash flow from continuing operations1 of $321 million
- Liquidity of $2.7 billion as of December 31, 2022, including $1.6 billion of cash on hand and undrawn capacity of $1.1 billion under available credit facilities
Full Year 2022 Highlights
(All comparisons against 2021 unless otherwise noted)
- Reported orders of $6,368 million, up 10%, or 11% organic
- Reported revenues of $5,916 million, up 15%, or 16% organic1
- Reported net income attributable to Ingersoll Rand Inc. of $605 million, or earnings of $1.47 per share
- Adjusted net income from continuing operations, net of tax1 of $972 million, or $2.36 per share
- Adjusted EBITDA1 of $1,435 million, up 20%, with a margin of 24.3%, up 120 basis points year over year, and incremental margin of 32%
- Reported operating cash flow from continuing operations of $865 million and free cash flow from continuing operations1 of $771 million
- Returned $294M of value to shareholders through share repurchase and dividends
2023 Guidance
- Full-year 2023 revenue growth expected to be 7% to 9% and Adjusted EBITDA1 of $1,570 to $1,630 million, up 9% to 14% over prior year
- 2023 Adjusted EPS1 expected to be in a range of $2.48 to $2.58, up 5% to 9% over prior year
“We finished the year on a high note, with strong fourth quarter and full year 2022 results amidst ongoing inflation, rising interest rates, and geopolitical uncertainty,” said Vicente Reynal, chairman and CEO. “These robust results again demonstrate the resilience of our business across economic cycles. Driven by our operational excellence model, IRX, we continue to deliver on the commitments we made at our Investor Day, keeping us on track to meet those 2025 targets.”
Reynal added, “We made tremendous progress in 2022 against our sustainability goals by executing on our strategic imperative to Lead Sustainably. Our industry-leading sustainability program continues to earn recognition, and I am very proud that Ingersoll Rand was named to the 2022 Dow Jones Sustainability World Index and Dow Jones Sustainability North America Index. I am grateful for the whole Ingersoll Rand team, whose high level of engagement and ownership mindset enabled us to deliver another successful quarter and will help us to carry our momentum forward into 2023.”
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