Ingersoll Rand reports record 4th quarter and full-year 2024 results
Ingersoll Rand Inc., a global provider of mission-critical flow creation and life sciences and industrial solutions, reported record results for both the fourth quarter and the full-year 2024.
Highlights included:
- Reported orders of $1,800 million, up 8%
- Reported revenues of $1,899 million, up 4%
- Reported net income attributable to Ingersoll Rand Inc. of $230 million, or earnings of $0.57 per share
- Expects full-year 2025 revenue growth of 3% to 5%
“I am proud of our global team’s strong execution and performance, driven by IRX, as we delivered double-digit earnings growth and strong free cash flow margin in 2024,” said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand. “We also significantly outpaced our inorganic growth commitments last year and are poised for another strong year of M&A activity in 2025. In what continues to be a dynamic global market environment, we remain nimble and focused as we continue to deliver financial durability by meeting our long-term commitments.”
Fourth Quarter 2024 Segment Review
(All comparisons against the fourth quarter of 2023 unless otherwise noted.)
Industrial Technologies and Services Segment (IT&S): Broad range of compressor, vacuum, blower, and air treatment solutions as well as industrial technologies including power tools and lifting equipment
Reported Orders of $1,422 million, up 3%, or flat organic
Reported Revenues of $1,511 million, flat, or down 2% organic2
Reported Segment Adjusted EBITDA of $458 million, up 1%
Reported Segment Adjusted EBITDA Margin of 30.3%, up 30 basis points
The fourth quarter saw solid Adjusted EBITDA margin improvement year-over-year on top of record-level margin in the fourth quarter of the prior year. In addition, for the full-year Adjusted EBITDA margin finished at a record level of 30.2%. For the fourth quarter, orders grew low-single-digits organically excluding the impact of the Power Tools and Lifting business and China.
Precision and Science Technologies Segment (P&ST): Mission-critical precision liquid, gas, air, and powder handling technologies for life sciences and industrial applications as well as aerospace and defense applications
Reported Orders of $378 million, up 29%, or down 1% organic
Reported Revenues of $388 million, up 24%, or down 5% organic2
Reported Segment Adjusted EBITDA of $107 million, up 14%
Reported Segment Adjusted EBITDA Margin of 27.6%, down 250 basis points
Orders and revenue both finished relatively flat sequentially. Excluding the impact of China, the segment saw organic order growth year over year in the low-single-digits. The decline in the fourth quarter Adjusted EBITDA margin was largely driven by lower volumes in the ILC Dover Aerospace and Defense business and organic volume declines primarily driven by China.
Balance Sheet and Cash Flow
Ingersoll Rand remains in a strong financial position with ample liquidity of $4.1 billion. On a reported basis, the Company generated $526 million of cash flow from operating activities and invested $35 million in capital expenditures, resulting in free cash flow2 of $491 million, compared to cash flow from operating activities of $581 million and free cash flow2 of $552 million in the prior year period. Net debt to Adjusted EBITDA2 leverage was 1.6x for the fourth quarter, which was an increase of 1.0x as compared to the prior year driven by the acquisition of ILC Dover, which took place in the second quarter of 2024.
Consistent with its comprehensive capital allocation strategy led by M&A, in the fourth quarter Ingersoll Rand deployed $200 million to M&A. The Company also returned $71 million to shareholders through $63 million in share repurchases and $8 million through its quarterly dividend payment in the fourth quarter.
Since December 2024, Ingersoll Rand also closed on the following acquisitions:
- SSI Aeration, a leading global manufacturer in the design and manufacturing of wastewater treatment plant equipment.
- Excelsior Blower Systems, a key provider and packager of blower technology.
- Toshniwal Industries Pvt. Ltd., a leading manufacturer of vacuum pumps and vacuum systems.
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