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Posted May 8, 2023

Ingersoll Rand reports 22% revenue gain

Ingersoll Rand Inc. reported first quarter orders of $1,777 million, up 9%, or 8% organic. Its first quarter revenues of $1,629 million are up 22%, or 20% organic.


“We had a strong start in 2023, with another quarter of solid results and performance that exceeded our expectations despite the ongoing macroeconomic volatility. Our business continues to be resilient, driven by our team’s outstanding execution and our economic growth engine,” said Vicente Reynal, chairman and CEO. “We remain guided by our five strategic imperatives, which enable Ingersoll Rand to be a premier earnings compounder.

"We continue to drive organic growth and unlock profitability by leveraging IRX and targeting our Demand Generation processes across the three mega trends of Sustainability, Digitization and Quality of Life. In addition, our M&A funnel remains healthy, and we are committed to delivering inorganic growth in a thoughtful, disciplined manner. Our operational excellence, strong balance sheet and increased liquidity give us the ability to deliver results and create value across economic cycles.”

Industrial Technologies and Services Segment:

(broad range of compressor, vacuum and blower solutions as well as fluid transfer equipment, loading systems, power tools and lifting equipment)

  • Reported Orders of $1,450 million, up 12%, or 10% organic
  • Reported Revenues of $1,317 million, up 27%, or 25% organic1
  • Reported Segment Adjusted EBITDA of $346 million, up 40% with an incremental margin of 35%
  • Reported Segment Adjusted EBITDA Margin of 26.2%, up 240 basis points, due to continued pricing strength and IRX to drive strong operational execution
  • Core industrial end markets saw continued strong demand with organic orders up 10% as compared to prior year, which exceeded 25% organic orders growth in the first quarter of the prior year. Excluding the impact of FX and the recently acquired SPX Flow Air Treatment business, orders for total compressor offerings, which represent approximately 65% of the total segment, grew low 20’s, including 28% growth in oil free compressor offerings. Orders in Power Tools and Lifting, which saw its largest bookings quarter since Q4 2014, were up high single digits.

Precision and Science Technologies Segment:

(highly specialized fluid management solutions including precision liquid and gas pumps and niche compression technologies)

  • Reported Orders of $327 million, down 3%, or 2% organic
  • Reported Revenues of $312 million, up 5%, or 6% organic1
  • Reported Segment Adjusted EBITDA of $95 million, up 11% with an incremental margin of 64%
  • Reported Segment Adjusted EBITDA Margin of 30.3%, up 170 basis points, driven largely by improvements in pricing versus cost as well as synergy delivery in recently completed M&A, most notably the Seepex acquisition.
  • Excluding the impact of FX, orders were approximately flat as compared to the prior year driven by acquisitions as well as strong organic order growth from all businesses except for the oxygen concentration business, which declined ~$25 million primarily due to longer cycle frame orders received in Q1 2022 that did not repeat in Q1 2023.

Balance Sheet and Cash Flow

Ingersoll Rand remains in a strong financial position with ample liquidity of $2.2 billion. On a reported basis, the company generated $170 million of cash flow from operating activities from continuing operations and invested $22 million in capital expenditures, resulting in free cash flow from continuing operations1 of $148 million, compared to cash flow from operating activities from continuing operations of $50 million and free cash flow from continuing operations1 of $32 million in the prior year period. Net debt to Adjusted EBITDA leverage1 was 1.1x for the first quarter, which was an improvement of 0.1x as compared to the prior year.

Ingersoll Rand was upgraded to the investment-grade rating of BBB- by S&P.

View more details here. 

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