Ingersoll Rand Reports Record Fourth Quarter and Full-Year 2024 Results

Delivered double-digit Adjusted EPS growth in 2024; Well-positioned for strong operational performance in 2025

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.

“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 Highlights

(All comparisons against the fourth quarter of 2023 unless otherwise noted)

Strong performance driven by its competitive differentiator – Ingersoll Rand Execution Excellence (IRX):

• 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
  • Adjusted net income¹ of $344 million, or $0.84 per share
• Adjusted EBITDA¹ of $532 million, up 6%, with a margin of 28.0%, up 50 basis points year-over-year, and incremental margin of 41%
• Reported operating cash flow of $526 million and free cash flow¹ of $491 million
  • Free cash flow margin¹ of 26%
• Liquidity of $4.1 billion as of December 31, 2024, including $1.5 billion of cash on hand and undrawn capacity of $2.6 billion under available credit facilities

Full-Year 2024 Highlights

(All comparisons against 2023 unless otherwise noted)

• Reported orders of $7,106 million, up 4%
• Reported revenues of $7,235 million, up 5%
• Reported net income attributable to Ingersoll Rand Inc. of $839 million, or earnings of $2.06 per share
  • Adjusted net income¹ of $1,349 million, or $3.29 per share, up 11%
• Adjusted EBITDA¹ of $2,018 million, up 13%, with a margin of 27.9%, up 190 basis points year-over-year, and incremental margin of 64%
• Reported operating cash flow of $1,397 million and free cash flow¹ of $1,248 million
  • Free cash flow margin¹ of 17%
• Returned $293 million of value to shareholders through share repurchases and dividends

2025 Guidance

• Expect full-year 2025 revenue growth of 3% to 5% and Adjusted EBITDA¹ of $2,130 to $2,190 million, up 6% to 9% over prior year
• 2025 Adjusted EPS¹ expected to be in a range of $3.38 to $3.50, up 3% to 6% over prior year

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 our 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.

Full-year 2025 phasing assumptions:

• Total revenue growth of 3-5% expected in both the first and second half of the year.
• Phasing of revenue and Adjusted EBITDA consistent with prior years.
• FX, based on December 2024 year-end rates, is expected to impact revenue in both the first and second half of the year consistently.
• Revenue from completed M&A is expected to be realized primarily in the first half of the year.
• Corporate costs are expected to be incurred relatively evenly throughout the year.
• Adjusted EPS phasing is consistent with the Adjusted EBITDA phasing.

For full results click here.

About Ingersoll Rand Inc.

Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to Making Life Better for our employees, customers, shareholders, and planet. Customers lean on us for exceptional performance and durability in mission-critical flow creation and life science and industrial solutions. Supported by over 80+ respected brands, our products and services excel in the most complex and harsh conditions. Our employees develop customers for life through their daily commitment to expertise, productivity, and efficiency. For more information, visit www.IRCO.com.

Contact:

Sara Hassell – Media Contact – sara.hassell@irco.com

Source: Ingersoll Rand Inc.