Ingersoll Rand(IR) - 2024 Q3 - Quarterly Results

Financial Performance - Third quarter 2024 orders reached $1,799 million, an increase of 10% year-over-year[1] - Reported revenues for the third quarter were $1,861 million, up 7% compared to the same period last year[1] - Adjusted EBITDA for the third quarter was $533 million, reflecting a 15% increase and a margin of 28.6%, up 210 basis points year-over-year[1] - Adjusted EPS for the third quarter was $0.84, up from $0.75 in the prior year, representing a growth of 12%[1] - Free cash flow for the third quarter was $374 million, with a free cash flow margin of 20%[1] - Revenues for the quarter ended September 30, 2024, were $1,861.0 million, an increase from $1,738.9 million for the same period in 2023, representing a growth of 7.0%[15] - Gross profit for the quarter was $815.0 million, compared to $739.3 million in the prior year, reflecting a gross margin improvement[15] - Operating income increased to $356.3 million from $318.4 million year-over-year, indicating a growth of 11.9%[15] - Net income attributable to Ingersoll Rand Inc. for the quarter was $221.6 million, up from $208.3 million in the same quarter last year, a rise of 6.3%[15] - Basic earnings per share for the quarter were $0.55, compared to $0.51 in the prior year, marking an increase of 7.8%[15] - Net income for the nine-month period ended September 30, 2024, increased to $614.4 million, up from $553.6 million in the same period of 2023, representing a growth of 10.5%[18] - Adjusted EBITDA for the nine-month period ended September 30, 2024, was $1,485.8 million, compared to $1,286.3 million in 2023, reflecting an increase of 15.5%[19] - Free cash flow for the nine-month period ended September 30, 2024, reached $756.7 million, up from $720.2 million in 2023, indicating a growth of 5.0%[19] - Adjusted diluted earnings per share for the nine-month period ended September 30, 2024, was $2.45, up from $2.09 in 2023, reflecting a growth of 17.2%[20] - Net income for the quarter ended September 30, 2024, was $223.4 million, compared to $209.6 million for the same period in 2023, representing an increase of 3.9%[22] - Total revenue for the quarter was $1.861 billion, up from $1.739 billion in the previous year, reflecting a growth of 7.0%[22] - Adjusted EBITDA for the quarter was $532.7 million, compared to $461.5 million in the same quarter last year, indicating a year-over-year increase of 15.4%[21] - Free cash flow for the quarter was $374.3 million, slightly up from $368.7 million in the prior year, showing a growth of 1.5%[21] - Total orders for the quarter reached $1.799 billion, an increase from $1.638 billion in the same quarter of 2023, marking a growth of 9.8%[22] Guidance and Strategic Plans - The company has updated its full-year 2024 revenue growth guidance to a range of 5% to 7%[7] - Adjusted EBITDA guidance for 2024 is set between $2,010 million and $2,040 million, indicating a 12% to 14% increase over the previous year[7] - The company plans to continue capital deployment towards M&A and innovation to drive long-term value[2] Acquisitions and Investments - Ingersoll Rand closed multiple acquisitions in October 2024, enhancing its position in high-growth markets[5] - Net cash used in investing activities for the nine-month period ended September 30, 2024, was $2,872.8 million, significantly higher than $991.7 million in 2023, primarily due to increased acquisitions[18] - Proceeds from long-term debt for the nine-month period ended September 30, 2024, amounted to $3,296.9 million, compared to $1,490.4 million in 2023, indicating a substantial increase[18] Balance Sheet and Cash Flow - Total assets as of September 30, 2024, were $18,206.2 million, up from $15,563.5 million at the end of 2023, reflecting a growth of 17.0%[17] - Long-term debt increased to $4,782.5 million from $2,693.0 million, indicating a significant rise due to strategic investments[17] - Cash and cash equivalents decreased to $1,376.9 million from $1,595.5 million, showing a decline of 13.7%[17] - The company reported an increase in inventories to $1,162.5 million from $1,001.1 million, reflecting a growth of 16.1%[17] - Total stockholders' equity rose to $10,334.2 million from $9,846.7 million, an increase of 4.9%[17] - The cash and cash equivalents at the end of the period were $1,376.9 million, up from $1,197.5 million at the end of September 30, 2023[18] Tax and Expenses - The company reported a provision for income taxes of $73.8 million for the quarter, compared to $60.3 million in the same period last year, reflecting a 22.9% increase[22] - Interest expense for the quarter was $63.8 million, up from $39.6 million in the previous year, indicating a significant increase of 60.4%[22] - The company incurred restructuring and related business transformation costs of $9.7 million for the quarter, compared to $2.2 million in the same period last year[21] Organic Growth - Organic growth in total orders was 0.8%, while organic revenue growth showed a decline of 2.4% for the quarter[24] - The impact of acquisitions contributed 8.7% to order growth and 8.9% to revenue growth for the quarter[24]