Ingersoll Rand(US:IR)2024-11-01 20:08Financial Performance - Net income attributable to Ingersoll Rand Inc. for the three months ended September 30, 2023, was $221.6 million, compared to $208.3 million for the same period in 2022, representing an increase of 6.3%[12] - Comprehensive income attributable to Ingersoll Rand Inc. for the nine months ended September 30, 2023, was $634.3 million, up from $459.0 million in the prior year, reflecting a growth of 38.2%[12] - Total revenue for the period ended September 30, 2024, was $1,861.0 million, an increase from $1,738.9 million in the same period of 2023, representing a growth of 7.0%[140] - Net income for the three-month period ended September 30, 2024, was $223.4 million, compared to $209.6 million for the same period in 2023, marking an increase of 6.0%[160] - Adjusted Net Income for the three-month period ended September 30, 2024, was $344.7 million, compared to $316.0 million for the same period in 2023[186] - Total revenue for the nine months ended September 30, 2024, was $5,336.4 million, an increase from $5,054.7 million in the same period of 2023, representing a growth of 5.6%[142] Comprehensive Income and Other Adjustments - Total other comprehensive income for the three months ended September 30, 2023, was $138.0 million, compared to a loss of $78.4 million in the same period last year[12] - Other comprehensive income for the nine months ended September 30, 2024, was $138.0 million, compared to a loss of $78.8 million for the same period in 2023[97] - The balance of accumulated other comprehensive loss as of September 30, 2024, was $(202.1) million, down from $(341.6) million as of September 30, 2023[99] Assets and Liabilities - Total assets increased to $18,206.2 million as of September 30, 2024, up from $15,563.5 million at December 31, 2023, representing a growth of 16.4%[16] - Total liabilities grew to $7,872.0 million, up from $5,716.8 million, indicating a rise of 37.7%[16] - Current assets rose to $4,191.2 million, compared to $4,050.4 million, marking an increase of 3.5%[16] - Goodwill increased significantly to $8,206.2 million from $6,609.7 million, reflecting a growth of 24.1%[16] Revenue Breakdown - Revenue from the United States market was $805.0 million for the period, compared to $735.1 million in the prior year, reflecting a year-over-year increase of 9.5%[140] - Revenue recognized at a point in time was $1,710.5 million, up from $1,615.8 million, which is a growth of 5.9%[140] - Revenue recognized over time was $150.5 million, compared to $123.1 million, reflecting a significant increase of 22.3%[140] - Original equipment revenue reached $1,176.8 million, an increase from $1,109.3 million, indicating a growth of 6.1%[140] - Aftermarket revenue was $684.2 million, compared to $629.6 million in the previous year, showing an increase of 8.7%[140] Acquisitions and Growth Strategy - The company completed multiple acquisitions in 2024, including Friulair for $143.3 million, Controlled Fluidics for $49.9 million, and CAPS for $99.4 million, aimed at expanding its product offerings and market share[30][31][34] - The Company completed the acquisition of ILC Dover for an initial cash consideration of $2,349.7 million, with contingent consideration of up to $75.0 million[37] - The aggregate revenue from acquisitions completed in 2024 was $131.3 million for the three-month period and $207.1 million for the nine-month period ended September 30, 2024[40] Expenses and Cost Management - Selling and administrative expenses for the three-month period ended September 30, 2024, were $334.3 million, an increase of $19.1 million, or 6.1%, compared to $315.2 million for the same period in 2023[191] - Other operating expense, net for the nine-month period ended September 30, 2024, was $142.8 million, an increase of $89.1 million compared to $53.7 million for the same period in 2023[196] - Interest expense increased to $63.8 million for the three months ended September 30, 2024, compared to $39.6 million in the same period of 2023[160] Cash Flow and Capital Expenditures - The company reported net cash provided by operating activities of $870.5 million, compared to $796.0 million in the prior period[23] - Free Cash Flow for the three-month period ended September 30, 2024, was $374.3 million, compared to $368.7 million for the same period in 2023[186] - The company incurred capital expenditures of $113.8 million during the period[23] Risks and Economic Factors - The company faces risks associated with instability in the global economy and financial markets, which may negatively impact revenues and liquidity[6] - Ingersoll Rand's operations are significantly exposed to international markets, with more than half of sales occurring in non-U.S. jurisdictions[6] - The company is subject to various risks, including credit and counterparty risks, which could adversely affect its business operations[6] Taxation - The effective income tax provision rate increased to 24.4% for the three months ended September 30, 2024, compared to 22.0% for the same period in 2023[145] - The provision for income taxes for the three-month period ended September 30, 2024, was $73.8 million, resulting in a 24.4% effective tax rate, compared to $60.3 million and 22.0% in the same period in 2023[200] Stock and Compensation - The company issued 0.2 million shares for stock-based compensation plans, contributing $5.1 million to capital in excess of par value[17] - Stock-based compensation expense increased to $43.6 million from $35.2 million in the previous period[23] - As of September 30, 2024, there was $124.9 million of total unrecognized compensation expense related to stock options and restricted stock units[82]