Ingersoll Rand(US:IR)2025-02-19 21:32Financial Performance - Revenues for the year ended December 31, 2024, were $7,235.0 million, an increase of 5.2% from $6,876.1 million in 2023[252] - Gross profit for 2024 was $3,170.0 million, up from $2,882.2 million in 2023, reflecting a gross margin improvement[252] - Operating income increased to $1,300.1 million in 2024, compared to $1,164.3 million in 2023, representing a growth of 11.7%[252] - Net income attributable to Ingersoll Rand Inc. for 2024 was $838.6 million, a rise of 7.7% from $778.7 million in 2023[252] - Basic earnings per share for 2024 were $2.08, compared to $1.92 in 2023, indicating a 8.3% increase[252] - Comprehensive income attributable to Ingersoll Rand Inc. for 2024 was $597.7 million, down from $802.8 million in 2023, primarily due to foreign currency translation adjustments[254] Debt and Interest Management - The company had no variable rate debt outstanding as of December 31, 2024, managing interest rate risk through fixed rate to floating rate swap contracts[238][239] - A hypothetical increase of 100 basis points in market interest rates would increase interest expense by $7.5 million in 2024[241] - Long-term debt increased to $4,754.4 million in 2024, compared to $2,693.0 million in 2023, indicating a rise of 76.3%[257] - The company issued $3,300.0 million in senior unsecured notes on May 10, 2024, to fund acquisitions and repay existing debt[388] - The weighted-average interest rate for the debt was 7.18% prior to repayment in May 2024[386] Assets and Liabilities - Total assets increased to $18,009.8 million as of December 31, 2024, up from $15,563.5 million in 2023, representing a growth of 15.7%[257] - Total liabilities reached $7,764.5 million in 2024, up from $5,716.8 million in 2023, which is an increase of 36.0%[257] - Total stockholders' equity increased to $10,179.0 million in 2024, up from $9,783.8 million in 2023, representing a growth of 4.0%[259] - Cash and cash equivalents decreased to $1,541.2 million in 2024 from $1,595.5 million in 2023, a decline of 3.4%[257] Acquisitions and Investments - The Company completed the acquisition of ILC Dover for an initial cash consideration of $2,349.7 million, with goodwill of $1,309.8 million primarily due to anticipated revenue and cost synergies[327] - The total consideration for all businesses acquired in 2024 amounted to $2,975.9 million, with revenues from these acquisitions contributing $349.6 million for the year ended December 31, 2024[336] - The Company completed the acquisition of SPX FLOW's Air Treatment business for $519.0 million, enhancing its offerings in compressor system components[337] - The Company acquired Friulair for $143.3 million, aimed at increasing the scale of its air dryer business and adding new chiller production capabilities[318] - The Company recognized $159.9 million of goodwill from its 2023 acquisitions that is expected to be deductible for tax purposes[341] Cash Flow and Expenditures - Cash flows from operating activities from continuing operations reached $1,396.7 million, compared to $1,377.4 million in 2023, reflecting a solid operational performance[262] - Capital expenditures for 2024 were $149.1 million, an increase from $105.4 million in 2023, indicating ongoing investment in growth[262] - Net cash used in investing activities from continuing operations was $3,107.7 million, significantly higher than $1,060.5 million in 2023, primarily due to acquisitions[262] Restructuring and Operational Efficiency - The company reported restructuring charges of $31.2 million in 2024, compared to $19.9 million in 2023, indicating ongoing efforts to optimize cost structure[359] - The company’s restructuring program initiated in 2020 continues to yield efficiencies, with charges related to workforce restructuring and facility consolidation[356] Pension and Benefits - The Company’s pension benefits obligations decreased from $294.0 million in 2023 to $264.7 million in 2024[409] - The fair value of plan assets for pension benefits was $206.9 million as of December 31, 2024, down from $237.5 million in 2023[411] - The total net periodic benefit cost recognized for U.S. pension plans was $1.2 million in 2024, compared to $2.3 million in 2023, indicating a reduction of approximately 47.8%[417] Research and Development - The Company spent $116.6 million on research activities in 2024, up from $108.2 million in 2023 and $91.3 million in 2022, indicating a 7.9% increase year-over-year[295] Currency and Foreign Exchange - The company experienced unfavorable impacts on revenues due to the strengthening of the U.S. dollar against foreign currencies in 2024[242] - The company experienced a foreign currency transaction loss of $3.2 million in 2024, compared to a gain of $5.1 million in 2023, indicating currency volatility impacts[262]