Ingersoll Rand (IR) Q2 Earnings & Revenues Top Estimates

Core Insights - Ingersoll Rand Inc. reported second-quarter 2024 adjusted earnings of 83 cents per share, exceeding the Zacks Consensus Estimate of 74 cents, marking a 22.1% year-over-year increase [1] - Total revenues reached $1.80 billion, surpassing the consensus estimate of $1.78 billion, with a 7% year-over-year growth [1] - Orders totaled $1.8 billion, reflecting a 4% decline year over year, although organic orders increased by 3.6% [1] Segmental Discussion - The Industrial Technologies & Services segment generated revenues of $1.5 billion, accounting for 81.2% of net revenues, with a year-over-year increase of 6.4% [2] - The Precision & Science Technologies segment's revenues totaled $338.8 million, representing 18.8% of net revenues, with a 10% year-over-year increase [2] - Adjusted EBITDA for the Industrial Technologies & Services segment rose 15.6% year over year to $436.2 million, while the Precision & Science Technologies segment's adjusted EBITDA increased 13.9% to $102.5 million [2][3] Margin Profile - Cost of sales increased 2.3% year over year to $1.0 billion, while selling and administrative expenses rose 8.4% to $342.1 million [4] - Adjusted EBITDA increased 16.5% year over year to $494.6 million, with the margin improving to 27.4% from 25.2% in the previous year [4] Balance Sheet & Cash Flow - As of the end of the second quarter, Ingersoll Rand had cash and cash equivalents of $1.1 billion, down from $1.6 billion at the end of December 2023, with long-term debt increasing to $4.8 billion [5] - The company generated net cash of $466.5 million from operating activities, up 17% year over year, and free cash flow increased 8.8% to $382.4 million [5] 2024 Outlook - Ingersoll Rand raised its revenue growth expectation for 2024 to 6-8% year over year, up from the previous estimate of 4-6% [6] - Adjusted EBITDA is projected to be in the range of $2.01-$2.06 billion, indicating a 12-15% increase from the prior year [6] - Adjusted earnings are anticipated to be between $3.27-$3.37 per share, compared to the earlier expected range of $3.20-$3.30 [7]