Ingersoll Rand's Q3 Earnings Surpass Estimates, Revenues Miss

Core Insights - Ingersoll Rand Inc. reported third-quarter 2024 adjusted earnings of 84 cents per share, exceeding the Zacks Consensus Estimate of 82 cents, marking a 9.1% year-over-year increase [1] - Total revenues reached $1.86 billion, slightly below the consensus estimate of $1.88 billion, but still reflecting a 7% year-over-year growth [1] - The company raised its 2024 outlook, expecting revenue growth of 5-7% compared to the previous estimate of 6-8% [10][11] Financial Performance - Adjusted EBITDA for the quarter increased 9.5% year over year to $449.9 million, slightly below the estimate of $450.5 million [4] - The cost of sales rose 4.6% year over year to $1.0 billion, while selling and administrative expenses increased by 6.1% to $334.3 million [7] - Free cash flow increased by 5.1% to $756.7 million, with net cash from operating activities up 9.4% year over year [9] Segment Analysis - The Industrial Technologies & Services segment generated revenues of $1.47 billion, accounting for 78.8% of total revenues, with a year-over-year increase of 2.7% [3] - The Precision & Science Technologies segment reported revenues of $393.8 million, a 26.8% increase year over year, with acquisitions contributing 29.1% to revenue growth [5][6] - Orders for the Industrial Technologies & Services segment increased by 5.5%, while the Precision & Science Technologies segment saw a 30% rise in orders year over year [4][6] Balance Sheet and Cash Flow - As of the end of the third quarter, Ingersoll Rand had cash and cash equivalents of $1.4 billion, down from $1.6 billion at the end of December 2023, while long-term debt rose to $4.8 billion [8] - The company paid out dividends of $24.2 million and repurchased treasury stocks worth $198.2 million in the first nine months of 2024 [8] Future Outlook - Adjusted EBITDA for 2024 is expected to be in the range of $2.01-$2.04 billion, indicating a 12-14% increase from the prior year [11] - Adjusted earnings are anticipated to be between $3.28-$3.34 per share, reflecting an 11-13% increase from the previous year [11]