Ingersoll Rand Benefits From Business Strength Amid Headwinds

Business Performance and Growth - Ingersoll Rand Inc (IR) is experiencing higher orders for industrial vacuums and blowers, along with stable compressor orders, driving growth in the Industrial Technologies & Services segment [1] - The Precision and Science Technologies segment benefits from growth in short-cycle orders and strong book-and-ship orders [1] - Management expects 2024 revenues to increase 5-7% year-over-year, with adjusted earnings forecasted at $3 28-$3 34 per share compared to 2 96 in 2023 [2] Acquisitions and Strategic Expansion - IR completed the acquisition of Air Power Systems Co (APSCO), Blutek s r l (Blutek), and UT Pumps & Systems Private Limited (UT Pumps) in October 2024 [3] - The APSCO acquisition strengthens IR's position in dry and liquid bulk markets with energy-efficient solutions [3] - The Blutek acquisition enhances competitiveness in high-specification projects, particularly in biogas and carbon capture markets, while UT Pumps adds new pump technology to IR's portfolio [4] - Acquisitions contributed 8 9% to total revenues in Q3 2024 [4] Shareholder Returns and Financial Management - IR paid 24 2 million in dividends and repurchased shares worth $198 2 million in the first nine months of 2024 [5] - The board approved an additional$1 billion increase to the share repurchase authorization in April 2024 [5] Cost and Debt Concerns - IR faces escalating costs, with cost of sales increasing 11 2% year-over-year in 2023 and selling and administrative expenses rising 16 1% [7] - Selling and administrative expenses increased 7 5% in the first nine months of 2024 [7] - Long-term debt rose to $4 8 billion by the end of Q3 2024, up from$2 7 billion at the end of 2023 [8] - Interest expenses increased 27% year-over-year to $151 4 million in the first nine months of 2024 [8] Stock Performance - IR's shares rose 20 5% in the past three months, outperforming the industry's 15 7% growth [7]