Ingersoll Rand Q4 revenues up 12%
Ingersoll Rand Inc., a global provider of mission-critical flow creation and industrial solutions, reported a strong finish in the fourth quarter of 2023.
“2023 marked another record year for Ingersoll Rand, and we expect to continue to unlock new heights in 2024,” said Chairman and CEO Vicente Reynal. “Our fourth quarter and full year results outperformed on revenue, Adjusted EBITDA, Adjusted EPS, and Free Cash Flow targets, keeping us on track to achieve our 2025 goals and positioning us well for the aggressive 2027 targets we set at our Investor Day. Our results support that using IRX, being nimble and pivoting to high-growth sustainable end markets continue to enhance the long-term durability of our business.”
Reynal added, “Ingersoll Rand’s success wouldn't be possible without our more than 18,000 global employees. Our unique ownership mindset has fueled employee sense of belonging and has led to numerous accolades, including recognition as a great place to work across several countries, notable employee learning and development programs, and several awards for our industry-leading sustainability program. We are living out the Company’s purpose of making life better for our people and our planet.”
Fourth Quarter 2023 Segment Review
(All comparisons against the fourth quarter of 2022 unless otherwise noted.)
Industrial Technologies and Services Segment: broad range of compressor, vacuum, blower, and air treatment solutions as well as industrial technologies including power tools and lifting equipment
- Reported Orders of $1,377 million, up 16%, or up 5% organic
- Reported Revenues of $1,509 million, up 15%, or up 5% organic2
- Reported Segment Adjusted EBITDA of $453 million, up 26% with an incremental margin of 48%
- Reported Segment Adjusted EBITDA Margin of 30.0%, up 260 basis points, fueled by the use of IRX to drive strong operational execution
- Core industrial end markets saw continued strong organic demand with orders up 5%, including strong positive momentum across Americas and Europe. Excluding FX, orders for total compressor offerings, which represent approximately 65% of the total segment, were up low double digits.
Precision and Science Technologies Segment: highly specialized fluid management solutions including precision liquid and gas pumps and niche compression technologies
- Reported Orders of $293 million, flat, or down 2% organic
- Reported Revenues of $313 million, up 1%, or flat organic2
- Reported Segment Adjusted EBITDA of $94 million, up 2% with an incremental margin of 33%
- Reported Segment Adjusted EBITDA Margin of 30.1%, flat, driven primarily by improvement in pricing as compared to cost as well as synergy delivery in recently completed M&A offsetting expected margin headwinds from volume declines in the life sciences businesses
- Order declines were primarily driven by the life sciences businesses, which continue to experience softness in the oxygen concentration and biopharma end markets. In the industrial businesses, short cycle orders were positive both sequentially and year over year driven by demand generation activities, use of IRX, and continued lead time reductions.
INDUSTRIAL SUPPLY MAGAZINE
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