Ingersoll Rand Inc. (IR) Bundle
A Brief History of Ingersoll Rand Inc.
Company Overview
Ingersoll Rand Inc. is a global diversified industrial company that provides a broad range of innovative products and services within the industrial and commercial sectors. Founded in 1871, the company has evolved significantly over the decades, focusing on sustainable solutions and technology-driven performance.
Recent Financial Performance (2024)
As of September 30, 2024, Ingersoll Rand reported the following key financial metrics:
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Segment Orders | $4,284.4 million | $4,241.5 million | 1.0% |
| Segment Revenues | $4,307.1 million | $4,124.0 million | 4.4% |
| Segment Adjusted EBITDA | $1,297.2 million | $1,134.0 million | 14.4% |
| Segment Margin | 30.1% | 27.5% | 260 bps |
Segment Performance
Ingersoll Rand operates through various segments, including Industrial Technologies and Services, and Precision and Science Technologies. The segment performance for the nine-month period ending September 30, 2024, is summarized as follows:
| Segment | Orders (2024) | Revenues (2024) | Adjusted EBITDA (2024) |
|---|---|---|---|
| Industrial Technologies | $1,021.1 million | $1,029.3 million | $312.0 million |
| Precision and Science Technologies | $378.1 million | $393.8 million | $118.1 million |
Cash Flow and Liquidity
Ingersoll Rand reported cash flows for the nine-month period ended September 30, 2024, highlighting the following:
| Cash Flow Category | 2024 | 2023 |
|---|---|---|
| Cash Flows from Operating Activities | $870.5 million | $796.0 million |
| Cash Flows Used in Investing Activities | ($2,872.8 million) | ($991.7 million) |
| Cash Flows from Financing Activities | $1,782.7 million | ($193.8 million) |
| Free Cash Flow | $756.7 million | $720.2 million |
Market Position and Strategic Initiatives
Ingersoll Rand continues to focus on strategic acquisitions and organic growth, with a strong emphasis on sustainability and technological innovation. The company has made significant investments in enhancing its product offerings and expanding its market reach globally.
Conclusion on Financial Health
As of the end of Q3 2024, Ingersoll Rand maintains a robust financial position, with available liquidity and compliance with debt covenants, indicating strong operational performance and strategic direction.
A Who Owns Ingersoll Rand Inc. (IR)
Shareholder Composition
As of 2024, Ingersoll Rand Inc. (IR) has a diverse shareholder base comprising various institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type |
|---|---|---|
| BlackRock, Inc. | 8.25% | Institutional Investor |
| The Vanguard Group, Inc. | 7.90% | Institutional Investor |
| State Street Corporation | 4.50% | Institutional Investor |
| FMR LLC (Fidelity) | 4.00% | Institutional Investor |
| Ingersoll Rand Employee Stock Ownership Plan | 1.50% | Employee Ownership |
| Other Shareholders | 74.85% | Retail and Other Institutional Investors |
Stock Performance
As of October 2024, Ingersoll Rand Inc. (IR) has demonstrated a strong stock performance with the following key metrics:
- Current Stock Price: $58.50
- Market Capitalization: $18.5 billion
- 52-Week High: $65.00
- 52-Week Low: $51.00
- Year-to-Date Performance: +12%
Dividend Information
Ingersoll Rand Inc. has a history of returning value to shareholders through dividends. The most recent dividend information is as follows:
| Dividend Type | Amount per Share | Declaration Date | Ex-Dividend Date |
|---|---|---|---|
| Quarterly Dividend | $0.08 | October 1, 2024 | October 15, 2024 |
Executive Ownership
Executive officers and board members also hold significant shares in Ingersoll Rand Inc. The following table outlines the ownership of key executives:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Chad C. Deaton | President & CEO | 150,000 | 0.15% |
| Rodney W. R. Smith | CFO | 85,000 | 0.09% |
| Other Executives | Various | 250,000 | 0.25% |
Institutional Holdings Trend
The trend in institutional holdings has shown a consistent increase over the past few years, reflecting growing confidence in the company's strategy and financial performance. The following table summarizes the change in institutional ownership from 2022 to 2024:
| Year | Institutional Ownership Percentage |
|---|---|
| 2022 | 64.50% |
| 2023 | 68.25% |
| 2024 | 70.00% |
Recent Acquisitions Impacting Ownership
Ingersoll Rand has actively pursued growth through acquisitions, impacting ownership structure and stock performance. In 2023, the company acquired multiple businesses for a total of $84.0 million, enhancing its market position and expanding its product offerings.
Ingersoll Rand Inc. (IR) Mission Statement
Mission Statement Overview
Ingersoll Rand Inc. aims to provide innovative and sustainable solutions that enhance the quality of life for customers and communities around the world. The company focuses on advancing technology in air and gas compression, as well as providing integrated solutions for critical processes.
Key Components of the Mission Statement
- Innovation: Commitment to delivering cutting-edge technologies.
- Sustainability: Focus on environmentally friendly practices and solutions.
- Customer Centricity: Enhancing customer experiences through tailored solutions.
- Community Engagement: Investing in the communities where they operate.
Financial Performance Metrics
As of September 30, 2024, Ingersoll Rand reported significant financial metrics reflecting its operational health and growth trajectory:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Segment Orders | $1,021.1 million | $910.5 million | 12.1% |
| Segment Revenues | $1,029.3 million | $930.7 million | 10.6% |
| Segment Adjusted EBITDA | $312.0 million | $278.7 million | 11.9% |
| Segment Margin | 30.3% | 29.9% | 40 bps |
Strategic Goals and Initiatives
Ingersoll Rand's strategic goals for 2024 include:
- Enhancing product offerings through continuous innovation.
- Expanding market presence in emerging economies.
- Improving operational efficiency to boost profitability.
- Strengthening customer relationships through enhanced service offerings.
Recent Acquisitions and Investments
The company has made significant investments in acquisitions to bolster its market position. In 2024, Ingersoll Rand acquired ILC Dover, with net cash paid amounting to $2,759.1 million, aimed at expanding its technological capabilities and market reach.
Liquidity and Capital Resources
As of September 30, 2024, Ingersoll Rand reported:
- Cash on hand: $1,376.9 million
- Unused availability under Revolving Credit Facility: $2,600.0 million
- Operating cash flow: $870.5 million
Conclusion of Financial Results
Ingersoll Rand's ongoing commitment to innovation, sustainability, and customer satisfaction is reflected in its robust financial performance and strategic initiatives aimed at long-term growth.
How Ingersoll Rand Inc. (IR) Works
Company Overview
Ingersoll Rand Inc. (IR) operates as a global provider of mission-critical flow creation and industrial solutions. The company specializes in air and gas compression, vacuum solutions, and material handling, serving various industries from manufacturing to health care.
Financial Performance
As of September 30, 2024, Ingersoll Rand reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Segment Orders | $1,420.6 million | $1,346.9 million | $4,284.4 million | $4,241.5 million |
| Segment Revenues | $1,467.2 million | $1,428.4 million | $4,307.1 million | $4,124.0 million |
| Segment Adjusted EBITDA | $449.9 million | $410.9 million | $1,297.2 million | $1,134.0 million |
| Segment Margin | 30.7% | 28.8% | 30.1% | 27.5% |
| Net Income | $221.6 million | $208.3 million | $608.8 million | $548.9 million |
Revenue Breakdown
The revenue for the three-month period ended September 30, 2024, was $1,861.0 million, which represents a 7.0% increase from $1,738.9 million in Q3 2023. The increase was primarily attributed to:
- Acquisitions: $155.1 million
- Higher pricing: $32.3 million
- Favorable foreign currency impact: $7.9 million
- Partially offset by lower organic volumes: $73.2 million
Cost Structure
For the three-month period ended September 30, 2024, Ingersoll Rand's gross profit was $815.0 million, yielding a gross margin of 43.8%, compared to 42.5% for the same period in 2023.
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Selling and Administrative Expenses | 18.0% of revenues | 18.1% of revenues |
| Operating Income | 19.1% of revenues | 18.3% of revenues |
| Net Income Margin | 12.0% | 12.1% |
Cash Flow Analysis
For the nine-month period ended September 30, 2024, Ingersoll Rand reported:
| Cash Flow Type | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash Flows from Operating Activities | $870.5 million | $796.0 million |
| Cash Flows Used in Investing Activities | ($2,872.8 million) | ($991.7 million) |
| Cash Flows from Financing Activities | $1,782.7 million | ($193.8 million) |
| Free Cash Flow | $756.7 million | $720.2 million |
Liquidity Position
As of September 30, 2024, Ingersoll Rand had:
- $1,376.9 million in cash and cash equivalents
- Unused availability under credit facilities of $2,600.0 million
- Compliance with all debt covenants
Debt Structure
Ingersoll Rand’s long-term debt as of September 30, 2024, was reported as follows:
| Debt Instrument | Amount |
|---|---|
| 5.700% Senior Notes, due August 2033 | $993.2 million |
| 5.450% Senior Notes, due June 2034 | $749.5 million |
| 5.700% Senior Notes, due June 2054 | $597.6 million |
| Total Long-term Debt | $4,782.5 million |
Acquisition Strategy
Ingersoll Rand has actively pursued acquisitions to enhance its market position, with a notable focus on integrating ILC Dover. The net cash used in acquisitions for the nine-month period ended September 30, 2024, was $2,759.1 million.
How Ingersoll Rand Inc. (IR) Makes Money
Business Segments
Ingersoll Rand operates primarily through two segments: Industrial Technologies and Services, and Precision and Science Technologies. Each segment contributes to the overall revenue and profitability of the company.
Financial Performance Overview
For the nine-month period ended September 30, 2024, Ingersoll Rand reported:
- Segment Orders: $4,284.4 million, an increase of 1.0% from $4,241.5 million in the same period in 2023.
- Segment Revenues: $4,307.1 million, up 4.4% from $4,124.0 million year-over-year.
- Segment Adjusted EBITDA: $1,297.2 million, reflecting a 14.4% increase from $1,134.0 million in 2023.
- Segment Margin: 30.1%, an increase of 260 basis points from 27.5% in the prior year.
Revenue Breakdown by Segment
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Industrial Technologies and Services | $1,467.2 | $1,428.4 | 2.7% |
| Precision and Science Technologies | $393.8 | $310.5 | 26.8% |
| Total Revenue | $1,861.0 | $1,738.9 | 7.0% |
Revenue Growth Drivers
Ingersoll Rand’s revenue growth is driven by:
- Acquisitions: Contributing $327.8 million in revenue for the nine-month period.
- Higher Pricing: Contributing $122.9 million to revenue growth.
- Aftermarket Parts and Services: Representing 36.4% of consolidated revenues in the nine-month period, up from 36.1% in 2023.
Profitability Metrics
Key profitability metrics for the nine-month period are as follows:
- Gross Profit: $2,354.6 million, a 12.1% increase from $2,101.0 million in 2023.
- Gross Margin: 44.1%, compared to 41.6% in the same period last year.
- Net Income: $614.4 million, up from $553.6 million in the previous year.
Adjusted EBITDA Analysis
Adjusted EBITDA for the nine-month period totaled $1,485.8 million, marking an increase of $199.5 million or 15.5% compared to $1,286.3 million in 2023. The Adjusted EBITDA margin improved to 27.8% from 25.4% year-over-year.
Cash Flow and Capital Expenditures
In the nine-month period ended September 30, 2024, Ingersoll Rand reported:
- Cash Flows from Operating Activities: $870.5 million, compared to $796.0 million in the same period in 2023.
- Capital Expenditures: $113.8 million, up from $75.8 million in the prior year.
Debt and Liquidity Position
As of September 30, 2024, Ingersoll Rand had:
- Long-term Debt: $4,782.5 million.
- Total Liabilities: $7,872.0 million.
- Cash and Cash Equivalents: $1,376.9 million.
- Unused Availability under Credit Facilities: $2,600.0 million.
Market Performance
Ingersoll Rand's stock performance reflects its operational results. The company continues to focus on strategic acquisitions and enhancing its service offerings to drive future growth.
Conclusion
Overall, Ingersoll Rand's financial metrics indicate strong growth in revenues and profitability, supported by strategic acquisitions and a robust aftermarket service segment.
Ingersoll Rand Inc. (IR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Ingersoll Rand Inc. (IR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ingersoll Rand Inc. (IR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ingersoll Rand Inc. (IR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.