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Ingersoll Rand's Q4 Earnings Meet Estimates, Revenues Miss
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Ingersoll Rand Inc. (IR - Free Report) reported fourth-quarter 2024 adjusted earnings of 84 cents per share, in line with the Zacks Consensus Estimate. However, the bottom line decreased 2.3% year over year.
Total revenues of $1.90 billion missed the consensus estimate of $1.91 billion. However, the top line increased 4.2% year over year. Acquisitions contributed 7.8% to revenues while organic revenues decreased 2.8%. Foreign currency movements had a negative impact of 0.8%.
Orders totaled $1.8 billion, up 7.8% year over year. Organically, orders decreased 0.3%.
In 2024, IR reported net revenues of $7.24 billion, which increased 5% year over year. The company’s adjusted earnings were $3.29 per share, up 11% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Ingersoll Rand Inc. Price, Consensus and EPS Surprise
The Industrial Technologies & Services segment generated revenues of $1.51 billion, accounting for 79.6% of net revenues. Sales increased 0.1% year over year. Acquisitions contributed 3.4% while movement in foreign currencies had a negative impact of 0.9%. The segment’s organic sales inched down 2.4%. Our estimate for the segment’s sales was $1.56 billion.
Segmental orders were up 3.3%. Adjusted EBITDA increased 1% year over year to $457.6 million. Our estimate for adjusted EBITDA was $475.3 million.
The Precision & Science Technologies segment’s revenues totaled $377.8 million, representing 20.4% of net revenues. Our estimate for segmental revenues was $345.3 million. On a year-over-year basis, the segment’s revenues increased 24%. Organic sales declined 5% while movement in foreign currencies had a negative impact of 0.3%. Acquisitions contributed 29.3% to revenue growth.
The segment’s orders increased 28.9% on a year-over-year basis. Adjusted EBITDA increased 13.5% year over year to $106.8 million. Our estimate for adjusted EBITDA was $103.4 million.
IR’s Margin Profile
IR's cost of sales increased 4.1% year over year to $1.08 billion. Selling and administrative expenses were up 0.3% to $331.7 million.
Adjusted EBITDA increased 6.4% year over year to $532.3 million. The margin increased to 28.0% from 27.5% in the year-ago period.
Balance Sheet & Cash Flow of IR
While exiting the fourth quarter, Ingersoll Rand had cash and cash equivalents of $1.54 billion compared with $1.6 billion at the end of December 2023. Long-term debt (less of current maturities) was $4.75 billion compared with $2.7 billion in December 2023.
In 2024, the company paid out dividends of $32.3 million and repurchased treasury stocks worth $260.7 million.
IR generated net cash of $1.40 billion from operating activities, up 1.4% year over year. Capital expenditure totaled $149.1 million compared with $105.4 million in the year-ago quarter. Free cash flow decreased 1.9% to $1.25 billion.
Ingersoll Rand’s 2025 Outlook
Ingersoll Rand expects revenues to increase 3-5% year over year. Organic revenues are estimated to increase in the band of 1-3%. For both the Industrial Technologies & Services and Precision & Science Technologies segments, organic revenues are predicted to increase 1-3% from the year-ago levels. Adverse foreign currency movements are expected to be approximately 2%.
Adjusted EBITDA is expected to be in the $2.130-$2.19 billion band, indicating an increase of 6-9% from the prior-year level. Adjusted earnings are anticipated to be in the range of $3.38-$3.50 per share, indicating an increase of 3-6% from the year-earlier actual. The Zacks Consensus Estimate for adjusted earnings is pegged at $3.40 per share.
IR’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
Tetra Tech, Inc. (TTEK - Free Report) reported earnings of $0.35 per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $0.34. This compares with earnings of $0.28 per share a year ago.
Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.
Waste Management, Inc. (WM - Free Report) reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.
WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.
Packaging Corporation of America (PKG - Free Report) reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.
Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.
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Ingersoll Rand's Q4 Earnings Meet Estimates, Revenues Miss
Ingersoll Rand Inc. (IR - Free Report) reported fourth-quarter 2024 adjusted earnings of 84 cents per share, in line with the Zacks Consensus Estimate. However, the bottom line decreased 2.3% year over year.
Total revenues of $1.90 billion missed the consensus estimate of $1.91 billion. However, the top line increased 4.2% year over year. Acquisitions contributed 7.8% to revenues while organic revenues decreased 2.8%. Foreign currency movements had a negative impact of 0.8%.
Orders totaled $1.8 billion, up 7.8% year over year. Organically, orders decreased 0.3%.
In 2024, IR reported net revenues of $7.24 billion, which increased 5% year over year. The company’s adjusted earnings were $3.29 per share, up 11% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Ingersoll Rand Inc. Price, Consensus and EPS Surprise
Ingersoll Rand Inc. price-consensus-eps-surprise-chart | Ingersoll Rand Inc. Quote
IR’s Segmental Discussion
The Industrial Technologies & Services segment generated revenues of $1.51 billion, accounting for 79.6% of net revenues. Sales increased 0.1% year over year. Acquisitions contributed 3.4% while movement in foreign currencies had a negative impact of 0.9%. The segment’s organic sales inched down 2.4%. Our estimate for the segment’s sales was $1.56 billion.
Segmental orders were up 3.3%. Adjusted EBITDA increased 1% year over year to $457.6 million. Our estimate for adjusted EBITDA was $475.3 million.
The Precision & Science Technologies segment’s revenues totaled $377.8 million, representing 20.4% of net revenues. Our estimate for segmental revenues was $345.3 million. On a year-over-year basis, the segment’s revenues increased 24%. Organic sales declined 5% while movement in foreign currencies had a negative impact of 0.3%. Acquisitions contributed 29.3% to revenue growth.
The segment’s orders increased 28.9% on a year-over-year basis. Adjusted EBITDA increased 13.5% year over year to $106.8 million. Our estimate for adjusted EBITDA was $103.4 million.
IR’s Margin Profile
IR's cost of sales increased 4.1% year over year to $1.08 billion. Selling and administrative expenses were up 0.3% to $331.7 million.
Adjusted EBITDA increased 6.4% year over year to $532.3 million. The margin increased to 28.0% from 27.5% in the year-ago period.
Balance Sheet & Cash Flow of IR
While exiting the fourth quarter, Ingersoll Rand had cash and cash equivalents of $1.54 billion compared with $1.6 billion at the end of December 2023. Long-term debt (less of current maturities) was $4.75 billion compared with $2.7 billion in December 2023.
In 2024, the company paid out dividends of $32.3 million and repurchased treasury stocks worth $260.7 million.
IR generated net cash of $1.40 billion from operating activities, up 1.4% year over year. Capital expenditure totaled $149.1 million compared with $105.4 million in the year-ago quarter. Free cash flow decreased 1.9% to $1.25 billion.
Ingersoll Rand’s 2025 Outlook
Ingersoll Rand expects revenues to increase 3-5% year over year. Organic revenues are estimated to increase in the band of 1-3%. For both the Industrial Technologies & Services and Precision & Science Technologies segments, organic revenues are predicted to increase 1-3% from the year-ago levels. Adverse foreign currency movements are expected to be approximately 2%.
Adjusted EBITDA is expected to be in the $2.130-$2.19 billion band, indicating an increase of 6-9% from the prior-year level. Adjusted earnings are anticipated to be in the range of $3.38-$3.50 per share, indicating an increase of 3-6% from the year-earlier actual. The Zacks Consensus Estimate for adjusted earnings is pegged at $3.40 per share.
IR’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Tetra Tech, Inc. (TTEK - Free Report) reported earnings of $0.35 per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $0.34. This compares with earnings of $0.28 per share a year ago.
Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.
Waste Management, Inc. (WM - Free Report) reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.
WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.
Packaging Corporation of America (PKG - Free Report) reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.
Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.