Ingersoll Rand Q4 Earnings Top Estimates; Says On Track To Meet 2025 Targets

Ingersoll Rand IR reported fourth-quarter FY22 sales growth of 14% year-on-year, to $1.62 billion, beating the consensus of $1.54 billion. Q4 orders slipped 1% Y/Y to $1.48 billion.
The gross profit increased 28.5% to $654.4 million, with a gross margin of 40.3%.
The operating margin was 16.8%, and operating income for the quarter jumped 94.4% to $272.9 million.
The company held $1.6 billion in cash and equivalents as of Dec. 31, 2022. Cash from operating activities for the quarter totaled $355 million, with a free cash flow of $321 million.
Adjusted EBITDA increased 23% to $420.2 million, and adjusted EBITDA margin expanded 180 basis points to 25.9%.
Adjusted EPS of $0.72 beat the analyst consensus of $0.62.
Vicente Reynal, Chairman and CEO, said, "These robust results again demonstrate the resilience of our business across economic cycles. Driven by our operational excellence model, IRX, we continue to deliver on the commitments we made at our Investor Day, keeping us on track to meet those 2025 targets."
Outlook: Ingersoll sees FY23 revenue growth of 7% - 9%.
The company expects FY23 adjusted EPS of $2.48 - $2.58 against the consensus of $2.51.
It sees FY23 adjusted EBITDA of $1.57 billion - $1.63 billion, an increase of 9% - 14%.
Price Action: IR shares traded lower by 0.36% at $57.38 on the last check Tuesday.