Ingersoll Rand's Record 2024: A Tale of Operational Excellence and Sustainable Growth

Ingersoll Rand Inc. (NYSE: IR) reported record results for both the fourth quarter and the full-year 2024, driven by its competitive differentiator - Ingersoll Rand Execution Excellence (IRX). The company delivered double-digit adjusted EPS growth and strong free cash flow margin, well-positioning itself for another year of strong operational performance in 2025. Vicente Reynal, chairman and chief executive officer of Ingersoll Rand, attributed the company's success to its global team's strong execution and performance, as well as its ability to significantly outpace its inorganic growth commitments last year.

Ingersoll Rand's strategic acquisitions contributed to its organic growth in 2024, with acquisitions contributing 7.8% to revenues while organic revenues decreased by 2.8%. The company's fourth-quarter 2024 results showed that acquisitions contributed 7.8% to revenues, while organic revenues decreased by 2.8%. Ingersoll Rand significantly outpaced its inorganic growth commitments last year, indicating the success of its M&A strategy. For 2025, the company expects to continue its strong M&A activity, as stated by Vicente Reynal.

Ingersoll Rand's record Adjusted EBITDA margin in 2024 was driven by several operational improvements under the IRX initiative. The Industrial Technologies and Services (IT&S) segment saw a solid Adjusted EBITDA margin improvement year-over-year, finishing at a record level of 30.2% for the full year. This was achieved despite flat organic revenues and a 2% organic decline in the fourth quarter. The segment's Adjusted EBITDA margin increased by 30 basis points in the fourth quarter, building on the record-level margin from the prior year's fourth quarter. This improvement was likely driven by enhanced operational efficiency and cost management within the segment.

The Precision and Science Technologies (P&ST) segment reported a 14% increase in Adjusted EBITDA, despite a 250 basis points decline in Adjusted EBITDA margin. This growth was driven by a 29% increase in orders and a 24% increase in revenues. The segment's organic order growth, excluding the impact of China, was in the low-single-digits year-over-year. This indicates that the segment successfully managed to increase sales and maintain profitability despite challenges in the Chinese market.

Ingersoll Rand's focus on sustainability and environmental responsibility, as recognized by CDP, has positively impacted its financial performance and market position in 2024. The company was named to the CDP's A List for the second year in a row, recognizing its leadership in environmental disclosure and transparency. This commitment has helped Ingersoll Rand to enhance its reputation as a responsible corporate citizen, attract and retain top talent, reduce operational costs and improve efficiency, and access new markets and opportunities.

Ingersoll Rand's commitment to sustainability and environmental responsibility has also contributed to its strong financial performance in 2024. The company reported record results for both the fourth quarter and the full-year, with double-digit adjusted EPS growth and strong free cash flow margin. This success can be attributed, in part, to the company's ability to meet its long-term commitments and deliver financial durability, even in a dynamic global market environment.

Ingersoll Rand's focus on sustainability and environmental responsibility has enabled it to outpace its inorganic growth commitments and position itself for another strong year of M&A activity in 2025. The company's commitment to innovation, product development, and strategic acquisitions has allowed it to expand its market share and maintain a competitive edge in the face of cyclicality and market fragmentation.

Ingersoll Rand's record 2024 is a testament to the company's commitment to operational excellence, sustainability, and long-term growth. By focusing on these key areas, Ingersoll Rand has been able to deliver strong financial performance and position itself for continued success in the years to come.