Ingersoll Rand (IR) 4 May 232023 Q1 Earnings call transcript

Good morning and a warm welcome to the Ingersoll Rand First Quarter 2023 Earnings Conference Call. My name is Candice and I'll be your coordinator for today's call. All lines have been placed on mute during the presentation portion of the call with an opportunity for question-and-answer at the end. [Operator Instructions].

I would now like to hand the conference over to our host Matthew Fort, Vice President of Investor Relations. ahead. go Please

Reynal, welcome earnings and of Ingersoll XXXX are Rand Relations. Kini, and Thank Financial Chief I to am quarter Officer. Vicente morning this call. joining President and Matthew first CEO; And Vik you, me the Chairman Fort, Investor Vice

will website. available our Investor on earnings we Relations presentation the during section yesterday and issued these call. our the We and of release reference Both are

be addition, a this of later In conference call available today. will replay

want I this in and and Slide on start, review Before should everyone on the conjunction subject more previous remind for risks X read we certain statements our with Please you the information to call forward-looking that the filings, in are details. nature which provided statements uncertainties in call. SEC on forward-looking discussed to this

today's financial non-GAAP in to addition, measures. remarks, we refer will certain In

find You our our are presented the of most and to measures calculated Relations available slide can and measure our with a comparable of of section which reconciliation in Investor release, both presentation accordance the in website. on these GAAP earnings in

today's will review our guidance. and provide company On an update call, our XXXX segment financial to and we highlights

ask and we time session, caller Q&A one each question today's For other participants. to one keep allow to follow-up that for

At this over call time, I will to Vicente. turn the

good all. Matthew, to morning Thanks, and

in hard for would helping I QX. all acknowledging us record like to begin work in their quarter deliver and our employees by of thanking to another

purpose while environment. commitments our and exemplify our macroeconomic despite to consistently employees changing on like constantly Our thinking acting owners the deliver

over with generation, IRX. growth delivered our Slide this EBITDA X, adjusted adjusted which XXX% strong EPS performance Fueling cash on differentiator QX, is free we flow competitive year-over-year. double-digit Start in is up and

achieving markets our to performance, revenue high mega raising sustainable we're QX Day continue to growth. XXXX of commitments trends end full-year and We on on Based solid our to the Investor deliver sustainable growth, align guidance.

Slide Turning X. to

growth continues annual deliver to results. compounding engine economic Our

this our strategy XXXX, this We organic, and model targets and our Investor on Day inorganic, growth we Investor highlighted in last presented quality and Day of long-term our During to QX enablers. committed page. outlined earnings our remain

slides, start with deeper and we organic provide On insights with growth the X, inorganic will into organic our On initiatives. Slide initiatives. next two our you I

into the digitization, quality to us above of approach megatrends or dive growth. tool helps how Excellence let's IRX Demand market which So Generation we sustainability, is and of life. DGX, within a capture

of hundreds we Here six we of only XXXX. to have execute during initiatives initiatives that six we a note of quarter. quarter these the every that of out examples examples launched these are first Important few

examples I'll few page. review these a of shown on the

Within the system megatrend, and supply agreement and carbon a has new increase driven is sustainability capture no campaign with on product carbon builders digital we capture a campaign generated a focused This million also development funnel which key $XXX integrators. with player global example, a have required.

we aftermarket to example initiative initiative this other Ingersoll trigger great machine a grow when to this on utilize our are on to how for For triggers And new we our to its digitization, maintenance. e-mail equipment preventive of connected the Rand is key service was result The increased in expand business; approach this and have needed. leveraging alerts up stages notification is service and IIoT customers contracts set IIoT future. to plan early orders we in contracts our

the marketing of launched annual enablers small deploy that bottom deliver our farms We life example great for organic within to Dosatron of These by are a how compounding leads we results. of tailored examples few merely the XX% with our the dosing quality megatrends and pumps. Finally, a the have associated growth increase qualified tailwinds and social we towards campaign media megatrend. at agriculture a page,

SG&A acquired then deliver our gross we're larger has the and of margin the adjusted points, accelerating synergies. this business balanced this we expanded expect by of speaks to growth. wanted growth we X,XXX XXXX, this less into merger mid-teens XX On the Seepex. finding and initiatives, the and in margins, them In our EBITDA to the margins inorganic acquisitions expansion over a phenomenal on low-XXs When M&A of engine. EBITDA our than expansion margin And organic companies business approach we from to of power economic an while since adjusted to one in come provide basis update and months, approach integration integrating has

on we're With not growth. on new acquisitions, focused only focus also maintaining but improvements, cost

levers. across three For Seepex, organic accelerated we growth

the technology, the across from now have came IIoT expanded Seepex a great entire PST segment. scaled we which First, acquisition and

access lever our addressable were market second by to is Rand existing mission while knowledge to we critical customers, to battery less months, lithium market channel Ingersoll and combined in $XXX than The expanding Seepex able product bring ion nine with million. a technology over

differentiation product airflow combining Finally, marketplace enables materials energy efficiency. Seepex cavity also technology by this improved compressor transfer Seepex with and and compressor air customers within we pump, patented have technology integrated controlled an with our to progressive better the accelerate to pump

As while we add market the and products with be We're signed These deal. closed capital Slide and strategy. addressable market one at pleased M&A technologies, to accelerating to of adjacencies. move both one our our allocation acquisitions transaction to X, forefront highlight closed M&A continues leading

through these you two deals. Let walk me

in First, lab-based technologies. leading and quality markets Trace and a and attractive has pharmaceutical. as such revenue provider life recurring compressed across acquisition and of This testing sampling for air food which beverage, is purity strong sciences, air Analytics,

portfolio end very that across expands is Next product Asia-Pacific. growing markets a well-established is Vacuum, Gaopeng sustainable pump which a attractive and vacuum oil-free in manufacturer our

of at several which and of Xx larger time as importantly, be have it remains more the at was M&A five the Our it over LOI in than very R&D. currently are today, the close transactions continues stage. and strong, We we stage, other funnel the have process LOI to to transactions

our to million $XXX annualized in and are LOI to current revenue acquisitions in inorganic on XXXX. M&A we commitment be additional to-date, our Based reaffirming under funnel; $XXX million transactions acquired are the to five

to Moving X. Slide

do backlog have need that in in nimble our and results remain the acknowledge respond. we market state to been agile we we order orders continue constant to While strong and is of to see and change growth, a and

Over more few the to ever. be resilient past than portfolio have our transformed we years,

We have highly large, recurring, a and revenue, profitable XX% that business approximately growing total aftermarket double-digits. our of for at accounts while

better reinvested that along divested high with are stable more acquisitions have we and billion growth assets a addition, better into a in cyclical ensure believe markets. that and balanced next aligned differentiated will portfolio, long that in sustainable durable, the Car in In this, almost solutions, of highly $X in pressure turn We and high Club geographically performance slowdown. end cycle

a also performance. of have track We proven record

expand For pandemic, adjusted margins example, basis in points were year-over-year. able EBITDA we global XXXX, to by XXX during the

during pretty recall, and pandemic, quickly. front immediately controlling in you As deployed we merger-related the out cost to were synergies we ensure

Denver markets declining Industrial XXXX, slowdown the of spite start in We're Gardner points dollars and X% nimble organically X% constantly adjusted legacy the act ready basis delivered Segment of expansion remain monitoring adjusted of to margin in Also, economic in and that an to EBITDA for XX indicators suffer. event year-over-year. we revenue grew and EBITDA early

plenty billion, activities market is take calls earnings generation And addressable how of believe highlighted in an still still room growing. demand market are have over we that pivot past we that market with share. able towards there We to $XX our to are of

multiple addition, EPS of manage In at the adjusted have we bottom slide. the levers right-hand seen to as side

the in risk of agencies for and industry to This the low On become receiving rating of regionally. and Rand and Morningstar XX.X a to all machinery Ingersoll rating excited and machinery of places percentile execution Slide positive X, percentile to Rand group grow and from six a industry ESG medium continue from the ESG execution first use case, risk commitment process our in continues risk aspects own with rating feedback In ranks second IRX the all leader rated Ingersoll efforts. percentile of our how score Sustainalytics. we in in the business. across from on This market example a April, top are this we're we is to IRX us an low perfect very received in the agile of our In industry our now companies. utilize in

over the financial Vik to our turn performance. to provide presentation QX an update on will I

Thanks, Vicente.

Slide and which XXXX up we is strength macroeconomic XX, encouraged delivered by solid year-over-year and provides execution XX% This revenue approximately operational QX and approximately Total backlog despite in us XX% by was commercial our conviction as of uncertainty, a balance ongoing remain delivering XX% gives up XXXX on and healthy move sequentially. our into of revised guidance. we organic the fueled a backlog, On orders year-over-year the Book-to-bill results X.XX company increased QX we IRX. X% through and respectively. revenue and

adjusted The year-over-year EBITDA $XXX company million, adjusted XXX first quarter a and margins XX.X%, of of points basis XX% delivered EBITDA year-over-year improvement. improvement

earnings share adjusted per was interest quarter the headwind XX% For expense. the up a prior includes increased year. This from $X.XX diluted versus

for flow challenges. the up free chain from prior $XXX headwinds, the global Even was despite than ongoing million continued more due versus support to year. these quarter XXX% well backlog as was need inventory cash headwinds to cash supply Free as with flow

quarter largely in total near we January. at liquidity X.X $X.X the The increase and sequentially, timing which better year Total net continues the the net early by lows. turns, X.X remain turns leverage was Treatment and prior are Flow $XXX SPX quarter. above At our driven are of end liquidity Air X.X decline and in approximately down closed prior turns billion leverage acquisition, sequential in of than million all-time to

to Turning Slide XX.

points. nimble remained despite segment while revenue the company to prior persistent segments basis. For margin and increased inflationary of on which and increased margin an speaks adjusted XXX points EBITDA orders actions grew XXX The both basis headwinds. basis the positive, PST adjusted from XX% both the margin improved the ITS increased segment company price/cost, XX% XX%, our year. dollar, Notably, total teams QX FX Total

by Corporate for investments impact continued costs of in well $XX at adjustments. million compensation the the as as driven incentive quarter came

share was rate for adjusted the to the XX.X%. per up for quarter share, the XX% quarter $X.XX Finally, earnings was diluted and adjusted tax per

our strategy totaled the grade and want on March quarter including an was liquidity grade the next by milestone to $X.X revolving highlight is approximately on rating of note $X.X It $XX on is which agencies. including our that and availability revolving to that our becoming growth cash based major $X a facility. $X.X overall flexibility Free the extended balance for upgraded company's our amended to focused of from facility, $XXX to cash remain we by rating XXXX, company was million. facility sheet, for the existing our credit additional as credit credit was billion. we investment billion adding on S&P. important supports investment million, to CapEx, in slide. facility Moving amended but April, upsizing recently and I company And XX, M&A. total capacity credit also This all strengthens flow billion $X.X only This of billion not of billion borrowing of across the the for rating

this The as to borrowing increase have favorable in increase speaks the was we billion and the with markets the purely the all $X.X same an also original covenants structure financial credibility capacity facility. from in

X.X which we $XX for in million quarter improvement shareholders to and an dividends. repurchases Leverage was share million and million deployed for $X returned the M&A, the outflows and $XXX through turns, year-over-year, included cash quarter in was million X.X $XX to turn

January. business, attributed which of looking the Treatment expect continue our earlier, for top mentioned Flow be priority our allocation remains $XXX to closed approximately M&A we were SPX capital cash forward. cash M&A-related M&A to and outflows million to As early Air usage of in the primary our

the now segments. I to to Vicente turn back call discuss will our

Vik. Thanks,

strong XXX from EBITDA points EBITDA volume and incremental delivered Industrial segment XX.X% our prior with XX% pricing. up of of with increased Technologies XX% with XX, revenue margin outpacing an an XX%. year Slide year-over-year Adjusted margin On of year-over-year Service growth organic growth adjusted basis

up ITS a We organic continue than the X.X. segment XX%. on organic to and products two-year XX% more note our see for grew a orders demand And with that solid stack, of orders book-to-bill

the figures headwind across point of of revenue. year-over-year Moving X the percentage FX, individual both on negative impact product and total a was segment to orders exclude the each the categories, which

the performance sustainable continue we end Orders Starting saw by products great in strong demand Americas, book-and-turn XX% see market delivered oil-lubricated and up outpace to growth, mid-teens with products. compressors. long both orders in in with cycle growth continues oil-free large driven low-double-digits. the business and and orders high markets. We once above up order projects again be with team EMEA in the low up Asia-Pacific were high-XXs the a to

Vacuum low-single-digits. down blower orders were and

in In category, was of Garo know XXXX QX case, you the of we in order this the As large a not like our have this to lines. many contributor products and order timing of the large engineer product large Nash decline. repeating

strong not at Our and funnel about concerned very we're point. remains decline the QX this

The its quarter booking saw tools business of high-single-digits. lifting since XXXX power global orders with best and QX up

action carbon brands. differentiated of Moving portion the slide, capture of products different incorporates three solution highlighting the that innovation in the to portfolio a Rand we're Ingersoll within

utilizing deploy innovator new industrial with to clean Here, a tech for patented we technology, capture. partnered system point-source have COX a

model. The first and include Ingersoll Rand will units the in and being are in each monitored commissioned U.S. four products

XX. Precision Science and grew Technologies Turning in X% the Slide organically. to Revenue segment

Organic The were in EBITDA XXXX. were sequentially primarily all XXXX. driven XX% and declined and was concentration incremental Across in business, of, PST of which a primarily businesses XX.X%, million, long price/cost of synergy on adjusted segment, with frame orders was acquired Additionally, the down to received which year-over-year margins the margin points of and the growth due up that XXXX year-over-year basis the of cycle businesses, margins million, year-over-year QX not by EBITDA EBITDA in PST up order X% like our exception $XX delivery deliver strong did book-to-bill Seepex. QX XXX with improvement $XX from XX%. adjusted repeat from up organic improvements, of with did Adjusted sequential orders oxygen margins QX year-over-year, see X.XX. approximately is we

grew orders, the Excluding segment mid-single-digits non-repeating oxygen the concentration organically. business PST

fluid battery we're highlighting new For Seepex our our action, pump. in innovation PST

example we portfolio perfect and and differentiation markets. leverage end organic drive growth existing a acquisitions in recent of product is Here how sustainable our to

high over I customers. battery zero Rand is which unique technology coatings brought in lithium to million. precise nine purity this As market mission mentioned new and with existing high product to and combine addressable by earlier, less we $XXX we cavity ion Seepex this the design Ingersoll The than expanded critical our months IRX, of growth access channel progressive contamination, knowledge leveraging ensures to production market

closed initial X% point QX, expected XX% XX%:XX%. a backlog, remain given is we of increase and is company move guidance. our anticipate basis million versus evenly and guidance. which approximately and be momentum costs expected relatively per performance overall flat May for driven all the year. to we're XX, grow where is XXX reflects versus as guidance and by compensation at $XXX transactions X, incurred X% Slide XXXX. to in growth will the full-year. M&A improvement M&A remains The FX approximately split XXXX XX%, million, Total incentive As the for as impact solid of are of volume to We to organic raising which price initial projected adjustments. growth be investments and now is completed our at the well Corporate revenue quarter from throughout planned between at $XXX as

billion, No year-over-year initial the of versus revenue. $X.XX, to prior adjusted X% been in up rate, on a CapEx to range as which our EPS initial adjusted and Total which guidance. tax and have $X.XX At guidance is XX% of is changes bottom range billion versus EBITDA total the remain up be adjusted $X.XX our of with at percentage interest projected and is spend guidance or is table, the the the the line guidance. for expense All made be the within in expected company $X.XX of to X% mid-point.

assess, actions external we April resulted evening contain took development experts phasing detected and isolating in systems. by I to parallel, cybersecurity affects systems. incident the update took of a IT the on workarounds. a several proactively Late actions business of these we continuity We of provide to However, the and on minimize maintain a that want to do and certain an restore systems guidance. In recent XX, Thursday, in immediate immediately to partnered disruption mitigate, with our and disruption implementing that

our quarter week. to this some to we operations this half just provided We the slide, could normal guidance impacted expect begin We second restoring shifting full-year to systems in next not of expect from it the second although do XXXX. revenue impact the result to on incident

outperformance guidance adjusted the EBITDA fall in the the QX year. kept the fact, raised to delivery EBITDA imply expectations. of we first consistent the original of of half XX% the second a delivering have year half the In of of first generally approximately year, with adjusted our the XX% the year, in addition half, of EBITDA half This second which phasing half matter the and as potency, the and that the of into adjusted balance will means between our will our in second of

It is we're confidential and was safe will time, with remain our and issue provide at our aware further part remains information commitment that resolve in underlying become fully investigation sharing with information important time. to work If We manner. we exfiltrated. while expectations. normal the cannot and this operations diligently healthy these line we under I customers ill-exfiltrated, restore to this at and And committed this environment today such appropriate our that because the secure in investigation, to our ongoing, a as make that note any details of to customer I'm we also transparency, demand notification. aware is not is any incident as still was you

Turning to Slide XX.

a up today's call, I that want wrap As strong Ingersoll reiterate position. Rand we to remains in

ongoing and We reflective QX and backlog updated momentum. continue our to of guidance results record deliver is our performance

remain nimble, may for monitoring conditions the we're and prepared are and We that very come. market dynamic challenges the

owners. for I excellent you to results have of year. impact the These thank again to want show our start as To the employees, you an each

commitments the need growth economic financial IRX. and stages engine targets our and to use remain to early the on in our meeting through still our we're executing of However, focused

resiliency, actions. work, hard focus your for and you Thank

balance have market capital our is than and to return. with allocation record continue deploy stronger investments capital more capacity outperformance, our strategy, ever, to with and we our discipline remain and track As we now sheet the comprehensive resilient highest the of

I'll up With turn Q&A. the that, open and back to for call operator the

Instructions]. Thank you. [Operator

of comes Our first Baird. Mike the from question Halloran line of

Please is go open. now ahead. Your line

Hey, good morning, everyone. Hopeful is all well.

Mike. Hey,

So -- you the more and can on changing. about just some cadence comments provide on Vicente's context help

is understand half Any front guess then twofold, versus think the XX% on I segment half And details? help underlying there would right? look when assuming you demand revenue, when you basically XH back certainly splits, anything the are I XH. what like, you underlying any as about half underlying year? So up it the are XX%, back demand demand cadence assuming or cadences not how the and shows the but in necessarily you work the of the through

Mike, expect a out demand of book-to-bill as first the through for take Vik sorry, pretty a X, the here and to kind to with which pretty that year. And And were long the around here the our market, is we're talk which continues going be me Hey, to seeing we of -- end will assumes book-to-bill book-and-turn obviously rest underlying that the we're well of rest expectation the there both portion Yes. cadence the demand on backlog strong the you as in the as in you be healthy. first orders. cycle I'll to saw here quarter, of I continue the second what about of to year, asking. -- let take the the resiliency then above X continues speaks mean a

adjusted of you in segment first company first adjusted phasing at and question or the about total earnings using per whether your expecting a EBITDA terms implications that from Yes. we're The should a Vicente line split in follow generally obviously XX%, perspective And share indicated, or our for half be is look ratable as say that. the XX% Mike, said split fairly revised is spend with corporate, should corporate line. I half And same guidance. segments over to would in the a which close pretty second the year to

context there's of total wouldn't the versus segments So the I company. in changes that the say dramatic

on we're to organic the indicated continuing the we've back volume as of is year, then the prudent of of think the And and terms particularly in equation. case, side before, the remain half I still

you still that, have full visibility into back the necessarily year. given don't of the Just half

in how Vik. that, portfolio? answer turn some first cycle for of the some the Vicente trends the then, to tracking maybe to portfolio are Thanks maybe stuff following-up the long get shorter, could in how quicker And on the relative is context there, you tracking

Yes. Sure, Mike.

to was Act, here really that is on on funnels that So actually some quarter, on of IRA, very in early the the we cycle, come all expectation think of be the see resiliency deliver to short reason is sustainability shorter news momentum terms which both at least to were the and cycle that center. kind that even the both, long that continue our we all and we of things think even the indications on also of is that Inflation in right? And saw price, funding cycle out some look news that long the to We're I very to good strong. front the ensuring which tailwinds first why us like Reduction has why through. able good seeing good of continues still cycle,

saw You carbon communication of capture. a activity also around lot

cycle our be should case healthy. at short and that So cycle from to the seems side, business least long least on fairly at to we in perspective in be more think while that the there our come

Thank you.

Mitchell line comes of next Our Barclays. question on Julian the of

is open. line Your Please go ahead. now

and quarter, March. Yes. you give you through sense framework guidance? I size first Is then, if for Hi, quarter? up the EBITDA thinking to the deltas, about each assuming dollar cadence slightly flat slightly backlog. of just of a morning. as terms of good but sort in sequentially sequentially And saw that maybe us kind year, up the could of the question, are Maybe just are scale margins of percentage then gave revenues at the the end we're dollar the the we each are the main backlog a

and we of roughly on sequentially I'll said Julian, about XX%. the that talk call, billion The on recall earnings $X as that have grown that about backlog, Maybe you last backlog the has backlog. we Yes.

can mean, I simple So that you math. right very a say, do there that you -- can obviously

that above the Vik, clearly on So $X.X cadence? billion, And right?

cadence guidance the say array back indicated, year-over-year earlier obviously potential each XX% Julian, we of as Yes. still we on of back the half seeing is year to continue performance the as XX% the the we we typically second be see indicated. QX Vicente expect side in the XX% But it margin shifting the about both from as revenue again, to will some speaking, I'll split, would strong still the revenues as generally half incrementals, do to I profile. the expect generally well QX and do the on and a refer see think year it the performance is, would margin XX%, expansion basis into as here, way speaking Vicente with of to on the strongest of quarter

Our the next of question Pokrzywinski comes line Stanley. from Morgan Josh of

Please Your ahead. now go open. line is

Brandon on is Josh. morning This guys. for good Hi,

Brandon. Hi, Yes.

Hi, Brandon.

And as strength was showing and markets? the much order in in are your see would then that LNG the by How follow-up you hydrogen driven projects on particularly pipeline? of up these major some potentially when a of inflection process being discussed that,

your If as good momentum, think asking Yes. versus on maybe was much question Maybe long about on correctly, we cycle. I get were volume. I both mean, think short of you kind price the said, I strength and cycle the I the Brandon good orders, how

exactly. Yes,

Yes.

quarter, XX:XX. volume roughly first price the in think is and I So

of to think we the XX:XX. be As going year, second -- it's into more rest we into the the go like

you about thinking And of of an kind so give that kind how of here. price volume indication we're

more we're the the clearly cycle, on I'll second terms hydrogen, -- question systems separation is most what activity. we some LNG, large carbon definitely about see capture and we In seeing your I it of long seeing are maybe the say air mean call -- on continuation

of So that a the past few kind momentum we on speaking been quarters. about of tailwinds good lot I have for now good sustainability think these

that I so have pretty continues these seen prior I funds strong And fruition come full be think lot scope of the green don't but a said or we answer, funnel yet. IRA the again and of on to other like through -- deal

a a come. So that more us that more indicator of here give tailwind to hopefully -- will bit good little

you. Thank

Our from of next of Wertheimer comes Melius question the Rob Research. line

ahead. is line open. Please Your now go

order lot are if mean Thank on that on qualitatively demand I talk but wanted and would efficiency; just know obviously projects just to it is done mega a you I what oil-free, aspects, your renewal? couple I so really Is it know compressor but is have economy can any you've certainty you. generation, of CapEx this I strong, a through? strength? I you're a very strong about orders, general the is there's seeing you've ask orders give that. ITS touched and coming you you Because color in energy wonder driving around

reasons. mentioned think Rob, say rate Yes, for we said, as I to strong to you clearly oil-free, I and XX%. at broad-base mean hate couple roughly mean, this, a do but I I it has it's pretty order much oil-free really

strong So above a that. and clearly very, order revenue on way perspective, very even

we things first the through And hundreds we do do. you on six quarter single we in and activities some some out campaigns But of indicated that generation clearly throughout quarter. example hundreds that done the we of mean demand that of as of demand generation, with a the -- slide, saw kind of have examples, I six

MQLs, momentum that momentum. on then that continue Marketing So in Leads tells into order these solid some Qualified to view, lead of be our the we that you

as received great way we're here earnings even order these call, or we very the but earnings carbon new it to large partners that new U.S. now be spoke relates large renewable time, of the the to last capture. really even accelerating with continue kind is the time, of technology. to capturing on sustainable clearly, last a continues well some in a carbon capture mean, particularly on projects, how prior technologies which this I to about gas, natural We As that on

really So strong everything, it a was little bit pricing well, good of and momentum. book-and-turn as

say all I'll phenomenal a in -- team the the aspects job heating Rob, I we business. So mean across did

that's how it's move. nine that's knowing one value. I to little just that Thank And runs looks a from XX, it Okay. how start and you fast the and how on on quarterly fast. goes you. but mean, battery you process that may of it. another how related, directly stop I have how so us you fast pump months Slide finish wonder do less Thank you. if guys iXV to you -- even innovative a Seepex if start I fluid could bit quick I'll give sketch finish

a example the customer that that we're and And seeing tremendously is quickly clear things based were generation products, that standard we're speaks to we going it voice exciting some question. of to solutions. for that momentum, point that attract the in specific to and is then of on able this and visits. been could I products And of And very that on you, able Yes. we And saying to call Rob, reconfigure argue and we've from items thanks some of customer and canon we a piece products. and in it lot tell this mean demand customers you request then very just specific are standard work good these are growth end configure, is case, lot doing this basically pretty that markets the past. I took to components to we then and a customer taking that. of

Management, come all rapid redesign IMPACT all that dots value flawlessly the the is customer, which pretty today it's process utilizing we have iXV utilize then to the to all in IDM, we're that us, making unmet from other the generate that like how along internally we to to lines customer that think the how part how IRX then to demand, by Daily we the execute way is we innovative market. connect a the connecting to in and to the customer instigate holistically and that the processes sure of it So then need the then I speaks -- process is that that product satisfying that,

it today, company it able can are the tremendously but connect is I we that we to to been how and perspective about the all just one this throughout new is new was but have a it to of speaks these on on continue we cultural great acquisition, beautiful highlight obviously example even the quickly change happening how thought So entire many M&A. dots think again

you. Thank

of Andy question Kaplowitz Our next from comes Citi.

ahead. is now Please open. line go Your

last of couple quarters think like the you've averaged something XX% PST I incrementals. Vicente, of

helping, gave in you us that some your remember and PST issues really margin You in last ratchet performance? could is and I anything else would there. improvement, I is obviously you're acute which to pretty would going easy the what elaborate is an within there Seepex QX. doing comparison earlier think But I but on a price/cost assume imagine again update year, maybe tailwind you're chain up on supply particular is decent on I doing

air ADI the XX% And someone to definitely helping you XX%. the done, definitely we I I acquired at it's think that's as above like but bolt-on M&A we is price/cost too acquisitions Andy, well. EBITDA continue helping. Seepex point it also which Yes. kind that today of call out margins, being as alluded and dimensions, of acceleration even again have that one

lot it's again, the a put a we action. of combination in of things So that have

a is what excitement bit the get and price/cost, good before, said that good have at and yes, we that's more ramping come we as the in little here. teams things like getting iXV PST, place but be should there So, delayed now to we're on synergy execution up that

give the Got us it. a more maybe M&A color And little then you into could environment.

you said. significant, Your funnel as seems still

for million I million, that the five you had target LOIs you the know close XX you potential I $XXX think but LOIs said mentioned quarter. inorganic the stage. reiterated left, XXXX, you several had last You had targets $XXX you

there really near-term opportunities or that than timing fewer usual? is just So

Sure, yes.

before so said order, it I obviously I because is I and well. but Yes, have than signing five I the we good very mean, is that right LOI. LOIs from at -- think departed news I good you what of some closed we the park those now stage but the mean, is the think we said on a that we which still less some that's handful

worried it continues confidence that nothing to that give that we're set that will the able to why So we we us about target that's and that. reach be

searching strong sales be transactions company. activity has Again, to of to of the we lot that market. could momentum the in see activity, out do of it of part terms in the In a because finding do that our of good continue we terms

bolt-on continues pretty So that to have. we I think M&A on momentum be good strategy that

you. Thank

Joe comes question line next the of from Our Sachs. Ritchie of Goldman

Your line go Please open. ahead. is now

stuff? like Thank it some EBITDA numbers like on whether that roughly appreciate you. commentary the just maybe who cyber call earlier. size my issues. can EBITDA Good morning, to $XX color million million numbers trying ballpark the was cybersecurity about impact my everyone. impact. Nice to -- But -- of I gave just were sales we knows you the right. and hear square are the to and $XX a sorry So to The and the to like try hear

away So know, how in ballpark to don't is $XXX I million $XXX am from I a revenue maybe like much XQ? million shifting correct

you're Joe; high side on definitely think on the that I perspective.

half terms come do I of number, the math I mean, a think you that much roughly just in with you you if of XX%, said. what lower XX%,

concern go push that there high to in that do of that All and clarifying. sales Thanks Or is maybe there then the that that that helpful. were you'll And to That's is that degree out, right. away? sales to XQ expected I ship of guess some able Vicente have any in half? -- concern Okay. second just be then any you you ship the confidence for those

still this I living environment. mind because Joe, in in that lead time Yes, we're a not think keep at point, long

adding backlog not on any in going the I impact kind time extra maybe lead a we think what create So that. to couple have is weeks of few of of

is good we by that team have So that for by in incident also sized workarounds. implementing And right? of I to it's disrupt the don't this think in think we think did no. I not the So keep the not this -- mind company, majority that answer one to disruption meantime And we normal next minimize diligently the to get control operations week. said, our back continues pretty as -- in working and

how So different that do and there's support sites. you at can customer locally workarounds to can of on that, ways some the with continue you

of that All across tools. guess really lot that data the be a that And positive I'll asks different great Great. look, little one really your a order That's hear. surprising you pick It's honestly. gave I about right. power nice see businesses. to up to

little So kind bit of a maybe color on just more that provide what you're in seeing business.

tool I'm can a thanks power -- you power tell for asked sure tool. done the glad on the job has question. a team you Joe, to development. I new that of team the hear that be phenomenal team will question Yes, the product

and short or it that the team about we here -- done the job to believe story audience reinvigorating time kind So customers the on on come similar not, how then team product kind power to has phenomenal get Seepex the launching new and that lead we talked and a to line of power just reinvigorating solutions, reinvigorating on and us. the to tool channel of

said it's think basically an it been I story and is So all innovation what we along.

with business I key needed The the which been keep able the move in to and pretty products we cost on continue team going cost now improvement good first market. innovation. doing. and that's the first accomplish quickly help the mean, that doing of fixing see and start we've to step, lot And although nice on they're of then was is we what And to situation, to to to growing. the IRX, were launching lot the then of fix investments accelerating the a a

you. Thank

from next of of line O'Dea Fargo. comes Joe Wells Our question the

Please Your go line open. now ahead. is

the start of guide I the back year expectations. wanted on and half to updated

I ago macro the think based few just about months a embedding at talked time back some of on uncertainty. sort going prudence

of the a of certainly But continuation transpired over of quarter of course evidence pretty way like sort Sounds the things that. the strong demand.

I of prudence aside some has talked about half back changed months the of to Vik, applying take guide item three but still ago? you So relative still sort sort in underlying or your some guide, seeing and you the your of think if cyber anything to

Yes, Joe, that. start with I'll

back the of when is at guides, And think organic mid-point guide the look the think driven I versus that is obviously it points with the now the by revised broad about the in I strokes really improvement. of XXX the third X% the about at X% guidance half which way you at basis in of year. you mid-point, about could beat our two-thirds think QX just the other previous is coming

answer is yes. So the

XX% back We this that say And versus in in opening price guidance indicated we would've second are volume. also better And we're half point still a XX%, at of than his slightly actually seeing our we're comments, I split time, continues still volume original in still growth still back on would implied. to before upside. year. seeing as Vicente think approximately biggest like a of continuing the of to said strong, visibility the full the necessarily Still year. have are I but prudent potential half take be view after the of don't probably Backlogs the half source

that execute continue to And of to be a something to if going execute. to. upside we're that's So that we'll continues source

chain to as the and easing, then see going the seen on sourcing you wanted and side things. sort cost that of of not to I the supply terms also you're you Thank of or opportunities, you. of suppliers, out pricing materials to you've on sort -- down whether set opportunity cost coming ask raw of of sort on and And that how approaching in sort applied the

sort You've got of seeing of from similarly, some and opportunities you that on are kind the on more to push customers then that negotiations side? active your pricing and of any back any in

we absolutely, cost Joe on IRX drive question. a our of you which on we is want Yes. happen much we it some and clawback, kind the as Thanks, as imagine, Again for opportunity, of how to cost we're cadence in go tools looking as of can opportunity our see weekly possible suppliers and some how marketing leveraging as lot see the a we some call to do at some XXXX of we price get from prices areas. deflationary after

there's we that well, some continued to continue why as and pricing see the market. too activity say that we reason some will I areas inflation some in out do Now, price

start suppliers process. say see a back and doing we stability ago, to going So point, going but and absolutely process. lot net-net what -- maybe quarters we it's and reverse a mean, would can I call you through we I maybe to couple a your started of not our expect, down auctions this

month. a until In buy basically Or I every know, not customers, years our it's specific road. slightly to as the buy customers, you don't later to order. configured our a mean, many every it's our today, product going different And of if down the cases, there, compressor a terms a they or buy week compressor they few I'll say because they're in

to features say to to price being it so price there's different difficult, compare and different So difficult when a options I for price, reduction are is argue that selected.

generate with as So to we're should we value launching, as continue add product the long continue no, that incremental to able to be still innovation price. say will we the to I

Thank you.

of next Nicole DeBlase comes Deutsche of question line from Our the Bank.

Please Your ahead. line is now open. go

starting just Maybe with price/costs.

kind XXXX? for I of point, quarter. throughout at it year? or is of of So cadence dollar your maximum know through the how trends What kind spread expectation this basis was price/cost on margin positive is benefit the of the benefit the like Are and a at evenly price/cost it you

a Yes, great question. Nicole, it's

in of margin worth think here is and actions the first obviously noting quite year. answer pricing first your It price/cost for in I to do quarter the the accurate. We is, number the pricing that quarter first be in XXXX timeframe. quite the we Remember that expect of strong. positive take of levels did balance accretive on all, our QX commentary a

anniversary, price move down. the would inflationary the be the realization we're step now as half those does to levels the XQ in so back But year obviously So expectation start into that. comping we does as that, as now our

obviously place. in either first levels to those took kind when And that rising saw in the in So move somewhat that or actually we inflationary in speaks really we actions those concert fact actually of they the advance tandem.

to would of the move year. is the delivery, I we it good continue balance price/cost question So margin your expansion see think requisite here as to the we the answer to expect to and with

quarter, respect Thanks, Vik. go trends March? on did be And willing month-to-month? to then you. it. things Got would too. just guys through you're the April, that And acceleration into you from the awesome with order How did like if comment see Thank to

yes. we maybe saw the -- quarter, throughout Yes. say we say bit QX, yes, Nicole, more continue a little I'll to sequentially I'd proven see in

I but kind the come I right, As vacation December typical people that in as out in from into January. you that's and of mean, particularly, see think QX now quarter

of of acceleration that, but I note March. nothing I out just think kind to mean, that massive into be will call a I So

quarter. April, Just so the we cadence here and far I seen QX basically quarter see continue what regular the in in to first be in mean, the that a have typical as usual we same

you. Thank

question next comes Research. of Our from the Coe line Nigel Wolfe of

is line go ahead. Please Your now open.

the Thanks Good you. for everyone. morning, question. Thank

Hi, Nigel.

covered perhaps color that we but cyber-attack, lines business on lot any Hi, mean, incident? more terms unfortunate have which I just of a so ground, in the maybe of to going been by and geographies back impacted this

impact will that, not continuity majority disrupted proactively I'll I only thing item is were minimize were only that to that that the systems the mentioned, IT and did Nigel, were I maintain And impacted took business disruptions. actions where things mean as that the I immediate of No, certain and company. say say

coming operation to the we And systems expect begin week. to restoring normal impacted here next

terms that's yes, going well So of I color this the it we're in give that expect was to specifics we get kind that. we as as you even probably on of second -- more in it volumes prudent you incident into and But can we're impact here what and just felt guidance, saying to think I that what don't see more any read to quarter. think it's speaks full-year we to the not

obviously Okay. XQ. you EBITDA maybe abnormal XQ. to years to XQ And to very compared pretty a XX%, on gets pronounced then, XX%, below slightly pickup XQ there's been last the below, math simple Obviously normal in slightly of the That's flat from couple fair. seasonality. the And Vik,

pull-in perhaps just with that? as would a this just XQ in sense conservatism little on about So you is the XQ? baked Any cyber there think well? incident Was of how from some bit

your answer pull-ins The of of the context answer XQ there Yes, nature? or were I'll part In that that. of into any your question, second Nigel, any is no.

it cyber of the result way EBITDA the that way accurate. think appropriate. the I is prudent about I levels even mentioned a as you is thought terms of And the as very how in and you're we're think kind about incident. then thinking described of it We the being fairly phasing such, you've

it read than into So I that. any more wouldn't

since really And more just please. answered throw one question you in quickly, can the I

seen and On stage, these these out projects much mean, order of -- been in reassuring large quite have projects on this this in far kind have the roughly come? had terms of U.S. quarter. the I the terms what from of how air zero bid so has compression the top what's of perspective, you these this in your book but

be and really one Yes, something it's quantify when quickly. specifically it Nigel, tell what could right? as million you I clearly goes I reassuring Buffalo into is I mean $XX Buffalo year sold to driven Chips into -- continues know because on mean that that we But the example yes. the is reassuring. what be what the is That what that The only that we that we difficult could like or we goes take that business order facility, And an it that. And else. Act thing momentum over by in well. about on as things last -- the other the can too facility lot pretty and we a of reopen facility said orders

Thank you.

of line the Snyder comes of question from next Chris Our UBS.

Please go line is now open. ahead. Your

of was Volume any or or it low-double-digits of year, fall uncertainty? off? the sharp What's three the Seems seems reflecting volume it when broader reflect next you. chain supply the up the stands we a imply look for like kind industrial. that growth feel at range the so Does quarters. like Thank growth not because uncertainty of macro so really pretty rest company versus QX. And over much does it for that out more to potential

Yes.

way is I the fairly it simple. to about think think

last That's all, the QX get reality of of things. we a more math and to to is of your think do kind One, say I remember comps. year quite the the as reading couple comps First the they our and accurate. right? the challenging, I'd just move -- year,

said organic up. I'll The what the guidance to say kind other second particularly one, before, thing of go we half the of would taken the back have in and I year we

our So -- seeing organic slightly continuing think that of era prudent back which half just than prudent the to in there's But right tell half the be would've dynamics you implied, now guidance as organic on. better year volume the as in kind the the well do a obviously, most half year matter of the obviously are we're original that in we terms speaks backlog levels. growth being I would we would to And QX back that of expectations. of of is probably growth back

I of wouldn't view in my view, the -- that's of again, side that, equation's of the terms playing our kind in Chris, out. organic in of So volume terms -- how itself

about way the that company the year-to-date next change of good you some I we track going record appreciate in metals, price. rest that think price higher and When inputs commodity throughout year that. of the price does some Thank into these because And really the of you. see are potentially on incremental holding the reflation year.

question. the like two-folds after I I or commodity we and declines -- things Yes, we that. Chris, think, numbers I'll when see maybe definitely so to our mean, steel mean some other say we take whether go that answer I so in we commodity suppliers your

as again. absolutely. seeing the markets, that's it -- see were if go more re price. stay and in we'll we I same we'll with how mean, and out definitely I did coming inflationary pretty inflation, Yes, mean, back, nimble Now definitely do things market back we Yes, again. the we it up we the

the Stifel. Nathan from of comes of question final Our Jones line

Your line open. ahead. is go now Please

Flow. a for on go question SPX I'll

leveraging and that few of organic of You kind acquired you highlighted to acceleration to you're to expecting margin of what out many improving and the examples have can years us portfolio growth growth accelerate expansion the Maybe business. guys be significantly last you're able generate give businesses. expecting of over margins the some

mean, first about that you Yes. so I'll really anything Nathan, we a say only -- we into of I iXV, portfolio we're we're brands it. see mean, super, within I and incredible really work, business all, with exciting. quarter roughly is you a that the And lot team as super we imagine, excited that super accelerating tell that. -- as can generation, and leveraging that engaged on demand doing five on of is as

reason that businesses I the why I think doing much of in than all yes, growth, said And in see on roughly yes. mean, terms before. the based were initiatives no what we we set terms we're we of this the when growing acquired see this growth could Same of in thing accelerate that faster get XX% EBITDA to expansion, the they margin business margins. business should that that we

Yes. And say would I Nathan, -- we

Where today? it is

with when Yes. said We done was it we segment that largely had ITS kind of largely margin. in line acquisition

margin acquisition segment And have close of with ahead as funnel fairly good runway the us of margins. line we it's and overall in in So strong said, ITS expansion terms good Vicente nicely. did very team execution would also continues the the fantastic job I move in that quarter integration a here and say, at opportunities. from quarter to now we're one first

quite trending. things pleased we're are So with how

to the here on plan is in And the Has point changed I power some was the or business. that the business, plan then think divest future? that tools still merger, at strategic the at just that

I continue aligned mean, in long-term mean, in we of still strategy. terms to -- same our change plans. I be we no

Thank you.

the for this at I'll Vicente to additional no back are time, hand over remarks. closing Reynal there As questions conference

Yes. of Thank despite our outperformance. and match execute Rand mean, ongoing demonstrated volatility. you, Candice. these Ingersoll their Once team We're again, has the ability to own very teams the microeconomic I appreciative

to IRX This And joining today that, call a for want all the you Have just you in and the Rand. demonstrates say thank of from your power with truly ownership of great the interest day, Ingersoll employees. mindset quarter and our

Rand quarter Ingersoll day first conference call. ahead. XXXX today's great concludes this a gentlemen, and earnings Ladies Have

You lines. may your now disconnect