Ingersoll Rand (IR) Goldman Sachs Industrials & Materials Conference summary

M&A strategy and portfolio evolution

• Completed 55-56 acquisitions in the past 4.5 years, mostly bolt-on, with ILC Dover being a larger platform deal.

• Life sciences is now the largest end market, with ILC Dover strengthening the bioprocessing and consumables portfolio.

• ILC Dover acquisition expands total addressable market by nearly $10 billion and brings a ready-made M&A funnel.

• 15-16 bolt-ons completed year-to-date, with 10 more under LOI, including one in life sciences.

• M&A activity is global, with seven of nine core P&Ls participating in 2024, spanning the U.S., China, Australia, Europe, India, and Latin America.

ILC Dover acquisition and space business impact

• ILC Dover enhances capabilities in single-use consumables and creates synergies with existing pump technologies.

• The space business within ILC Dover faced an unexpected $30 million revenue headwind in 2024, annualizing to $50 million, due to a third-party contract cancellation.

• The space segment is considered optional and will continue to operate, with potential for future volume recovery.

Recurring revenue and CARE initiative

• CARE initiative targets growing recurring revenue from $200 million in 2023 to $1 billion by 2027.

• CARE contracts offer multi-year, margin-accretive service agreements, now being expanded globally.

• Momentum is strong, with global adoption and integration of EcoPlant and air quality platforms into CARE.

• 2025 is expected to be an inflection year for recurring revenue growth.