Ingersoll Rand (IR) Jefferies Global Industrial Conference 2024 summary

Market conditions and order trends

• Business conditions remain stable with no significant upside or downside observed, aligning with previous earnings guidance.

• Book-to-bill ratio expected to be slightly above one in the first half and below one in the second half, consistent with prior expectations.

• Seasonality is expected to drive higher shipments in the fourth quarter, especially for longer cycle projects.

• Americas, particularly North America, show the most stable growth, while APAC, especially China, faces more headwinds.

• Pockets of opportunity remain in Latin America, Middle East, India, and Southeast Asia, with continued share gains anticipated.

Demand generation and commercial execution

• Over 200 dedicated staff drive demand generation, using digital tools to reach end users and educate them on products and ROI.

• Marketing qualified leads (MQLs) are up 13% year-over-year, with about half from new customer accounts.

• MQL process is continuously evolving, with plans to leverage AI for further acceleration.

• Lead response times have improved from 48 hours to minutes, reflecting increased commercial sophistication.

• Demand generation is broad and customizable by region and end market, supporting targeted growth strategies.

Inorganic growth and acquisitions

• Three recent bolt-on acquisitions: CAPS (Australia, expands distribution), Friulair (Canada, vacuum pump technology), and Del Pumps (India, small pumps technology).

• ILC Dover integration is progressing well, with biopharma segment expected to achieve double-digit organic growth.

• Aerospace and defense segment of ILC Dover faced a $30 million revenue gap due to changes in a spacesuit contract, with potential $50 million impact next year.

• M&A funnel remains active, with eight additional bolt-ons in progress and a strong track record of acquiring family-owned businesses.

• Unique ownership culture and multi-brand strategy help attract acquisition targets and support integration.