IR - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Ingersoll Rand 4Q 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Vik Kini, Chief Financial Officer. Thank you. sir. ahead, go Please

Vikram Kini

Chief welcome reference Year Ingersoll of Kini, Earnings joining available yesterday Investor Vicente Officer; and earnings the issued Quarter and on the release Chief XXXX website, call. and our and presentation Reynal, the is Total Call. we me section Officer. to you, www.irco.com. We Rand our will the that Fourth Financial Executive during Thank Relations I’m are Vik Both

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

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

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

measures and and in most presentation are a can the earnings release, call, comparable of both XXXX Investor Company available today’s website. and GAAP with On review to accordance which Company will financial integration provide calculated of these measure our in a segment highlights in our the our Relations strategy our You reconciliation section guidance. and and find slide presented on we update, offer

each over call Q&A other the participants. for time keep today’s time, one ask to will allow Vicente. that turn session, enough for follow-up caller At For we one to question and to I this

Vicente Reynal

and Vik, Thanks, morning to good everyone.

company take one segment. a take were integrated of transformational days the we about And one-year we it, I a an five Denver Industrial Before selected Think year Rand and to day ago from want a to transaction. what moment Gardner we reflect. on to Ingersoll start, away today, as

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X. Moving to Slide

left-hand five It our to of to portfolio, growth side. on guided pivoting and a optimizing by It on a before. this our the is a to against building commitment. all executing what seen we been the have imperatives, foundation, framework have deliver We is strong reminder down strategic

we That achieved across one optimization, X. inclusion and cultures Ingersoll around and Rand complementary framework five to the from all Slide offence ever of to and company an equity substantial completing Turning industrial equity pivoted industrial strategic traction and the growth transaction portfolio shows goals. brands given diversity, quickly to employees integrating in imperatives to awarding largest and establishing

performance XXXX capital human new level. employee area We Our as game-changer. broad-based a It of accomplishments, a the see differentiator. especially takes management, are to a in ownership a

and no thinking other. are acting like We

values, Employees participants is in changes from value. It this the engaged mindset to to our I is massive is for one As my core highly of shift. create journey are our a work company. it this a active company and long-term

part these the human through strategic are a as priorities high-pressure interest of also capital a of We in we solutions of majority sustainably operate enhanced on sale management pillar. that portfolio why bolt-on and segment. And added minute. more acquisitions a our All

will on areas. we focus to ahead and Looking several beyond, XXXX

we plan as year ahead integration enter of are our We on two.

support businesses synergy into markets our accelerating We through are On we accretive complementary increasing as focus our transactions. inorganic such markets launches are sustainable to target packaging, bringing growth, cost products continue all $XX million on niche our balance new strategic we strong as while sheet M&A growth industrial of product together these $XXX such to to strategy for across are by we And million. integration work.

Let’s turn Slide X. to

the is growth Solutions potential and an close, we week Board. To successfully in part on the this of focus. maximum the last EBITDA personal times business a so with a XXXX medium I common further, our deal as also alone upside approximately to of our terms the comment the are adjusted not multiple And EBITDA. come We confidential, we we allocation XX% will and forward. solid High pure Capital are time of value retaining while we to we my as long-term. portfolio remaining As you penetration, million already, equity remaining segment. will receive XXXX our majority million we with we going actively to view ownership expected sell and are equity $XXX view a is our are this more adjusted a huge but thoughts At in a back Pressure of company. fuel $XXX interest represents discussing signed a The approximately agreement to in as good as the it moving the unlocking start, XX

transformation. upstream these all For while the X% result less is more the revenue to cyclical in to a removing our and transaction of in exposure market much minimal current step Ingersoll Rand, meaningful than forward and of performance, our the materially gas company. direct and a reduces from oil business predictable earnings It

of under Vacuum and the purchase we MD the transaction of to Tuthill iconic Systems. premium brands is technologies The Kinney and Pumps. at complementary of front, M&A vacuum this and the Pneumatics beginning and and operate the our month, will blower Blower On highly Vacuum

seen social As products, to with Yesterday, hydrogen, investment to and means we new accelerated some our Along We for and focused environmental, key ourselves one work markets. The capabilities in successful milestones committing gas a focused on our recent our ambitious may help global growing shared the responsibility sustainable the as potential you, growth we who than placing both see week, end have and commitment embracing have ESG Google in accelerate connectivity compressor being were life of recently machine on and leadership joined five-year like and XXXX products XX-years, sciences in means long-term. portfolio. smarter we markets Google for that for we is e-commerce beyond. client XXXX. our wins our for And X. principle in number we be to we a now we are Cloud growth, represents strengthening way our climate less Unlocking data and Last our to confront companies emission oil products, zero by With are Slide XX% also more IoT, in being digitalization. be of to of end efforts. goal but high-growth help collaboration are by announcement pivoted technologies and change. you with XXXX, this on to their customers net for it greenhouse strategic threat governance across getting real differentiator learning with our with we are advance to innovative positioning

we to addition, and water for also waste targets reduction. In have committed

our us corporate our you cause make participant this on advantage the state better. for IRX active goals. environmental performance an to to be on help achieve sustainability lean needed important to As of us using life to long-term A We the for key want deliver is planet. our

turnover on report an provide our the annual second will will of end Vik. I May. Vik sustainability to being the published disclosure provide in ongoing call to financials. We update and of transparency at now an cadence

Vikram Kini

Vicente. Thanks,

industrial operational by and Slide balance signs X. saw end use ongoing execution strong improvement of QX commercial with of markets. to of a across the Moving IRX fueled

Total orders and performance XX% We with to continue with pleased revenue company momentum be levels, compared segments. QX. orders across of respectively, strong increased and each QX as to company XX%, the of double-digit the the in

company was In EBITDA outperformance synergy XX.X%. initiatives $XXX of quarter using drive and of XXX on IRX continued productivity catalyst. EBITDA fourth the adjusted addition, the margin delivered company to million as This The adjusted points. a to from High basis margins year-over-year Solutions margins basis And segment, basis adjusted total mid-single-digit points. Pressure increased And XXX revenue company XXX improvement on basis, the QX. point despite exclude decline, when improved and

of our had managing of the revenue. the with in million adjusted by close million in EBITDA decrease in strong the best $XX $XX decrementals year-over-year Given on year terms we increasing performance basis despite a QX,

the metric. of $XXX the free Cash the yielding key As we of was you another have as for can highlight see sheet on quarter we liquidity momentum flow flow billion stated year-end. XXXX total to $X.X before, has increased cash a throughout focus, had been on this at earnings million, balance quality and continued

Moving X. to Slide

IT&S. compressor, regions during company, and orders an entire reached from showing X% quarter. and highest and comparable This saw quarter, improvement X% equipment. blower all in Specialty X%, orders a segment meaningful and quarter. we orders for the level and in third Vehicle X% saw XX% the organic growth Starting the both the The Precision X% mid-single-digit total and the Technologies the increased is first the Science both on saw total the in revenue FX-adjusted segment positive year. with declines Precision IT&S, saw FX-adjusted growth declined vacuum Science core a with improvement and adjusted orders Technology For Americas orders growth EMEA basis.

like X.XX Continued market Vehicle which drivers and in of nice exposure and Gulf double-digit ex Overall, up end as the strength in positive the XX% as each This and well QX given in Dosatron, better posted performance, as sciences continued the vehicles FX. Specialty a consumer life lab, orders water. year like strong were continued balance XXXX, book-to-bill growth aftermarket. Vehicles orders the growth, level saw than growth in lines areas prior saw saw a well momentum of major for of with quarter strong both in strong showed medical niche as quarter. product much double-digit Specialty was we X.XX.

Given seasonality being book-to-bill the despite $XXX prior prior million increase The we finally, above fourth and $XX as expectations expectations. of levels in see show and the moving typical the largely the adjusted came The delivered adjusted segments margin The year. backlog by with performed a shipments consistent And to quarter, of with and and had flat for XXXX expansion. profitability to strong at revenue all improvements up corporate into we segment in relatively are an saw company healthy Vehicle year. Precision encouraged sets continued XX% IT&S, below and million one, HPS costs strong with EBITDA year-over-year versus prior QX Specialty Science in-line one it book-to-bill triple-digit quarter, in and XXXX. EBITDA, depressed

margin and Science XX. is EBITDA as Quickly COVID-XX respectively, And HPS. the orders to ability the XX%. known speaks X% which as cycles possible the IT&S, points the an were is basis core of engine the the and full-year billion delivered Slide touching upstream segments which IT&S in and execution Precision of XX%, both This due basis total of adjusted versus and the headwinds, execute to the and energy or every Despite downturn impacted XX XX%, primarily up the as the margin the and well FX-adjusted EBITDA business points EBITDA to power delivered change in impacts adjusted business Vehicles in prior only HPS area Science This these $X.XX as drive segments excluding adjusted segment. markets, three to triple-digit were Turning only year. of all to IRX of business. and year detrimental revenue to the on XXX limited during team’s down of different to Specialty expansion. Precision

time included cash into transaction. environment. leverage finished improvement the we the million, CapEx to performance Free XX. during the $XX both quarter Slide capital by go finish. to as the with quarter totaled million, benefits the to well $XX working reduction to Turning we X.X been the the improving team the the particular Inventory see flow improvement commercial outflows of strong From was a of a improvements. which starting the and well as cash the and the to projects highlight of strong $XXX was the are times, quarter ongoing prior LTM for perspective, QX across in a management $XX two in compared efficiency nearly as business million EBITDA as of deploying operational benefit cash has many operational as driven quarter at was free million flow due as generation stronger of due a

the now coming sight the have closer concludes. X.X the have prior to line had once leverage leverage same times levels to RMT to we reduced and HPS We down of sale

increased billion side on In the organic the of strategy drive $X continue On cash with has facility. internal approximately company availability of right $X.X nearly our us gives billion our page, at now and $X.X credit of to sustainable breakdown targeted coupled based revolving QX. now billion investments total, This of on see M&A, liquidity, nearly the total flexibility considerable from the end you which to stands growth. billion of liquidity of $X.X

XX. Slide to Moving

million. quarter. million executed $XXX in $XXX have cost Due already the efforts. million the to of to approximately new a synergy are is of $XXX we have million and prior stands built which we increasing see delivered and target savings. XX% on to delivery by $XX In momentum that funnel equaled $XXX our we excess increase overall our of strong million from target To-date, continue overall million strong our total, execution, approximately in annualized $XX we $XXX approximately XXXX, synergies, which We of XX% approximately target of million

expect the we incremental this to in cumulative addition, XXXX, of XX% bring an would approximately end In the which total of savings deliver year. to $XXX million at

is by XX% XX% the XXXX driven largely a expect $XX of coming from of balance spend both million the make increase executing to target We XXXX. $XXX end initiatives the funnel. of cumulative in procurement success leveraging with as material-oriented the company on the The savings team in million as the direct continues the and as well ITV on to a good ITV strides larger the base in particular is story.

tangible months, Over commercial to manufacturing events the conducted executing past have over funnel on build XX and six teams the virtual product management we both savings. start and with our

Vicente now and margins quarter right no to the on each reported page, over business, our the I to discuss On in terms of detrimental managing the of progress across the QX we was segments. it will back different. turn

Vicente Reynal

Thanks, Rick.

were times. down up delivered X%, decline, Overall, revenue up an margin EBITDA to X% of book-to-bill Industrial up basis X.XX sequentially a XX with Despite Services. QX. and XX.X%, team the to the were Technologies EBITDA leading orders organic strong XXX and Slide adjusted points and and versus Moving adjusted starting XX% also of revenue

Oil-free shows mid-single order stick to those provide me further compressors, of products leveraging breakdown performance. orders more detail outperformed company’s into Let advantage oil-free of up rates oil-lubricated Starting channels. and new both and digit. order portfolio on oil-lubricated taking for oil-free were of up orders airports the A mid-single-digits. that and expanded slightly we with the saw

single-digits, in India, single-digit. was orders was Africa Latin past North inflection the down saw high down single-digit up of performed as East Mainland the high-teens nice Americas, to America low America a Europe while regional Regarding at Middle compared and up in for while two In compressors. better high the split double-digits comparatively being quarters.

perform to by driven flattish across well rest in Pacific and Pacific. of up continued orders China relatively mid-single-digit Asia mid-single-digits, Asia growth with the growth

with va strong as as orders blowers, and Garo the up were well industrial growth of business. in the vacuums longer-cycle mid-single-digit portfolio growth in blower and terms mid-teens In banking double-digit Nash

low-teens The and high-teens power part QX. to business business orders. Moving was total compared single-digits to of in in down down tools next high The down was orders in lifting. tools the

growth We expect capabilities. enhanced the e-commerce of half by the in to year pivot our to driven positive first orders mainly

drivers you shifting to segment: and the digitization sustainability, side, On market demographics. three right will see go-forward coming our

For each segment, are I stepping address will comment drivers. how these on they forward to

increase IPS, own expanding comprehensive on customers’ prime to For support reduction. referenced digitization Cloud them the the help business how that of their Google to will I announcement energy greenhouse achieving a improve is earlier is ability gas example the emission data efficiency

the now X% from rapidly build, Precision two Hygiene driven Milton up general Revenue our were move saw and up orders the that of in major segment. aerospace XX XX.X%, the The businesses, large delivered Science well Dosatron as and products points organic company Let the QX good Overall, Solutions Despite XXX to to markets both by X%, large adjusted defense organically and up with legacy and business. medical this industrial water and like which orders EBITDA some being revenue was the a growth momentum and in PSCT and as margin changing end we in X%. market. was up basis me double-digits PFS Slide for healthy activity shipped continues Technology were Roy. within year-over-year. a Adjusted XXXX EBITDA down driver decline, strong funnel the projects on

did margin. we EBITDA pleased has margin revenue very generated to adjusted is continues points are generating team in in the QX segment now more QX XXXX. already As very basis with XXX as back of with transform how respectable businesses a QX. this this This in a segment what XX.X% we comparable reminder, But

demand and and for the for can dispensing market science many the like energy technology personalized the drivers, team chemicals be liquid pump is handling the precise hydrogen. leading in for markets technology medicine new From around launching sustainable health. food perspective, our sanitation segment’s demand the more on business advance sources a medical animal digital ensure at markets meeting to and of help And dosing answering of is new position to Looking the reliable safe and multi-controlled, research.

the consumer and up XX the quarter were Orders and quarter QX to Moving gain and Vehicle share. Overall, momentum as throughout another get Technology the segment. to for Slide strong the Specialty to team. stronger Vehicle continue organically was market XX% offering continues Specialty

an on early that vehicles, QX. launch to our as potential into an can improvements prior solid adjusted but million represents to are XXX believe basis saw improvement feel a also be business a and Adjusted XX% any year-over-year, the proving continued can growth point and expand across in We products only stages aftermarket also revenue market not leader, the inflection the clearly base share of are Organic IRX We served and We improvements. this margin in X% here battery and market. with XX.X%, was up see that of is lithium-ion to we applicable ongoing taking we that services. and with EBITDA be leading parts info $XX generate accessories. EBITDA versus increased we

like see end-user future runway the launches and to move on accelerating initiatives continues continue to as new We team rapidly management. life-cycle into product the

- gas segment engine for replace is In to drivers, zero-emission and market vehicles the vehicles. demand responding recognizing and to the terms sustainability efficiency of

critical more than shift owners consumer demand versus driving zero-emission from or maintenance data services. XX% to speeds. distance data lithium for used location-based year. expect seeing their connected higher we recreation, short Digitization to we information, families data for cars also demographic vehicle. QX, For prior vehicles a growth cars from And range for at can provide example, perspective, low a is are real-time infotainment as saw The on unit in the own

adjust base Moving respectively, Pressure seen was with Order in and the QX. to and operations both delivered Nearly the be comparable announced High business the in-line which and Slide midst in the decline. XX% from aftermarket XXXX, despite parts the and meaningful XX%, EBITDA business an XX $X.X of the lower due to were HPS first market. and million and of down and Solutions business incremental services. recently positive in classified the sale, the decline will prior demand and The to gas revenue periods, segment. adjusted of And in all the the we XX% as with continues largely of periods. discontinued come and quarter over QX performed XX% will future Beginning revenue the expectations continued revenue improvement oil of retroactively

period results will single interest below income the account business the line we deal will we equity the method of income presented for business under of upon proportionate And single share financial line accounting. income. income. HPS XX% be statement, HPS loss for This the the closure, a statement means operating or our Within a below record financial a on statement through historical operating will

to Slide XX. Moving

We review will XXXX. for guidance

of China half the double-digits, up patient be starting are Tuthill in anticipate impact particularly and be the actual growth, basis. of COVID-XX, currency in M&A December double-digits is XXXX. acquisition for the a each with and three the QX of FX sale, the is driven XXXX growth in for we of mid-single-digit organic Given a This the segment expect given From prior included low of many of the exit our the primarily XXXX $XX driven in IPS total finally, a of to based be year assumption to up against U.S. FX low the Starting perspective, dollar on like year. to rest volume weakening pound. year across million, the QX impact Rand Ingersoll business, guidance foreign expected we on revenue the rates. or And expect by the pending total the by comprised low on we in segment. single-digits the not basis revenue euro single-digit first the segments. high be quarter be world to British HPS revenue to year an will adjusted EBITDA approximately

the second most but addition, in FX XXXX. comparatively, the normalize half expected is a In growth bit tailwinds of high Overall year during still first half up evident the to single-digits. be be the will of

be we the than an includes on As these for assumptions, expect $X.XX expectation of adjusted to are billion. million of XXXX billion comparatively revenue quarters. range $XXX introducing we is $X.XX incremental lighter approximately Based EBITDA due to $XX some transaction-related of to $XX factors: given temporary returning P&L; material million two chain. XXXX approximately offsets dynamic million and costs First, out and across cost current inflation global expected synergies the with to taken typical, guidance the in The QX remaining supply slight XXXX second, logistics to

to take monitor and and overall pricing continue actions We inflation warranted. will when appropriate if incremental

flow terms XX% revenues. In we between income to be to cash cash and XX% to XX.X% be to of rate is tax the finally, approximately generation, net of free be expected compared seen or to XXXX. in the expect rate adjusted X.X% expect conversion greater as CapEx we adjusted And to to XXX%. X% equal

to Moving Slide XX.

livelihood prioritize As our safety our us. reflect is the took our and services because that we providers triggers enabling year to measure because maintain of line And We to our wrap out employees vaccines pandemic to reached also while today’s sub-degree a in change mean call, donate even essential to We COVID-XX communities concentrated us. delivering on COVID-XX employee us. every mission-critical products workers the their ourselves. front we needed area to needed healthcare use store proactively the side of to customers I because that and as XXXX to our

role minded difference I’m company In confident reducing seen to of of protect our makes. our call will be interest deliver the year. environment. momentous turn with ride, improving this of how our leader company. to Rand been of of year can that, value sustainably a employee-owned to is team to side of shareholders. the every transform clear services our a by as a our impact the we And all anniversary, a commitment in deliver we And What open will Q&A. it came a take continue industry the Ingersoll of on we back increased and performance stakeholders So and for together all the proud to our member I as operator differentiated culture and our I’m this the for threshold one-year and created

Operator

your open. Instructions] first Nicole go of Please line you. Thank Bank. Deutsche your from here [Operator And Deblase line question is Great. from now ahead, comes the

Nicole DeBlase

chain thanks Yes, ramp-up or supply any feel and talking seeing relative to guys you Good significant? about be morning. impact if production about you guys. as how by could presumably to Maybe when into confident move the just we we pretty growth should to COVID ability start are your XQ

Vicente Reynal

Yes. chain, whether kind are I there side. Nicole, out I is supply will delivering the the mean, say we what immune clearly of to happening in or not logistics that,

I think here said always the the that two for have things. One, in say region we good news region. is, would are I we the

within of kind our co-located of the are proximity close support really co-located to chain in we really for So factories customers really factory. part, is lot of a our And supply our the regions. the most

been of have rationalization from of supply are we I pretty us to having impact that And combination that support is So gone of not some the second suppliers, been as we are partners the has we disruption that that point are a strong larger the global through and to kind here that and perspective leading that procurement think good to chain. seeing. material selecting And with perhaps the orders has a have for us the it is us. that a companies,

one-shift And So to most a they I under that expand, we we in don’t terms to of that issue. an capacity matter just factories, shares. should operate be our incremental of operations. just mean part, ramping if from be have most for the the foresee expanding capacity, of

Nicole DeBlase

divestiture, closes Vicente. is is once the when divestiture that, used that HPS to And then think That helpful. that about proceeds thanks pay you you is from down it. completely pipeline the Got be just is I the full know idea leverage the a going or very indicative being mentioned M&A and down not pro debt. of now? right forma bringing the basis maybe to on partial

Vicente Reynal

Yes.

with Nicole, of we definitely Board. the constant is priorities. top mentioned, And I I conversation my mean, capital are we allocation one as think, having

mean, We in course. will where we are very But I provide an due are. excited yes, here update we

playing we seen fragmented. a highly have addressable that You pretty market, still large are

Our making disciplined current just sure strong. is to M&A really going we funnel we with is And really robust, remain are valuations. that a very are matter it it active. is of something that But

Nicole DeBlase

will I thanks. it pass Okay, on.

Vicente Reynal

Thank you Nicole.

Operator

comes Mike Your Halloran your line from now ahead, the Baird. is line open. next from Please of question go

Michael Halloran

Hey good morning everyone.

the cost So let’s on start outside.

So that. target to from but about still you XXX uptick upside talking million to XXX million funnel, are obviously, XXX the some million,

through the it two you One, to components things raise funnel from talk then of above million the XXX? what target that what And out that there that raise talk So are give can things. XXX level? also XXX you of would confidence some synergy the seen maybe to that about have you

Vikram Kini

I Yes. is that Mike. will This take one. Sure, Vik.

I I a like larger $XXX mentioned executing said, course we million. Vicente funnel And really well. know been think, of teams think in you we had the have

really the And I large us. have of really components part call, the those direct behind you what across execution think momentum the, actions Really, a more are structural building seen that material-focused here I to closer what really more funnel. taken of on that much merger. of really, most is have the

to call, will the I the getting what as ITBs equation. really procurement now deep really, on as So well

the really momentum, is we bottom I to straight no, we really well, quarter. think always I just lot you necessarily line. not funnel. idea But have is we say in fourth the of saw a is good are So Like including to funnel executing team going every execution. that, good seeing in what larger the translate a said, would

synergy in actually annualized where compared Our in to we QX. fourth were quarter number increased

the up to $XXX us the gave million. be target confidence able it increase synergy so And to to

part of us question, what like second items of more starting Nothing to second But always three-year are that back now was plan. and momentum. kind so the end that towards been build of as into are going this in kind confidence out in to the of would think company, kind terms the we procurement, of come perspective. our disciplined equation kind have give of teams saying your really piece increased changed see moving has we to here think of of And some ahead funnel footprint now increase I the footprint. is footprint of of kind as of year a combined the ITV us very always to that start and that I in

able will terms really, there, where of time the we to increase we but gone of are think tell that number I from being in kind So far. is optimistic about this have

Michael Halloran

you here. the of Thank are a the laid one looks in about talk embedded second as look bit Obviously, at think you out well When like. type just a But embedded cadence little you. in the the half And revenue prepared year, just what seeing you about you for as the what then through is as some guidance maybe first context year? remarks slide dynamics, half, give the ramp second are you sequential, environment assuming Maybe deck. on three conservative the units. assumptions normal pretty the in assumptions

Vikram Kini

be phasing quite the terms in in I quarter typically Mike, as think QX seen is the of you of quarter. And the lightest a that what terms reload revenue of New have think typically we percent quarterly XXXX first quarter. holidays Yes. per in in customers kind what Year to in comparable is of budgets and I as sales can expect general, of Chinese there nature as see you things well is what

QX year. that the more ship our, say, the to well for Again, quarter, larger between, typically fourth and have tend the we dynamics quarter. Second the in becomes of second same as some the or heaviest would so project as in and historically of I seen quarter third half businesses

So to of in anything think pretty good XXXX you respect. use the that quarterly kind about and And overall to applying in is probably proxy equation. don’t When again, a of largely phasing the terms is I that different XXXX. think

Michael Halloran

perspective hear if basically run you from the rate. So an environment I current No sequential the acceleration real you right the in year. then, from for assuming are normal underlying

Vikram Kini

to overall is see the that describe the kind of think QX. prepared industrial kind way environment we I improving to Like remarks, Yes, a continue it. fair sequentially I just through mentioned of we in think demand

look fairly see XXXX, similar in you it context at we of I what we prior year. the think cadence as in saw a to

Michael Halloran

Sure. Thank thanks Vicente. Vik,

Vicente Reynal

Mike. you, Thank

Operator

question Barclays. open. go of next is Julian from now comes ahead, line Please Mitchell line Your your from the

Julian Mitchell

with just starting off EBITDA the guide adjusted Good year. morning. Maybe for the

extra sort around implies in back, that, or any that give coming thing. as incremental synergies And kind $XXX understand a the the of embedded cost confirm that guide scale any the tailwind of input of color wanted is cost that headwinds Just XX% million say, temporary so. there to margin I EBITDA. for then Maybe headwind, that costs around from, of

Vikram Kini

take I Sure, one. will Yes. that Julian.

quarters. that some of cost depending focused I we well total synergies of all-in incremental on pretty other the And are as But we on basis, kind or about reinvestment as of given back it XX% the of of actually little slightly of on kind as some XX% course, the basis, the well terms a in say, incremental a and the are see on we the bit think puts is sustainable an is an to include we basis, of takes. closer a probably healthy of on the some closer kind as which is move organic is business incremental I as the higher forward. year it growth growth as implied to expecting it all-in does, would headwinds, So in

kind head moving think of of in think the I terms you it hit pieces, here. I the on

integration would include: of In we couple growth our organic to just That year pieces spoke in synergy savings. two probably that a incremental and of out you the the savings. addition the to the called I of of in million the kind terms M&A of tailwinds transaction-related $XXX in FX some that one, the is guidance,

into ramping the back million inflation. of then then equation, the would nominal be move the item really year. back really a really in through baked of costs second $XX half And to the headwinds $XX on we of as amount the temp million coming The have roughly we

necessarily chain and mentioned, the inflation seeing of that logistics-oriented supply dollar are not would as say, expect, But kind and exact we would I amount. are Vicente some normal, of as quantifying We you the expect. you would

are major components of would are the, the terms hopefully we the And of seeing. say, in probably kind So think components. those characterizes the I that I pieces that

Julian Mitchell

question, second free strong Thanks. in my XXXX. was just very, cash And the very around flow maybe then

your phasing confirm is in to of left what synergies? of in terms And sort of to of costs wanted that free maybe XXXX is achieve in sort embedded Just flow and cash what the cash XXXX.

Vikram Kini

Yes. delivery, I amount company well integration Sure. Julian, I I on have, as as will do it of think a mean we call, high would the footprint side. continued I keep say, the of, what we particularly level. synergy relatively can a definitely fair

seen of forward. I again, on have as think that million for what we XXXX think for have bad use per going placeholder to costs million to door the about kind is cash roughly quarter typically So $XX don’t execution. been been out speaking, you saying, in terms has average, $XX you I of a look

are of able door we really expecting taken it. really So like difference think We again, amount amount up the expectations have equation holds largely the door. to still for in and The need that the savings out synergy to we the don’t the is terms to feel going I be the costs increase ultimate of cash spend deliver cash the number. out of we only the to

encouraged little remember, have outflow a to the of think of cost be the So of we again, terms to of synergies, bit how which, we to disciplined. more us, piece cash side. but been is managed in ahead does tend keep pretty on have the we by do number footprint execute a again, But pretty kind higher the continue are to I equation

Julian Mitchell

Great. you. Thank

Operator

the next of your Jeff from line question is Research. now comes Please from Vertical Sprague Your go line ahead, open.

Jeffrey Sprague

to bit a bit. just you could are what come you. for if expecting could Thank of wondering morning if you little the And kind on course the be I margin XXXX. kind we price net good back on everyone. pressures about the discussion clear little elaborate of to were over color you your comments provide And cost, inflationary could on more realization Perhaps pricing little just actions? those just of that. of a a

Vikram Kini

a the kind are quarter. on we Jeff, highly would color you the as that very into such in And well generated of our fourth continue been entire mean have of price let we it the go on a the I you give strategic I do me equation do about that headwind XXXX. mission-critical here? in little said we that price to comment the price. to process have will products Vik, want We bit so

Vikram Kini

Yes.

you pricing higher, not I able to play pressure cost be inflationary the to think thing continue how That as we headwinds but price really mention the I that think expect So here seen just And through. the be to things of would that historically things are we that want we Jeff, the become positive. in business. is have as seeing I a mentioned. price think the the to other degree view are, lever if kind way from equation just is out, the kind about I those do potentially trend is separate that yet, of to Net-net, look to pass we at to

that everything kind is right we price at inflation I this in point see So now think time. sort of cost on of

Jeffrey Sprague

you implied an catch said think you HPS also XXXX. multiple when of on but Vicente, us give XXXX? do expect it, actually that didn’t mentioned could I I it thoughts on kind to you what you And number. some in earnings a

should of coming Just thinking through be what about income. equity on kind placeholder

Vicente Reynal

Jeff, are the XXXX. the guiding $XXX when multiple Yes. the to on not based number roughly it expected of times in I details in anything XX we kind of of of specific And good implies we but terms on on remarks for providing What a or guidance look cash, XXXX of at not any million further equals to are XXXX, XXXX. you transaction. EBITDA said also, pretty the on that HPS the is the

Jeffrey Sprague

a where give of context the regard, give ask projected sorry, of I’m line just one. and kind I Backwards you of visibility they they will can you as comfort maybe just percent as that they in quick do one normal more are forecast? And in characterized can But some I top backlogs healthy. forward stop there. were kind stand, sales,

Vicente Reynal

will Vehicles. with you Yes. Specialty can when look characterize, start Jeff, maybe you I X the at the segments,

well really in very are ITS I bookings strong XXXX of coming large the kind in some momentum. definitely, into backlog. long-cycle orders with the they quarter. very seen robust good fourth have mean very, as You saw

kind also - orders really in of received gets and the that XXXX. shippable quarter of some that into third with we So that the

in of Science Precision historically. And quarter. is a on cycle few the kind press the that to the called of backlog the exception we and the have some more we grow. momentum don’t releases we short And really third ITS of saw them continue those, also cycle. orders. continue with out more the that than hydrogen the better in of And see is on So we to that final have coming long in seen what They

backlog in So of into all-in-all, coming we XXXX. position terms feel pretty have the where good we

Jeffrey Sprague

Thank you.

Vicente Reynal

Thank you.

Operator

the Your Josh of next ahead, line question open. now comes from is Morgan from your line Pokrzywinski Please Stanley. go

Joshua Pokrzywinski

guys. morning about from good come a pricing. long way talking we Yes, Hi fluid guess I have end

So congrats the on portfolio last transition just overall years. really the few

Vicente Reynal

Thank you, Josh.

Joshua Pokrzywinski

customers, stage normally big bit a relative this other blower I recovery. on there. kind So market see not for you you and in competitor of but aren’t more truly seems or your vacuum, are orders contextualize big any strength? way what to orders out easy on semiconductor, maybe are compressor, be to characterize you back you in It IT&S, earlier of kind doesn’t the sort I stronger your or going seem even maybe side maybe would debottlenecking mean the is in hard. of would near-shoring, know of like traditional or yet. really bouncing capacity of what it But so why would can at than some like be comps

Vicente Reynal

Yes.

been So what with accomplish we are has team the to excited obviously able there.

with to vacuum market. the kind due and mostly really accounts. win don’t pretty that play the And it unique kind new we to industrial. applications. on vacuum in As continue And blower, very these are And they nature OEM of OEM of in that basically of We new, niche side, terms business semiconductor And applications. the the the the of past, as really is have said, team accounts in the have is articulated the in markets we well you some blower, in have that treatment of the as activity some wastewater And opening. end good show share. to other this when really and highly of some that kind market, ability as niche market we water of that been good with combine is the engaged facilities well we on solid momentum causing kind you it end perhaps take to kind driving is that what are actively some generation momentum of fragmented very demand

Joshua Pokrzywinski

been Albins, on general there discounts the then in end a in more And U.S. the at It of are on have speaking tend guys but because industrials That over obviously, several is it. flow can play rarity keep Runtechs properties pretty that be to are fragmented this Like smaller kind is and I you able guess lot to Got years the just a helpful. know of shape. in consistently have you consistently that it? Hills, side, sheet going, market, you do place balance to a a steep defined flywheel you out of are the valuation last question good to be pretty guys I properties a to there found. of cash is yourselves.

Vicente Reynal

we with of even a indicators of things some leverage that as is working in working, and improving of of cultivation level XXXX, are and lot how have we that from process, yes, a team will something I with the stage it in and that velocity the kind week, the every to our time, the is. really It we focused adding has ideas well. key are is across M&A zero that is dramatically process how say funnel spent to to more terms we in Also particularly Josh, process investments funnel on and penetration M&A even different of done performance our improved. IRX the M&A, critical the we way of really segments think support I review

on are momentum And acquisition And so I we prudent think and what the yes, the we translate to also continued us. for answer good see I some activity could into yes, price. pretty mean very funnel your on question,

disciplined to continue that. We highly be on

Joshua Pokrzywinski

the for Thanks Perfect. color.

Vicente Reynal

you. Thank

Operator

go Wertheimer is your line Your open. Rob from next from the of comes line question Melius now ahead, Research. Please

Robert Wertheimer

I’m announcement bit the brings how bit you if you models interact on with the Thank. next strategically thought I’m revenue you if Cloud puts how just and it a customers? how competition, curious of Good everyone. that is in that you made. a little morning Google relates decision question My ahead five-years. curious little the about to you new Thanks. it

Vicente Reynal

when when alone, field five-years. at have absolutely. one Science, at about Technologies in Rob, what should streams Sure. Industrial become mean And of the North the have you of help you look potential think that I in it, is revenue alone. and particularly the all Precision we of North new when over the creative we million you to over look Yes, your question, in more America assets, on this segment here assets us our America next

come. Cloud lot of is of harvest select the few these it next years Google able process. a power We continue what partners we analytics Cloud of to connect as on better over better the think and we to ways data excited how we how And next to here can that help we data supercomputing So harvest years. leverage a is and and are were really the the we revenue I we streams, them as to analytics from one and those find powerful how Google very see that create predictive to us fairly over able now the that few rigorous be

Robert Wertheimer

gain connected Google. to lot invest? to the that you or you base groundwork the you Do a analytics have internally with have today, for comment start doing and Is what is on how do asset any done what you are

Vicente Reynal

on the of the some groundwork So has been compressors. done

as you last some when you we specific how of now these at excitement water, that think markets. to call wastewater. And our too as say, I alluded look go to here the well on the as, let’s end on earnings

assets realizing the on analytics, be the with stages could multiple have Google connected entire optimize that to see of of powerful really is but we the the early This what that We are process. we one.

Robert Wertheimer

Thank you.

Operator

of question ahead, line Your line comes is from next from the Sachs. Goldman Ritchie your go now Joe open. Please

Joseph Ritchie

Like about just this how environment guys into thinking about exited ITS this I’m as the perspective, targets guess really, I’m be you of we XXXX about everybody. a from obviously, can really year. just kind a you Hey for I just really the high medium-term beyond morning kind navigating of great upside like given do term strong think the tough synergies? margin segments sustainably both in medium those job both year wondering, in Thanks. and really for Good ITS so of XXXX, XXs? I’m the think like the XXXX. like PST.

Vicente Reynal

term the I But quarter Joe, answer we Yes. Denver profile segment, at ITS, way to improvement margin. the the come for the mid-XXs. of I a in open where room finishing yes, we specific definitely remember are batch look, from mean, just mean, wanted also the to you guidance kind that of be mid-XXs. if I ITS, that said you kind And you When is industrial XX% see the question of we cap, P&Ls there we Garner margin more and door to we kind said the mean, I in inside are of with specifically, in see medium fourth a haven’t come. terms mid-XXs running we we that we And have days, the on. as mean above But that out of is P&Ls, that not know, and milestone.

the an - commentary, made some started of know So exit finished a the how have have we to business that the we we XX to of Science, with with high was QX When Precision XXs. model on In proud that kind and doing an get at above in impact very how on business rate. XXs, year, to and that team. I we this respectable high a on

potential back and business milestone, more I medical the will we to improve that maybe but of that. Denver, had make just also mid-XXs us when the we Gardner the that XXs. up for with see So do the we we we room said in kind same was And ended again, continuing? that, analogy a that on on in a were

about here maybe and kind comment will definitely for we those of sometime room in segments, of of but terms from some continued for So medium how we beyond. improvement the here think see guidance soon we

Joseph Ritchie

I Great portfolio that it. in question, is No, just my ask about given the you Got HPS. I hear. the guess to had helpful. one to follow-up announcement

Is hear in like potentially ownership I So just XX% upside is and kind the maybe then pieces. some of it term, One, to I on how then guess questions. there but around play the here, don’t fit two And any process. future. HPS because portfolio well? would that the in curious necessarily this of of monetize thought are about what thinking it the I But longer rest to other guess, as you thoughts are keeping maybe be the and the

Vicente Reynal

Joe, on and Yes. one, multiple with found are the play think I product becoming premium very excited we excited with the AIT. very team mean premium a them in are very we reasons. oil And and gas the we upstream pure for HPS business. with great very partner a with I that also

in thoughtful in come. might we I you we but that that. cash, really participate because mean terms value continue doing properly past, in is degree here. same other do questions, the what of want good some think be all with something And not potential and hesitate your how at options. that we were mean, we any at won’t as be see, the those the view businesses could time, you we I just upside look And lock to next. that I a to said think we that in come as and strategic we we create some of on cycles to the as to multiple of we that scenarios. that said, by possible get able the to clearly, we creative aligned, as explore happen shareholder could I And know, disciplined in I participation can And XX% mean there can terms of

Joseph Ritchie

sense and guys. you Makes thank

Vicente Reynal

Thank Joe. you

Operator

line from the Jefferies. your Your Volkmann is line Please of open. ahead, now next from question Stephen go comes

Stephen Volkmann

the morning how should margin guys. segments question back incrementals quickly. difference and good to amongst Any for Hi Joe’s XXXX? we Maybe just think about

Vikram Kini

I one. Yes. take will that

much at think way have of year-over-year more think centralized, think are overall least I frankly, from the we the perspective, segment. be, mentioned IT&S because, ITS say, to a I or just as the lot before, a in should healthiest the I will cost probably it is, about isolated synergies, probably

in of be the in little top mix, the businesses, Precision the Vehicles the incrementals and Frankly, basis. terms more terms line. on bit a there In of Specialty of and a Science muted terms year-over-year balancing little will a bit of just

remember Precision you on the did pretty strong in of Science, If we demand see a COVID-related XXXX. in-swell

and normalize, premium. obviously business you the comparable On we kind new XXXX, are to little at not margin And Gulf bit going businesses tend the be quite what the it obviously, commercial mix medical general invest side, what I continue of and products to kind as necessarily and to industrial XXXX. see as investments for some SVG to of growth. that And that was in in actually more in. a then not expected then a good replace pretty is will obviously That the came back it recur of call

again, pronounced. So little a where see is I will more think you IT&S bit

Stephen Volkmann

do types And the servicing. contracts? Okay. you maybe able Great. an I get and I longer term, of guys recurring target just and Do then update maybe near we some I That and and have that you those out for there term. just guys, ask we are demand could longer there. both a pent-up if been of then is services getting know are revenue and about helpful. to is kind mean

Vicente Reynal

I absolutely, on we good a here that expanding even to machines. more of lot Google pronounced see launching be remotely to lot to technologies some further info here these the with out forward, we unique and cases, work, think can more continue then fantastic being IoT some go with only have service doing but able potential definitely team of on physically, Steve, service how and the do create by that being created we with we more a our are and as a base are and in we And we of we I Cloud, that not connect mean, kind able based and Yes. connectivity agreements. now as get there

Stephen Volkmann

it will Okay. I you. leave here. Thank

Vicente Reynal

Thank you Stephen.

Operator

is Your ahead, now open. next line Wolfe Please from Coe comes line the from go your Research. question of Nigel

Nigel Coe

a synergies. procurement want whole go been has obviously, Good savings. Thanks. did lot to big a back Not morning. really source And the But run here. through to cost to of I

With see just is, a the limiting have sort feel procurement wanted in of for the any potential get synergy bit your set there. seen wondering it more IRN SG&A savings supply Doesn’t second chain part like the a year but you you in in issues small of part the And way now G&A? just had is out then to to relatively now mix. near-term? you for there, the is have that whether I’m ability

Vikram Kini

both of Yes. Sure, Nigel. those. will I take

we the material funnel. the the base be from now on a as procurement but to direct front, will is on classical it does savings system, prohibit that us being whether said, broader, in think ITV the some able equation, as larger well spend even deliver like that inflation leveraging procurement there make from just I the I procurement savings. And

I answer no. think is the

the the seen million. momentum. have synergy target conviction in You the continued Obviously, $XXX of raising

executed good then in being good pretty procurement G&A And a on material-oriented deliver line direct side, to I and we the the more the savings we XXXX. really numbers. and for is majority said, that say But pretty those room opportunities. saw think and like that cost take-out there again, in able would think, conviction sight I more I of of structural-related always have much

say us. optimization. look that So again, But for I for behind always is rooms part of would will we largely kind

Nigel Coe

to Okay, great. And then just portfolio. going question Joe’s the on back

How evolve curious you to can much on given are than as your past expected, better the reopening? of beyond kind view than would well. what we expected XX-months over confident be the probably better that SVT, this SVT Just is and just sustained performance you have how performance of

Vicente Reynal

performance-based that commentary particularly on battery there, on mean on put you have a I think the I have also that made, in good consumer ways also product Nigel. team launches you done, mean look that I see it in think on again, I they Yes. the gold, new is LDT done launched. the cars I even has what the clearly very momentum couple based great of they lithium at QX, side. launches that When with product we

for the continued. What And team good well is could that the but decision-making consumer, yet. getting maybe some not versus really momentum mean some is some pretty Yes, is be. But the consumers feel share. play an Europe. product or exciting we So it buy good launches make the accelerator only COVID is is market. what market the done that accentuate could think they I only also what very also XXXX, later? buy the has U.S., now ready team has not I to taken but not that in the utility exciting also is That in to in are

I So really in the cylinders. think team all is hitting

great supporting to and more with investments are We come.

Nigel Coe

I Great. there. will leave it Thanks.

Vicente Reynal

you. Thank

Operator

line next Stifel. of go Your your the question is open. Nathan comes from Jones from now Please line ahead,

Nathan Jones

Can talk of that reinvestment couple of a growth the CapEx you X.X% little to better of order you are your everyone more investments take to morning And level in here questions Good of potential on opportunity X% kind here. growth? growth then Can in me. seems moment. about drive to to at making of A talk invest the low And to in kind what to view. the about kind you what

Vicente Reynal

the on Listen, investment multiple we mean, some of to terms investments feet on the pretty in and well investments. then well side, seeing expect the solid team making on our here product of as launches I absolutely, with investing are some some what world. on by the activities industrial you Yes. as on the can growth, continuing making ways. get on Cloud. of of they some street seen corporate investments And Google And some kind some I demand investments on generation launches. is - we Science, technology, and within One, have businesses, to acceleration that the investment product the commercialization in really as our the of the Maybe make on heavy good are that on in terms Precision very highlight their hydrogen throughout as

We mean proposal a on a great return team capital. we good at X.X% it. the typically absolutely. we comes what going provides here through compressor CapEx the to of the I ROIC year. the planning were is very we terms on two with very in look very We And and do in working X%. CapEx, and invested light will particularly if to Now basis, launched But that execution now mean, cadence light, of companies, and some delivering are good a CapEx sure, very have side, I combined there to be even that that the of on we is XXXX getting think base. then executed

Nathan Jones

to And Okay. know for I to then in. I to one revenue businesses wanted revenue also put likely we these synergies about was together, when creating really kick value, longer synergies. one ask but take is to start avenue

at you expect future? what successes seen year-end, the now seen, have and you in talk what can So what you have about opportunities you

Vikram Kini

of end deleveraging necessarily oil-free expanded haven’t be it level. that kind that have growth the to, company technologies touch market water I whether driving, Obviously, the the But high we compressor kind the seen and actually around that channel at will organic Nathan. the the And some Sure, it synergies numbers actually are has have is growth brought. lot quantified a momentum externally. market, guided we clearly, of the you of of in we things of combined strategic,

the think in I that synergies would I growth have what executing all think are IT&S they I a what of And encouraged. good organic growth segments, within going to numbers. that tell are see of really embedded, been that to Science, Precision of kind kind each you, and particularly really the funnel probably of have we you

We have the seen numbers. backlog of healthy we the that year. of the exiting about kind order healthy talked You some have

synergies click I are think to starting to you of starting some revenue in. see those

examples but kind kind leverage synergy we you base of of a kind I color you of we kind kind leverage continue color what to are going revenue that we combined seen you in the guide of and as momentum. think continue again, do are have going as not to give necessarily that continue of we to company. that And explicitly, give is those them So lot to to

Nathan Jones

questions. my Great. taking Thanks for

Vicente Reynal

Thank you Nathan.

Operator

line from question now Your your go from John line ahead, next comes Suisse. Please open. of is Walsh Crédit the

John Walsh

Hi, good morning everyone.

me. Just one for here

or either free free as the of greater the flow, you is expecting cash flow the to cash what free then flow are for that XXX%, this think EBITDA cash you equal flow a terms a percent guidance of in there of well? through kind about maybe to could back cash way as you forward margin kind free Going than year, guys another and going how or of articulate

Vikram Kini

we that implications think I we was right it, out John, greater look income, XXX% of lot guidance the net to equal or going gave adjusted taking than probably to we the purchase at think things a accounting clearly is which of the Yes. are of equation. way and of

be saw working of swaps pretty tax I we the XXXX, the sorry, The quite think interest rate normal rolled we interest, as context, example, having strong bit you it in all fixed coming for good and we some know see look, at equal opportunities, good net little be - capital in a some tailwinds some probably whether I’m capital news how able working also lower pleased. Obviously, half here, we pretty we were the rate CapEx some is good cash deliver, look But to lower good the management. headwinds expected if to second than are off XXXX, our good into down year. and with which of some opportunity. you

prudent. the mentioned over in though pretty think, the we you in I really of much some is click the the things starting XXXX. course before entire some year, guidance We to capital. Obviously, rate to the I in opportunities tax again, of would terms like and of the of cash now are itself, think So and have working really saw strong flow expect see

John Walsh

you. leave I will there. Thank it Great.

Vicente Reynal

you. Thank

Operator

line your line comes from go ahead, from Mittermaier question Your Markus next Please of UBS. the now open. is

Markus Mittermaier

Yes, hi morning everyone. good

you $XX for of are base? here to that base the is one. and now trying us in picking how spend spend visibility direct you sort indirect. here Could And quick a see far remind of million the good spend, procurement new here. how far million consolidating total through sense that execution, roughly what obviously, in to Just Just for get a incremental total that spend incremental $XX base in On suppliers? goes

Vikram Kini

Yes. three-quarter that and It No, of way were we going above sure, a bit mark And and terms stuff I we do billion. through said we RFQs mean, that. of $X maybe of is the that little so to we the are roughly negotiation do there. kind like in

the have still through process. portion So we to still we another need go that

lot As you of can through. imagine, the it is just a team that detail is going

that So we cover $X still billion have some way to to all go plus.

Markus Mittermaier

Great. That is I then one, very And may. helpful. if second

out compressor, some versus order about follow-up the the, or obviously, quarter? a is peers? gains European Europe then of for our earlier some the intake single-digit discussion intake. to Is Just in should box that the you sticks we on guys in high particularly mix on order share to strong in think How Europe me, that there positive

Vicente Reynal

Yes.

executing is had brands. the Europe Rand the one Europe, multiple the as of the know, think brands in team power mean leading in you the and compared of pretty Champion. and combination I well I Europe in of now as really in also we Ingersoll

we regions. a just taking approach, and we channel So well the yes, on the team feel all is really across and share numbers. the potentially are that, multi-brand And we have base the some leveraging executing

Markus Mittermaier

thanks Okay. much. luck. so Good

Vicente Reynal

you. Thank

Operator

Please of line Citi. Andy from the question now line ahead, Kaplowitz from your comes is go next Your open.

Andrew Kaplowitz

bigger but the a color rest Could the with merger. solid, thinking you the in XXXX, guys. you. weak give us about maybe the there looks progress the Hey have area how remains of region? on a it region APAC some good morning is update China in growth strategic you as for we growth bit into a you are of since presence your Could more know you in us APAC

Vicente Reynal

see so doing of And I on end after they exciting better great Rand. the really for soft combination Denver, now of actually for two, always an obviously, brands there. here based two and It it definitely team the also the China, mean only the the fantastically with not lot segments but the have leadership. commercialization We Chinese just went to of And area New And channel. Ingersoll I opportunity momentum we said go channel Yes. through is build. really the Year. continuing we can are two opportunity Southeast to a we is accelerated not mean, technologies the Gardner the area market us. of an before combination of mean is well. I just and is better Asia a

we are team is investing that being in really The region. selective. very So appropriately

potential of So Southeast just that it the is good lot we a see opportunity Asia. in

Andrew Kaplowitz

Vehicle, XXXX. the guidance it. then segments, through for revenue And sense the for over mid-single-digit strengthened growth Got orders for Specialty you looking just mentioned at makes XX%. But quarter, up

momentum So are more very slowdown you for versus there. But of the that expecting other some it comparisons difficult XXXX segments. like know good versus sort in segment. the seems I guidance that are

Vicente Reynal

room were normalization, need I be the I I definitely able more in the have being of half. continue the in improvement. kind some XXXX. think and we delivering to on of is they very half. they as being mean comps But of maybe comps. pretty momentum for seen it a they I just we in launches see hefty execute more tough team activities, we think probably second normalization kind to And here on Yes, the now. is focused in rationalizatoin terms to a based that based product bit mean the that just And are will are we the And we update. good what coming prudent momentum. second to market on see here very I commitments from But could prudent overcome that mean some

Andrew Kaplowitz

Thanks Vicente.

Vicente Reynal

Andy. Thank you

Operator

to are comments. back no questions. call Vicente closing further the I there for over any turn And will

Vicente Reynal

accomplish. excitement their employees to to the the year. I XXXX join many pass was thank of listen calls, say in want been you. to for to able thank these another want everyone across And to of phenomenal a world interest. to them, I they of our We to that all you just big know have what to

about to one-year this our altogether here. phenomenal has is are the it And beginning. what And We a journey celebrate been. anniversary just

are We is much definitely and to more getting there just come. started,

So you. Thanks, everyone. thank

Operator

and for participating. ladies gentlemen, And concludes call. this Thank conference today’s you

disconnect. You may now

Ingersoll Rand (IR) 23 Feb 212020 Q4 Earnings call transcript