Ingersoll Rand Inc. (NYSE:IR) Q4 2022 Earnings Call Transcript

Vik Kini: Sure. I’ll take that one, Chris. So, yes, 80 basis points to 90 basis points, slightly right below 100 basis points, that’s probably right in line. I think it’s a few things to note. When we gave our Investor Day targets, we said to expect about 100 basis points on average over a multiyear timeframe. Obviously, worth noting that we have outpaced that in the prior two years. So, we’re still very much tracking in line with that. And I think in terms of the guidance, your point is spot on. We do expect to continue to be price/cost positive. We are still driving productivity as well as the synergies, the last phase of the merger to merger-led synergies to offset any degree of merit and/or labor inflation, which obviously we are seeing and speaks to Vicente’s point earlier.

But I think the other thing here is that we are continuing to reinvest for growth and to drive ongoing organic growth, which is very much part of our Investor Day target. So, you are seeing requisite investments in — to the appropriate commercial resources and growth resources in the business as well as some of the investments we called out specifically even at the corporate level around demand generation and IIoT. So, again, we’ll continue to be very prudent. We continue to expect margin expansion year-over-year as we go through the year. And sequentially, the margins could continue to sequentially increase quarter-to-quarter as we move from Q1 to Q4, much like you saw in 2022.

Chris Snyder: Appreciate all of that. Thanks for taking the questions.

Vik Kini: You bet.

Operator: Thank you. I would now like to turn it back to the CEO, Vicente, for some final remarks.

Vicente Reynal: Thank you so much. As I kind of wrap up the call today, I just want to say that our teams have done an outstanding job executing our plan throughout 2022, despite the ongoing macro challenges, and that’s because they think and act like owners, because they are owners to the company at Ingersoll Rand. And we have clearly demonstrated that there’s a lot of resiliency here in our business as we continue to invest organically and inorganically and continue to focus ourselves in sustainability, innovative product and solutions. And that, we believe, is truly positioning Ingersoll Rand as a global leader. So, thank you for the time and attention today. Thank you.

Operator: Thank you all for joining. That does conclude today’s call. Please have a lovely day, and you may now disconnect your lines.