Orders and Revenue Support Robust Outlook for 2023

Fourth Quarter 2022 Highlights

(All comparisons against the fourth quarter of 2021 unless otherwise noted)

Strong performance driven by its competitive differentiator - Ingersoll Rand Execution Excellence (IRX):

• Reported fourth quarter orders of $1,484 million, down 1%, or up 2% organic
• Reported fourth quarter revenues of $1,624 million, up 14%, or 19% organic¹
• Reported net income attributable to Ingersoll Rand Inc. of $217 million, or earnings of $0.53 per share
  • Adjusted net income from continuing operations, net of tax¹ of $295 million, or $0.72 per share
• Adjusted EBITDA¹ of $420 million, up 23%, with a margin of 25.9%, up 180 basis points year over year, and incremental margin of 38%
• Reported operating cash flow from continuing operations of $355 million and free cash flow from continuing operations¹ of $321 million
• Liquidity of $2.7 billion as of December 31, 2022, including $1.6 billion of cash on hand and undrawn capacity of $1.1 billion under available credit facilities

Full Year 2022 Highlights

(All comparisons against 2021 unless otherwise noted)

• Reported orders of $6,368 million, up 10%, or 11% organic
• Reported revenues of $5,916 million, up 15%, or 16% organic¹
• Reported net income attributable to Ingersoll Rand Inc. of $605 million, or earnings of $1.47 per share
  • Adjusted net income from continuing operations, net of tax¹ of $972 million, or $2.36 per share
• Adjusted EBITDA¹ of $1,435 million, up 20%, with a margin of 24.3%, up 120 basis points year over year, and incremental margin of 32%
• Reported operating cash flow from continuing operations of $865 million and free cash flow from continuing operations¹ of $771 million
• Returned $294M of value to shareholders through share repurchase and dividends

2023 Guidance

• Full-year 2023 revenue growth expected to be 7% to 9% and Adjusted EBITDA¹ of $1,570 to $1,630 million, up 9% to 14% over prior year
• 2023 Adjusted EPS¹ expected to be in a range of $2.48 to $2.58, up 5% to 9% over prior year

Ingersoll Rand Inc. (NYSE: IR), a global provider of mission-critical flow creation and industrial solutions, reported a strong finish in the fourth quarter of 2022.

“We finished the year on a high note, with strong fourth quarter and full year 2022 results amidst ongoing inflation, rising interest rates, and geopolitical uncertainty,” said Vicente Reynal, Chairman and CEO. “These robust results again demonstrate the resilience of our business across economic cycles. Driven by our operational excellence model, IRX, we continue to deliver on the commitments we made at our Investor Day, keeping us on track to meet those 2025 targets.”

Reynal added, “We made tremendous progress in 2022 against our sustainability goals by executing on our strategic imperative to Lead Sustainably. Our industry-leading sustainability program continues to earn recognition, and I am very proud that Ingersoll Rand was named to the 2022 Dow Jones Sustainability World Index and Dow Jones Sustainability North America Index. I am grateful for the whole Ingersoll Rand team, whose high level of engagement and ownership mindset enabled us to deliver another successful quarter and will help us to carry our momentum forward into 2023.”

Fourth Quarter 2022 Segment Review

(All comparisons against the fourth quarter of 2021 unless otherwise noted.)

Industrial Technologies and Services Segment: broad range of compressor, vacuum and blower solutions as well as fluid transfer equipment, loading systems, power tools and lifting equipment

• Reported Orders of $1,192 million, down 1%, or up 4% organic
• Reported Revenues of $1,315 million, up 17%, or 22% organic²
• Reported Segment Adjusted EBITDA of $361 million, up 24% with an incremental margin of 38%
• Reported Segment Adjusted EBITDA Margin of 27.4%, up 170 basis points, fueled by the use of IRX to drive strong operational execution
• Core industrial end markets saw continued strong organic demand with orders up 4%, including strong positive momentum across Europe and Asia. Excluding FX, orders for total compressor offerings, which represent approximately 65% of the total segment, were up low single digits, while orders in Industrial Vacuum & Blowers grew in the low 20’s. Orders in Power Tools and Lifting were also up mid-single-digits.

Precision and Science Technologies Segment: highly specialized fluid management solutions including precision liquid and gas pumps and niche compression technologies

• Reported Orders of $293 million, down 4%, or 2% organic
• Reported Revenues of $308 million, up 6%, or 9% organic²
• Reported Segment Adjusted EBITDA of $93 million, up 19% with an incremental margin of 82%
• Reported Segment Adjusted EBITDA Margin of 30.1%, up 330 basis points, driven primarily by improvement in pricing vs cost as well as synergy delivery in recently completed M&A
• Organic orders were down slightly vs. prior year largely due to a large non-repeating Hydrogen order in 2021.

Balance Sheet and Cash Flow

Ingersoll Rand remains in a strong financial position with ample liquidity of $2.7 billion. On a reported basis, the Company generated $355 million of cash flow from operating activities from continuing operations and invested $34 million in capital expenditures, resulting in free cash flow from continuing operations² of $321 million, compared to cash flow from operating activities from continuing operations of $247 million and free cash flow from continuing operations² of $224 million in the prior year period. Prior year cash flow from operating activities from continuing operations and free cash flow from continuing operations both included an inflow of $3 million for cash taxes related to divestitures. Net debt to Adjusted EBITDA² leverage was 0.8x for the fourth quarter, which was an improvement of 0.3x as compared to the prior year. Consistent with our comprehensive capital allocation strategy led by M&A, Ingersoll Rand deployed $184 million to M&A, $3 million to share repurchases and $8 million to its dividend payment during the fourth quarter. In addition, Ingersoll Rand announced the acquisition of Paragon Tank Truck, a leading provider of solutions used for loading and unloading dry bulk and liquid tanks in demanding industrial environments which closed on February 1. 2023. Also, on January 3, 2023 Ingersoll Rand closed on the SPX Flow Air Treatment acquisition.

2023 Guidance^3,4

Ingersoll Rand is establishing full-year 2023 guidance based on expected continued strong demand trends and operational execution in 2023:

Reconciliations of non-GAAP measures related to full-year 2023 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations, including net income (loss) and adjustments that could be made for acquisitions-related expenses, restructuring and other business transformation costs, gains or losses on foreign currency exchange and the timing and magnitude of other amounts in the reconciliation of historic numbers. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.

Conference Call

Ingersoll Rand will host a live earnings conference call to discuss the fourth quarter and full year results on Tuesday, February 21, 2023 at 8:00 a.m. (Eastern Time). To participate in the call, please dial 1-844-200-6205, domestically, or 1-929-526-1599, internationally, and use conference ID, 562071, or ask to be joined into the Ingersoll Rand call. A real-time audio webcast of the presentation can be accessed via the Events and Presentations section of the Ingersoll Rand Investor Relations website (https://investors.irco.com), where related materials will be posted prior to the conference call. A replay of the webcast will be available after conclusion of the conference and can be accessed on the Ingersoll Rand Investor Relations website.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to Ingersoll Rand Inc.’s (the “Company” or “Ingersoll Rand”) expectations regarding the performance of its business, its financial results, its liquidity and capital resources and other non-historical statements. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “target,” “endeavor,” “seek,” “predict,” “intend,” “strategy,” “plan,” “may,” “could,” “should,” “will,” “would,” “will be,” “on track to” “will continue,” “will likely result,” “guidance” or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements. All statements other than historical facts are forward-looking statements.

These forward-looking statements are based on Ingersoll Rand’s current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from these current expectations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) the impact on the Company’s business, suppliers and customers and global economic conditions of the COVID-19 pandemic, including business disruptions caused by government restrictions; (2) unexpected costs, charges or expenses resulting from completed and proposed business combinations; (3) uncertainty of the expected financial performance of the Company; (4) failure to realize the anticipated benefits of completed and proposed business combinations; (5) the ability of the Company to implement its business strategy; (6) difficulties and delays in achieving revenue and cost synergies; (7) inability of the Company to retain and hire key personnel; (8) evolving legal, regulatory and tax regimes; (9) changes in general economic and/or industry specific conditions; (10) actions by third parties, including government agencies; (11) adverse impact on our operations and financial performance due to natural disaster, catastrophe, pandemic, geopolitical tensions or other events outside of our control; (12) the timing, manner and volume of repurchases of common stock pursuant to our share repurchase program; and (13) other risk factors detailed in Ingersoll Rand’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), as such factors may be updated from time to time in its periodic filings with the SEC, which are available on the SEC’s website at http://www.sec.gov. The foregoing list of important factors is not exclusive.

Any forward-looking statements speak only as of the date of this release. Ingersoll Rand undertakes no obligation to update any forward-looking statements, whether as a result of new information or developments, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

About Ingersoll Rand Inc.

Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to helping make life better for our employees, customers and communities. Customers lean on us for our technology-driven excellence in mission-critical flow creation and industrial solutions across 40+ respected brands where our products and services excel in the most complex and harsh conditions. Our employees develop customers for life through their daily commitment to expertise, productivity and efficiency. For more information, visit www.IRCO.com.

Non-U.S. GAAP Measures of Financial Performance

In addition to consolidated GAAP financial measures, Ingersoll Rand reviews various non-GAAP financial measures, including “Organic Revenue Growth,” “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Diluted EPS” and “Free Cash Flow.”

Ingersoll Rand believes Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS are helpful supplemental measures to assist management and investors in evaluating the Company’s operating results as they exclude certain items that are unusual in nature or whose fluctuation from period to period do not necessarily correspond to changes in the operations of Ingersoll Rand’s business. Ingersoll Rand believes Organic Revenue Growth is a helpful supplemental measure to assist management and investors in evaluating the Company’s operating results as it excludes the impact of foreign currency and acquisitions on revenue growth. Adjusted EBITDA represents net income before interest, taxes, depreciation, amortization and certain non-cash, non-recurring and other adjustment items. Adjusted Net Income is defined as net income including interest, depreciation and amortization of non-acquisition related intangible assets and excluding other items used to calculate Adjusted EBITDA and further adjusted for the tax effect of these exclusions. Organic Revenue Growth is defined as As Reported Revenue growth less the impacts of Foreign Currency and Acquisitions. Ingersoll Rand believes that the adjustments applied in presenting Adjusted EBITDA and Adjusted Net Income are appropriate to provide additional information to investors about certain material non-cash items and about non-recurring items that the Company does not expect to continue at the same level in the future. Adjusted Diluted EPS is defined as Adjusted Net Income divided by Adjusted Diluted Average Shares Outstanding. Incrementals/Decrementals are defined as the change in Adjusted EBITDA versus the prior year period divided by the change in revenue versus the prior year period.

Ingersoll Rand uses Free Cash Flow to review the liquidity of its operations. Ingersoll Rand measures Free Cash Flow as cash flows from operating activities less capital expenditures. Ingersoll Rand believes Free Cash Flow is a useful supplemental financial measures for management and investors in assessing the Company’s ability to pursue business opportunities and investments and to service its debt. Free Cash Flow is not a measure of our liquidity under GAAP and should not be considered as an alternative to cash flows from operating activities.

Management and Ingersoll Rand’s board of directors regularly use these measures as tools in evaluating the Company’s operating and financial performance and in establishing discretionary annual compensation. Such measures are provided in addition to, and should not be considered to be a substitute for, or superior to, the comparable measures under GAAP. In addition, Ingersoll Rand believes that Organic Revenue Growth, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Incrementals/Decrementals and Free Cash Flow are frequently used by investors and other interested parties in the evaluation of issuers, many of which also present Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Free Cash Flow when reporting their results in an effort to facilitate an understanding of their operating and financial results and liquidity.

Organic Revenue Growth, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow should not be considered as alternatives to revenue growth, net income, diluted earnings per share or any other performance measure derived in accordance with GAAP, or as alternatives to cash flow from operating activities as a measure of our liquidity. Organic Revenue Growth, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow have limitations as analytical tools, and you should not consider such measures either in isolation or as substitutes for analyzing Ingersoll Rand’s results as reported under GAAP.

Reconciliations of Organic Revenue Growth, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow to their most comparable U.S. GAAP financial metrics for historical periods are presented in the tables below.

Reconciliations of non-GAAP measures related to full year 2023 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations due to the high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations, including net income (loss) and adjustments that could be made for acquisitions-related expenses, restructuring and other business transformation costs, gains or losses on foreign currency exchange and the timing and magnitude of other amounts in the reconciliation of historic numbers. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.

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