Ingersoll Rand Inc. Common Stock Chicago Industrials Summit

For sure. First of all, thanks for having us. Max is not mic'd up, so I will just say thank you on both our behalfs here. As far as the orders profile, let me start with Q2, and then we can move into the July number just to ground ourselves. In terms of Q2, 2%, if I go by segment, I will really start with ITS. ITS, you saw more flattish organic orders. I think if you peel the onion back a layer, though, what you saw was on the short to medium cycle side, you saw comparatively better momentum. You saw something approaching more mid-single digits kind of order trajectory. Yes, obviously the piece that created a little bit more of the, I would say, more timing on the headwind was on the long cycle side.

Specifically in Q2 was a little bit more European centric in some of our blower and vacuum kind of longer cycle systems. It should be noted that we have long cycle exposure across compressor, blower, vacuum, even our Precision Technologies pump business. So there is about 20%-25% of our original equipment is longer cycle in nature. One thing we would say here, and I think you have heard us for a couple of quarters, is that in terms of the long cycle funnel continues to remain healthy, but there had been that kind of elongation, for lack of a better way to say it, in terms of the decision making and ultimately getting to the finish line with POs and the orders. Now flash forward into July.

To your point, a low double digit, mid-teens kind of organic up through, at the time we did earnings, to the first 4 weeks of July.

I think you know it's not our norm to necessarily be talking about intra-quarter orders or anything of that nature, but I think the reason we wanted to provide that color was twofold. One, we kind of peel that onion back a layer. The short to medium cycle continuing to show, I'd say, comparable momentum to what you saw in Q2. I think that has continued as you would expect. The piece that kind of really drove that outsized July performance was the longer cycle side of the equation, and particularly through the ITS lens. The way I'd probably characterize it here is, as we've said, the funnels remained healthy. It just was kind of getting to that final, getting POs in place and things of that nature. In July, you saw it was actually a number of kind of longer cycle projects.

Pretty good cross-section across regions and end markets. I wouldn't point to one region or one application or end market in particular. To your point, obviously, encouraged by what we've seen in July. We're not trying to strongly represent that that's the norm per se or anything of that nature. But, I think it does speak to the fact now that I think you're starting to see better momentum on the long cycle converting now into POs, combined with that short to medium cycle momentum we've now been talking about for a couple quarters. So Q2 now into July timeframe. I think we're really encouraged now by seeing that organic volume piece of the equation starting to take a little bit better foothold. In Q2, on the revenue front on ITS, you saw 4% organic revenue growth. Good contribution from both price and volume.

Now also into kind of the back half, you're starting to see the volume trends starting to improve, which definitely is the first time we're seeing volume being a little bit more explicit in the course of the last 18 plus months, which we're really encouraged by.

No, I wouldn't read. Okay.

We're not going to necessarily try to comment any further on the Q3. I appreciate the effort. No, I think we're encouraged by what we're seeing. Like we said, July, the first four weeks, you saw good momentum on the long cycle, but the funnels themselves have continued to remain healthy. I think we've been talking about that elongation for a while and delays but not cancellations. I think July was definitely a proof point of that, but I think the funnels themselves continue to remain encouraging. As such, I think we would continue to expect to see long cycle project momentum and things of that nature on a go-forward basis. I think to your point here, I think we're very encouraged by now starting to see, I'd say, requisite contributions from both the short to medium and now the longer cycle piece as well.

Yeah. Listen, I wouldn't say that there's been some dramatic catalyst that all of a sudden things change. I think some of this is just timing, to be very honest with you.

Okay. A little bit more certainty in kind of where the markets are and things of that nature.