Ingersoll Rand Inc.

like to ask a question, please press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, please press star one. Thank you. I will now turn the conference over to Matthew Fort, Vice President of Investor Relations. Please go ahead.

Thank you and welcome to the Ingersoll Rand 2023 third quarter earnings call. I'm Matthew Fort, Vice President of Investor Relations. And joining me this morning are Vicente Rinal, Chairman and CEO, and Vic Kinney, Chief Financial Officer. We issued our earnings release and presentation yesterday, and we will reference these during the call. Both are available on the investor relations section of our website. In addition, a replay of this conference call will be available later today. Before we start, I want to remind everyone that certain statements on this call are forward-looking in nature and are subject to the risks and uncertainties discussed in our previous SEC filings. which you should read in conjunction with the information provided on this call. Please review the forward-looking statements on slide two for more details. In addition, in today's remarks, we will refer to certain non-GAAP financial measures. You can find a reconciliation of these measures to the most comparable measure calculated and presented in accordance with GAAP in our slide presentation and in our earnings release, both of which are available on the investor relations section of our website. On today's call, we will review company and segment financial highlights and provide an update to our 2023 guidance. For today's Q&A session, we ask that each caller keep to one question and one follow-up to allow time for other participants. At this time, I will turn the call over to Vicente.

Thanks, Matthew, and good morning to all. I would like to start, as we always do, by thanking and acknowledging all of our employees for their hard work in helping us to deliver another record quarter in Q3. Despite the constantly changing macroeconomic environment, our employees continue to deliver on our commitments and consistently exemplify our purpose while thinking and acting like owners. I would also like to welcome our new employees from our recent acquisitions, OxyWise, Fraser Woods, Roots, and K-Lon. Beginning on slide three, fueled by our competitive differentiator, IRX, in the third quarter, we again delivered double-digit growth in revenue, adjusted EBITDA, adjusted EPS, and free cash flow. We remain nimble and focus on controlling what we can control and continue to direct our demand generation activities towards high growth, sustainable end markets to accelerate market share gains. Finally, based on our continued robust performance year to date, we are once again raising our 2023 full year guidance. As we move to slide four, our economic growth engine is the key to delivering compounding annual results. During our last Investor Day in November 2021, we presented this model and highlighted our organic, inorganic, and quality of earnings growth enablers. We remain committed to our strategy and our long-term Investor Day targets as outlined on this page. In fact, we have so far exceeded our growth and margin commitments, including an organic orders and revenue CAGR of 12%, and margin expansion of 170 basis points per year over the last three years. On the next slide, I will provide you with deeper insights into how we are accelerating organic growth in previously acquired businesses. So turning to the page, to slide five, here we have some examples of how we have driven outside organic growth and margin expansion from recently acquired M&A. This is a testament to how we compound growth on recently acquired businesses and have examples from both our IPS and PST segments. On the left-hand side of the page, we're highlighting our Leroy acquisition from June of 2017. We acquired this business for a purchase multiple of 11 times. By pivoting our end market focus to high-growth, sustainable end markets, offering a complete ecosystem solution, and leveraging our commercial footprint, we have achieved over 540% growth since the time of acquisition. In addition, our post-tax ROIC is 155% resulting in a 0.5 times post-synergy adjusted EBITDA purchase multiple. Just an impressive result on how and what we can do with technologies once we incorporate them into our IRX process. On the right-hand side of the page is our Air Dimension business, which was acquired in November of 2021, also at an 11-time purchase multiple. Air Dimensions serves high growth sustainable end markets like environmental services. And the team has delivered 27% revenue growth over the last two years by leveraging IRX, rapidly integrating our demand generation process, and launching new innovative technologies. And given the outside growth this business has delivered over the past two years, we're very well on track to exceed our three-year post-tax ROIC target demonstrated by already delivering a post synergy adjusted EBITDA purchase multiple of eight times. Next, on slide six, M&A continues to be at the forefront of our capital allocation strategy to compound value, similar to the examples we displayed on the previous slide. We're pleased to highlight two recent closed transactions. With these two acquisitions, we have closed on approximately $190 million of annualized inorganic revenue, which puts us very close to the bottom end of the 200 million to 300 million of annualized inorganic revenue targets we set forth at the beginning of the year. And we have no doubt in our ability to deliver our target this year. Let me walk you through these two recent acquisitions. First, OxyWise, which is based in Slovakia, is a leading provider of on-site oxygen and nitrogen generation systems. This acquisition expands our technology ecosystem with a complementary product to the compressor and increases Ingersoll Rand's broader air treatment capabilities in point-of-use oxygen generation. Next is Fraser Woods, which is a leading provider of aftermarket services for blowers and pumps in the vacuum truck market. This acquisition expands Ingersoll Rand's technical expertise and service capabilities in Western Canada. Our M&A funnel remains very strong, and as of today, it continues to be over five times larger than it was at the time of the R&T. The characteristics of the target in our funnel continue to be Bolton in nature, with the exception of a couple that are approximately a billion-dollar purchase price. On slide seven, as highlighted in the middle of the page, we continue to be recognized for our corporate responsibility, and we're proud that 3BL Media recently named us as one of the top 100 best corporate citizens in 2023. We're recently ranked on the top 3% among the Russell 1000. Being a corporate citizen is part of our high-performance employee ownership culture. Our company purpose of making life better is deeply ingrained into everything we do, including partnerships with community-focused organizations such as the American Heart Association, Feed NC, Drop in the Bucket, and La Escuelita Bilingual Preschool. In addition to striving to be a responsible corporate citizen, we're thrilled to be named best companies to work for in the industrial and business service sector, receiving high marks in employee sense of belonging. We believe our employee ownership model drives increased employee engagement, and as long-term shareholders, it creates economic opportunity for our employees and their families. I will turn now the presentation over to Vic to provide an update on our Q3 financial performance.