Ingersoll Rand Inc.

of Investor Relations. You may begin your conference.

Thank you, and welcome to the Ingersoll Rand 2023 Fourth 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 afternoon, 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 our company and segment financial highlights and provide full year 2024 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 begin by acknowledging and thanking our employees for their hard work in helping us deliver another record year in 2023. We finished the year on a high note with strong fourth quarter and full year results despite the constantly changing microeconomic environment. Our 2023 performance reinforces the impact our employee ownership mindset has for Ingersoll Run. I would also like to welcome our new employees from our recent acquisition of Friulere, whom I had the chance to visit last week in Italy. I was very impressed by the entrepreneurial and technological spirit that has made this company grow at an impressive organic CAGR of 15% over the past three years. Starting on slide three, in 2023, we demonstrated again how we continue to outperform against our long-term investor day commitments with double-digit growth in revenue, adjusted EBITDA, adjusted EPS, and free cash flow. As we move to 2024, demand remains solid, and while macroeconomic and geopolitical uncertainties continue to be at the top of everyone's mind, we remain agile and focused on what we can control. IRX is our competitive differentiator, and combined with our ownership model, we remain confident in our ability to execute on our commitments. We recently held our investor day this past November, and I'd like to spend a few minutes providing a couple of important highlights that we presented. On slide four, we highlighted how we delivered compounding results through our economic growth engine. With the use of IRX, we have created an increasingly durable financial profile. underpinned by our employee ownership model. Since 2016, we have transformed the company into a premier growth compounder. We have reduced cyclicality through divesting our club car and HBS businesses and reinvested approximately $2.3 billion into accretive acquisitions focused on high-growth, sustainable end markets. Today, our balance sheet is stronger than ever, and we enter 2024 well-positioned to build upon our progress to date. Moving to the next page, we show how we are uniquely positioned to grow market share within the $55 billion of highly fragmented addressable markets we currently play. The combination of our product portfolio, multi-channel, multi-brand strategy, massive install base, and unmatched commercial and operational footprint provides an exceptional foundation for continued market share growth, both organically and inorganically. On slide six, we demonstrate how we remain committed to delivering financial performance while also doing good for the planet and our community. On the left-hand side of the page, we have some very exciting news to share. S&P Global recently announced that Ingersoll Rand ranked first in the world within our industry, up from number two in the prior year. Also, Ingersoll Rand was named to the A-list for its performance in tackling climate change and commitment to global environment leadership by CDP. CDP annual environmental disclosure and scoring process is globally recognized as the gold standard for corporate transparency. Finally, as shown on the right-hand side of the page, we continue to make progress towards our aggressive 2030 goals, and we're already well on our way to achieve them. On slide seven, we show the catalyst for the progress. which is a highly engaged employee base combined with an ownership mindset. And as shown on the left-hand side of the page, our employee satisfaction is over 600 basis points higher than the industry average. We believe our employee ownership model drives the increased employee engagement. And as illustrated on the center of the page, we have created a massive economic opportunity for our employees and their families that has been life-changing for many, as expressed on the quotes from some of them. All of this leads us to the next slide, where you can see that the combination of all these factors executed through our economic growth engine is evidence that our model provides durable, long-term performance. Our portfolio is positioned to capitalize on global megatrends such as sustainability, digitalization, and quality of life. We expect to leverage our organic growth enablers to deliver, on average, mid-single-digit organic growth through 2027. And as you can see, we outperformed this commitment again in 2023, delivering 10% year-over-year organic revenue growth. In 2023, we also delivered 6% of in-year growth from M&A. The combined organic and inorganic growth of 16% far surpassed our low double-digit growth commitment. And not only did we surpass our growth targets, but we also exceeded our margin expansion initiatives. generating 170 basis points of adjusted EBITDA margin expansion, and again, surpassing our long-term targets for this metric. With IRX as our competitive differentiator and over 400 impact daily management sessions, or IDMs, across our company each week, our high-performance culture encourages a strong focus on execution. In 2023, we deliver adjusted EPS growth of 25%, and a free cash flow margin of 18%. These results prove that we are a premier durable growth compounder. On slide nine, today we're on track or ahead of schedule in delivering the 2025 targets set at our previous investor day. We have set new aggressive targets for 2027 long-term financial, and our results give us confidence in delivering those targets that are on average over the cycle. Turning to slide 10, M&A continues to be at the forefront of our capital allocation strategy. We invested over $450 million across 13 acquisitions in 2023. These acquisitions have been both market-leading products and technologies while accelerating our addressable market with close adjacencies. As of today, we currently have 10 transactions under LOI. Our M&A funnel remains strong. and continues to be over five times larger than it was at the time of the RMT. We expect an additional 400 to 500 basis points of annualized inorganic revenue to be acquired in 2024. The 10 transactions currently under LOI are similar in size and nature to the bolt-on deals we have done over the past few years. However, outside of these 10 LOIs, we still have a couple of deals in the funnel where the purchase price exceeds $1 billion. I will now turn the presentation over to Vic to provide an update on our Q4 and full year 2023 financial performance.