Record Orders and Revenue Support Strong Outlook for 2022

Fourth-Quarter 2021 Highlights

(All comparisons against the fourth-quarter of 2020 unless otherwise noted)

• Reported orders of $1,507 million, up 24% (18% organically)
• Reported revenues of $1,419 million, up 16% (11% organically)
• Reported net income attributable to Ingersoll Rand Inc. of $293 million, or earnings of $0.71 per share, up $0.35 per share
  • Adjusted net income from continuing operations, net of tax¹ of $280 million, or $0.68 per share
• Adjusted EBITDA¹ of $342 million, up 15%, with a margin of 24.1%
• Reported operating cash flow from continuing operations of $247 million and free cash flow from continuing operations¹ of $224 million
  • Adjusted free cash flow¹ of $225 million, excluding outflows of transaction-related expenses of $4 million and inflows of cash taxes related to recent divestitures of $3 million
• Liquidity of $3.2 billion as of December 31, 2021, including $2.1 billion of cash on hand and undrawn capacity of $1.1 billion under available credit facilities
• Deployed $165 million to acquisitions in the fourth quarter of 2021, including Air Dimensions, Lawrence Factor and Tuthill Pumps and subsequently acquired Jorc for €27 million in February 2022
• Initiated a $0.02 per share quarterly dividend program

Full-Year 2021 Highlights

(All comparisons against the 2020 Supplemental Financial Information² unless otherwise noted)

• Reported orders of $5,765 million, up 31% (24% organically)
• Reported revenues of $5,152 million, up 19% (12% organically)
• Reported net income attributable to Ingersoll Rand Inc. of $563 million, or earnings of $1.34 per share, up $1.43 per share³
  • Adjusted net income from continuing operations, net of tax of $881 million, or $2.09 per share
• Adjusted EBITDA¹ of $1,192 million, up 28%, with a margin of 23.1%
• Reported operating cash flow from continuing operations of $628 million and free cash flow from continuing operations¹ of $564 million
  • Adjusted free cash flow¹ of $799 million, excluding outflows of transaction-related expenses of $31 million and cash taxes related to recent divestitures of $254 million, and cash inflows from Trane Technologies for Transaction post-closing adjustments of $49 million

2022 Guidance

• Full-year 2022 revenue growth expected to be 11% to 13% and Adjusted EBITDA¹ of $1,375 to $1,415 million, up 15% to 19% over prior year

Ingersoll Rand Inc. (NYSE: IR), a global provider of mission-critical flow creation and industrial solutions, reported record orders and revenue in the fourth quarter of 2021.

“The momentum from our strong fourth quarter commercial and operational performance has positioned us for continued success as we move into 2022. Our company, driven by our purpose to Make Life Better and enabled by our IRX process, successfully navigated through a continued challenging supply chain and inflationary environment,” said Vicente Reynal, Chairman and CEO. “By executing on our five strategic imperatives, we are committed to delivering long-term outperformance, increasing our sustainability efforts and creating value for our shareholders through disciplined capital allocation and investing for growth. Thanks to the continuous dedicated efforts of our employees, we are well on our way to becoming a recognized earnings compounder, supported by our track record of robust cash flow generation and margin expansion.”

Fourth-Quarter 2021 Segment Review

(All comparisons against the fourth quarter of 2020 unless otherwise noted.)

Industrial Technologies and Services (ITS) 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 $1,201 million, up 20% (19% organically)

• Reported Revenues of $1,129 million, up 12% (11% organically)

• Reported Segment Adjusted EBITDA⁴ of $291 million, up 10%

• Reported Segment Adjusted EBITDA Margin⁴ of 25.7%, down 40 basis points against a tough comparison in the fourth quarter of 2020 which saw 400 bps of margin expansion. Remained price / cost positive in the quarter with 20 bps of sequential margin expansion as compared to the third quarter of 2021.

• Core industrial end markets saw continued strong demand with orders up 20% as compared to prior year, including strong positive momentum across all major regions. Orders for total compressor offerings, which represent approximately 65% of the total segment, were up in excess of 20%, while orders in Industrial Vacuum & Blowers were up approximately 20%. Orders in Power Tools and Lifting were also up approximately 20%.

Precision and Science Technologies (PST) Segment: highly specialized gas, fluid management systems, liquid and precision syringe pumps and compressors

• Reported Orders of $306 million, up 39% (14% organically)

• Reported Revenues of $290 million, up 40% (15% organically)

• Reported Segment Adjusted EBITDA⁴ of $78 million, up 22%

• Reported Segment Adjusted EBITDA Margin⁴ of 26.8%, down 400 basis points, driven primarily by the impact of M&A

• Orders increased 39% as compared to prior year orders led by continued strong double-digit growth in medical pumps, which primarily serves lab and life sciences end markets, Dosatron (water treatment, food sanitation and animal health end markets) and Specialty businesses, as well as the impact of M&A

Discontinued Operations

Specialty Vehicle Technologies (SVT) Segment: Club Car® golf, utility and consumer low-speed vehicles

• Beginning in Q2 2021, Ingersoll Rand classified the SVT business as discontinued operations and has reclassified certain prior year amounts to conform to the current year presentation

High Pressure Solutions (HPS) Segment: diverse range of positive displacement pumps, integrated systems, consumables and associated aftermarket parts and services largely for use in the upstream oil and gas market

• Beginning in Q1 2021, Ingersoll Rand classified the HPS business as discontinued operations and has reclassified certain prior year amounts to conform to the current year presentation

Balance Sheet and Cash Flow

Ingersoll Rand remains in a strong financial position with ample liquidity of $3.2 billion. On a reported basis, Ingersoll Rand generated $247 million of cash flow from operating activities from continuing operations and invested $23 million in capital expenditures, resulting in free cash flow from continuing operations⁵ of $224 million. Operating cash flows from continuing operations in the fourth quarter of 2021 include outflows of transaction-related expenses of $4 million and net inflows of cash taxes related to recent divestitures of $3 million. Excluding the above items, adjusted free cash flow⁵ in the quarter was $225 million. Operating cash flows from continuing operations for full-year 2021 include outflows of transaction-related expenses of $31 million and cash taxes related to recent divestitures of $254 million, and cash inflows from Trane Technologies for Transaction post-closing adjustments of $49 million. Excluding the above items, adjusted free cash flow⁵ for full-year 2021 was $799 million, compared to $765 million in the prior year. Net debt to Adjusted EBITDA leverage was 1.1x for the fourth quarter, which was an improvement of 0.9x as compared to the prior year.

2022 Guidance

Ingersoll Rand is establishing full-year 2022 guidance based on expected continued strong demand trends and operational execution in 2022:

Conference Call

Ingersoll Rand will host a live earnings conference call to discuss the fourth-quarter and full year results on Thursday, February 24, 2022 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, 662067, 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; (2) unexpected costs, charges or expenses resulting from the completed and proposed business combinations; (3) uncertainty of the expected financial performance of the Company; (4) failure to realize the anticipated benefits of the 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 or other events outside of our control; and (12) 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 development, 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,” “Supplemental Adjusted EBITDA,” “Adjusted Net Income,” “Supplemental Further Adjusted Net Income,” “Supplemental Further Adjusted Diluted EPS,” “Adjusted Diluted EPS,” “Free Cash Flow,” “Adjusted Free Cash Flow,” “Supplemental Revenue” and “Supplemental Adjusted Revenue.”

Ingersoll Rand believes Supplemental Adjusted EBITDA, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS and Supplemental Revenue are helpful supplemental measures to assist management and investors in evaluating the Company’s operating results as they provide supplemental information about the Company’s financial performance on a combined basis as if the Transaction had occurred on January 1, 2018. Ingersoll Rand believes Organic Revenue Growth, Adjusted EBITDA, Supplemental Adjusted EBITDA, Adjusted Net Income, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS, Adjusted Diluted EPS and Supplemental Revenue 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. Supplemental Adjusted EBITDA represents Adjusted EBITDA as if the Transaction had occurred on January 1, 2018. 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. Supplemental Further Adjusted Net Income represents Adjusted Net Income as if the Transaction had occurred on January 1, 2018. Ingersoll Rand believes that the adjustments applied in presenting Adjusted EBITDA, Supplemental Adjusted EBITDA, Adjusted Net Income and Supplemental Further 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. Supplemental Further Adjusted Diluted EPS is defined as Supplemental Further Adjusted Net Income divided by Adjusted Diluted Average Shares Outstanding as if the Transaction had occurred on January 1, 2018. Supplemental Revenue represents revenue for the Company as if the Transaction had occurred on January 1, 2018.

Ingersoll Rand uses Free Cash Flow and Adjusted 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, and Adjusted Free Cash Flow as cash flows from operating activities less capital expenditures and other adjustments. Ingersoll Rand believes Free Cash Flow and Adjusted Free Cash Flow are 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 and Adjusted Free Cash Flow are not measures 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 Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow and Adjusted 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, Free Cash Flow and Adjusted 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, Supplemental Adjusted EBITDA, Adjusted Net Income, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS, Adjusted Diluted EPS, Free Cash Flow, Adjusted Free Cash Flow and Supplemental Revenue should not be considered as alternatives to 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, Supplemental Adjusted EBITDA, Adjusted Net Income, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS, Adjusted Diluted EPS, Free Cash Flow, Adjusted Free Cash Flow and Supplemental Revenue 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, Supplemental Adjusted EBITDA, Adjusted Net Income, Supplemental Further Adjusted Net Income, Supplemental Further Adjusted Diluted EPS, Adjusted Diluted EPS, Free Cash Flow, Adjusted Free Cash Flow and Supplemental Revenue 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 2022 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.