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Ingersoll Rand Inc. IR reported first-quarter 2025 adjusted earnings of 72 cents per share, which missed the Zacks Consensus Estimate of 73 cents. The bottom line decreased 7.7% year over year.
Total revenues of $1.72 billion missed the consensus estimate of $1.73 billion. However, the top line increased 2.8% year over year. Acquisitions contributed 8.4% to revenues while organic revenues decreased 3.9%. Foreign currency movements had a negative impact of 1.7%.
Orders totaled $1.88 billion, up 10.2% year over year. Organically, orders increased 3.4%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
IR’s Segmental Discussion
The Industrial Technologies & Services segment generated revenues of $1.35 billion, accounting for 78.8% of net revenues. Sales decreased 1.6% year over year. Acquisitions contributed 4.3% while movement in foreign currencies had a negative impact of 1.7%. The segment’s organic sales inched down 4.2%. Our estimate for the segment’s sales was $1.40 billion.
Segmental orders were up 6.3%. Adjusted EBITDA decreased 5.4% year over year to $389.1 million. Our estimate for adjusted EBITDA was $395.5 million.
The Precision & Science Technologies segment’s revenues totaled $364.7 million, representing 21.2% of net revenues. Our estimate for segmental revenues was $347.7 million. On a year-over-year basis, the segment’s revenues increased 22.9%. Organic sales declined 2.7% while movement in foreign currencies had a negative impact of 1.4%. Acquisitions contributed 27% to revenue growth.
The segment’s orders increased 27.9% on a year-over-year basis. Adjusted EBITDA increased 16.2% year over year to $106.2 million. Our estimate for adjusted EBITDA was $97.0 million.
Ingersoll Rand Inc. Price, Consensus and EPS Surprise
Ingersoll Rand Inc. price-consensus-eps-surprise-chart | Ingersoll Rand Inc. Quote
IR’s Margin Profile
IR's cost of sales increased 3% year over year to $951.3 million. Selling and administrative expenses were up 4.1% to $350.0 million.
Adjusted EBITDA increased 0.3% year over year to $459.7 million. The margin decreased to 26.8% from 27.5% in the year-ago period.
Balance Sheet & Cash Flow of IR
While exiting the first quarter, Ingersoll Rand had cash and cash equivalents of $1.61 billion compared with $1.54 billion at the end of December 2024. Long-term debt (less of current maturities) was $4.77 billion compared with $4.75 billion in December 2024.
In the first quarter of 2025, the company paid out dividends of $8.1 million and repurchased treasury stocks worth $10 million.
IR generated net cash of $256.4 million from operating activities, up 58.7% year over year. Capital expenditure totaled $33.7 million compared with $62.3 million in the year-ago quarter. Free cash flow increased 124.3% to $222.7 million.