Ingersoll Rand Inc. (NYSE: IR), a leading provider of mission-critical flow creation and life sciences and industrial solutions, announced robust financial results for the first quarter of 2025, setting new records in orders, revenue, and free cash flow. This performance underscores the effectiveness of its competitive advantage, Ingersoll Rand Execution Excellence (IRX), as the company navigates a dynamic economic environment.
Reported orders surged by 10% year-over-year to $1.882 billion, reflecting strong demand and successful strategic execution.
Revenues increased by 3% to $1.717 billion, showcasing the company’s ability to convert orders into sales efficiently.
Net income attributable to Ingersoll Rand stood at \(187 million, with earnings of \)0.46 per share.
Adjusted net income reached \(293 million or \)0.72 per share, demonstrating solid profitability.
Adjusted EBITDA remained flat at $460 million, with a margin of 26.8%, a slight decrease of 70 basis points from the prior year.
Operating cash flow rose significantly by 59% to \(256 million, while free cash flow more than doubled, up 124% to \)223 million, highlighting enhanced liquidity and financial flexibility.
Industrial Technologies and Services (IT&S): - Orders grew 6% to $1.487 billion (3% organically), with revenues slightly declining 2% (4% organic decline). - Segment adjusted EBITDA decreased 5%, and margin contracted by 110 basis points to 28.8%, impacted by volume softness and investments in growth.
Precision and Science Technologies (P&ST): - Orders soared 28% to \(395 million (3% organic growth), with revenues rising 23% (down 3% organically). - Adjusted EBITDA increased 16% to \)106 million, though margin dipped 170 basis points to 29.1%.
Ingersoll Rand ended the quarter with strong liquidity of \(4.2 billion, including \)1.6 billion in cash and $2.6 billion in undrawn credit facilities. The net debt to adjusted EBITDA leverage ratio increased to 1.6x, mainly due to acquisitions like ILC Dover completed in 2024.
The Board authorized a \(1 billion increase in the share repurchase program, adding to the existing \)993 million authorization, aiming for up to $750 million in repurchases in 2025. This aggressive capital return strategy aligns with management’s confidence in long-term value creation.
The company spent $163 million on mergers and acquisitions in Q1 and closed two key deals in April: G & D Chillers, Inc. and Advanced Gas Technologies Inc., expanding its footprint in premium glycol chillers and on-site gas generation systems.
For full-year 2025, Ingersoll Rand updated its guidance: - Total revenue growth expected at 3-5%, with organic growth between -1% to 1%, slightly lowered from earlier forecasts. - Adjusted EBITDA projected between \(2.070 billion to \)2.130 billion, representing 3-6% year-over-year growth. - Adjusted EPS guidance revised to \(3.28-\)3.40, indicating a flat to modest 3% increase amid economic uncertainties.
This robust quarterly performance comes amid a challenging macroeconomic backdrop characterized by economic uncertainty and fluctuating currency impacts. The company’s strategy to focus on operational excellence, targeted bolt-on acquisitions, and strong capital management has proven effective.
The free cash flow margin for Q1 2025 significantly improved compared to Q1 2024’s 5.95%, more than doubling to an estimated 13% based on reported free cash flow of \(223 million versus \)99 million in the prior year. This improvement signals enhanced operational efficiency and disciplined capital expenditure.
From previous earnings calls, Ingersoll Rand’s management emphasized agility and operational control as vital to navigating volatile markets. The IRX initiative continues to drive productivity and efficiency gains, which are reflected in the continued strong cash flow generation and stable profitability.
Ingersoll Rand’s first quarter 2025 results affirm its strategic focus on excellence and disciplined growth. With record orders, solid revenue gains, and exceptional free cash flow performance, the company is well-positioned to create sustainable shareholder value amid ongoing economic challenges.
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Tags: IngersollRandFirstQuarter2025, OperationalExcellence, FreeCashFlowGrowth, StrategicAcquisitions, IndustrialTechPerformance