Core Insights - Ingersoll Rand Inc. has achieved significant milestones in sustainability, innovation, and operational excellence in 2024, as highlighted in its sustainability report titled "Enabling Growth: Leading Sustainably with Purpose" [1][3] Sustainability Leadership - The company has been recognized globally for its sustainability efforts, ranking in the top 1% of the industry in the 2024 S&P Global Corporate Sustainability Assessment for the third consecutive year [7] - Ingersoll Rand was named to the "A List" by CDP for environmental stewardship and supplier engagement leadership for the second consecutive year [7] Environmental Impact and Operational Excellence - The company has made 61% progress towards its Science Based Targets initiative (SBTi) validated Scope 1 and 2 greenhouse gas emissions reduction goal of 42% [7] - Ingersoll Rand surpassed its water reduction goal with a 38% absolute reduction, exceeding the target of -17% [7] - The company achieved 74% progress toward its zero waste to landfill goal, aiming for more than 50% of sites to achieve this status [7] - A total recordable incident rate (TRIR) of 0.54 was achieved, which is 72% better than the industry average [7] People-First Culture and Safety Excellence - Approximately 3,900 employees were granted equity through the Ownership Works program, with over 25,000 employees receiving equity grants since May 2017 [7] - The employee engagement index score was maintained at 81, placing Ingersoll Rand in the top 10% of manufacturing companies [7]

Core Insights - Ingersoll Rand Inc. has completed the acquisition of Termomeccanica Industrial Compressors S.p.A. and its subsidiary Adicomp for approximately €160 million, enhancing its air and gas compressor portfolio [1][9]. Group 1: Acquisition Details - TMIC specializes in designing and manufacturing air and gas compressors, while Adicomp provides engineered-to-order solutions in the renewable natural gas sector [2]. - The acquisition aligns with Ingersoll Rand's strategy to expand its market share and customer base, particularly in the packaging and renewable natural gas industries [3]. Group 2: Integration and Impact - TMIC/Adicomp will be integrated into Ingersoll Rand's Industrial Technologies and Services segment, which includes various products such as air compressors and power tools [4]. - The acquisition is part of a broader growth strategy that includes previous acquisitions, such as Lead Fluid, Air Power Systems, Blutek, and UT Pumps, which have collectively contributed to revenue growth [5][6][7]. Group 3: Financial Performance - Ingersoll Rand has a market capitalization of approximately $34.4 billion and is currently ranked 3 (Hold) by Zacks, with expectations of revenue growth driven by higher orders in industrial vacuums and blowers [8]. - The company's shares have increased by 16% over the past three months, outperforming the industry growth of 15.3% [10].

Core Viewpoint - Ingersoll Rand Inc. has acquired Termomeccanica Industrial Compressors S.p.A. and its subsidiary Adicomp S.p.A. for approximately €160 million, enhancing its capabilities in the air and gas compressor market and renewable natural gas industry [1][2][3] Company Overview - Ingersoll Rand Inc. is a global provider of mission-critical flow creation and life science and industrial solutions, supported by over 80 respected brands [4] - The company aims to deliver exceptional performance and durability in complex conditions, focusing on customer commitment and efficiency [4] Acquisition Details - TMIC is a leader in air and gas compressor design and production, with over 100 years of experience, while Adicomp specializes in engineered-to-order solutions in the renewable natural gas sector [2] - The acquisition will enhance Ingersoll Rand's presence in North America and expand its reach into Brazil and India [2] - The businesses will be integrated into the Industrial Technologies and Services segment of Ingersoll Rand [2] Strategic Implications - The acquisition strengthens Ingersoll Rand's core capabilities and broadens its service offerings, aligning with its long-term growth strategy [3] - The purchase was made at an attractive low-double-digit multiple, with expected post-synergy multiples in the mid- to high single digits [7]

Ingersoll Rand (IR) 2025 Conference Summary Company Overview - **Company**: Ingersoll Rand (IR) - **Date**: June 10, 2025 - **Speakers**: Vic Kinney (CFO), Matthew Fort (IR and FP&A) Key Industry Insights Demand Trends - **Q1 Organic Orders**: Increased by 3% to 3.5% across both segments (ITS and PST) [2][3] - **Regional Performance**: Positive organic orders momentum observed in all three regions for ITS, with stabilization noted in China [4] - **April Performance**: Demand environment remained stable with no dramatic changes noted [5][6] - **Leading Indicators**: Marketing Qualified Leads (MQLs) continued to trend positively, indicating healthy demand [10] Market Dynamics - **Tariff Impact**: Ongoing uncertainty due to tariffs has created a wait-and-see environment, but demand disruption was less than expected [6][8] - **Short to Medium Cycle Orders**: Contributed significantly to organic orders growth, with long cycle projects also showing positive trends [11][12] Financial Performance Revenue Guidance - **Volume Growth Expectations**: Initial expectations of low single-digit growth revised to a potential decline of about 2% [18] - **Pricing Actions**: All necessary pricing actions have been implemented to offset tariff impacts, with a focus on maintaining dollar neutrality [22][25] Segment Performance - **ITS Segment Growth**: Organic volume up approximately 20-25% since 2020, driven by a combination of product technology and acquisitions [27][29] - **PST Segment Challenges**: Flat performance attributed to the decline in the legacy Ingersoll Rand Medical business post-COVID, which saw a drop from $400 million to around $300 million [37][38] Strategic Initiatives Recurring Revenue Growth - **Target**: Aiming for $1 billion in recurring revenue, with current figures exceeding $300 million [44][46] - **Adoption Year**: 2024 is viewed as a pivotal year for expanding recurring revenue across various product lines [48] M&A Strategy - **Acquisition Focus**: Emphasis on smaller bolt-on acquisitions rather than large transformative deals, with a healthy pipeline of opportunities [66][68] - **Life Sciences Positioning**: The ILC Dover acquisition has strengthened Ingersoll Rand's position in the life sciences sector, with a combined platform valued at $600-700 million [71][72] Margin Expansion Opportunities PST Segment Margins - **Current EBITDA Margins**: Approximately 30%, with a target to reach mid-30s over the medium term [73][78] - **Growth Drivers**: Self-help initiatives, organic growth in the IR Medical business, and integration of ILC Dover assets are expected to contribute to margin improvement [81][82] Conclusion Ingersoll Rand is navigating a complex demand environment with stable order growth and strategic initiatives aimed at enhancing recurring revenue and margin expansion. The company remains focused on leveraging its technological capabilities and M&A strategy to drive future growth.

Core Insights - Ingersoll Rand Inc. has completed the acquisition of Lead Fluid, a company specializing in advanced fluid-handling products for life science applications [1][8] - The acquisition aligns with Ingersoll Rand's strategy to expand its market share and enhance its life sciences business in China [3][8] Acquisition Details - Lead Fluid is headquartered in China and manufactures products such as peristaltic pumps, gear pumps, and syringe pumps, which are crucial for precise fluid delivery [2] - The financial terms of the acquisition have not been disclosed [1] Strategic Rationale - The acquisition is part of Ingersoll Rand's broader growth strategy, which includes acquiring businesses to increase market presence and customer base [3] - Lead Fluid's expertise will be integrated into Ingersoll Rand's Life Sciences platform under the Precision and Science Technologies segment [3][8] Other Acquisitions - Ingersoll Rand has a history of acquisitions, including Air Power Systems, Blutek, and UT Pumps, which have contributed to its growth strategy [4][5] - The recent acquisitions have enhanced the company's capabilities in energy-efficient solutions, high-specification projects, and new pump technology [4][5] Financial Performance - In the first quarter of 2025, acquisitions contributed 8.4% to Ingersoll Rand's total revenues [5] - The company has a market capitalization of approximately $33 billion and currently holds a Zacks Rank of 3 (Hold) [6] Stock Performance - Ingersoll Rand's shares have increased by 7.9% over the past month, outperforming the industry growth of 7.2% [9] - The Zacks Consensus Estimate for the company's earnings in 2025 is $3.32 per share, reflecting a decrease of 2.9% from previous estimates [9]

Core Viewpoint - Ingersoll Rand Inc. has acquired Lead Fluid, a China-based manufacturer of advanced fluid-handling products, to enhance its life science capabilities and support its in-region, for-region growth strategy [1][3]. Group 1: Acquisition Details - Lead Fluid specializes in designing and manufacturing fluid-handling products such as peristaltic pumps, syringe pumps, and gear pumps, with an annual revenue of approximately $8 million [2]. - The acquisition aligns with Ingersoll Rand's strategy of executing bolt-on acquisitions to strengthen its market position in high-growth sectors [3][7]. Group 2: Strategic Implications - The acquisition is expected to enhance Ingersoll Rand's life science capabilities in China, contributing to the overall durability of its portfolio by increasing exposure to sustainable end markets [3]. - The pre-synergy adjusted EBITDA purchase multiple for this acquisition is in the low double-digits, indicating a strategic investment in a growing segment [7]. Group 3: Company Overview - Ingersoll Rand is a global provider of mission-critical flow creation and life science solutions, supported by over 80 respected brands, and is committed to delivering exceptional performance and durability [4].

Ingersoll Rand (IR) FY Conference Summary Company Overview - **Company**: Ingersoll Rand (IR) - **Event**: FY Conference held on May 22, 2025 - **Key Speaker**: Vik Kinney, SVP and CFO Key Points Company Transformation and Performance - Ingersoll Rand has undergone significant transformation since the merger five years ago, including two major divestitures and over 65 acquisitions, creating a resilient platform in the ITS and PST business segments [3][4] - The company has demonstrated resilience through various challenges, including COVID-19 and market uncertainties, maintaining operational effectiveness [5][6] Recent Financial Performance - In Q1, Ingersoll Rand reported approximately 3% organic orders momentum across both ITS and PST segments, marking the first positive trend in several quarters [7][8] - The company observed good momentum in both short and long cycle projects, with leading indicators such as MQLs showing low double-digit growth [9][10] - April's performance continued to align with expectations, indicating sustained order growth [11] Market Conditions and Guidance - Despite ongoing market uncertainties, the company remains optimistic about order momentum and backlog for the second quarter and the remainder of the year [10][19] - The guidance for the year was adjusted to reflect a more prudent approach, with a reduction in organic volume expectations by about four points, while still anticipating a positive trajectory in the second half of the year [18][19] Tariffs and Pricing Strategy - The company expects tariff pricing to offset costs, estimating a $150 million impact, which translates to a 2% revenue uptick in revised guidance [14][15] - Foreign exchange (FX) and mergers and acquisitions (M&A) are also contributing to revenue tailwinds, with FX providing a 1.5% boost and M&A contributing an additional 0.5% [17] Supply Chain and Regional Strategy - Ingersoll Rand continues to operate on a region-for-region basis, with 98% of its China business supplying within the region, minimizing reliance on external sourcing [30][32] - The company is exploring opportunities for supply chain optimization, including potential sourcing shifts to regions like Eastern Europe and India [30][32] Long Cycle Projects and Customer Engagement - The company has not seen a dramatic pause in long cycle projects, with approximately 20-25% of its original equipment business being longer cycle in nature [35][36] - Healthy project momentum is expected to continue into Q2 and the latter half of the year, with ongoing engagement with customers in various regions [38][41] Services and Recurring Revenue Model - Ingersoll Rand is transitioning its service model from traditional break-fix to a CARE model, which involves risk transfer agreements with customers, providing a more stable revenue stream [44][47] - The CARE model is expected to enhance customer satisfaction and generate higher gross margins, with aspirations to reach a billion-dollar revenue base by 2027 [53][56] M&A Activity - The company has completed six acquisitions year-to-date, with a focus on smaller bolt-on deals, and has nine additional letters of intent (LOIs) in progress [66][70] - The ILC Dover acquisition is showing positive momentum, particularly in the life sciences sector, with operational improvements and healthy order momentum [71][73] Additional Insights - The company is optimistic about the potential for margin expansion, particularly in the PST segment, which is expected to lead in margin growth moving forward [63] - Ingersoll Rand is committed to investing in its platforms and optimizing its operations to drive future growth and profitability [72][73]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the reporting period [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Ingersoll Rand Inc. for the quarterly period ended March 31, 2025, including statements of operations, comprehensive income, balance sheets, stockholders' equity, and cash flows, along with detailed notes covering accounting policies, acquisitions, debt, segment reporting, and other financial details [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, Ingersoll Rand reported revenues of $1,716.8 million, a slight increase from $1,670.1 million in the prior year period, but Net Income Attributable to Ingersoll Rand Inc. decreased to $186.5 million from $202.2 million, resulting in diluted EPS of $0.46, down from $0.50 year-over-year, primarily due to higher interest and tax expenses Q1 2025 vs Q1 2024 Statement of Operations (in millions, except per share amounts) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $1,716.8 | $1,670.1 | +2.8% | | **Gross Profit** | $765.5 | $746.3 | +2.6% | | **Operating Income** | $302.5 | $293.2 | +3.2% | | **Interest Expense** | $61.2 | $36.8 | +66.3% | | **Net Income Attributable to Ingersoll Rand Inc.** | $186.5 | $202.2 | -7.8% | | **Diluted EPS** | $0.46 | $0.50 | -8.0% | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to **$18.38 billion** from **$18.01 billion** at year-end 2024, driven by increases in cash, inventories, and goodwill, while total liabilities also rose slightly to **$7.83 billion**, and total stockholders' equity grew to **$10.55 billion**, up from **$10.25 billion** at the end of 2024 Balance Sheet Summary (in millions) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $4,351.7 | $4,163.5 | | **Goodwill** | $8,339.1 | $8,148.1 | | **Total Assets** | $18,379.4 | $18,009.8 | | **Total Current Liabilities** | $1,826.8 | $1,818.9 | | **Long-term Debt, net** | $4,770.4 | $4,754.4 | | **Total Liabilities** | $7,825.7 | $7,764.5 | | **Total Stockholders' Equity** | $10,553.7 | $10,245.3 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, net cash provided by operating activities significantly increased to **$256.4 million** from **$161.6 million** in the prior year, driven by favorable changes in working capital, with net cash used in investing activities at **$197.1 million** mainly for acquisitions, and financing activities using **$10.0 million** primarily for treasury stock purchases and dividends, leading to a **$71.6 million** increase in cash and cash equivalents during the quarter Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $256.4 | $161.6 | | **Net cash used in investing activities** | $(197.1) | $(205.6) | | **Net cash used in financing activities** | $(10.0) | $(79.6) | | **Net increase (decrease) in cash** | $71.6 | $(143.2) | [Note 2: Acquisitions](index=11&type=section&id=Note%202.%20Acquisitions) In Q1 2025, the company completed several acquisitions for a total consideration of **$176.4 million**, including SSI Aeration, Excelsior Blower Systems, and Cullum & Brown, all within the Industrial Technologies and Services segment, adding **$113.3 million** to goodwill, while numerous acquisitions from 2024, notably ILC Dover for **$2.35 billion**, significantly expanded the Precision and Science Technologies segment - Completed three acquisitions in Q1 2025 for total cash consideration of **$167.3 million** plus contingent consideration, all within the Industrial Technologies and Services segment[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) 2025 Acquisitions Summary (in millions) | Acquisition | Consideration (Cash) | Segment | | :--- | :--- | :--- | | SSI Aeration, Inc. | $96.3 | Industrial Technologies and Services | | Excelsior Blower Systems, Inc. | $17.4 | Industrial Technologies and Services | | Cullum & Brown of Kansas City, Inc. | $49.8 (initial) | Industrial Technologies and Services | - Acquisitions completed in 2024, including ILC Dover, contributed **$139.5 million** in revenue and **$7.9 million** in operating income during Q1 2025[53](index=53&type=chunk) [Note 10: Debt](index=19&type=section&id=Note%2010.%20Debt) As of March 31, 2025, total long-term debt stood at **$4.77 billion**, with the company having issued **$3.3 billion** in new senior unsecured notes in May 2024 to fund the ILC Dover acquisition and repay previous credit facilities, and also establishing a new **$2.6 billion** revolving credit facility and a **$2.6 billion** commercial paper program, both undrawn, while remaining in compliance with all debt covenants Debt Summary (in millions) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total long-term debt, net | $4,770.4 | $4,754.4 | - In May 2024, the company issued **$3.3 billion** in new senior notes with maturities ranging from 2027 to 2054[75](index=75&type=chunk) - A new **$2.6 billion** Revolving Credit Facility was established in May 2024, with no outstanding borrowings as of March 31, 2025[82](index=82&type=chunk)[85](index=85&type=chunk) [Note 15: Revenue from Contracts with Customers](index=35&type=section&id=Note%2015.%20Revenue%20from%20Contracts%20with%20Customers) Revenue is disaggregated by segment, geography, and product category, with the Americas remaining the largest geographic market in Q1 2025, contributing **$895.8 million**, while original equipment sales were **$1.06 billion** and aftermarket sales were **$653.3 million**, and the company expects to recognize **$766.2 million** in revenue from remaining performance obligations over the next twelve months for contracts with an original duration greater than one year Disaggregated Revenue by Category - Q1 2025 (in millions) | Category | Industrial Tech & Services | Precision & Science Tech | Total | | :--- | :--- | :--- | :--- | | **Total Americas** | $704.2 | $191.6 | $895.8 | | **EMEIA** | $431.0 | $136.4 | $567.4 | | **Total Asia Pacific** | $216.9 | $36.7 | $253.6 | | **Original equipment** | $777.1 | $286.4 | $1,063.5 | | **Aftermarket** | $575.0 | $78.3 | $653.3 | - As of March 31, 2025, the company has remaining performance obligations of **$1.56 billion** for contracts longer than one year, with **$766.2 million** expected to be recognized as revenue in the next twelve months[163](index=163&type=chunk) [Note 19: Segment Reporting](index=39&type=section&id=Note%2019.%20Segment%20Reporting) The Industrial Technologies and Services segment reported a **1.6%** decrease in revenue to **$1.35 billion**, with Segment Adjusted EBITDA falling **5.4%** to **$389.1 million**, while the Precision and Science Technologies segment saw revenue grow **22.9%** to **$364.7 million**, driven by acquisitions, with Segment Adjusted EBITDA increasing **16.2%** to **$106.2 million** Segment Performance - Q1 2025 vs Q1 2024 (in millions) | Segment | Revenue Q1 2025 | Revenue Q1 2024 | Adjusted EBITDA Q1 2025 | Adjusted EBITDA Q1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Industrial Technologies and Services** | $1,352.1 | $1,373.4 | $389.1 | $411.1 | | **Precision and Science Technologies** | $364.7 | $296.7 | $106.2 | $91.4 | | **Total** | $1,716.8 | $1,670.1 | $495.3 | $502.5 | [Note 21: Subsequent Event](index=41&type=section&id=Note%2021.%20Subsequent%20Event) On May 1, 2025, the Board of Directors authorized a **$1.0 billion** increase to the company's share repurchase program, in addition to the **$993.0 million** remaining under the existing authorization, with no expiration date for these authorizations - The Board of Directors authorized an additional **$1.0 billion** for the share repurchase program on May 1, 2025, supplementing the existing **$993.0 million** authorization[191](index=191&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q1 2025, highlighting a **2.8%** revenue increase to **$1.72 billion**, driven by acquisitions (**$139.5M**) and pricing (**$23.8M**), but offset by lower organic volume and unfavorable currency effects, with net income decreasing to **$188.4 million** due to higher interest and tax expenses, Adjusted EBITDA remaining flat at **$459.7 million**, and strong operating cash flow of **$256.4 million** [Results of Operations](index=43&type=section&id=Results%20of%20Operations) In Q1 2025, revenues grew **2.8%** to **$1,716.8 million**, primarily due to acquisitions (**$139.5M**) and pricing (**$23.8M**), partially offset by lower organic volumes (**-$88.9M**) and unfavorable FX (**-$27.7M**), while gross profit increased by **2.6%**, but higher interest expense (up **$24.4M**) and a higher effective tax rate (**23.1%** vs **20.2%**) led to a decrease in net income to **$188.4 million**, and Adjusted EBITDA was nearly flat at **$459.7 million**, with the margin decreasing by **70 basis points** to **26.8%** due to lower organic volumes and the impact of acquisitions Key Financial Results (in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $1,716.8 | $1,670.1 | +2.8% | | **Net Income** | $188.4 | $204.5 | -7.9% | | **Adjusted EBITDA** | $459.7 | $458.5 | +0.3% | | **Adjusted Net Income** | $293.2 | $319.9 | -8.3% | - Revenue growth was driven by acquisitions (**+$139.5M**) and pricing (**+$23.8M**), but was offset by lower organic volumes (**-$88.9M**) and unfavorable foreign currency impact (**-$27.7M**)[211](index=211&type=chunk) - The increase in interest expense by **$24.4 million** was primarily due to higher long-term debt used to fund the ILC Dover acquisition[217](index=217&type=chunk) - The effective tax rate increased to **23.1%** from **20.2%** YoY, mainly due to a lower benefit from a windfall tax deduction in the 2025 period[219](index=219&type=chunk) [Segment Results](index=49&type=section&id=Segment%20Results) In Q1 2025, the Industrial Technologies and Services segment saw revenues decline **1.6%** to **$1.35 billion**, with Adjusted EBITDA margin contracting **110 bps** to **28.8%**, impacted by lower organic volume, while the Precision and Science Technologies segment's revenue surged **22.9%** to **$364.7 million**, fueled by acquisitions, though its Adjusted EBITDA margin decreased **170 bps** to **29.1%** due to the impact of these acquisitions and lower organic volumes Industrial Technologies and Services Segment Results (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Segment Orders** | $1,487.0 | $1,398.4 | +6.3% | | **Segment Revenues** | $1,352.1 | $1,373.4 | -1.6% | | **Segment Adjusted EBITDA** | $389.1 | $411.1 | -5.4% | | **Segment Margin** | 28.8% | 29.9% | -110 bps | Precision and Science Technologies Segment Results (in millions) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Segment Orders** | $395.3 | $309.0 | +27.9% | | **Segment Revenues** | $364.7 | $296.7 | +22.9% | | **Segment Adjusted EBITDA** | $106.2 | $91.4 | +16.2% | | **Segment Margin** | 29.1% | 30.8% | -170 bps | [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had a strong liquidity position with **$1.61 billion** in cash and cash equivalents and **$2.6 billion** of unused availability under its revolving credit facility, with total debt at **$4.77 billion**, and operating cash flow for the quarter was robust at **$256.4 million**, a significant increase from **$161.6 million** in the prior year, while free cash flow also improved substantially to **$222.7 million** from **$99.3 million**, and working capital increased, driven by higher inventories and receivables Liquidity Position as of March 31, 2025 (in millions) | Metric | Amount | | :--- | :--- | | Cash and cash equivalents | $1,612.8 | | Total debt | $4,772.1 | | Unused availability under Revolving Credit Facility | $2,600.0 | Cash Flow Performance - Q1 2025 vs Q1 2024 (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash flows provided by operating activities | $256.4 | $161.6 | | Free cash flow | $222.7 | $99.3 | - Operating working capital increased by **$151.9 million** from year-end 2024, primarily due to higher inventories and accounts receivable[250](index=250&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from changes in interest rates and foreign currency exchange rates, with interest rate risk managed through a portfolio of fixed and variable rate debt and interest rate swaps, and foreign currency risk mitigated by matching revenues and expenses in local currencies and using derivative contracts, with no material changes to the company's market risk assessment since the 2024 Annual Report - The company is exposed to interest rate risk, primarily managed via fixed-to-floating rate swap contracts[263](index=263&type=chunk) - Foreign currency risks are managed through operational matching of local currency revenues and expenses, as well as the use of cross-currency swaps and forward contracts[265](index=265&type=chunk) - There have been no material changes to the market risk assessment previously disclosed in the 2024 Annual Report[266](index=266&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025, confirming that information required for SEC filings is recorded, processed, summarized, and reported in a timely manner, with no material changes in the company's internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[267](index=267&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[268](index=268&type=chunk) [PART II. OTHER INFORMATION](index=45&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, risk factors, equity sales, and other disclosures [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is party to various routine legal proceedings and administrative actions, which it does not believe will have a material adverse effect on its operations or financial condition, with further details available in Note 18 of the financial statements - Information regarding legal proceedings is incorporated by reference from Note 18, "Contingencies"[269](index=269&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - As of March 31, 2025, there have been no material changes to the risk factors included in the 2024 Annual Report[270](index=270&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, the company repurchased **111,139 shares** of its common stock, primarily to satisfy tax withholding obligations related to vested restricted stock units, with approximately **$993 million** remaining available under the share repurchase program as of March 31, 2025, and subsequently, on May 1, 2025, the Board authorized an additional **$1.0 billion** for the program - In Q1 2025, the company repurchased **111,139 shares**, which were surrendered to satisfy tax withholding obligations on vested RSUs[272](index=272&type=chunk) - On May 1, 2025, the Board of Directors authorized an additional **$1.0 billion** for the share repurchase program, on top of the **$993.0 million** remaining under the existing authorization[274](index=274&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) During the quarter ended March 31, 2025, none of the company's directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement during the first quarter of 2025[277](index=277&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the company's Restated Certificate of Incorporation, Bylaws, and certifications from the CEO and CFO as required by the Sarbanes-Oxley Act, along with the Inline XBRL documents - The report includes CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, along with Inline XBRL data files[280](index=280&type=chunk)

Core Viewpoint - Ingersoll Rand Inc. reported mixed financial results for the first quarter of 2025, with adjusted earnings per share slightly missing estimates and total revenues also falling short of expectations, despite a year-over-year revenue increase. Financial Performance - Adjusted earnings for Q1 2025 were 72 cents per share, missing the Zacks Consensus Estimate of 73 cents, and decreased by 7.7% year over year [1] - Total revenues reached $1.72 billion, slightly below the consensus estimate of $1.73 billion, but represented a 2.8% increase year over year [1] - Acquisitions contributed 8.4% to revenues, while organic revenues decreased by 3.9% [1] - Foreign currency movements negatively impacted revenues by 1.7% [1] Orders and Segment Performance - Total orders amounted to $1.88 billion, reflecting a 10.2% year-over-year increase, with organic orders rising by 3.4% [2] - The Industrial Technologies & Services segment generated revenues of $1.35 billion, accounting for 78.8% of net revenues, but saw a 1.6% decrease year over year [2] - The Precision & Science Technologies segment reported revenues of $364.7 million, representing 21.2% of net revenues, with a significant year-over-year increase of 22.9% [4] - Adjusted EBITDA for the Industrial Technologies & Services segment decreased by 5.4% year over year to $389.1 million [3] Margin and Cost Analysis - Cost of sales increased by 3% year over year to $951.3 million, while selling and administrative expenses rose by 4.1% to $350.0 million [6] - Adjusted EBITDA increased by 0.3% year over year to $459.7 million, but the margin decreased to 26.8% from 27.5% in the previous year [6] Balance Sheet and Cash Flow - At the end of Q1 2025, Ingersoll Rand had cash and cash equivalents of $1.61 billion, up from $1.54 billion at the end of December 2024 [7] - Long-term debt increased slightly to $4.77 billion from $4.75 billion in December 2024 [7] - The company generated net cash of $256.4 million from operating activities, a 58.7% increase year over year, and free cash flow rose by 124.3% to $222.7 million [8] 2025 Outlook - Ingersoll Rand expects revenues to increase by 3-5% year over year, with organic revenues estimated to decrease by 1% to increase by 1% [9] - Adjusted EBITDA is projected to be in the range of $2.07-$2.13 billion, indicating a 3-6% increase from the prior year [10] - Adjusted earnings are anticipated to be between $3.28 and $3.40 per share, reflecting flat to 3% growth from the previous year [10]

Financial Data and Key Metrics Changes - The company reported a total orders growth of 10% with a book to bill ratio of 1.1 times in Q1 2025, while organic orders increased by 3.3% [5][10] - Adjusted EBITDA for the quarter was $460 million, with an adjusted EBITDA margin of 26.8%, and adjusted earnings per share was $0.72 [11][12] - Free cash flow reached a record $223 million for Q1, with total liquidity at $4.2 billion and net leverage at 1.6 times [11][13] Business Line Data and Key Metrics Changes - In the IPS segment, Q1 orders increased by 6% year over year, with organic orders growing by 3.5%, although revenue decreased by 2% [15] - The PST segment saw Q1 orders up 28% year over year, with revenue increasing by 23% driven by M&A, while organic revenue decreased by 3% [17][18] Market Data and Key Metrics Changes - The company noted strong momentum in the Asia Pacific region, particularly in China, with organic orders growth across all regions [15][56] - The company anticipates a tariff impact of approximately $150 million, primarily related to imports from China [19][110] Company Strategy and Development Direction - The company maintains a capital allocation strategy focused on M&A, with an additional $1 billion authorized for share repurchases, bringing the total to $2 billion [7] - The company is committed to achieving 400 to 500 basis points of annualized inorganic revenue growth in 2025, with six transactions already closed this year [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious but optimistic view, maintaining total revenue guidance despite strong organic order growth, citing a prudent approach to mitigate risks [20][30] - The company remains focused on leveraging its robust balance sheet to strategically deploy capital and drive shareholder value [24] Other Important Information - The company has implemented pricing actions to offset tariff impacts, with a multi-step approach including list price actions and targeted surcharges [19][50] - Management highlighted the importance of their in-region for region model, which provides a competitive advantage in the current environment [6] Q&A Session Summary Question: Clarification on guidance adjustments - Management confirmed that the adjustments to guidance were precautionary, reflecting a prudent approach to organic volume assumptions [30] Question: Differences in short cycle vs long cycle businesses - Management noted a good balance in order activity across both short and long cycle businesses, with no cancellations observed [32] Question: Outlook for organic growth and revenue seasonality - Management expects organic growth trends to improve in the second half of the year, with a forecast of down approximately 3% to 4% in the first half [40] Question: Impact of tariffs on margins - Management indicated that tariff pricing actions are expected to offset costs, with a neutral impact on margins [44] Question: Demand trends across different product price points - Management reported no significant differences in demand trends across various product price points, emphasizing the importance of ROI for customers [108] Question: Acquisition outlook in the current environment - Management remains optimistic about the M&A pipeline, focusing on bolt-on acquisitions and maintaining a disciplined approach to pricing [60]