[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]

Financial Data and Key Metrics Changes - The company reported a 10% total orders growth with a book to bill ratio of 1.1 times in Q1 [6] - Organic orders increased by 3.3% year over year, with total revenue rising by 3% [12][13] - Adjusted EBITDA for the quarter was $460 million, with an adjusted EBITDA margin of 26.8% [12] - Adjusted earnings per share (EPS) was $0.72, and free cash flow reached a record $223 million [12][14] - Total liquidity stood at $4.2 billion, with a net leverage of 1.6 times [12][14] Business Line Data and Key Metrics Changes - In the Industrial Technologies Segment (ITS), Q1 orders were up 6% year over year, with organic orders growing by 3.5% [16] - Aftermarket revenue accounted for 38% of total revenue, reflecting a 6% growth [11] - In the Precision Technologies Segment (PST), Q1 orders surged by 28% year over year, with revenue increasing by 23% driven by M&A [18] Market Data and Key Metrics Changes - The company noted strong momentum in Asia Pacific, particularly in China, despite overall expectations for a decline in the Chinese market [16][58] - The company is focusing on underpenetrated regions outside of China to offset potential softness in the Chinese market [59] Company Strategy and Development Direction - The company maintains a capital allocation strategy prioritizing M&A, with a focus on smaller bolt-on acquisitions [7][8] - An additional $1 billion in share repurchases has been authorized, bringing the total to $2 billion [8] - The company aims for 400 to 500 basis points of annualized inorganic revenue growth in 2025 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability of orders in April and the overall business environment [6][24] - The company is taking a prudent approach to guidance, maintaining total revenue expectations despite positive order trends [22][33] - Management highlighted the importance of controlling internal factors and remaining agile in a dynamic market [25] Other Important Information - The company is implementing pricing actions to offset approximately $150 million in tariff impacts [20][21] - A tariff war room has been established to manage supply chain mitigation strategies [21] 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 [33] Question: Short cycle vs long cycle business trends - Management noted balanced performance in both short and long cycle businesses, with no cancellations in the order funnel [34] Question: Organic growth outlook and seasonality - Management expects organic growth trends to improve in the second half of the year, with a projected decline of 3% to 4% in the first half [44] Question: Impact of tariffs on margins - Management indicated that tariff pricing actions are expected to offset costs, leading to a relatively flat margin outlook for the year [46] Question: Demand trends across product lines - Management reported no significant differences in demand trends across various product lines, emphasizing the importance of ROI for customers [114] Question: Acquisitions 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 [65]

Core Insights - Ingersoll Rand reported $1.72 billion in revenue for Q1 2025, a year-over-year increase of 2.8%, but fell short of the Zacks Consensus Estimate by 1.00% [1] - The company's EPS for the quarter was $0.72, down from $0.78 a year ago, representing an EPS surprise of -1.37% compared to the consensus estimate of $0.73 [1] Revenue Performance - Precision and Science Technologies revenue was $364.70 million, exceeding the estimated $364.25 million, reflecting a year-over-year increase of 22.9% [4] - Industrial Technologies and Services revenue was reported at $1.35 billion, slightly below the $1.37 billion estimate, showing a year-over-year decline of 1.6% [4] EBITDA Analysis - Adjusted EBITDA for Precision & Science Technologies was $106.20 million, surpassing the average estimate of $103.89 million [4] - Adjusted EBITDA for Industrial Technologies & Services was $389.10 million, which was below the estimated $406.83 million [4] Stock Performance - Ingersoll Rand's shares have returned -7.7% over the past month, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - Ingersoll Rand reported quarterly earnings of $0.72 per share, missing the Zacks Consensus Estimate of $0.73 per share, and down from $0.78 per share a year ago, representing an earnings surprise of -1.37% [1] - The company posted revenues of $1.72 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1%, compared to year-ago revenues of $1.67 billion [2] - Over the last four quarters, Ingersoll has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Ingersoll shares have declined approximately 16.6% since the beginning of the year, while the S&P 500 has decreased by -5.3% [3] - The current Zacks Rank for Ingersoll is 4 (Sell), indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.84 on revenues of $1.87 billion, and for the current fiscal year, it is $3.36 on revenues of $7.47 billion [7] - The estimate revisions trend for Ingersoll is currently unfavorable, which may change following the recent earnings report [6] - The outlook for the Manufacturing - General Industrial industry, where Ingersoll operates, is in the bottom 41% of Zacks industries, which could materially impact stock performance [8]

Financial Performance - Ingersoll Rand reported first quarter 2025 orders of $1,882 million, up 10% year-over-year, with organic orders growth of 3%[4]. - The company achieved revenues of $1,717 million, an increase of 3% compared to the same quarter in 2024[4]. - Revenues for the three-month period ended March 31, 2025, were $1,716.8 million, a 2.0% increase from $1,670.1 million in the same period of 2024[28]. - Total revenue increased to $1,716.8 million, reflecting a growth of 2.8% compared to $1,670.1 million in the prior year[40]. - Net income for the three-month period ended March 31, 2025, was $188.4 million, a decrease of 7.9% from $204.5 million in the same period of 2024[38]. - Net Income attributable to Ingersoll Rand Inc. for Q1 2025 was $186.5 million, down from $202.2 million in Q1 2024, with diluted earnings per share remaining at $0.46[28]. - Adjusted Net Income for Q1 2025 was $291.3 million, compared to $317.6 million in Q1 2024, with adjusted diluted earnings per share at $0.72, down from $0.78[36]. Cash Flow and Liquidity - Free cash flow reached a record $223 million, up 124% year-over-year, with operating cash flow of $256 million, up 59%[4][6]. - Free Cash Flow increased significantly to $222.7 million, compared to $99.3 million in the prior year, leading to a Free Cash Flow Margin of 13.0%, up from 5.9%[34]. - The company reported a net cash provided by operating activities of $256.4 million, compared to $161.6 million in the same period last year[32]. - Ingersoll Rand's liquidity stood at $4.2 billion as of March 31, 2025, including $1.6 billion in cash and $2.6 billion in undrawn credit facilities[4]. Debt and Financial Ratios - Ingersoll Rand's net debt to Adjusted EBITDA leverage was 1.6x for the first quarter, an increase of 0.9x year-over-year due to the acquisition of ILC Dover[6]. - Total liabilities increased to $7,825.7 million from $7,764.5 million, with long-term debt remaining stable at approximately $4,770.4 million[30]. - Interest expense increased to $61.2 million, compared to $36.8 million in the same period of 2024[40]. Acquisitions and Investments - The company deployed $163 million to M&A activities in the first quarter of 2025 and closed two acquisitions in April[8]. - The impact of acquisitions contributed 8.6% to total orders and 8.4% to revenue growth[42]. Guidance and Future Outlook - Adjusted EPS guidance for 2025 was revised to a range of $3.28 to $3.40, reflecting a flat to 3% increase year-over-year[12]. - The company expects total revenue growth of 3-5% for 2025, with organic growth now projected to be between (1)-1%[12]. Segment Performance - Segment adjusted EBITDA for Industrial Technologies and Services was $389.1 million, down from $411.1 million in the prior year[40]. - Corporate expenses not allocated to segments decreased to $35.6 million from $44.0 million year-over-year[40]. EBITDA and Margins - Adjusted EBITDA was $460 million, flat year-over-year, with a margin of 26.8%, down 70 basis points[4]. - Adjusted EBITDA for the same period was $459.7 million, slightly up from $458.5 million year-over-year, resulting in an adjusted EBITDA margin of 26.8%, down from 27.5%[34].

Q1 2025 Performance Highlights - Orders grew by +10%, with organic orders up +3.3% year-over-year, resulting in a book-to-bill ratio of 1.10x[7] - Free cash flow reached a record $223 million in Q1[7] - Adjusted EBITDA was $460 million with a margin of 26.8%[16] - Adjusted EPS was $0.72, down 8% year-over-year[16] - The company has $4.2 billion in liquidity, including $1.6 billion in cash on hand[16, 21] Segment Performance - Industrial Technologies and Services revenue was $1.3521 billion, a decrease of 1.6% year-over-year[22] - Precision and Science Technologies revenue was $364.7 million, an increase of 22.9% year-over-year[28] M&A and Capital Allocation - Targeting up to $750 million of share repurchases by the end of 2025[11] - Authorized a $1 billion increase to the company's share repurchase program[11] - Expected annualized inorganic revenue to be acquired in 2025 is 400–500bps[12] 2025 Full-Year Guidance - Total revenue growth is maintained at 3-5%[36] - Organic revenue growth revised to (1)-1%[36] - M&A contribution is expected to be ~$330 million, or ~4.5%[36] - Adjusted EBITDA is projected to be $2.07 billion - $2.13 billion, representing a +3% to +6% year-over-year increase[36] - Adjusted EPS is expected to be $3.28 - $3.40, approximately flat to +3% year-over-year[36]

Core Viewpoint - Ingersoll Rand Inc. is set to release its first-quarter 2025 results on May 1, with expectations of steady earnings despite a slight decline in adjusted earnings per share compared to the previous year [1][9]. Revenue Estimates - The consensus estimate for revenues is $1.74 billion, reflecting a growth of 4.1% from the same quarter last year [2]. - Total revenues are expected to increase by 4.5% year over year [8]. Segment Performance - The Industrial Technologies & Services segment is projected to see a revenue increase of 1.7% year over year, reaching $1.4 billion, driven by higher orders for industrial vacuums, blowers, and compressors [3]. - The Precision and Science Technologies segment is anticipated to perform well, with revenues expected to rise by 17.2% year over year to $347.7 million, supported by growth in life sciences and multi-year contracts for legacy space suits [4]. Strategic Investments and Acquisitions - Ingersoll Rand has made significant investments to enhance demand generation and the Industrial Internet of Things, which are expected to positively impact performance [5]. - Recent acquisitions, including Air Power Systems Co., Blutek s.r.l., and UT Pumps, have strengthened the company's market position and technology portfolio [6]. - The acquisition of ILC Dover has enhanced capabilities in biopharma and pharma production, while the buyouts of CAPS and Del Pumps have expanded product offerings and expertise in critical pumping solutions [7]. Cost and Margin Considerations - Increasing costs of sales and rising selling and administrative expenses are likely to negatively impact margins and profitability [9]. - Foreign-currency headwinds are also expected to affect the company's top line due to its substantial international presence [9]. Earnings Prediction - The adjusted earnings are expected to be 74 cents per share, indicating a 5% decrease from the previous year [9]. - The Earnings ESP for Ingersoll Rand is 0.00%, suggesting no clear prediction for an earnings beat this time [10][11].

Core Insights - Analysts expect Ingersoll Rand (IR) to report quarterly earnings of $0.74 per share, reflecting a year-over-year decline of 5.1% [1] - Revenue is projected to be $1.74 billion, which indicates a 4.1% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [1] Revenue and EBITDA Projections - Revenue from Precision and Science Technologies is expected to be $364.25 million, representing a 22.8% increase year-over-year [4] - Revenue from Industrial Technologies and Services is anticipated to reach $1.37 billion [4] - Adjusted EBITDA for Precision & Science Technologies is projected at $103.89 million, up from $91.40 million in the previous year [4] - Adjusted EBITDA for Industrial Technologies & Services is estimated at $406.83 million, slightly down from $411.10 million reported in the same quarter last year [5] Stock Performance and Market Outlook - Ingersoll Rand shares have decreased by 6.5% over the past month, contrasting with a 0.8% decline in the Zacks S&P 500 composite [5] - The company holds a Zacks Rank of 4 (Sell), suggesting it is expected to underperform the overall market in the near future [5]