Ingersoll Rand(IR) - 2025 Q1 - Quarterly Results

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].