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]

Ingersoll Rand (IR) Q1 2025 Earnings Call May 02, 2025 08:00 AM ET Speaker0 Hello, and welcome to the Ingersoll Rand Q1 twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I would now like to turn the conference over to Matthew Fort, Vice President of Investor Relations. You may begin. Speaker1 Thank you, and welcome to the Ingersoll Rand twenty twenty five First Quarter Earnings Call. ...

Q1 2025 earnings presentation Making Life Better Forward-looking statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to expectations of Ingersoll Rand Inc. (the "Company" or "Ingersoll Rand") regarding the performance of its business, its financial results, its liquidity and capital resources and other non-historical statements. These forward-looking statements generally are identified by ...

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].