Financial Data and Key Metrics Changes - In Q3 2025, adjusted EPS increased by 50% compared to Q3 2024, and adjusted EBITDA rose by more than 46% [4][18] - Net income for Q3 2025 was $71 million, with adjusted net income of $73 million or $0.42 per share [18] - The quarterly dividend per share increased by 20% year-over-year, with a robust dividend coverage of 3.7 times [5][22] Business Segment Data and Key Metrics Changes - Contract operations revenue reached $326 million in Q3 2025, up 2% from Q2 2025, driven by growth in horsepower and pricing [19] - Aftermarket services segment reported revenue of $56 million in Q3 2025, up 20% from $47 million in the same period last year [20] - Adjusted gross margin percentage for contract operations was 70.4%, slightly up from the previous quarter, while aftermarket services maintained a gross margin of 23% [13][20] Market Data and Key Metrics Changes - The U.S. natural gas infrastructure build-out continues to support strong performance, with expectations for growth in natural gas production in the low single digits [4][7] - LNG exports are projected to grow by more than 17 BCF per day by 2030, with significant projects already under construction [8] - The compression industry is entering a durable upturn driven by natural gas demand growth and capital discipline across the energy sector [7][8] Company Strategy and Development Direction - The company aims to drive growth through customer experience, innovative technology, and returns-based capital allocation [6] - A growth CapEx of not less than $250 million is expected for 2026 to support infrastructure build-out in response to growing natural gas demand [15][16] - The company plans to maintain a target leverage ratio of between 3 to 3.5 times while continuing to return capital to shareholders through dividends and share repurchases [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to generate positive free cash flow and increase returns to shareholders [16][17] - The current environment is characterized by commodity price volatility, but natural gas production growth is expected to continue [6][7] - Management highlighted the importance of maintaining operational efficiency and customer service to capitalize on market opportunities [6][30] Other Important Information - The company repurchased approximately 1.1 million shares for about $25 million in Q3 2025, with a total of $159 million returned to shareholders year-to-date [16][22] - The company has a substantial contracted backlog and continues to book units for 2026 delivery to meet strong customer demand [11][19] Q&A Session Summary Question: How does the company plan to deploy free cash flow? - Management emphasized that the best use of cash remains investing in business growth, with room to continue growing dividends and share repurchases [25][26] Question: What is the outlook for margins? - Management noted that margins have improved due to pricing gains and cost management, with expectations for continued improvement [29][30] Question: How is demand evolving for LNG and data centers? - Management indicated robust demand for LNG and data centers, with expectations for significant growth in both areas [32][34] Question: What are the lead times for equipment? - Lead times for Caterpillar engines are currently around 60 weeks, with some opportunities to acquire units sooner from the market [39] Question: How are input costs trending? - Overall costs are trending at a normalized level of inflation, with manageable levels for budgeting, although labor costs in the Permian remain under pressure [45][46]

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]

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]