Core Insights - Ingersoll Rand reported record GAAP revenue of $1,887.9 million for Q2 2025, exceeding analyst expectations by $40.6 million, while adjusted EPS (Non-GAAP) was $0.80, matching estimates [1][2] - Despite revenue growth, the company faced margin pressures, a significant drop in free cash flow, and a net loss due to non-cash impairments [1][6] Financial Performance - GAAP revenue increased by 4.6% year-over-year from $1,805.3 million in Q2 2024 to $1,887.9 million in Q2 2025 [2] - Adjusted EBITDA was $509.4 million, up 3.0% from $494.6 million in Q2 2024 [2] - Free cash flow decreased by 25.7% year-over-year, from $283.1 million in Q2 2024 to $210.4 million in Q2 2025 [2] - Adjusted EBITDA margin fell to 27.0%, down 0.4 percentage points from the previous year [2] Business Overview - Ingersoll Rand offers a wide range of flow creation products, including compressors, pumps, and vacuum equipment, across various sectors such as life sciences and clean energy [3] - The company operates under more than 80 brands, focusing on both new equipment and recurring aftermarket services [3] Strategic Focus - The company is concentrating on expanding its product portfolio, enhancing aftermarket services for recurring revenue, and pursuing strategic acquisitions [4] - Aftermarket revenues accounted for 36.4% of total revenue in 2024, providing stability [4][9] Quarterly Highlights - Order volume reached a new high of $1,940 million, up 8% year-over-year, driven by acquisitions and pricing actions [5] - Organic revenue declined by 3.4%, indicating weaker demand in legacy businesses [5] Profitability Metrics - The Industrial Technologies & Services unit reported GAAP revenue of $1,492 million, up 2% overall but down 3.8% organically [7] - The Precision & Science Technologies segment saw a 17% revenue increase, but underlying organic revenue fell by 1.6% [7] Pricing Actions and Cost Management - Pricing actions were implemented in response to new tariffs, matching cost increases without improving margins [8][9] - Cost-saving efforts are expected to take longer to materialize [9] Notable Events - The quarter included significant non-cash impairments, including $229.7 million in goodwill and $36.1 million in other intangible assets [10] Capital Allocation and Future Outlook - Ingersoll Rand allocated $47 million towards acquisitions and completed two deals, while also engaging in share buybacks totaling $500 million [11] - Management raised its revenue and adjusted earnings outlook for FY2025, projecting a revenue increase of 4% to 6% [12] - The organic revenue guidance remains cautious, reflecting potential demand growth challenges [12] Investor Considerations - Key areas for investor focus include managing margin pressure, free cash flow performance, and the impact of future non-cash impairments [13]

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 ...