01—Abstract
Summary
Summary of the 8-K filed May 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Ingersoll Rand Inc. (NYSE: IR) reported first quarter 2025 results on May 1, 2025, furnished under Item 2.02 via Exhibit 99.1.
Reported orders were $1,882 milliona, up 10%, and reported revenues were $1,717 million, up 3%. Reported net income attributable to Ingersoll Rand Inc. was $187 million, or $0.46 per share, while adjusted net income was $293 million, or $0.72 per share. Adjusted EBITDA was $460 million, flat, with a margin of 26.8%, down 70 basis points year over year.
Operating cash flow was $256 millionb and free cash flow was $223 million, up 59% and 124% respectively. Liquidity stood at $4.2 billion as of March 31, 2025. By segment, Industrial Technologies and Services reported orders of $1,487 million, up 6% (up 3% organic), and revenues of $1,352 million, down 2% (down 4% organic).
Precision and Science Technologies reported orders of $395 millionc, up 28% (up 3% organic), and revenues of $365 million, up 23% (down 3% organic). Net debt to Adjusted EBITDA leverage was 1.6x, an increase of 0.9x from the prior year, driven primarily by the ILC Dover acquisition.
The company updated its full-year 2025 guidance, lowering Adjusted EBITDA to $2,070 milliond–$2,130 million from $2,130 million–$2,190 million, and Adjusted EPS to $3.28–$3.40 from $3.38–$3.50. The Board authorized a $1 billion increase to the share repurchase program, incremental to $993 million remaining, and the company is targeting up to $750 million of share repurchases over the remainder of 2025.
02—Key points
Key Highlights
- Reported orders of $1,882 million, up 10%, with organic orders growth of 3.4% at the consolidated level
- Reported revenues of $1,717 million, up 3%; organic revenue declined 3.9% for the company
- Reported EPS of $0.46 versus adjusted EPS of $0.72 for the quarter
- Operating cash flow of $256 million and free cash flow of $223 million, up 59% and 124% respectively, with record first-quarter free cash flow
- Full-year 2025 Adjusted EBITDA guidance lowered to $2,070–$2,130 million from $2,130–$2,190 million; Adjusted EPS guidance lowered to $3.28–$3.40 from $3.38–$3.50
- Board authorized a $1 billion increase to the share repurchase program and targets up to $750 million of repurchases for the rest of 2025
- Deployed $163 million to M&A in the quarter and closed two acquisitions in April 2025 (G & D Chillers and Advanced Gas Technologies)
03—Questions
Frequently Asked Questions
How did Ingersoll Rand perform in the first quarter of 2025?
Reported orders rose 10% to $1,882 million and reported revenues rose 3% to $1,717 million. Reported net income attributable to Ingersoll Rand Inc. was $187 million, or $0.46 per share, and Adjusted EBITDA was flat at $460 million with a 26.8% margin.
Why did the company revise its 2025 guidance?
The filing shows revised full-year 2025 guidance with Adjusted EBITDA of $2,070–$2,130 million (versus $2,130–$2,190 million previously) and Adjusted EPS of $3.28–$3.40 (versus $3.38–$3.50). Organic revenue growth guidance for the company moved to (1)%–1% from 1%–3%, and FX impact moved to approximately (0.5)% from approximately (2)%. The filing does not state the specific reasons beyond these changes.
What is the company's capital allocation plan?
The Board authorized a $1 billion increase to the share repurchase program, incremental to $993 million remaining under the existing authorization. The company is targeting up to $750 million of share repurchases over the remainder of 2025 and continues to focus on bolt-on acquisitions, with $163 million deployed to M&A in the first quarter.
How is the company's balance sheet and liquidity position?
Liquidity was $4.2 billion as of March 31, 2025, including $1.6 billion of cash on hand and $2.6 billion of undrawn credit facility capacity. Net debt to LTM Adjusted EBITDA leverage was 1.6x, up 0.9x from the prior year, driven primarily by the ILC Dover acquisition in the second quarter of 2024.
How did the two segments perform?
Industrial Technologies and Services reported orders of $1,487 million (up 6%, or 3% organic) and revenues of $1,352 million (down 2%, or down 4% organic), with Segment Adjusted EBITDA of $389 million, down 5%. Precision and Science Technologies reported orders of $395 million (up 28%, or 3% organic) and revenues of $365 million (up 23%, or down 3% organic), with Segment Adjusted EBITDA of $106 million, up 16%.
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