Ingersoll Rand Inc. IR reported first-quarter 2025 adjusted earnings of 72 cents per share, which missed the Zacks Consensus Estimate of 73 cents. The bottom line decreased 7.7% year over year.
Total revenues of $1.72 billion missed the consensus estimate of $1.73 billion. However, the top line increased 2.8% year over year. Acquisitions contributed 8.4% to revenues while organic revenues decreased 3.9%. Foreign currency movements had a negative impact of 1.7%.
Orders totaled $1.88 billion, up 10.2% year over year. Organically, orders increased 3.4%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
IR’s Segmental Discussion
The Industrial Technologies & Services segment generated revenues of $1.35 billion, accounting for 78.8% of net revenues. Sales decreased 1.6% year over year. Acquisitions contributed 4.3% while movement in foreign currencies had a negative impact of 1.7%. The segment’s organic sales inched down 4.2%. Our estimate for the segment’s sales was $1.40 billion.
Segmental orders were up 6.3%. Adjusted EBITDA decreased 5.4% year over year to $389.1 million. Our estimate for adjusted EBITDA was $395.5 million.
The Precision & Science Technologies segment’s revenues totaled $364.7 million, representing 21.2% of net revenues. Our estimate for segmental revenues was $347.7 million. On a year-over-year basis, the segment’s revenues increased 22.9%. Organic sales declined 2.7% while movement in foreign currencies had a negative impact of 1.4%. Acquisitions contributed 27% to revenue growth.
The segment’s orders increased 27.9% on a year-over-year basis. Adjusted EBITDA increased 16.2% year over year to $106.2 million. Our estimate for adjusted EBITDA was $97.0 million.
Ingersoll Rand Inc. Price, Consensus and EPS Surprise
Ingersoll Rand Inc. price-consensus-eps-surprise-chart | Ingersoll Rand Inc. Quote
IR’s Margin Profile
IR's cost of sales increased 3% year over year to $951.3 million. Selling and administrative expenses were up 4.1% to $350.0 million.
Adjusted EBITDA increased 0.3% year over year to $459.7 million. The margin decreased to 26.8% from 27.5% in the year-ago period.
Balance Sheet & Cash Flow of IR
While exiting the first quarter, Ingersoll Rand had cash and cash equivalents of $1.61 billion compared with $1.54 billion at the end of December 2024. Long-term debt (less of current maturities) was $4.77 billion compared with $4.75 billion in December 2024.
In the first quarter of 2025, the company paid out dividends of $8.1 million and repurchased treasury stocks worth $10 million.
IR generated net cash of $256.4 million from operating activities, up 58.7% year over year. Capital expenditure totaled $33.7 million compared with $62.3 million in the year-ago quarter. Free cash flow increased 124.3% to $222.7 million.
Ingersoll Rand’s 2025 Outlook
Ingersoll Rand expects revenues to increase 3-5% year over year. Organic revenues are estimated to decrease 1%- increase 1% compared with 1-3% increase predicted earlier. For both the Industrial Technologies & Services and Precision & Science Technologies segments, organic revenues are predicted to decrease 1%- increase 1% from the year-ago levels. Adverse foreign currency movements are expected to be approximately 0.5%.
Adjusted EBITDA is expected to be in the $2.07-$2.13 billion band, indicating an increase of 3-6% from the prior-year level. Adjusted earnings are anticipated to be in the range of $3.28 - $3.40 per share compared with $3.38-$3.50 predicted earlier. This indicates flat to 3% growth from the year-earlier actual. The Zacks Consensus Estimate for adjusted earnings is pegged at $3.36 per share.
IR’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
AZZ Inc. AZZ came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.
AZZ reported revenues of $351.88 million, missing the consensus estimate by 3.77%. This compares with year-ago revenues of $366.5 million.
Valmont Industries VMI reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. Earnings per share of $4.32 for the same period compare with $4.32 a year ago.
The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an earnings surprise of 1.89%, with the consensus estimate being $4.24 per share.
Pentair plc PNR came out with quarterly earnings of $1.11 per share in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share a year ago.
Pentair posted revenues of $1.01 billion for the quarter, surpassing the consensus estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.
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Today, See These 5 Potential Home Runs >>Valmont Industries, Inc. (VMI) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
