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.

Story Continues

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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AZZ Inc. (AZZ):Free Stock Analysis Report

Ingersoll Rand Inc. (IR):Free Stock Analysis Report

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