Ingersoll Rand revenues up 3% in first quarter
Ingersoll Rand Inc. reported first quarter orders rose 10% to $1,882 million, while revenues climbed 3% to $1,717 million.
“Our positive organic orders growth, solid book-to-bill, and record first quarter free cash flow are encouraging signs as we start off the year,” said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand. “We recognize the dynamic nature of the current environment, and remain focused on staying agile, controlling what we can control, and delivering long-term shareholder value.”
First Quarter 2025 Segment Review
(All comparisons against the first quarter of 2024 unless otherwise noted.)
Industrial Technologies and Services Segment (IT&S): Broad range of compressor, vacuum, blower, and air treatment solutions as well as industrial technologies including power tools and lifting equipment
- Reported Ordersof $1,487 million, up 6%, or up 3% organic
- Reported Revenuesof $1,352 million, down 2%, or down 4% organic1
- Reported Segment Adjusted EBITDAof $389 million, down 5%
- Reported Segment Adjusted EBITDA Marginof 28.8%, down 110 basis points
- IT&S saw strong first quarter organic orders growth, with a book to bill of 1.10x, finishing largely in line with expectations. Adjusted EBITDA margin was down year over year, driven largely by the flow through on organic volume declines, the expected dilutive impact from recently acquired acquisitions, and continued commercial investments for growth.
Precision and Science Technologies Segment (P&ST): Mission-critical precision liquid, gas, air, and powderhandling technologies for life sciences and industrial applications as well as aerospace and defense applications
- Reported Ordersof $395 million, up 28%, or up 3% organic
- Reported Revenuesof $365 million, up 23%, or down 3% organic1
- Reported Segment Adjusted EBITDAof $106 million, up 16%
- Reported Segment Adjusted EBITDA Marginof 29.1%, down 170 basis points
- With a book to bill of 1.08x, P&ST delivered low single-digit organic orders growth in both the Precision Technologies and Life Science Technologies businesses. Adjusted EBITDA margin finished largely in line with expectations and improved 150 basis points sequentially from the fourth quarter of 2024.
Ingersoll Rand said it remains in a strong financial position with ample liquidity of $4.2 billion. On a reported basis, the company generated $256 million of cash flow from operating activities and invested $34 million in capital expenditures, resulting in free cash flow1 of $223 million, compared to cash flow from operating activities of $162 million and free cash flow1 of $99 million in the prior year period. Net debt to Adjusted EBITDA leverage2 was 1.6x for the first quarter, which was an increase of 0.9x as compared to the prior year driven primarily by the acquisition of ILC Dover, which took place in the second quarter of 2024.
Its board also authorized a $1 billion increase to the company’s share repurchase program. The increase is incremental to the $993 million remaining under the existing authorization. The increased authorization provides the Company with the flexibility for additional opportunistic share repurchases over the short and medium term. The company is targeting up to $750 million of share repurchases over the remainder of 2025.
Consistent with its comprehensive capital allocation strategy led by M&A, in the first quarter of 2025, Ingersoll Rand deployed $163 million to M&A. Ingersoll Rand also closed on two acquisitions during the month of April:
- G & D Chillers, Inc., a leading U.S. manufacturer of premium glycol chillers used to cool liquids primarily in the food and beverage end market
- Advanced Gas Technologies Inc., a custom designer and supplier of onsite gas generation systems serving industrial customers primarily in Canada
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