Ingersoll Rand 2025 Q1 Earnings Misses Targets Amid Decline in Net Income

Ingersoll Rand (IR) reported its fiscal 2025 Q1 earnings on May 02nd, 2025. The company’s performance fell short of expectations, with both revenue and earnings figures not meeting analysts' forecasts. The guidance adjustment was in line with previous expectations, reflecting a prudent approach in light of current economic conditions. Despite the miss, Ingersoll Rand remains optimistic about its long-term growth strategies, particularly in expanding its market share through mergers and acquisitions.

Revenue
Ingersoll Rand's total revenue increased by 2.8% to $1.72 billion in 2025 Q1, compared to $1.67 billion in 2024 Q1. The Industrial Technologies and Services segment was the largest contributor, generating $1.35 billion. Precision and Science Technologies also added significant value, contributing $364.70 million to the overall revenue.

Earnings/Net Income
Ingersoll Rand experienced an 8.0% decline in EPS, reporting $0.46 in 2025 Q1, down from $0.50 in 2024 Q1. Net income also fell by 7.9% to $188.40 million from $204.50 million in the previous year. The EPS decline indicates challenging market conditions affecting profitability.

Post-Earnings Price Action Review
Historically, Ingersoll Rand's earnings metrics such as revenue, net income, and EPS have often resulted in favorable short-to-medium-term stock performance. The data indicates a 66.67% win rate over both 3-day and 10-day periods following earnings reports, and a 61.90% win rate over a 30-day period. These statistics suggest that the stock tends to appreciate in the immediate aftermath of earnings releases, with a notable maximum return of 12.49% observed over 30 days. This pattern highlights potential opportunities for investors looking to capitalize on post-earnings movements, as the company's historical performance underscores the possibility of significant price gains.

CEO Commentary
Vicente Reynal, Chairman & CEO, highlighted a strong start in Q1 with 10% total order growth and a book-to-bill ratio of 1.1 times. He emphasized the strength of their in-region, for-region model, which is designed to enhance market share. Reynal remains optimistic about long-term value creation through strategic M&A, indicating nine deals under letter of intent and leveraging strong cash flow generation.

Guidance
Ingersoll Rand maintains its revenue guidance for 2025 at $1.7168 billion, with an adjusted EBITDA target of approximately $2.1 billion. The company expects adjusted EPS of $0.72 and CapEx at around 2% of revenue. The guidance includes a cautionary volume reduction of 4%, reflecting macroeconomic uncertainties, while still anticipating 400 to 500 basis points of annualized inorganic revenue growth.

Additional News
Ingersoll Rand has been actively pursuing inorganic growth strategies, as evidenced by recent acquisitions that expand their capabilities in wastewater treatment, a high-growth sustainable market. The company acquired SSI Aeration, Inc., a leader in wastewater treatment equipment, enhancing their product offerings and access to municipal markets. Additionally, Ingersoll Rand closed deals with G & D Chillers, Inc., and Advanced Gas Technologies Inc., adding premium glycol chillers and onsite gas generation systems to their portfolio, respectively. These acquisitions are consistent with their broader strategy of optimizing solutions and driving topline growth through strategic M&A activities.