Ingersoll Rand Reports $1.72 Billion Revenue in Q1 2025, Net Income Declines

Ingersoll Rand Inc. reported a revenue of $1.72 billion for the first quarter of 2025, marking a 2.8% increase from $1.67 billion in the same period of 2024. The company's gross profit rose to $765.5 million, up from $746.3 million year-over-year, while net income attributable to Ingersoll Rand decreased to $186.5 million from $202.2 million. The decline in net income was attributed to higher interest expenses, which increased significantly to $61.2 million from $36.8 million, and a rise in selling and administrative expenses, which reached $350 million compared to $336.3 million in the prior year.

The company experienced notable changes in its operational metrics, with a decrease in organic sales volume of $88.9 million, which was partially offset by acquisitions contributing $139.5 million to revenue. The impact of foreign currency fluctuations negatively affected revenues by $27.7 million. The percentage of revenue derived from aftermarket parts and services increased to 38.1% in Q1 2025, compared to 37.0% in Q1 2024, indicating a shift in customer demand towards service-oriented offerings.

Ingersoll Rand has been active in expanding its portfolio through acquisitions, completing several transactions in early 2025, including the purchase of SSI Aeration, Inc. for $96.3 million and Excelsior Blower Systems, Inc. for $17.4 million. These acquisitions are expected to enhance the company's capabilities in wastewater treatment and blower systems, respectively. The company also reported a total of $9.5 million in revenue from these acquisitions during the first quarter, although they contributed an operating loss of $0.7 million due to acquisition-related accounting adjustments.

The company’s operational indicators showed a slight increase in cash and cash equivalents, which rose to $1.61 billion from $1.54 billion at the end of 2024. Ingersoll Rand's total assets increased to $18.38 billion, up from $18.01 billion, while total liabilities also rose to $7.83 billion from $7.76 billion. The company’s employee headcount remained stable, and it continues to focus on optimizing its cost structure through ongoing restructuring initiatives, which resulted in $5.3 million in restructuring charges during the quarter.

Looking ahead, Ingersoll Rand anticipates continued challenges due to global economic uncertainties, including inflation and geopolitical tensions. The company remains committed to leveraging its acquisitions and expanding its market presence while managing costs effectively. The outlook for the remainder of 2025 suggests a cautious approach, with expectations of fluctuating demand across its segments and ongoing adjustments to its operational strategies to maintain competitiveness in a dynamic market environment.