Ingersoll-Rand shares fall as Q1 earnings miss, guidance cut

Published 01/05/2025, 21:58
Ingersoll-Rand shares fall as Q1 earnings miss, guidance cut

DAVIDSON, N.C. - Ingersoll Rand Inc. (NYSE:IR) reported first quarter earnings that fell short of analyst expectations and lowered its full-year outlook, sending shares down 5% in after-hours trading.

The industrial equipment manufacturer posted adjusted earnings per share of $0.72 for the first quarter, missing the consensus estimate of $0.73. Revenue came in at $1.72 billion, slightly below analyst projections of $1.73 billion but up 3% YoY.

Ingersoll-Rand cut its fiscal 2025 earnings guidance to $3.28-$3.40 per share, down from its previous forecast of $3.38-$3.50 and below the $3.41 consensus. The company maintained its total revenue growth outlook of 3-5% for the year, but lowered its organic revenue growth projection to -1% to 1%, compared to 1-3% previously.

"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 CEO Vicente Reynal. "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."

The company reported orders of $1.88 billion in Q1, up 10% YoY. Free cash flow rose 124% to $223 million.

Ingersoll-Rand’s board authorized a $1 billion increase to its share repurchase program. The company is targeting up to $750 million in buybacks through the end of 2025.

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