Ingersoll Rand (IR) Wells Fargo Industrials & Materials Conference 2025 summary

Demand environment and order trends

• Organic orders grew 3-3.5% in Q1 across both ITS and PST segments, with balanced growth in all ITS regions, including stabilization in China and strength in Southeast Asia.

• April performance remained stable, with no dramatic changes in demand; uncertainty from tariffs persists but is being managed.

• Short to medium cycle orders and long cycle project funnels both contributed to growth, with some long cycle projects finally closing in Q1.

• Leading indicators like MQLs remain healthy, though customer decision-making timelines are still elongated.

• Volume guidance for the back half of the year was revised downward, reflecting a precautionary approach amid ongoing uncertainty.

Pricing, tariffs, and margin management

• All necessary pricing actions, including list price increases and surcharges, have been implemented to offset tariff impacts.

• Pricing is being recalibrated as tariff dynamics change, aiming for dollar neutrality but with slight margin dilution.

• No further price actions are anticipated for the remainder of the year based on current input costs.

Segment performance and growth drivers

• ITS segment organic volume is up low-to-mid 20% since 2020, driven by the merger's complementary portfolios, expanded technology, and global reach.

• Recurring revenue in ITS has grown from $100M at merger to over $300M, with aftermarket and M&A as key catalysts.

• PST segment has been flat due to a $100M post-COVID decline in the medical business, but core business in Americas and EMEA is growing.

• IR Medical business has stabilized and is expected to be a margin tailwind as volumes recover.