Interpump Group (IPA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues were €521.6 million, down 4.5% year-over-year, with EBITDA at €117.3 million (22.5% margin) and net profit at €57.0 million; organic sales declined 8% and EBITDA fell 12%, but margin protection improved versus last year.

• Hydraulics division experienced a 14% sales drop (12.3% reported), marking the sixth consecutive quarter of decline, while Water-Jetting grew 15.5%, driven by food & beverage and marine applications.

• Free cash flow was €29M–€29.6M, down from €34.2M–€35M, mainly due to timing of customer advance payments, but working capital and CapEx absorption improved.

• Net financial position improved to €383.3 million from €409.0 million at year-end 2024, with €35.1 million in investments and €3.2 million in share buybacks.

• ESG initiatives advanced, focusing on carbon neutrality, supply chain ESG evaluation, and governance enhancements, with operations in 35 countries and detailed tax reporting.

Financial highlights

• EBITDA margin decreased to 22.5% from 23.3% year-over-year, with a 90 bps margin dilution; EBIT fell 12.5% to €87.3 million (16.7% margin).

• Net profit dropped 15.7% to €57.0 million; basic EPS declined to €0.531 from €0.629.

• Free cash flow generation was €29M–€29.6M, down from €34.2M–€35M in the prior year.

• Cash flow from operations dropped 11%, while trade working capital absorption and CapEx both improved by over 50% and 11%, respectively.

• Net financial expenses increased to €9.0 million, mainly due to higher exchange losses.

Outlook and guidance

• 2025 organic sales guidance confirmed at -5% to +1%, with reported sales expected in line with 2024.

• EBITDA margin guidance for 2025 set at 22%-22.5%, matching 2024's reported margin.

• Free cash flow generation expected to consolidate or improve on 2024 levels.

• April turnover remained stable despite trade tensions; first half of 2025 anticipated to be most challenging.