Roper Technologies (ROP) investor relations material

Executive summary

• Q1 2026 delivered strong results with revenue up 11% to $2.1 billion, organic growth of 6%, and free cash flow up 11%, driven by growth across all segments and recent acquisitions.

• GAAP net earnings rose 54% to $509 million; adjusted net earnings up 4% to $539 million; adjusted DEPS increased 8% to $5.16.

• AI innovation accelerated across the portfolio, with new AI-enabled products and an AI accelerator team driving faster development.

• Significant capital deployment included $2.2 billion in share repurchases since November, with $1.5 billion in Q1 and a new $3 billion repurchase authorization, bringing remaining capacity to $3.8 billion.

• Operating cash flow increased 12% to $592 million, supporting robust capital allocation activities.

Financial highlights

• Gross profit margin improved to 69.4% from 68.7% year-over-year.

• EBITDA rose 8% to $797 million, with an EBITDA margin of 38.1%; segment operating profit margin was 30.9%.

• Free cash flow up 11% to $562 million for Q1; trailing twelve months free cash flow reached $2.5 billion.

• Net debt to EBITDA ended Q1 at 3.1x, up from 2.9x at year-end, reflecting share repurchase activity.

• EPS of $5.16, up 8% year-over-year, exceeded guidance due to organic growth, lower tax rate, and reduced share count.

Outlook and guidance

• Full-year 2026 adjusted DEPS guidance raised to $21.80–$22.05; Q2 2026 adjusted DEPS expected at $5.25–$5.30.

• Total revenue growth guidance maintained at ~8% and organic growth at 5%-6%.

• Guidance assumes no meaningful improvement in Deltek's GovCon or DAT's freight markets and modest top-line weakness at Neptune.

• Guidance excludes impacts from unannounced acquisitions, divestitures, and future share repurchases.

• Management anticipates continued positive cash flow from operations and sufficient liquidity for ongoing requirements.