Interpump Group (IPA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues reached €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, reflecting an 8% organic sales decline and a 12% EBITDA decrease.

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

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

• Recent acquisition Hidrover contributed positively to sales and profitability, with Brazilian sales up 20% and profitability above divisional average.

• Interpump Group's 2023-25 ESG Journey focuses on carbon neutrality, supply chain ESG evaluation, and governance enhancements, including tax compliance and transparency initiatives.

Financial highlights

• EBITDA margin decreased to 22.5% from 23.3% year-over-year, with a 90 bps margin dilution, outperforming the prior year's margin protection.

• Gross profit margin improved to 35.9% from 35.1% year-over-year.

• EBIT was €87.3 million (16.7% of revenues), down from €99.8 million (18.3%) in Q1 2024.

• Net financial position improved to €383.3 million from €452.8 million at Q1 2024 end.

• Basic earnings per share fell to €0.531 from €0.629.

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.

• Euro Area GDP growth is expected to be 1% for 2025, US GDP at 1.7%, and China’s at 4%.