Roper Q1 Earnings Top Estimates, Application Software Sales Up Y/Y

Roper Technologies’ ROP first-quarter 2025 adjusted earnings of $4.78 per share surpassed the Zacks Consensus Estimate of $4.73. The bottom line increased 8% on a year-over-year basis.

Roper’s net revenues of $1.883 billion beat the consensus estimate of $1.878 billion. The top line increased 12% year over year. Organic revenues grew 5%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Roper’s Segmental Performance in Q1

The company reports under three segments, namely Application Software, Network Software and Technology Enabled Products.

Application Software’s revenues totaled $1.07 billion, representing 56.7% of the quarter’s top line. Our estimate was $1.04 billion. The segment’s revenues increased 19% on a year-over-year basis. Organic revenues increased 6%. Solid momentum in the company’s Deltek, PowerPlan, Aderant and Vertafore businesses augmented the segment’s performance.

Network Software & Systems generated revenues of $375.9 million, accounting for 20% of the quarterly top line. Our estimate was $377.8 million. Segmental revenues grew 1% year over year. Organic revenues increased 1%. Strong momentum in the ConstructConnect and DAT businesses supported the segment’s performance. Also, strength across alternate site healthcare businesses (SHP & SoftWriters) augmented the results.

The Technology Enabled Products segment generated revenues of $438.7 million, accounting for 23.3% of the quarter’s top line. Our estimate was $458.2 million. Sales were up 6% year over year. Organic revenues grew 6%. The strong performance of the Verathon and Neptune businesses drove the segment’s top-line performance.

ROP’s Margin Profile

Roper’s cost of sales increased 17.9% year over year to $589.1 million. Gross profit increased 9.5% to about $1.3 billion while the gross margin decreased to 68.7% from 70.3% in the year-ago quarter.

Selling, general and administrative expenses increased 9.8% year over year to $767.9 million. Adjusted EBITDA was $740 million, reflecting year-over-year growth of 9%. The margin decreased 90 basis points to 39.3%. Interest expenses (net) increased 18.2% year over year to $62.9 million.

Balance Sheet & Cash Flow of Roper

Exiting the first quarter of 2025, Roper had cash and cash equivalents of $372.8 million compared with $188.2 million at the end of December 2024. Long-term debt (net of current portion) was $6.46 billion compared with $6.58 million at the end of 2024.

Roper generated net cash of $528.7 million from operating activities in the first three months of 2025, reflecting a decrease of 0.5% from the year-ago level. Capital expenditure totaled $9.5 million compared with $9.3 million in the year-ago period.

In the first three months of 2025, ROP rewarded its shareholders with a dividend payment of $88.6 million, up 10.1% year over year.

Roper’s Outlook

The company has increased its 2025 outlook. For 2025, Roper expects adjusted earnings per share from continuing operations to be in the range of $19.80-$20.05 compared with $19.75-$20.00 anticipated earlier. Total revenues are expected to increase 12% compared with the more than 10% rise anticipated earlier. Organic revenues are anticipated to increase 6-7% from the year-ago number.

For the second quarter of 2025, Roper anticipates adjusted earnings to be in the band of $4.80 - $4.84 per share.

ROP’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

AZZ Inc. AZZ came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.

AZZ reported revenues of $351.88 million, missing the consensus estimate by 3.77%. This compares with year-ago revenues of $366.5 million. 

Valmont Industries VMI reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. Earnings per share $4.32 for the same period compare with $4.32 a year ago.

The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an earnings surprise of 1.89%, with the consensus estimate being $4.24 per share.

Pentair plc PNR came out with quarterly earnings of $1.11 per share in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share a year ago.

Pentair posted revenues of $1.01 billion for the quarter, surpassing the consensus estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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