Interpump Group SPA (IP) AI Stock Analysis

• Market Cap: €3.44B
• Dividend Yield: 0.72%
• Average Volume (3M): 228.78K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.19
• Revenue Growth: -2.00%
• EPS Growth: 2.11%
• Country: IT
• Employees: 9,069
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.34
• Shares Outstanding: 108,879,295
• 10 Day Avg. Volume: 264,185
• 30 Day Avg. Volume: 228,779
• PEG Ratio: -3.17
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 2.40
• P/FCF Ratio: 21.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €45.72
• Price Target Upside: 41.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.14
• Revenue Forecast (FY): €2.13B

• Rating: 69 Neutral
• Price Target: €35.00 ▲(8.49% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is primarily supported by solid financial health (durable profitability and improving leverage) despite softer earnings versus 2023 and uneven cash conversion. Technicals are mixed with near-term weakness/oversold signals, and valuation looks reasonable but not compelling given the low dividend yield.

Positive Factors

Diversified business model and recurring aftermarket

Interpump's two-division structure (hydraulics and water-jetting) plus OEM and aftermarket spare-parts revenues create a diversified, durable revenue base. Recurring parts/maintenance from an installed fleet supports steady aftermarket cash flow and reduces sole reliance on new equipment cycles.

Improving balance sheet and lower leverage

A falling debt-to-equity ratio and rising equity indicate materially improved solvency and financial flexibility. Lower absolute debt (€707M in 2025 vs €802M in 2024) strengthens the company's capacity to absorb downturns, fund capex or M&A, and prioritize strategic investments over the next several months.

Consistent positive free cash flow

Sustained operating cash generation and annual positive free cash flow provide durable internal funding for maintenance capex, R&D, dividends or debt reduction. This recurring FCF tailwind supports long-term operations and ongoing reinvestment without sole dependence on external financing.

Negative Factors

Choppy revenue and declining reported earnings

Despite a 2025 revenue rebound, net income has trended down for three years, signalling pressure on margins or operating leverage. Persistent erosion in reported earnings undermines sustainable EPS growth and raises questions about the durability of profit drivers over the medium term.

Uneven cash conversion and volatile FCF growth

Wide swings in cash conversion and free-cash-flow growth—driven by working capital and capex variability—make near-term cash outcomes less predictable. This volatility complicates capital allocation, budgeting and reduces the reliability of FCF as a stable source for dividends or M&A.

Exposure to cyclical OEM and industrial end markets

Heavy exposure to OEMs and industrial machinery ties revenues to capital goods cycles and macro sensitivity. Downturns in vehicle production, construction or industrial capex can quickly reduce new equipment orders and strain margins, creating structural revenue volatility across business cycles.

Interpump Group SPA Business Overview & Revenue Model

Company Description

Interpump Group S.p.A. manufactures and markets high pressure plunger pumps in Italy, rest of Europe, North America, the Far East, Oceania, and internationally. It operates in two segments, Hydraulic Sector and Water Jetting Sector. The Hydraulic Sector segment produces and sells power take-offs that transmit drive from an industrial vehicle engine or transmission through hydraulic components; hydraulic cylinders that are components of hydraulic systems of various vehicle types; front-end and underbody cylinders for use in industrial vehicles in the construction sector; double acting cylinders, which are used in a range of applications, such as earthmoving and agricultural machinery, cranes and truck cranes, waste compactors, etc.; hydraulic hoses and fittings that are used in hydraulic equipment and water systems; and pumps, directional controls, valves, other hydraulic components, and ancillary products. The Water Jetting Sector segment provides high pressure pumps and systems that are used in a range of industrial sectors for the conveyance of fluids. This segment's high pressure plunger pumps are the primary components of pressure washers, as well as used for car wash installations, forced lubrication systems for machine tools, and inverse osmosis systems for seawater desalination plants. Its very high-pressure pumps and systems used for cleaning surfaces, ship hulls, and various hoses; removing machining burr; cutting and removing cement, asphalt, and paint coatings from stone, cement, and metal surfaces; and cutting solid materials. This segment also engages in drawing, blanking, and pressing sheet metals; and providing high pressure homogenizers, mixers, agitators, piston pumps, valves, and other machines for use in the food processing, chemicals, cosmetics, and pharmaceutical industries. The company was founded in 1977 and is based in Sant'Ilario d'Enza, Italy.

How the Company Makes Money

Interpump Group makes money primarily by selling engineered components and systems across its two main divisions, typically through a mix of original equipment manufacturer (OEM) supply and aftermarket/service-driven demand. (1) Hydraulic Division revenue is generated from the sale of hydraulic components and systems—such as power take-offs (PTOs), pumps, cylinders, valves, hoses and fittings, and integrated hydraulic solutions—used by manufacturers of commercial vehicles, agricultural and construction equipment, and other industrial machinery. Revenue is earned per unit shipped to OEMs and distributors, with additional contribution from spare parts and replacement demand tied to the installed base. (2) Water-Jetting Division revenue comes from selling high-pressure piston pumps and complete pumping units/systems used in applications including industrial cleaning, water-jetting, and car wash equipment, as well as related accessories and replacement parts. A meaningful portion of ongoing revenue can come from consumables/spare parts and maintenance needs associated with high-pressure pumping equipment. Across both divisions, earnings are supported by product breadth, recurring aftermarket demand from installed equipment, and the group’s multi-subsidiary industrial platform that sells through direct relationships with OEMs and through distribution channels; specific partnership details beyond these channel relationships are null.

Interpump Group SPA Financial Statement Overview

Summary

Solid fundamentals: healthy sector-level margins and improving leverage (debt-to-equity down to ~0.40 in 2024, total debt declining into 2025). Offsetting this, net income and EBIT have stepped down from the 2023 peak, and cash conversion/free-cash-flow growth has been volatile.

Income Statement

Revenue scale is solid (~€2.1B in 2025) with a strong rebound in 2025 revenue growth (+22.6%) after a softer 2024 (-7.2%). Profitability is consistently healthy for the sector (2024 gross margin ~34%, EBITDA margin ~21.7%, net margin ~10.9%), but earnings have been choppy: net income stepped down from 2023 (€274M) to 2024 (€227M) and 2025 (€208M), and EBIT also declined in 2024–2025 vs. 2023—suggesting margin/operating leverage pressure despite the 2025 top-line acceleration.

Balance Sheet

Leverage appears moderate and improving, with debt-to-equity declining from ~0.63 (2021) to ~0.46 (2023) to ~0.40 (2024), alongside growing equity (€1.14B in 2020 to €2.10B in 2025). Returns on equity have been respectable (~11% in 2024; ~15% in 2023), though easing versus peak years. Overall asset base is stable (~€3.4B in 2024–2025), and total debt has trended down into 2025 (€707M vs. €802M in 2024), reducing balance-sheet risk.

Cash Flow

Cash generation is generally positive with operating cash flow in the €200M–€360M range and free cash flow positive each year. That said, cash conversion is uneven: in 2024, operating cash flow covered about half of net income and free cash flow was ~64% of net income, both below stronger conversion seen earlier (e.g., 2021). Free cash flow growth is volatile (notably weak in 2022, strong recovery in 2023–2025), which points to swings in working capital and/or capital spending that can make near-term cash outcomes less predictable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.07B	2.08B	2.24B	2.08B	1.60B
Gross Profit	730.77M	713.65M	779.97M	724.51M	574.69M
EBITDA	453.32M	450.93M	520.21M	471.47M	359.23M
Net Income	208.12M	227.06M	274.27M	266.50M	195.88M
Balance Sheet
Total Assets	3.40B	3.39B	3.24B	3.13B	2.77B
Cash, Cash Equivalents and Short-Term Investments	415.70M	392.64M	334.48M	358.27M	349.01M
Total Debt	706.80M	801.68M	820.98M	899.23M	843.27M
Total Liabilities	1.29B	1.37B	1.44B	1.56B	1.43B
Stockholders Equity	2.10B	2.01B	1.79B	1.55B	1.33B
Cash Flow
Free Cash Flow	233.98M	228.46M	164.23M	71.31M	250.09M
Operating Cash Flow	335.42M	357.65M	332.55M	203.87M	257.23M
Investing Cash Flow	-131.07M	-216.13M	-199.50M	-165.46M	-411.15M
Financing Cash Flow	-171.95M	-64.66M	-175.20M	-52.95M	157.06M

Interpump Group SPA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:IP, the sentiment is Negative. The current price of 32.26 is below the 20-day moving average (MA) of 36.93, below the 50-day MA of 43.13, and below the 200-day MA of 40.76, indicating a bearish trend. The MACD of -3.08 indicates Positive momentum. The RSI at 18.98 is Positive, neither overbought nor oversold. The STOCH value of 5.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:IP.

Interpump Group SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DANR	79 Outperform	€3.61B	11.22	8.18%	0.92%	-1.69%	-7.64%
DAN	79 Outperform	€3.61B	11.22	10.25%	0.62%	-1.69%	-7.64%
IP	69 Neutral	€3.44B	23.93	10.16%	0.72%	-2.00%	2.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SAB	60 Neutral	€160.25M	20.01	3.03%	4.22%	3.13%	-57.84%
BSS	56 Neutral	€139.48M	-11.96	-2.86%	0.57%	-10.59%	-132.80%