IR

Industrials

Ingersoll Rand

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Market Data

Financials

XBRL · SEC EDGAR

2015–2025(11yr)

Revenue

Net Income

Free CF

Metric	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$2.1B	$1.9B	$2.4B	$2.7B	$2.5B	$4.9B	$5.2B	$5.9B	$6.9B	$7.2B	$7.7B	+5.7%
Gross Profit	$779.1M	$716.7M	$897.9M	$1.0B	$911.7M	$1.6B	$2.0B	$2.3B	$2.9B	$3.2B	$3.3B	+5.2%
Gross Margin	36.6%	37.0%	37.8%	37.6%	37.2%	32.9%	38.6%	39.3%	41.9%	43.8%	43.6%	-0.2pp
Operating Income	-$205.4M	$104.3M	$108.7M	$443.0M	$275.3M	$85.7M	$565.7M	$817.3M	$1.2B	$1.3B	$1.1B	-12.0%
Operating Margin	-9.7%	5.4%	4.6%	16.5%	11.2%	1.7%	11.0%	13.8%	16.9%	18.0%	15.0%	-3.0pp
Net Income	-$351.2M	-$36.6M	$18.4M	$269.4M	$159.1M	-$33.3M	$562.5M	$604.7M	$778.7M	$838.6M	$581.4M	-30.7%
Net Margin	-16.5%	-1.9%	0.8%	10.0%	6.5%	-0.7%	10.9%	10.2%	11.3%	11.6%	7.6%	-4.0pp
Free Cash Flow	$101.1M	$91.2M	$143.7M	$392.3M	$300.1M	$865.6M	—	—	$1.3B	$1.2B	$1.2B	-2.2%
FCF Margin	4.8%	4.7%	6.0%	14.6%	12.2%	17.6%	—	—	18.5%	17.2%	15.9%	-1.3pp
EPS (Diluted)	$-2.35	$-0.25	$0.10	$1.29	$0.76	$-0.09	$1.34	$1.47	$1.90	$2.06	$1.45	-29.6%

Total Debt$4.8B

Cash & Equiv.$1.2B

Net Debt$3.5B

3 min read

1. THE BIG PICTURE

Ingersoll Rand has transformed itself into a high-velocity industrial consolidator that relies on a "process-critical" installed base to generate recurring service revenue. By fostering an "ownership mindset" through broad-based equity grants, Ingersoll Rand aims to maintain operational efficiency while executing a continuous stream of acquisitions to offset sluggish organic growth in fragmented industrial markets.

2. WHERE THE RISKS HIT HARDEST

Ingersoll Rand’s primary competitive advantage—the process-critical nature of its products where the cost of failure is high—is directly threatened by its supply chain concentration. Management admits a reliance on single sources for critical components like castings and motors; a disruption here would immediately undermine the "reliability" brand that justifies its market position (10-K Item 1). Furthermore, Ingersoll Rand’s global scale and footprint across six continents are vulnerable to international volatility, as 58% of revenues are subject to currency fluctuations and trade restrictions in markets like China and Europe (10-K Item 1A).

3. WHAT THE NUMBERS SAY TOGETHER

While Ingersoll Rand leads its peer group in TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth (+5.7%), a closer look at recent results reveals a heavy reliance on inorganic expansion. In the fourth quarter of 2025, total revenue grew 10%, but organic growth was a more modest 3% to 4% (8-K). This gap highlights the "Economic Growth Engine" at work: Ingersoll Rand is buying growth to compensate for a maturing core.

Financial efficiency is a study in contrasts. Ingersoll Rand boasts an exceptional gross margin of 43.9%—ranking 3rd among peers—which reflects the high value of its specialized hardware and services (XBRL). However, it reports the lowest net margin in its peer group at 7.2%, trailing leaders like ITW (21.6%) and Dover (14.5%). This compression likely stems from the costs of servicing $4.78 billion in debt and the "dilutive impact of tariffs" cited by management (8-K). Short interest stands at 5.3% of the float, suggesting a segment of the market remains skeptical of this high-leverage, acquisition-heavy model.

4. IS IT WORTH IT AT THIS PRICE?

At a Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 22.3x, Ingersoll Rand is trading exactly in line with the peer median (22.3x). This valuation assumes Ingersoll Rand can sustain the "compounding results" management promises. According to CAPM analysis, the current price implies a long-term growth rate of 7.1%.

This expectation sits in tension with management’s own 2026 guidance, which forecasts total revenue growth of only 2.5% to 4.5% and organic growth as low as 0% (8-K). If growth were to slow to a GDP-paced 2.5%, the justified multiple would drop to 11.0x—a 51% downside from current levels (CAPM analysis). The current price is only "right" if Ingersoll Rand can successfully integrate its "deep and active M&AM&AMergers & Acquisitions — the buying, selling, or combining of companies pipeline" to bridge the gap between its 2% organic reality and the 7% growth the market demands.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if organic order growth turns negative in the Industrial Technologies and Services (IT&S) segment, which would signal that the "resilience" of the portfolio is fading.
Constructive if net margins begin to trend toward the double-digit peer average, proving that the Ingersoll Rand Execution Excellence (IRX) framework is successfully absorbing acquisition costs.

6. BOTTOM LINE

Structural Advantage: High switching costs protected by 165 years of engineering heritage and an installed base of "process-critical" equipment where the cost of downtime outweighs the cost of the product.

Bottom Line: Ingersoll Rand is an efficiently run but highly leveraged industrial play that is currently priced for growth levels its organic business cannot yet deliver.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Global Economic and Cyclical Exposure: Ingersoll Rand’s financial performance is tied to the general condition of the global economy and the cyclical nature of the industries it serves. Contractions in these markets can reduce demand for products and services, directly impacting revenues and profitability.
International Operations: With 58% of 2025 revenues generated outside the United States, Ingersoll Rand is exposed to political instability, trade restrictions, and currency fluctuations—specifically between the U.S. dollar, Euro, British Pound, and Chinese Renminbi.
Information Systems and Cybersecurity: Ingersoll Rand relies on complex data-processing and enterprise resource planning systems. Failures due to cyber terrorism, ransomware, or AI misuse could result in financial loss, business disruption, and liability to customers.
Acquisition and Integration: Ingersoll Rand pursues an active acquisition strategy, which carries risks related to valuation, the integration of diverse organizational cultures, and the potential for undisclosed liabilities.
Competitive Pressures: Ingersoll Rand competes against larger firms with greater financial resources. Failure to anticipate customer needs or respond to new product introductions by competitors could lead to a loss of market share and reduced operating results.

2. Company-Specific Risks

Product Liability and Quality: Because Ingersoll Rand’s products are used in hazardous applications, manufacturing or design defects could lead to recalls, safety alerts, and significant product liability claims that insurance may not fully cover.
Supply Chain Concentration: Ingersoll Rand relies on single sources of supply for critical components like iron castings and motors, making Ingersoll Rand vulnerable to supply disruptions that could prevent it from meeting customer commitments.
Fixed-Price Contract Exposure: A portion of Ingersoll Rand’s revenue comes from fixed-price contracts for custom engineered products, where cost overruns or delays can erode or eliminate expected profit margins.
Pension Obligations: Ingersoll Rand maintains pension and postretirement benefit plans that were underfunded by $132.5 million as of December 31, 2025, creating a risk that future funding requirements could reduce cash available for operations.

3. Regulatory/Legal Risks

Tax Legislation: The One Big Beautiful Bill Act (OBBBA) and the potential global adoption of the OECD’s Pillar 2 minimum corporate tax (15%) create uncertainty regarding Ingersoll Rand’s future effective tax rate and cash tax obligations.
Environmental Compliance: Ingersoll Rand is a potentially responsible party at several sites designated for cleanup under U.S. federal "Superfund" laws, which may impose joint and several liability for environmental remediation.
ESG and DEI Regulations: Ingersoll Rand faces conflicting pressures from stakeholders regarding ESG initiatives, while simultaneously navigating new U.S. executive orders and state-level "anti-ESG" legislation that may impact its DEI programs and compliance costs.
International Trade and Tariffs: Ingersoll Rand is subject to U.S. Section 232 tariffs on steel and aluminum, as well as reciprocal tariffs imposed by foreign governments, which have increased the cost of raw materials and components.

4. Financial Impact Map

Global Economic/Cyclical Demand → Revenues and Profitability → 58% of 2025 revenues are derived from non-U.S. jurisdictions, increasing sensitivity to global market contractions. Indebtedness → Cash Flows → $4,784.7 million in total debt as of December 31, 2025, requires a substantial portion of cash flows to be dedicated to debt service. Goodwill and Intangible Assets → Total Assets → Goodwill and other intangible assets represent $12.7 billion, or 70% of total assets, which are subject to impairment testing. Restructuring Activities → Operating Results → Restructuring charges totaled $51.4 million in 2025 and $31.2 million in 2024. Pension Obligations → Liquidity → $132.5 million unfunded status as of December 31, 2025, may require additional contributions that reduce cash available for working capital.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Feb 2026	—
10-Q	Oct 2025	Sep 2025
14A	Apr 2025	—