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Ingersoll Rand (IR)
NYSE:IR
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Ingersoll Rand
(NYSE:IR)
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Rating:66Neutral
Price Target:
$82.00
▲(5.81% Upside)
Ingersoll Rand's strong financial performance and strategic growth initiatives are offset by technical indicators suggesting bearish momentum and a high P/E ratio indicating overvaluation. The mixed earnings call highlights both opportunities and challenges, contributing to a moderate overall score.
Positive Factors
Strong Balance Sheet
A strong balance sheet with minimal leverage enhances financial stability and provides flexibility for strategic investments and growth.
Innovative Product Launch
Launching innovative products like the META Contact Cool Compressor strengthens market position and meets growing demand for energy efficiency.
Successful M&A Strategy
A successful M&A strategy enhances capabilities and market reach, supporting long-term growth and competitive advantage.
Negative Factors
Impact of Tariffs on Margins
Tariff impacts reduce margins, posing challenges to profitability and necessitating strategic adjustments to pricing and cost management.
Delayed Price Realization
Delayed price realization affects immediate revenue growth and profitability, requiring careful backlog and pricing strategy management.
Flat Free Cash Flow
Flat free cash flow limits the company's ability to reinvest in growth opportunities and manage financial obligations effectively.
Ingersoll Rand (IR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.98B
Dividend Yield0.1%
Average Volume (3M)3.34M
Price to Earnings (P/E)58.2
Beta (1Y)1.38
Revenue Growth4.20%
EPS Growth-34.47%
CountryUS
Employees21,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.86
Shares Outstanding395,110,380
10 Day Avg. Volume4,104,065
30 Day Avg. Volume3,344,312
Financial Highlights & Ratios
PEG Ratio5.22
Price to Book (P/B)3.58
Price to Sales (P/S)5.04
P/FCF Ratio29.25
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue4.92
Enterprise Value/Gross Profit11.26
Enterprise Value/Ebitda22.06
Forecast
1Y Price Target
$90.71Price Target Upside17.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)3.3
Revenue Forecast (FY)$7.59B
Ingersoll Rand Business Overview & Revenue Model
Company DescriptionIngersoll Rand (IR) is a global leader in industrial manufacturing, specializing in air compression and related technologies. The company operates primarily in the sectors of industrial products, climate control, and specialty vehicle technologies. Core products include air compressors, power tools, and material handling equipment, along with a range of services aimed at enhancing operational efficiency and sustainability.
How the Company Makes MoneyIngersoll Rand generates revenue through multiple key streams, including the sale of industrial equipment such as air compressors and power tools, which account for a significant portion of its income. The company also earns money through service agreements, maintenance contracts, and aftermarket parts, which provide recurring revenue. Additionally, strategic partnerships with other industrial players and suppliers enhance their market reach and service capabilities. The company's focus on innovation and sustainability, including energy-efficient products, positions it favorably in a market increasingly driven by environmental considerations, further contributing to its earnings.
Ingersoll Rand Key Performance Indicators (KPIs)
Any
Orders by Segment
Tracks incoming orders for each business unit, providing insight into demand trends and future revenue potential across different areas of the company.
Tracks incoming orders for each business unit, providing insight into demand trends and future revenue potential across different areas of the company.
Data provided by:
Main Street Data
Main Street DataIngersoll Rand Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were strong highlights in terms of order growth, successful M&A, and innovative product launches, these were tempered by significant challenges such as tariff impacts on margins, delayed price realization, and flat free cash flow. The company remains optimistic about its long-term strategy but acknowledges current headwinds.Q3-2025 Updates
Positive Updates
Strong Order Growth and Backlog Increase
Year-to-date, organic orders are up 2% with a book-to-bill ratio of 1.04x. Orders showed continued strength in Q3, up 8% year-over-year, or 2% organically. The backlog is up high teens from the end of 2024.
Successful M&A Strategy
The company has closed 14 transactions year-to-date with 9 additional transactions under LOI, achieving high-return bolt-ons averaging a 9.5x pre-synergy multiple. The acquisition of Dave Barry Plastics enhances capabilities in life science applications.
Innovative Product Launch
Introduced the META Contact Cool Compressor in Europe, offering up to an 11% increase in flow while occupying 40% less space and reducing energy consumption by 14%.
PST Segment Growth
PST orders were up 11% year-over-year with a book-to-bill of 1.01x. Third-quarter revenue increased by 5%, driven by a balance of organic growth, FX, and M&A.
Negative Updates
Impact of Tariffs on Margins
The year-over-year margin decline was primarily driven by tariff-related dilution and targeted investments. The effect of incremental Section 232 tariffs has exceeded $100 million for the year.
Delayed Price Realization
Due to backlog growth, there is a delayed realization of in-year pricing actions. Pricing to offset tariffs is expected to be realized in 2026.
Flat Free Cash Flow
Free cash flow for the third quarter was $326 million, approximately flat year-over-year on a year-to-date basis.
Company Guidance
During the Ingersoll Rand Third Quarter 2025 Earnings Call, the company provided guidance updates for the full year 2025, maintaining its total revenue expectations and organic volume growth projections. The midpoint of adjusted EBITDA guidance was adjusted to $2.075 billion, largely due to the impact of incremental Section 232 tariffs and delayed realization of pricing actions due to backlog growth. The adjusted EPS guidance was revised to $3.28 from $3.40. Despite these challenges, the company remains focused on leveraging its strong balance sheet for strategic capital deployment, including $249 million in M&A and $193 million in share repurchases during the quarter. The company also emphasized its ongoing commitment to achieving long-term adjusted EBITDA margin targets of 30% for ITS and mid-30s for PST by 2027, with price increases and operational improvements expected to mitigate tariff impacts by 2026.Ingersoll Rand Financial Statement Overview
Summary
Ingersoll Rand exhibits strong financial health with impressive revenue growth and profitability. The balance sheet is solid with minimal leverage, and while cash flow growth has slightly declined, the overall financial position remains robust.Income Statement
Ingersoll Rand demonstrates strong revenue growth with a consistent upward trajectory, highlighted by a TTM revenue growth rate of 1.28%. The company maintains healthy gross and net profit margins, although there is a slight decline in EBIT and EBITDA margins in the TTM period compared to the previous year. Overall, the income statement reflects robust profitability and growth potential.85
Very Positive
Balance Sheet
The balance sheet is solid, with a very low debt-to-equity ratio of 0.0001 in the TTM period, indicating minimal leverage and financial risk. The equity ratio remains strong, and the return on equity is satisfactory at 5.33%. The company's financial stability is evident, with a well-managed balance between assets and liabilities.90
Very Positive
Cash Flow
Cash flow analysis shows a slight decline in free cash flow growth in the TTM period, but the company maintains a strong free cash flow to net income ratio of 0.95. Operating cash flow coverage is adequate, though slightly lower than previous periods. Overall, cash flow management is sound, with room for improvement in growth.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.46B | 7.24B | 6.88B | 5.92B | 5.15B | 3.97B |
| Gross Profit | 3.26B | 3.17B | 2.88B | 2.33B | 1.99B | 1.40B |
| EBITDA | 1.66B | 1.83B | 1.65B | 1.28B | 1.02B | 478.20M |
| Net Income | 545.10M | 838.60M | 778.70M | 604.70M | 562.50M | -33.30M |
Balance Sheet | ||||||
| Total Assets | 18.19B | 18.01B | 15.56B | 14.77B | 15.15B | 16.06B |
| Cash, Cash Equivalents and Short-Term Investments | 1.18B | 1.54B | 1.60B | 1.61B | 2.11B | 1.75B |
| Total Debt | 4.85B | 4.98B | 2.77B | 2.79B | 3.48B | 3.95B |
| Total Liabilities | 8.00B | 7.76B | 5.72B | 5.51B | 6.08B | 6.87B |
| Stockholders Equity | 10.12B | 10.18B | 9.78B | 9.20B | 9.00B | 9.12B |
Cash Flow | ||||||
| Free Cash Flow | 1.31B | 1.25B | 1.27B | 765.70M | 551.40M | 865.60M |
| Operating Cash Flow | 1.38B | 1.40B | 1.38B | 860.30M | 615.50M | 914.30M |
| Investing Cash Flow | -792.80M | -3.11B | -1.06B | -332.90M | 914.30M | -37.90M |
| Financing Cash Flow | -801.80M | 1.71B | -337.50M | -954.00M | -1.16B | 328.70M |
Ingersoll Rand Technical Analysis
Negative
77.50
Price Trends
79.56
Negative
81.19
Negative
81.47
Negative
Market Momentum
-0.63
Positive
45.60
Neutral
47.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IR, the sentiment is Negative. The current price of 77.5 is below the 20-day moving average (MA) of 78.00, below the 50-day MA of 79.56, and below the 200-day MA of 81.47, indicating a bearish trend. The MACD of -0.63 indicates Positive momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 47.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IR.
Ingersoll Rand Risk Analysis
Ingersoll Rand disclosed 30 risk factors in its most recent earnings report. Ingersoll Rand reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ingersoll Rand Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $45.59B | 31.24 | 14.63% | 0.61% | 3.67% | 10.44% | |
76 Outperform | $24.64B | 11.05 | 15.88% | 1.16% | -5.24% | 45.69% | |
75 Outperform | $17.45B | 27.06 | 17.97% | 0.93% | 0.83% | -1.32% | |
72 Outperform | $41.88B | 48.48 | 24.22% | 1.42% | 0.99% | ― | |
69 Neutral | $9.14B | 35.60 | 3.89% | 0.99% | -4.99% | 22.16% | |
66 Neutral | $30.98B | 58.16 | 5.35% | 0.10% | 4.20% | -34.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
IR
Ingersoll Rand
77.50
-27.20
-25.98%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.