Ingersoll Rand (IR)
NYSE:IR
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Ingersoll Rand
(NYSE:IR)
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Rating:70Outperform
Price Target:
$96.00
â–²(12.44% Upside)
Action:UpgradedDate:02/14/26
The score is driven mainly by solid fundamentals (healthy operating profitability and strong cash generation) and constructive technical momentum (price above key moving averages with positive MACD). This is tempered by a very high P/E and modest management guidance alongside noted near-term headwinds (tariffs, sub-1 book-to-bill, and slower long-cycle conversions).
Positive Factors
Cash generation
Consistent, high operating and free cash flow provides durable funding for share buybacks, bolt-on acquisitions, and aftermarket investments. Strong cash conversion (~0.9x net income) supports capital allocation even if top-line growth softens, underpinning long‑term financial flexibility.
Negative Factors
Rising leverage and weaker ROE
Higher leverage and falling ROE indicate reduced capital efficiency and thinner cushions against shocks. Increased interest and balance-sheet risk can constrain strategic flexibility, raise funding costs for M&A or buybacks, and pressure returns to shareholders over the medium term if earnings do not recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent, high operating and free cash flow provides durable funding for share buybacks, bolt-on acquisitions, and aftermarket investments. Strong cash conversion (~0.9x net income) supports capital allocation even if top-line growth softens, underpinning long‑term financial flexibility.
Read all positive factors
Ingersoll Rand (IR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.44B
Dividend Yield0.1%
Average Volume (3M)3.30M
Price to Earnings (P/E)54.2
Beta (1Y)1.28
Revenue Growth4.20%
EPS Growth-34.47%
CountryUS
Employees21,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.96
Shares Outstanding391,617,980
10 Day Avg. Volume3,043,255
30 Day Avg. Volume3,295,057
Financial Highlights & Ratios
PEG Ratio-1.82
Price to Book (P/B)3.13
Price to Sales (P/S)4.12
P/FCF Ratio25.85
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue4.87
Enterprise Value/Gross Profit12.64
Enterprise Value/Ebitda22.02
Forecast
1Y Price Target
$101.57Price Target Upside18.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)3.52
Revenue Forecast (FY)$7.95B
Ingersoll Rand Business Overview & Revenue Model
Company Description
Ingersoll Rand Inc. provides various mission-critical air, fluid, energy, specialty vehicle and medical technologies in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Industrial Technolo...
How the Company Makes Money
Ingersoll Rand primarily makes money by selling engineered industrial equipment and related aftermarket parts and services. (1) Equipment and system sales: Revenue is generated from the sale of compressors, vacuum systems, pumps, and other flow-re...
Ingersoll Rand Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much each business unit contributes to total sales, indicating which segments are growing and which may need strategic adjustments.
Shows how much each business unit contributes to total sales, indicating which segments are growing and which may need strategic adjustments.
Data provided by:
The Fly
The FlyIngersoll Rand Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call reflected solid financial and operational performance: strong adjusted EBITDA, EPS growth, robust M&A execution, accelerating recurring revenue, and healthy liquidity and capital returns. Management acknowledged margin headwinds from tariffs and strategic reinvestments, a modest full-year organic revenue contraction in 2025, Q4 seasonality with book-to-bill below one, and cautious 2026 guidance that does not assume a market recovery. The balance of positive execution, cash generation, and a deep and disciplined M&A pipeline outweighs the near-term headwinds and conservative assumptions.Positive Updates
Quarterly Orders and Revenue Growth
Q4 orders increased 8% year-over-year (organic +1%); Q4 revenue rose 10% year-over-year (organic revenue +3%), signaling positive momentum into 2026.
Negative Updates
Full-Year Organic Revenue Slight Decline
Full-year total revenue was up 6% YoY but organic revenue finished down 1% year-over-year, driven by tough first-half comps.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Orders and Revenue Growth
Q4 orders increased 8% year-over-year (organic +1%); Q4 revenue rose 10% year-over-year (organic revenue +3%), signaling positive momentum into 2026.
Read all positive updates
Company Guidance
Ingersoll Rand guided full‑year 2026 revenue growth of 2.5%–4.5%, driven at the midpoint by ~1% organic growth, ~1.5% from M&A (including 2025 carryover and the Synomics deal) and a ~1% FX tailwind, with total adjusted EBITDA of $2.13–$2.19 billion and corporate costs planned at $170 million (evenly incurred). Adjusted EPS is expected to be $3.45–$3.57 (about 5% growth at the midpoint) with an adjusted tax rate of ~23%, net interest of ~ $230 million, share count of ~394 million, and free cash‑flow to adjusted‑net‑income conversion of ~95%; management said the guide assumes no market recovery (phasing consistent with historical seasonality: Q1 organic flat to slightly down, Q2–Q4 low single‑digit organic growth) and expects roughly mid‑single‑digit EPS growth in both the first and second halves.Ingersoll Rand Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.65B | 7.24B | 6.88B | 5.92B | 5.15B |
| Gross Profit | 2.95B | 3.17B | 2.88B | 2.33B | 1.99B |
| EBITDA | 1.92B | 1.83B | 1.65B | 1.28B | 1.02B |
| Net Income | 581.40M | 838.60M | 778.70M | 604.70M | 562.50M |
Balance Sheet | |||||
| Total Assets | 18.30B | 18.01B | 15.56B | 14.77B | 15.15B |
| Cash, Cash Equivalents and Short-Term Investments | 1.25B | 1.54B | 1.60B | 1.61B | 2.11B |
| Total Debt | 4.78B | 4.98B | 2.77B | 2.79B | 3.48B |
| Total Liabilities | 8.14B | 7.76B | 5.72B | 5.51B | 6.08B |
| Stockholders Equity | 10.09B | 10.18B | 9.78B | 9.20B | 9.00B |
Cash Flow | |||||
| Free Cash Flow | 1.22B | 1.25B | 1.27B | 765.70M | 551.40M |
| Operating Cash Flow | 1.36B | 1.40B | 1.38B | 860.30M | 615.50M |
| Investing Cash Flow | -660.60M | -3.11B | -1.06B | -332.90M | 914.30M |
| Financing Cash Flow | -1.05B | 1.71B | -337.50M | -954.00M | -1.16B |
Ingersoll Rand Technical Analysis
Positive
85.38
Price Trends
88.45
Negative
84.92
Positive
82.94
Positive
Market Momentum
-1.15
Negative
53.60
Neutral
89.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IR, the sentiment is Positive. The current price of 85.38 is above the 20-day moving average (MA) of 81.79, below the 50-day MA of 88.45, and above the 200-day MA of 82.94, indicating a neutral trend. The MACD of -1.15 indicates Negative momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 89.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IR.
Ingersoll Rand Risk Analysis
Ingersoll Rand disclosed 31 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $53.81B | 31.97 | 14.26% | 0.59% | 3.67% | 10.44% | |
70 Outperform | $33.44B | 54.24 | 5.70% | 0.10% | 4.20% | -34.47% | |
70 Outperform | $29.28B | 24.49 | 14.76% | 1.04% | -5.24% | 45.69% | |
68 Neutral | $14.58B | 26.14 | 17.48% | 0.96% | 0.83% | -1.32% | |
68 Neutral | $44.49B | 35.94 | 27.69% | 1.33% | 0.98% | -7.51% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $13.85B | 33.29 | 4.18% | 0.97% | -4.99% | 22.16% |
* Industrials Sector Average
IR
Ingersoll Rand
85.38
12.08
16.48%
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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.