IR - Ingersoll Rand Inc.

Ingersoll Rand manufactures compressed air systems, industrial air compressors, blowers, power tools, and fluid management equipment sold under brands like Gardner Denver and Ingersoll Rand. The business model is industrial B2B, selling capital equipment and aftermarket parts/services to manufacturing, energy, medical, and food processing customers on a transactional and service-contract basis. Annual revenue is approximately $7B, with significant exposure to North America and Europe as primary markets. The company generates a meaningful portion of revenue from recurring aftermarket parts and service, which provides some revenue stability beyond new equipment sales.

Past Year Trends

• Ingersoll Rand closed the $2.325 billion acquisition of ILC Dover in June 2024, adding approximately $700 million in annual revenue with 75% recurring/consumable mix and expanding its total addressable market by over $10 billion into life sciences and biopharma. (Bullish)
• FY2024 Adjusted EBITDA reached $2.018 billion, growing 13% YoY with margin expanding 190 basis points to 27.9%, driven by pricing discipline and productivity initiatives across both segments. (Bullish)
• IT&S segment organic revenue growth decelerated sharply from +4.8% in FY2024 to -2.1% in FY2025, signaling demand softness in legacy industrial compressor and vacuum end-markets. (Bearish)

Next Year Trends

• ILC Dover synergy realization and integration into Ingersoll Rand's Precision & Science Technologies segment is expected to drive P&ST EBITDA margins back toward 30% over the next 12 months, with the 75% recurring consumables revenue base providing visibility. (Bullish)
• Q1 2025 order intake of $1.882 billion grew 10% YoY and full-year 2025 orders are tracking +9% YoY, suggesting a revenue recovery in the IT&S segment in the back half of 2025 and into 2026 after the organic decline trough. (Bullish)
• Ingersoll Rand's 2026 guidance projects only approximately 1% organic revenue growth at the midpoint, with total growth of 2.5%-4.5% heavily dependent on bolt-on M&A contribution, leaving the company exposed if its $750 million share repurchase program competes with acquisition capital allocation. (Bearish)

Red Flags

No severe red flags identified as of August 2025.