Question · Q4 2025
Joe O'Day inquired about the acquisition opportunity set, specifically the composition of the pipeline (primarily bolt-on vs. larger deals) and Ingersoll Rand's appetite for larger acquisitions, given the expectation of 400-500 basis points of annualized revenue from M&A in 2026. He also asked for color on the drivers of traction in recurring revenue, where Ingersoll Rand is most pleased, and the opportunity for 2026.
Answer
CEO Vicente Reynal characterized the pipeline as bolt-on in nature, with nine companies currently under LOI, but noted a couple of cultivated deals could be larger (around $1 billion). He highlighted the strong cultivation process and good activity. Regarding recurring revenue, Vicente Reynal expressed excitement about exceeding $450 million in revenue in 2025 and having $1.1 billion in future revenue from existing contracts in backlog. He emphasized the team's resiliency in expanding recurring revenue across regions and technologies, acknowledging that the ramp will not be linear but expressing satisfaction with the performance so far.
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