Ingersoll Rand (IR) Company Report

Since the 2020 merger, Ingersoll Rand has completed 76 acquisitions and delivered $1.2–$1.3 billion in annual free cash flow across a $65 billion+ addressable market, with revenues near $8 billion.
IR sets 0–2% organic growth guidance for 2026 to reflect prudence amid early short-cycle recovery signals, leaving room to revise if leading indicators strengthen.
China accounts for 10% of revenue, with low-single-digit organic orders; growth drivers include replacement demand and leveraging blowers, vacuum, and air treatment technologies acquired post-merger.
Recurring revenue reached $450 million in 2025 (up from $200 million in 2023), supported by a $1.1 billion contract backlog and targeting $1 billion by 2027.
The company is embedding AI for predictive maintenance in connected products and enhancing sales-force efficiency, while price increases are expected to offset tariffs (price-cost neutral H1, positive H2 2026) to drive margin expansion.

Feb 19, 2026, 1:50 PM

Transcript

Ingersoll Rand outlines cautious 2026 outlook with focus on recurring revenue and bolt-on M&A

Guidance Update

M&A

Organic growth guidance of 0–2% (midpoint 1%) for 2026 reflects a prudent view that does not yet bake in a broader industrial recovery, despite low-single-digit order momentum in H2 2025.
Recurring revenue has ramped from ~$100 million a few years ago to >$450 million in 2026, supported by a $1.1 billion backlog of future contracts.
Completed 16 bolt-on acquisitions in 2025 (~$275 million of acquired revenue) and targets 400–500 bps of annualized inorganic growth in 2026, with a funnel of ~200 assets and 9 LOIs.
Regional highlights include: China at 10% of revenue with stable margins; 20% Q4 organic orders growth in non-China APAC; stable growth in Western Europe and double-digit momentum in India; and low-single-digit growth in North America bolstered by energy-efficiency tailwinds.
ITS segment maintains 29% EBITDA margin with potential 30–40% incrementals on volume recovery, while PST margins are poised to expand triple digits in 2026 toward mid-30s by 2027, driven by life sciences growth, restructuring and early recurring-revenue adoption.

Feb 19, 2026, 1:50 PM

Transcript

Ingersoll Rand details strategy and guidance at Citi Industrial Tech & Mobility Conference

Guidance Update

M&A

Since the 2020 merger, Ingersoll Rand has grown to about $8 billion in revenue within a $65 billion addressable market, delivering solid organic growth, margin improvement, $1.2–1.3 billion in annual free cash flow, and completing 76 bolt-on acquisitions globally.
For 2026, IR guides 0–2% organic growth (midpoint 1%), taking a prudent view that excludes a broad industrial recovery, and expects pricing to be tariff-neutral in H1 before driving margin expansion in H2.
Short-cycle orders in ITS showed low single-digit momentum in H2 2025, while under-penetrated markets (Latin America, Middle East, India, Southeast Asia) benefit from new facilities and commercial investments; Europe remains stable with sustainability demand, and Americas growth is supported by life sciences and higher energy costs.
ITS maintained ~29% EBITDA margins in 2025 and could realize 30–40% incrementals on incremental volume; PST margins exceeded 30% with a path to mid-30s by 2027 through volume growth, restructuring actions, recurring revenue initiatives, and bolt-on M&A.
The M&A engine remains active: IR closed 16 deals in 2025 adding $275 million of acquired revenue, and targets 4–5% annual inorganic growth via a 90% sole-sourced bolt-on approach across ITS, PST, and life sciences.

Feb 19, 2026, 1:50 PM

Transcript

Ingersoll Rand outlines 2026 guidance and strategic priorities at Barclays conference

Guidance Update

M&A

Q4 saw positive organic order growth in North America and China, and 20%+ order growth in non-China Asia, but management remains prudent awaiting sustained recovery.
2026 guidance forecasts 1% organic revenue growth and 5% EPS growth at midpoint, with typical seasonal phasing (Q1 lightest, Q4 heaviest; H1 and H2 mid-single-digit earnings growth).
Recurring revenue reached $450 M in 2025 (vs. ~$200 M in 2023), driven by PackageCARE and analogous service models across compressors, blowers, and pumps, with broad global adoption.
Tariff headwinds (Section 232 and other duties) have been offset dollar-for-dollar via pricing, causing H1 margin pressure but expected normalization and margin expansion in H2 2026.
Capital allocation: ~80% of free cash flow targeted to M&A (bolt-on deals around $1 B plus smaller acquisitions), $300–350 M planned for share repurchases, and dividend unchanged.

Feb 18, 2026, 2:50 PM

Transcript

Ingersoll Rand outlines 2026 guidance and strategic priorities

Guidance Update

M&A

Share Buyback

Guidance for 2026 assumes ~1% organic revenue growth and ~5% EPS growth at the midpoints, with customary seasonal phasing (light Q1, heavy Q4).
Recurring revenue more than doubled to $450 million in 2025 (from $200 million in 2023 and $100 million earlier), now spanning all nine business units on track towards a $1 billion target.
Industrial Technologies & Services (ITS) margins are planned at ~29%, with tariff-related headwinds expected in H1 2026 and normalization (margin expansion) in H2 2026; Precision & Science Technologies (PST) margins are improving through integration and productivity initiatives, aiming for mid-30s% EBITDA over time.
Capital deployment prioritizes bolt-on M&A (~80–85% of free cash flow, including $500 million across 16 deals in 2025 and $1 billion+ transactions in the pipeline), complemented by $300–350 million in share buybacks and a stable dividend.

Feb 18, 2026, 2:50 PM

Transcript

Ingersoll Rand outlines cautious 2026 guidance and strategic priorities at Barclays conference

Guidance Update

M&A

Revenue Acceleration/Inflection

Q4 2025 saw positive organic orders growth in North America and China; 2026 guidance calls for 1% organic growth midpoint and ~5% EPS growth, with seasonal phasing in H1/H2 similar to prior years.
Recurring revenue surpassed $450 million in 2025 (versus $200 million in 2023), driven by Package Care and new recurring‐revenue models; gross margins on risk-transfer offerings run 60–70%, with a $1 billion target by 2027.
U.S. compressor tariffs are offset dollar-for-dollar by pricing actions, resulting in price-cost neutrality; first-half 2026 ITS margin headwind expected to normalize in H2 2026.
ITS EBITDA margin forecast at ~29% for 2026 with potential low-single-digit expansion thereafter; PST margins set to improve by >1 percentage point in 2026, aiming for mid-30s% over time.
Capital allocation prioritizes M&A (targeting 80–85% of free cash flow for bolt-on deals, including $1 billion+ transactions), $300–350 million in share buybacks, and an unchanged dividend.

Feb 18, 2026, 2:50 PM

Transcript

Ingersoll Rand announces Q4 2025 results

Earnings

Guidance Update

M&A

Q4 orders up 8% YoY (1% organic); revenue +10% YoY (3% organic); adjusted EBITDA $580 M (27.7% margin); EPS $0.96 (+14% YoY)
FY2025 orders +9% YoY (1% organic); revenue +6% YoY (organic –1%); adjusted EBITDA $2.1 B (27.4% margin); EPS $3.34 (+2% YoY)
Free cash flow $462 M in Q4; liquidity $3.8 B; leverage <2×; deployed $525 M on M&A, $1 B on share repurchases, $32 M in dividends
2026 guidance: revenue +2.5–4.5% (organic +1% at midpoint); adjusted EBITDA $2.13–2.19 B; adjusted EPS $3.45–3.57

Feb 13, 2026, 1:00 PM

Transcript

Ingersoll Rand reports Q4 and full-year 2025 results

Earnings

Guidance Update

M&A

In Q4 and full-year 2025, Ingersoll Rand delivered low single-digit organic order growth and returned to organic revenue growth.
Recurring revenue exceeded $450 million in 2025, with a backlog of approximately $1.1 billion in future revenue from existing contracts.
ITS segment Q4 orders were up 9%, revenue grew 11%, and Adjusted EBITDA margin was 28.9%; PST segment Q4 orders rose 6%, revenue increased 8%, and Adjusted EBITDA margin reached 30.4%.
For 2026, the company guides to 2.5–4.5% revenue growth, driven by 1% organic growth, 1.5% from M&A carryover, and 1% FX tailwind.

Feb 13, 2026, 1:00 PM

Transcript

Ingersoll Rand reports Q4 2025 earnings

Earnings

Guidance Update

M&A

In Q4 2025, orders rose 8% to $1,951.7 M and revenue increased 10% to $2,091.2 M, with organic revenue up 3% year-over-year.
Adjusted EBITDA grew 9% to $580.1 M, though margin contracted 30 bps to 27.7%; adjusted diluted EPS was $0.96, up 14%.
Q4 free cash flow was $461.5 M, representing a 22.1% free cash flow margin.
The company invested $525 M in inorganic growth in FY 2025, closing 16 transactions and acquiring ~$275 M of annualized revenue, while guiding FY 2026 for 2.5%–4.5% revenue growth, $2,130 M–$2,190 M adjusted EBITDA, and $3.45–$3.57 adjusted EPS.

Feb 13, 2026, 1:00 PM

Presentation

Ingersoll Rand reports Q4 2025 results and 2026 outlook

Earnings

Guidance Update

M&A

Q4 orders rose 8% year-over-year (up 1% organically) with a book-to-bill of 0.93; full-year orders increased 9% (1% organic) reflecting broad segment strength.
Q4 revenue was up 10% (organic + 3%), delivering adjusted EBITDA of $580 million (27.7% margin) and adjusted EPS of $0.96, a 14% increase.
For full-year 2025, adjusted EBITDA reached $2.1 billion (27.4% margin) with adjusted EPS of $3.34 (+ 2%); Q4 free cash flow was $462 million and capital deployment included $525 million in M&A, $1 billion in buybacks, and $32 million in dividends.
The recurring revenue initiative surpassed $450 million in 2025 with a $1.1 billion backlog; M&A spend of $525 million across 16 deals generated $275 million in annualized revenue. 2026 guidance calls for revenue growth of 2.5–4.5%, adjusted EBITDA of $2.13–2.19 billion, and EPS of $3.45–3.57.

Feb 13, 2026, 1:00 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Ingersoll Rand.

Q4 2025

Feb 13, 2026

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Q3 2025

Oct 31, 2025

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Q2 2025

Aug 1, 2025

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