Ingersoll Rand's Q2 Earnings Match Estimates, Revenues Beat

Ingersoll Rand Inc. IR reported second-quarter 2025 adjusted earnings of 80 cents per share, which matched the Zacks Consensus Estimate. The bottom line decreased 3.6% year over year.

Total revenues of $1.89 billion beat the consensus estimate of $1.84 billion. The top line increased 4.6% year over year. Acquisitions contributed 6.5% to revenues while organic revenues decreased 3.9%. Foreign currency movements had a positive impact of 1.5%.

Orders totaled $1.94 billion, up 7.8% year over year. Organically, orders decreased 0.1%.

IR’s Segmental Discussion

The Industrial Technologies & Services segment generated revenues of $1.49 billion, accounting for 79% of net revenues. Sales increased 1.7% year over year. Acquisitions contributed 4.2% while movement in foreign currencies had a positive impact of 1.3%. The segment’s organic sales inched down 3.8%. Our estimate for the segment’s sales was $1.46 billion.

Segmental orders were up 6.5%. Adjusted EBITDA decreased 2.1% year over year to $427.2 million. Our estimate for adjusted EBITDA was $417.7 million.

The Precision & Science Technologies segment’s revenues totaled $396.3 million, representing 21% of net revenues. Our estimate for segmental revenues was $380.9 million. On a year-over-year basis, the segment’s revenues increased 17%. Organic sales declined 1.6% while movement in foreign currencies had a positive impact of 2.3%. Acquisitions contributed 16.3% to revenue growth.

The segment’s orders increased 13.4% on a year-over-year basis. Adjusted EBITDA increased 14% year over year to $116.8 million. Our estimate for adjusted EBITDA was $110.1 million.

IR’s Margin Profile

IR's cost of sales increased 5% year over year to $1.06 billion. Selling and administrative expenses were up 8.5% to $371.2 million.

Adjusted EBITDA increased 3% year over year to $509.4 million. The margin decreased to 27% from 27.4% in the year-ago period.

Balance Sheet & Cash Flow of IR

While exiting the second quarter, Ingersoll Rand had cash and cash equivalents of $1.31 billion compared with $1.54 billion at the end of December 2024. Long-term debt (less of current maturities) was $4.78 billion compared with $4.75 billion in December 2024.
 
In the first six months of 2025, the company paid out dividends of $16.1 million and repurchased treasury stocks worth $510.2 million.

IR generated net cash of $502.1 million from operating activities, up 7.6% year over year. Capital expenditure totaled $69 million compared with $84.1 million in the year-ago quarter. Free cash flow increased 13.3% to $433.1 million.

Ingersoll Rand’s 2025 Outlook

Ingersoll Rand raised its 2025 outlook. It now expects revenues to increase 4-6% year over year compared with the 3-5% rise anticipated earlier. Organic revenues are estimated to decrease 2% to remain flat. For both the Industrial Technologies & Services and Precision & Science Technologies segments, organic revenues are predicted to decrease 2% to remain flat from the year-ago levels. Adverse foreign currency movements are expected to be approximately 1%.

Adjusted EBITDA is expected to be in the $2.1-$2.16 billion band, indicating an increase of 4-7% from the prior-year level. Adjusted earnings are anticipated to be in the range of $3.34 - $3.46 per share compared with $3.28 - $3.40 predicted earlier. This indicates 2-5% growth from the year-earlier actual.

IR’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Performance of Other Companies

Dover Corporation DOV reported earnings of $2.44 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.39. This compares with earnings of $2.36 per share a year ago.

Dover posted revenues of $2.05 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $2.18 billion.

Teck Resources Limited TECK came out with earnings of $0.27 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $0.2. This compares with earnings of $0.58 per share a year ago.

Teck Resources posted revenues of $1.46 billion in the quarter, missing the Zacks Consensus Estimate by 8.7%. This compares with year-ago revenues of $2.83 billion. 

Packaging Corporation of America PKG reported earnings of $2.48 per share, beating the Zacks Consensus Estimate of $2.44. This compares with earnings of $2.2 per share a year ago.

Packaging Corp. posted revenues of $2.17 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.5%. This compares with year-ago revenues of $2.08 billion.

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