Ingersoll Rand's Q3 Earnings Match Estimates, Revenues Beat

Ingersoll Rand Inc. IR reported third-quarter 2025 adjusted earnings of 86 cents per share, which matched the Zacks Consensus Estimate. The bottom line increased 2.4% year over year.

Total revenues of $1.96 billion beat the consensus estimate of $1.95 billion. The top line increased 5.1% year over year. Acquisitions contributed 4.7% to revenues while organic revenues decreased 1.3%. Foreign currency movements had a positive impact of 1.6%.

Orders totaled $1.94 billion, up 8% year over year. Organically, orders increased 1.7%.

IR’s Segmental Discussion

The Industrial Technologies & Services segment generated revenues of $1.54 billion, accounting for 78.8% of net revenues. Sales increased 5% year over year. Acquisitions contributed 5.6% while movement in foreign currencies had a positive impact of 1.5%. The segment’s organic sales inched down 2.1%. Our estimate for the segment’s sales was $1.53 billion.

Segmental orders were up 7.2%. Adjusted EBITDA decreased 0.5% year over year to $447.5 million. Our estimate for adjusted EBITDA was $452.2 million.

The Precision & Science Technologies segment’s revenues totaled $414.5 million, representing 21.2% of net revenues. Our estimate for segmental revenues was $421.1 million. On a year-over-year basis, the segment’s revenues increased 5.3%. Organic sales increased 1.7% while movement in foreign currencies had a positive impact of 1.9%. Acquisitions contributed 1.7% to revenue growth.

The segment’s orders increased 11.1% on a year-over-year basis. Adjusted EBITDA increased 8% year over year to $127.6 million. Our estimate for adjusted EBITDA was $134 million.

IR’s Margin Profile

IR's cost of sales increased 5.1% year over year to $1.10 billion. Selling and administrative expenses were up 8% to $361.0 million.

Adjusted EBITDA increased 2.2% year over year to $544.6 million. The margin decreased to 27.9% from 28.6% in the year-ago period.

Balance Sheet & Cash Flow of IR

While exiting the third quarter, Ingersoll Rand had cash and cash equivalents of $1.18 billion compared with $1.54 billion at the end of December 2024. Long-term debt (less of current maturities) was $4.79 billion compared with $4.75 billion in December 2024.
 
In the first nine months of 2025, the company paid out dividends of $24 million and repurchased treasury stocks worth $703.3 million.

IR generated net cash of $856.7 million from operating activities, down 1.6% year over year. Capital expenditure totaled $98.1 million compared with $113.8 million in the year-ago quarter. Free cash flow increased 0.3% to $758.6 million.

Ingersoll Rand’s 2025 Outlook

Ingersoll Rand expects revenues to increase 4-6% year over year. 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 $2.06-$2.09 billion band, indicating an increase of 2-4% from the prior-year level. Adjusted earnings are anticipated to be in the range of $3.25 - $3.31 per share compared with $3.34 - $3.46 predicted earlier. This indicates a decline of 1% to 1% 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 $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.

Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.

Ardagh Metal Packaging S.A. AMBP came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.

Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion. 

Packaging Corporation of America PKG reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.

Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.

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