Reasons Why You Should Avoid Betting on Ingersoll Rand Right Now

Ingersoll Rand Inc. IR failed to impress investors with its recent operational performance due to increasing operating costs and a high debt level. Also, foreign currency headwind is an added uncertainty.

IR currently carries a Zacks Rank #4 (Sell). In the past year, the stock has lost 25.9% compared with the industry’s 0.1% decline.

Let’s discuss the factors that are likely to continue taking a toll on this company.

Rising Expenses: IR has been dealing with the adverse impacts of rising operating costs and expenses. The company’s cost of sales increased 4.4% year over year in the first nine months of 2025, due to the increasing cost of raw materials and component parts. Ingersoll Rand’s selling and administrative expenses increased 6.9% year over year for the first nine months of the year. This drove up the selling and administrative expenses, as a percentage of revenues, by 50 basis points to 19.5%. The company has been witnessing high costs associated with investments to support growth in areas like demand generation, digital and other IT-related investments. Escalating costs are a pressure on IR’s bottom line.

High Debt Level: Ingersoll Rand’s long-term debt in the last five years (2020-2024) increased 4.3% (CAGR). At the end of third-quarter 2025, the company’s long-term debt was $4.79 billion, higher than $4.78 billion at the second quarter-end. Also, interest expenses in the third quarter were $65.1 million, up 2% year over year. High debt levels can increase the company’s financial obligations and prove detrimental to profitability in the quarters ahead.

Forex Woes: Ingersoll Rand’s international presence keeps it exposed to the risk of adverse currency fluctuations. This is because a strengthening U.S. dollar is likely to require the company to either raise prices or contract profit margins in locations outside the United States. Thus, adverse currency movements are a worry.

Southbound Estimate Revision: In the past 60 days, the Zacks Consensus Estimate for 2025 earnings has been revised 2.1% downward.

Stocks to Consider

Some better-ranked companies are discussed below.

Crane Company CR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CR delivered a trailing four-quarter average earnings surprise of 9.3%. In the past 60 days, the Zacks Consensus Estimate for Crane’s 2025 earnings has increased 2.9%.

Flowserve Corporation FLS presently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 10.5%.

In the past 60 days, the consensus estimate for Flowserve’s 2025 earnings has increased 2.4%.

Parker-Hannifin Corporation PH presently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 6.2%.

In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 2.1%.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research