Here's Why You Should Retain Ingersoll Rand in Your Portfolio

Ingersoll Rand Inc. IR continues to witness higher orders across its product portfolio of industrial vacuums and blowers, which is driving the Industrial Technologies & Services (IT&S) segment. The segment’s order totaled $1.52 billion, up 7.2% year over year in the third quarter of 2025.

Strong momentum in the life sciences business, driven by growth in fluid handling product orders within the legacy Gardner Denver Medical platform, is likely to be a tailwind for the Precision and Science Technologies segment. Strength in the precision technologies business and an increase in demand for biopharma solutions also bode well. The segment reported an order of $420.1 million in the third quarter, up 11.1% year over year. Driven by strength across its businesses, management expects the company’s 2025 revenues to grow 4-6% from the year-ago level. 

The company intends to strengthen and expand its businesses through buyouts. In November 2025, it acquired Transvac Systems Ltd., which enhanced Ingersoll Rand’s portfolio of engineered solutions with advanced ejector and hybrid systems. In August 2025, it acquired Dave Barry Plastics, which boosted its life science portfolio. In June 2025, the company acquired Lead Fluid (Baoding) Intelligent Equipment Manufacturing Co., Ltd (Lead Fluid), which boosted its life science business in China.

Also, in April 2025, Ingersoll Rand completed the acquisition of G&D Chillers, Inc. (G&D) and Advanced Gas Technologies Inc. (“AGT”). The acquisitions expanded the company’s air treatment portfolio. In the third quarter, acquisitions contributed 4.7% to IR’s total revenues.

Strong free cash flow generation supports Ingersoll Rand’s shareholder-friendly activities. In the first nine months of 2025, the company’s free cash flow inched up 0.3% year over year to $758.6 million. In the same period, IR paid out dividends of $24 million and repurchased treasury stocks worth $703 million.

IR’s Price Performance

In the past three months, the Zacks Rank #3 (Hold) company has gained 5.3% compared with the industry’s 3.7% growth.

Near-Term Headwinds

Ingersoll Rand is grappling with an increase in operating costs and expenses. The company’s cost of sales increased 4.4% and 1.8% year over year in the first nine months of 2025 and 2024, respectively, due to the higher raw materials costs and component parts. Ingersoll Rand’s selling and administrative expenses surged 5.6% in 2024.

The trend continued in the first nine months of 2025, with selling and administrative expenses increasing 6.9% year over year. This drove up the selling and administrative expenses, as a percentage of revenues, by 50 basis points to 19.5%.

IR’s highly leveraged balance sheet also remains concerning. Exiting third-quarter 2025, the company’s long-term debt was $4.79 billion, higher than $4.78 billion at the previous quarter-end. Also, interest expenses in the third quarter were $65.1 million, up 2% year over year.

Stocks to Consider

Some better-ranked stocks are discussed below: You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Helios Technologies HLIO currently sports a Zacks Rank of 1. HLIO has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, with an average surprise of 16.8%.  In the past 60 days, the Zacks Consensus Estimate for Helios’ 2025 earnings has increased 2.5%.

Flowserve Corporation FLS presently carries a Zacks Rank #2 (Buy). FLS’ earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 10.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2025 earnings has increased 3%.

Nordson Corporation NDSN currently carries a Zacks Rank of 2. NDSN’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 2.2%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s 2025 earnings has inched up 0.6%.

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

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