Ingersoll Rand's Q4 Earnings & Revenues Top Estimates, Up Y/Y

Ingersoll Rand Inc. IR reported fourth-quarter 2025 adjusted earnings of 96 cents per share, which surpassed the Zacks Consensus Estimate of 91 cents. The bottom line increased 14.3% year over year.

Total revenues of $2.09 billion beat the consensus estimate of $2.05 billion. The top line increased 10.2% year over year. Acquisitions contributed 4% to revenues while organic revenues increased 2.9%. Foreign currency movements had a positive impact of 3.3%.

Orders totaled $1.95 billion, up 8.5% year over year. Organically, orders increased 1.1%.

For 2025, the company’s adjusted earnings came in at $3.34 per share, up 2% year over year. For the year, it generated revenues of $7.65 billion, reflecting an increase of 6%.

IR’s Segmental Discussion

The Industrial Technologies & Services segment generated revenues of $1.67 billion, accounting for 80% of net revenues. Sales increased 10.7% year over year. Acquisitions contributed 4.7% while movement in foreign currencies had a positive impact of 3.3%. The segment’s organic sales increased 2.7%. Our estimate for the segment’s sales was $1.63 billion.

Segmental orders were up 8.9%. Adjusted EBITDA increased 5.8% year over year to $484.1 million. Our estimate for adjusted EBITDA was $478 million.

The Precision & Science Technologies segment’s revenues totaled $419 million, representing 20% of net revenues. Our estimate for segmental revenues was $408 million. On a year-over-year basis, the segment’s revenues increased 8.1%. Organic sales increased 3.7% while movement in foreign currencies had a positive impact of 3.1%. Acquisitions contributed 1.3% to revenue growth.

The segment’s orders increased 6.5% on a year-over-year basis. Adjusted EBITDA increased 19.3% year over year to $127.4 million. Our estimate for adjusted EBITDA was $126 million.

Ingersoll Rand Inc. Price, Consensus and EPS Surprise

Ingersoll Rand Inc. price-consensus-eps-surprise-chart | Ingersoll Rand Inc. Quote

IR’s Margin Profile

IR's cost of sales increased 10.8% year over year to $1.20 billion. Selling and administrative expenses were up 7.7% to $357.1 million.

Adjusted EBITDA increased 9% year over year to $580.1 million. The margin decreased to 27.7% from 28.0% in the year-ago period.

Balance Sheet & Cash Flow of IR

While exiting the fourth quarter, Ingersoll Rand had cash and cash equivalents of $1.25 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 2025, the company paid out dividends of $31.8 million and repurchased treasury stocks worth $1.02 billion.

For the year, IR generated net cash of $1.36 billion from operating activities, down 2.9% year over year. Capital expenditure totaled $135.6 million compared with $149.1 million in the year-ago quarter. Free cash flow decreased 2.2% to $1.22 billion.

Ingersoll Rand’s 2026 Outlook

Ingersoll Rand expects revenues to increase 2.5-4.5% year over year. Organic revenues are estimated to increase in the range of 0-2%. Foreign currency translation and acquisitions are expected to have a positive impact of 1% and 1.5%, respectively, on revenues.

Adjusted EBITDA is expected to be in the $2.13-$2.19 billion band, indicating an increase of 3-6% from the prior-year level. Adjusted earnings are anticipated to be in the range of $3.45 - $3.57 per share. This indicates 5% growth at the mid-point from the year-earlier actual.

IR’s Zacks Rank & Key Picks

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.

RBC Bearings Incorporated RBC presently sports a Zacks Rank of 1. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has increased 3.9%.

Parker-Hannifin Corporation PH currently carries a Zacks Rank #2 (Buy). Parker-Hannifin’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.8%. In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 2.1%.

Ferguson plc FERG currently carries a Zacks Rank of 2. Ferguson’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 9.8%. In the past 60 days, the Zacks Consensus Estimate for Ferguson’s fiscal 2026 earnings has increased 3.1%.

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